Responsible employers in the construction industry know the importance of implementing a safety and health program to prevent workplace injuries. Effective safety programs have seven core elements.
- Management leadership—provides the resources needed to implement an effective safety and health program.
- Worker participation—allows a program to benefit from the workers’ knowledge base and empowers workers to provide feedback.
- Hazard identification and assessment—identifies the root cause of construction injuries.
- Hazard prevention and control—helps employers provide workers with safe and healthy working conditions.
- Education and training—provides workers and managers with a greater understanding of the safety and health program.
- Program evaluation and improvement—verifies that the program is being implemented as intended.
- Communication and coordination for employers on multiemployer work sites—encourages employers and contractors to consider how the work they do can affect the safety of other workers at the job site.
The seven core elements are interrelated and are best viewed as an integrated system. Actions taken under one core element can, and likely will, affect other core elements. For example, the education and training core element supports the worker participation core element.
It is important to achieve progress in each core element in order to benefit from a safety and health program. Contact Scurich Insurance for more information regarding recommended practices for safety and health programs in construction.
OSHA Rescinds Walkaround Memo
OSHA has withdrawn its 2013 “Walkaround Letter of Interpretation” that allowed union officials to participate in inspections at nonunionized workplaces.
The letter was viewed by employers as an attempt by the Obama administration to support and expand union representation to nonunion workplaces. However, OSHA has now withdrawn the union policy language featured in the letter, calling it unnecessary.
OSHA compliance officers may still attempt to include outsiders to participate in a walkaround if there is good cause. One example of good cause would be due to the compliance officer lacking technical or language expertise that is necessary to the inspection. Such cases are rare, however, as OSHA usually provides the needed expertise from within the agency.
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OSHA Program to Target Southern Auto Part Makers
OSHA has renewed a Regional Emphasis Program (REP) for auto part manufacturers in Alabama, Georgia and Mississippi. The REP was originally established to reduce workplace hazards in the auto parts industry, including electrical, struck-by, caught-in and crushing hazards.
Information released by OSHA revealed that the REP led to 46 safety inspections in 2016, which resulted in 143 violations. Now that the REP has been renewed, OSHA will continue to target auto parts manufacturers in the region for inspections.
Trump Administration Will Not Label China as a Currency Manipulator
President Donald Trump recently announced that his administration will not officially label China as a currency manipulator. This is a reversal from previous statements released by Trump, as he stated during his presidential campaign that he would take steps to label the country as a currency manipulator during his first days in office.
Many experts believe that the Chinese government artificially weakens its own currency to make its goods more affordable for American consumers. However, Trump recently stated that China hasn’t manipulated its currency in months, and that the current strength of the U.S. dollar is hurting exports of domestic goods.
This policy reversal is seen by some as a move to maintain China as an ally against North Korea after recent political unrest in the area. However, the decision to not label China as a currency manipulator has already had an impact. According to S&P Global Platts, an energy information provider, the stocks of 10 major U.S. steel producers fell after Trump’s announcement.
Cyber Insurance on the Rise in Manufacturing
Before now, cyber insurance has usually been purchased by consumer-facing businesses, such as health care providers, retailers and financial institutions. However, cyber attacks are now capable of taking control of manufacturing plants and products, and many businesses in the industry are purchasing cyber insurance policies to protect themselves.
According to Advisen, an insurance data provider, manufacturers paid nearly $37 million in cyber insurance premiums in 2016, an increase of 89 percent compared to 2015. Get in touch with us today at 831-661-5697 to discuss a cyber insurance policy and protect your business.
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In the November 2016 elections, the use of medical marijuana was approved through four state ballot measures, bringing the total to 28 states and the District of Columbia that have legalized medical marijuana in some form. Additionally, the District of Columbia and eight states—Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon and Washington—have legalized recreational use of marijuana in some form.
However, under the Controlled Substance Act of 1970, marijuana is classified as a Schedule I substance with no accepted medical use and a high potential for abuse, making it illegal at the federal level. Amid state and federal law contradictions, many workers’ compensation payers are choosing to deny coverage for medical marijuana. Since medical marijuana isn’t currently included in workers’ compensation treatment guidelines, they have every right to do so.
As such, the future of medical marijuana in workers’ compensation remains unclear, and state and federal lawmakers have their own opinions.
States’ Stances
While states have different views on the use of medical marijuana, there are various state rulings that may be setting a new precedent in the workers’ compensation and medical marijuana debate.
New Mexico
New Mexico became the first state to propose a reimbursement rule for medical marijuana in November 2015. The state’s 2016 fee schedule set the maximum reimbursement rate for medical marijuana at $12.02 per gram for injured workers. Under the state’s Lynn and Erin Compassionate Use Act, authorization was considered equivalent to a prescription—requiring employers to reimburse injured workers for medical marijuana. Furthermore, this process allowed insurance carriers to avoid directly paying for a Schedule I substance.
Minnesota
In 2015, Minnesota’s health commissioner decided to include “intractable” pain as a condition that could be treated with medical marijuana. According to the Minnesota Department of Health, intractable pain is defined as, “pain whose cause cannot be removed and, according to generally accepted medical practice, the full range of pain management modalities appropriate for this patient has been used without adequate result or with intolerable side effects.” This decision has opened the door for claimants to request that their workers’ compensation insurers cover the cost for medical marijuana.
Maine
The outcome in a workers’ compensation case involving medical marijuana was different than those in New Mexico and Minnesota, when an employee who sustained a back injury while making deliveries requested reimbursement for medical marijuana. According to Maine’s Workers’ Compensation Act of 1992 (MWCA), “an injured worker is entitled to reasonable and proper medical, surgical, and hospital services, nursing, medicines, and mechanical and surgical aids, as needed, paid for by the employer.”
However, the employer argued that medical marijuana-related services should not be covered under the MWCA, and that by covering such services, the employer would be in violation of federal law and subject to the risks of prosecution. In support of its argument, the employer also cited Maine’s medical marijuana statute, which states that it may not be construed to require a government medical assistance program or private health insurer to reimburse an individual for costs associated with the medical use of marijuana. The employer won the case.
Other states, including Arizona and Montana, are in agreement with Maine and have taken the position that a workers’ compensation insurance carrier cannot be compelled to pay for medical marijuana because the possession and use of marijuana is still illegal under federal law.
Federal Opinion
Workers’ compensation payers rely on evidence-based guidelines when making treatment decisions. Since medical marijuana is considered a Schedule I substance and is not included any workers’ compensation treatment guidelines, many payers are opting to deny coverage.
Benefits of Covering Medical Marijuana
There is significant interest in using medical marijuana as an alternative to opiates for the management of chronic pain. Furthermore, alternative treatments may pave the way for medical marijuana, as meditation, exercise, mindfulness, yoga and cognitive behavioral therapy have proven successful in eliminating opioid use. However, insurers have historically been more likely to pay for opioids than alternative treatments.
Drawbacks of Covering Medical Marijuana
In states that have legalized medical or recreational marijuana, workplace safety is a concern. It is the employer’s responsibility to foster an environment devoid of harmful hazards. If a company employs a medical marijuana user, this person might experience side effects that could lead to a workplace injury.
Furthermore, drug-free workplace policies could be affected since marijuana continues to be categorized as a Schedule I substance. For example, although an employee may be authorized to use medical marijuana, he or she could still be terminated if found positive for marijuana in a random drug test.
Federal Outlook
It’s too early to anticipate President Donald Trump’s official policies with regards to medical marijuana. However, on the campaign trail, he said he was in favor of rescheduling marijuana as a Schedule II substance, which is in contrast to the Obama administration’s stance. In 2016, former President Barack Obama claimed that more research was needed into the drug’s possible medical benefits.
New legislation and court decisions are continuing to develop, which will affect workers’ compensation treatment decisions. For example, on Aug. 29, 2013, the Department of Justice published a memorandum authored by former Deputy Attorney General James Cole, outlining a new set of priorities for federal prosecutors operating in states which had legalized the use of marijuana. The “Cole memo” encouraged law enforcement agencies to focus on the most critical federal priorities, such as preventing the distribution of marijuana to minors. By doing so, the federal government is taking a more hands-off approach in jurisdictions that have enacted laws legalizing marijuana.
Also protecting the marijuana industry is the Rohrabacher-Farr amendment, which prohibits the federal government from spending money to target medical marijuana businesses. However, the federal government could still go after small businesses that don’t have the resources to fight. And if this amendment isn’t renewed by Congress annually, the protection will disappear, and the industry could be set back for years.
Until the discrepancy between state and federal law is resolved—particularly in regard to drug-free workplace policies—Scurich Insurance will continue to monitor the landscape for new developments that could have ongoing ramifications for the industry and could forecast marijuana reclassification.
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Professional liability insurance is essentially there to protect your reputation as a professional.
Things happen. There are unforeseeable circumstances that can botch even the easiest job in the most capable hands. When that happens, most contractors, consultants, professionals and business owners are more than happy to help cover the cost to the client, to injured parties and so on. That’s why the insurance policy is there.
Professional liability is there to protect specifically against claims of negligence by covering the court costs. These are the cases that we fight not because we don’t want to foot the bill, but because a reputation is on the line, and at the end of the day, all any professional really has to lean on is a trusted name. That is the foundation of success in any field. You can lose your office space, you can lose your clients, you can lose some of your best employees, and you can always rebuild from there. Once your name has been stripped of value, however, there’s not much left to do. Top talent will avoid the association with a negligent employer and clients and customers will jump ship.
These are the cases that you want to fight even at a financial loss. Even if you know that you’re not at fault for a visitor who suffered an injury on your property, it may make more sense to take responsibility than to fight it in court and spend more money in front of the judge than you would have on the doctor bill. The more comprehensive your professional liability policy, the less likely you are to have to do this when your reputation is on the line.
Of course, you can’t always have the case dismissed, so professional liability will cover the costs awarded to the plaintiff in a civil suit should you lose the case, meaning that you will be covered even where general liability coverage does not kick in. However, the real value in the policy is in allowing you to defend yourself against that civil suit in the first place, and, wherever possible, protecting your reputation within your industry.
Medical professionals rely on malpractice insurance for the same reasons, while insurers and lawyers will rely on errors and omissions, or E&O insurance. In any field where a professional mistake can prove incredibly costly or harmful, you will find some form of professional liability insurance being sold.
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5 Tips to Improve Your Mental Health
Staying healthy is about more than paying attention to your physical body—your mental health directly influences how you think, feel, react and maintain relationships. If you don’t take steps to promote your mental health, you may find that anxiety, depression and irritability can take control of your life.
According to the National Alliance on Mental Illness, about 1 in 5 adults experience some form of mental illness in a given year, but less than half of them seek professional treatment. And, even if you haven’t been diagnosed with a mental illness, taking steps to improve your mental well-being can improve your physical health and help you maintain positive relationships.
Here are five tips you can use to help improve your mental health:
- Talk with those who care about you. Simply talking to friends, family members or co-workers can help you overcome a personal problem and stay connected.
- Take a break from digital distractions. Although smartphones and other modern technology make it easy to stay connected with others, focusing too much on digital media can make it easy to ignore close relationships and the world around you.
- Take care of your body. Your brain is still part of your physical body, so it’s important to exercise regularly, maintain a healthy diet and get enough restful sleep.
- Set realistic goals and focus on taking the first step. Many projects or errands can seem overwhelming when taken as a whole. Try planning out steps for large tasks and concentrate on what you need to do first.
- Get help when you need it. Although there can be negative social stigmas about seeking help for mental or emotional problems, mental health professionals are trained to help manage stress and mental illnesses with therapy or medication.
The Dangers of Carbon Monoxide
Carbon monoxide (CO) is a toxic gas that’s produced by the incomplete burning of any fuel, including gas, fire and wood. Many of the appliances in your home produce harmless amounts of CO. However, if these appliances aren’t properly maintained or ventilated it could lead to a hazardous buildup of CO. And, because the gas is colorless, odorless and tasteless, it can be easy to remain unaware of potentially dangerous levels of CO in your home.
Symptoms of mild CO poisoning can include flu-like symptoms, such as headaches, nausea and weakness. However, exposure to large amounts of CO for an extended period can be fatal. Follow these steps to prevent a buildup of CO in your home:
- Install CO detectors on every level of your home. Also, never assume that your home’s smoke alarms can also detect CO.
- Check your appliances every year to ensure that they’re in safe working order and have sufficient airflow around them. Appliances that emit CO include fireplaces, water heaters, portable generators, power tools, lawn equipment, and gas- or wood-burning cooking appliances.
- Never leave a car or other motorized vehicle running in an attached garage, even if the garage door is open.
- Never rely on ovens, gas grills or other appliances to heat your home.
- Contact a specialist to ensure that your chimneys, vents and flues are providing sufficient ventilation to your home.
For more information on protecting your home from CO and other dangerous gases, such as radon and natural gas leaks, contact us today at 831-661-5697.
Removing Distractions Before You Drive
Distracted driving is a serious and deadly problem. According to the National Highway Traffic Safety Administration, distracted driving leads to over 3,000 deaths and 375,000 injuries every year. Although many conversations about distracted driving focus on cellphones, the truth is that any distraction can be enough to cause a deadly accident. The following list includes some of the ways you can remove distractions and keep yourself safe on the road:
- Get plenty of rest before you drive. Studies have shown that fatigued drivers perform just as poorly as those who drive while intoxicated.
- Know where you’re going and the road conditions before you drive. Looking at a map or having to focus on the weather can take your attention off of the road and surrounding traffic.
- Secure any items in your vehicle that may roll around. You may be tempted to reach for them while you’re driving.
- Don’t use your cellphone or a hands-free device while driving. If you absolutely must contact someone, pull over to the side of the road first.
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