Every business goes through different cycles of profit and loss. This means that your risks and potential exposures are being affected similarly. At the same time, Commercial insurance coverage is also evolving and changing. Nothing in either your business or the insurance industry remains static. This is why you should re-evaluate your insurance coverage at least once a year. A regular insurance audit will help you plug any coverage holes that might impact your bottom-line severely should an unexpected loss occur.
Ask yourself: How much risk are we prepared to accept for our business? Essentially, anything that you are not prepared to take on needs to be covered by suitable insurance coverage. To measure the amount of risk in evaluating the insurance needs of your company, there are a number of key areas you need to examine — in conjunction with one of our knowledgeable insurance agents. The primary areas you should re-evaluate annually are:
General Liability. How much liability protection does your company currently require? The amount of coverage you had purchased previously was probably adequate at the time, but remember: Your business has changed since then and so has your liability exposure. What was suitable for your needs last year might no longer be sufficient if your company has grown and expanded. The larger your growth, the more you become exposed to potential, increased, and significant liability.
Property Insurance. Business property evaluations go up and down as commercial real estate values fluctuate. You could now be paying too little or too much for the necessary coverage. The same applies to your equipment, machinery, and your inventory. Adding or subtracting in these three areas, while factoring in appreciation or depreciation, can affect not only the premiums you pay, but also your overall Property insurance coverage in the event of a significant loss, such as a fire or natural disaster.
Workers Compensation. The premium you pay is largely dependent on the roles of each and every employee — from the shop floor to your managerial staff. If the roles of your personnel have changed relative to how your business has grown, shrunk, or evolved, then you need to re-evaluate these changes relative to the premium rate you pay for each worker. The premium cost changes and/or differences can be substantial.
Business Interruption Insurance. You might have enough insurance to get your business re-built and your equipment replaced in the event of a disaster, but did you also factor in your business operating expenses? Many companies neglect that part of the equation and fail to develop a disaster recovery plan. Even if your company has a plan, what about the vendors that are key to the survival of your business? Your own business might be fine, but in some other part of the state or country, a key manufacturer or supplier could get nailed. Did you know that you could extend your coverage to cover this circumstance, too?
Insurance Protection of Executives. The size of your company doesn’t matter. If you have employees, you can face claims for sexual harassment or wrongful dismissal. You might not have considered the need to purchase Employment Practices Liability insurance before, but if your company has grown, that expansion has increased your risk to potential claims. Similarly, if you sponsor a 401(k) plan for your employees, and its performance has not met expectations or an employee feels the investment was mismanaged, do you have adequate Directors & Officers Liability to handle such claims?
Summary. To safeguard your business from potential risk, an annual insurance audit is a must. You might discover that changes in your business might have exposed you to new risks. Likewise, insurance premiums are a significant expense, and you might find that you are paying too much or covering exposures that are no longer relevant.
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Two new web tools created by the Noble Research Institute will allow cattle producers to easily access Oklahoma cattle auction data. The tools include a price slide table and market charts.
PRICE SLIDE TABL
The first web tool is a breakdown of the price slide (PS) and value of gain (VOG) for the reported markets. The PS and VOG tool looks at the sales receipts for the selected market, as well as frame size, gender, yield grade and the sale date to give producers a glimpse at the type of cattle buyers are looking for.
Cattle with notes about their features aren’t included in the table in order to prevent the PS and VOG from being affected. However, a link to the original USDA-AMS report is provided near the top of the page for producers who want more details and to see where the original data was taken from.
MARKET CHARTS
The second web tool is a set of charts for slaughter, feeder and replacement cattle. The tool offers an option to compare each group across whichever markets the user selects, either during a specific year or across years.
The auction comparison tool was designed to provide producers with information to help them in their marketing and purchasing options. By comparing years, producers can better evaluate how the current year is stacking up against previous years for a particular market.
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OSHA Proposes New Rule to Ensure Crane Operators are Qualified
Although cranes are indispensable on many construction sites, they require a large amount of training and expertise in order to operate safely. As a result, OSHA recently proposed a rule to ensure crane operators are qualified to operate equipment.
The proposed rule’s main provisions would clarify certification requirements and reinstate an employer’s duty to ensure employees are qualified:
- Certification categories would change to let more operators meet OSHA requirements
- A requirement for operator certifications to include crane lifting capacity would be discontinued
- Employer requirements for ensuring crane operators have sufficient training, certification and licensing would be extended and clarified
OSHA also published a final rule extending the operator certification compliance date until Nov. 10, 2018, to address employer concerns related to the cranes and derricks in construction standard.
For more information on the proposed rule, see OSHA’s full publication in the Federal Register.
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According to OSHA, a Maine-based roofing contractor has ignored numerous safety standards and exposed workers to significant fall risks for a number of years. OSHA cited the contractor – which has operated under the names Lessard Roofing & Siding and Lessard Brothers Construction – for safety violations at 11 different worksites between 2000 and 2011. However, the contractor failed to address the citations or pay any of the issued fines.
In 2011- after Lessard initially failed to address the OSHA citations – the 1st Circuit Court of Appeals ordered the contractor to correct the worksite violations, implement appropriate safety measures and pay accumulated fines with interest. Now, the court has held Lessard’s owner in civil contempt for defying the original 2011 order.
As a part of the recent court ruling, Lessard must do the following:
- Provide financial documentation to demonstrate the contractor’s ability to pay the $389,685 in outstanding OSHA fines.
- Ensure that employees and contractors use required safety equipment and fall protection.
- Conduct worksite safety analyses and meetings.
- Employ a competent person to ensure work proceeds according to OSHA regulations.
- Give OSHA details about each of the contractor’s worksites so the agency can conduct safety inspections.
Falls from ladders and roofs still account for the majority of injuries at work. In fact, fall protection violations are one of OSHA’s most frequent citations every year, with 6,072 issued in 2017 alone. Identifying fall hazards and deciding how to protect workers is the first step in eliminating or reducing fall hazards. Contact us at 831-661-5697 for OSHA programs, presentations and training materials you can use to protect your employees and avoid costly fines.
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OSHA recently developed a standard for confined spaces in the construction industry (29 CFR 1926 Subpart AA). These spaces can present conditions that are immediately dangerous to your workers’ lives or health if not properly identified, evaluated, tested and controlled. As a result, preparing to respond to an accident in a confined space is just as important as training workers to enter them.
One provision of the standard requires employers to develop and implement procedures for summoning rescue and emergency services in permit-required confined spaces. Any employer who relies on local emergency services for assistance is required to meet the applicable requirements of the OSHA standard.
However, not all rescue services or emergency responders are trained or equipped to conduct rescues in confined spaces. When you identify an off-site rescue service, it is critical that the rescuers can protect your employees. The emergency services should be familiar with the exact site location, the types of permit-required confined spaces and the necessary rescue equipment.
Employer Considerations
Pre-planning for a rescue will ensure that the emergency service is capable, available and prepared to save your workers.
Before the start of any rescue operation, you must evaluate prospective emergency responders, and select one that has the following traits:
- Adequate equipment for rescues, such as the following:
- Atmospheric monitors
- Fall protection
- Extraction equipment
- Self-contained breathing apparatus (SCBA) for the particular permit-required confined space
- The ability to respond and conduct a rescue in a timely manner based on the site conditions, and the capability to conduct a rescue if faced with potential hazards specific to the space. These hazards may include the following:
- Atmospheric hazards
- Electrocution
- Flooding or engulfment
- Poor lighting
- Falls
- Chemical hazards
- The ability to notify you in the event that the rescue team becomes unavailable.
To ensure the safety of your workers, you must take a proactive role in securing the services of emergency responders. This includes finding the most efficient way of contacting emergency responders, conducting a tour of the project site with them and communicating any changes made to the site before a rescue becomes necessary.
Communicating With Emergency Responders
Talking with emergency responders about the hazards they might encounter during a rescue will assist in preparing for the situation. The following are some questions responders should be able to answer when you request their services:
- Are you able to respond and conduct a rescue in a timely manner based on the site conditions?
- Do you have the appropriate equipment for response and rescue?
- Are you prepared for the hazards identified at the project site?
- Are you aware of the exact location of the work site? This includes information on access routes, gates, site plans and GPS coordinates.
- Can you visit the site and hold a practice rescue?
- What is the best way to contact you? How would I communicate any changes to site conditions throughout the project?
- Could other emergencies or group training preclude you from responding, and how will that be communicated?
Additional Resources
Complying with OSHA’s new standard will protect your workers and save you from costly penalties. Contact us today at 831-661-5697; we can provide you with our comprehensive resource, “Permit-required Confined Spaces in Construction Program and Training Materials.”
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According to a report by the U.S. House of Representatives’ Committee on Education and Labor, a staggering 69 percent of all workplace injuries and illnesses may not be represented in the Bureau of Labor and Statistics Survey of Occupational Injuries and Illnesses, which many trust as a gauge of the safety of American workplaces. On a corporate level, not reporting or underreporting workplace injuries can have serious ramifications for the organization and the employer, which can include fines, exorbitant and unnecessary, health costs and more.
Research has found that the employer’s behavior, policies and attitude are key determinants in a worker’s decision to report an injury. Not only is it essential that employees are educated on the importance of reporting injuries, it is also important to examine your company policies so you are not inadvertently discouraging reporting. The consequences of underreporting can be severe.
Consequences of Underreporting
The unfortunate trend of injury underreporting can have serious ramifications at both the industry and company level. Widespread underreporting can be quite damaging to workers’ compensation rates on a large scale. Employers may not realize it, but such an underreporting problem may lead to more audits by insurance companies of their clients and higher rates for everyone. Many employers erroneously believe that reporting injuries leads to audits and higher rates.
At the company level, underreporting injuries can be quite costly for the employer. If it is an OSHA-reportable incident, the employer may face significant fines if it is not properly recorded or reported.
In addition, often when an injury isn’t reported or properly cared for immediately, it worsens and leads to higher health care costs and more lost time. Even if it is never reported as a workplace injury, the employer still loses out on health care costs and productivity. If it is eventually reported, it becomes much more difficult to prove that it was workplace-related. Additionally, a study reported by the Hartford Financial Services Group found that injuries reported four or five weeks after the incident are 45 percent more expensive than injuries reported within the first week due to increased health costs and possible legal fees, or even a lawsuit, associated with late reporting.
One of the best ways to control workers’ compensation costs is through early reporting and intervention. Not only will it save money in health bills and legal fees, but it will also help to constantly improve your safety program. When there is an injury, consider it an opportunity to examine current safety procedures and decide if there is a suitable change that could be made to prevent similar injuries in the future. Thus, prompt reporting can be a productive element to your safety program in your quest to always strive for the safest work environment. Rather than accepting a vicious circle where injuries are not reported and thus nothing is done to fix the problem, leading to more injuries, take advantage of injury reporting as a proactive solution to safety.
Reasons for Underreporting
There are several reasons why employees may not report injuries immediately or at all.
Incentive programs: Many employers have reward or incentive programs to promote their safety initiatives, such as rewards for going a certain number of days without an injury. This can create a negative attitude toward reporting an injury, since doing so could cost that employee, a co-worker or a superior a reward or bonus.
Having incentive programs are a good idea, but a more effective strategy is to reward positive, safe behaviors. This can include reporting a safety hazard, attending a safety meeting or training class or equipment maintenance. Rather than rewarding for days without an injury, reward behaviors that strive to avoid injury, or even reward employees for prompt reporting when an injury occurs.
Fear of negative ramifications: Some employees fear that reporting an injury will create an image of them as weak to their co-workers and managers. He or she also may fear that such an image will be a detriment to his or her career.
Dispel this fear by assuring all employees that reporting an injury will have no negative impact on their job, and ensure follow through on all levels of the company. Work to promote a safety culture where prompt injury reporting is encouraged and praised. Injury reporting should never be frowned upon, even subtly or behind closed doors. If employees find out you are angry about a reported injury, he or she is less likely to report an injury in the future.
Some companies have a policy mandating drug testing after any incident whether or not there is evidence of drug use. This deters some employees from reporting injuries as well. Consider making the drug testing conditional depending on the circumstances of the injury and whether there is evidence that drug use was a factor.
For more information about injury reporting or your company’s workers’ compensation and safety programs, please contact Scurich Insurance at 831-661-5697 today.
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