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.
Underreporting may lead to more audits by insurance companies and higher rates for everyone industry-wide. Many employers 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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Using renewable energy sources is a wonderful way to preserve Mother Nature and do wonders for your pocket book. There are two types of alternate energy sources that are particularly popular ways to conserve: wind generators and solar power.
Solar Power
Solar power does not release any pollutants, so it’s a great way to be eco-friendly and save a bundle on your utility bills. Some additional benefits include:
- The federal government passed the Energy Law in August of 2005, which provides homeowners up to a 30 percent tax credit for the cost of a solar energy system, up to $2,000.
- Solar panels can convert energy straight into heat can heat water and/or swimming pools easily.
- Solar panels provide electricity long after the sun goes down because of the storage batteries in the panels.
Wind Generators
Wind generators produce energy as the naturally occurring wind spins the turbine. Some things to keep in mind include:
- The amount of energy produced each day will vary; however, wind power is free and tends to significantly reduce electricity bills.
- Your local utility company may have rules against using wind energy.
- Wind generators are costly to purchase (though electricity savings far outweigh initial costs in the long run).
- Many municipalities provide tax breaks for using alternative energy.
Safety First
Conservation is key in preserving resources for future generations. By using alternative energy sources, you are not only helping the planet now, you are doing your part to conserve for your children’s future.
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Why is job safety and health important?
In 2013, 4,585 employees died from occupational incidents, and there were a staggering 3.0 million total recordable cases of workplace injury and illness.
On average, each of these 3.0 million cases required eight days away from work, which means U.S. employers as a whole paid for millions of days of lost work time. Experts estimate that workplace injuries and illnesses cost U.S. businesses more than $125 billion annually. Effective job safety and health programs not only help reduce worker injuries and illnesses, they save employers money in the long run.
How does OSHA contribute to job safety and health?
The primary goal of the Occupational Safety and Health Administration (OSHA) is to carry out the Occupational Safety and Health Act (OSH Act), which Congress originally passed in 1970. The OSH Act has undergone several amendments and revisions since its inception, but it is still in place “to assure so far as possible every working man and woman in the Nation safe and healthful working conditions and to preserve our human resources.” OSHA contributes to job safety and health by enacting regulations that forward this ideal.
Title 29 of the Code of Federal Regulations (CFR), Parts 1902-1990, houses all the OSHA standards, though OSHA also allows states to enact occupational safety and health laws of their own under federally-approved plans. State-run programs are at least as strict, and sometimes more so, than federal standards. This ensures a minimum standard of job safety and health that all employers must follow to protect employees.
Are all employees covered by the OSH Act?
The OSH Act covers all employees except public employees in state and local governments and those who are self-employed. Public employees in state and local governments are covered by their state’s OSHA-approved plan, if applicable.
Federal employees are covered under the OSH Act’s federal employee occupational safety and health programs, which are outlined in 29 CFR Part 1960. United States Postal Service employees, however, are subject to the same OSH Act coverage provisions as those in the private sector.
Other federal agencies that have issued requirements affecting job safety or health include the Mine Safety and Health Administration (MSHA) and some agencies of the Department of Transportation (DOT), including the Federal Motor Carrier Safety Administration (FMCSA). Employees in these industries are subject to their respective regulations.
Additionally, businesses in the retail, service, finance, insurance and real estate sectors that are classified as low-hazard are exempt from most OSHA requirements, as are small businesses with 10 or fewer employees. Exceptions are discussed in 29 CFR Part 1904, which also explains which OSHA regulations exempt employers are still required to follow.
What are your responsibilities as an employer?
If you are an employer covered by the OSH Act, you must provide your employees with jobs and a place of employment free from recognized hazards that are causing, or are likely to cause, death or serious physical harm. You must also comply with the OSHA statutory requirements, standards and regulations that require you to:
- Provide well-maintained tools and equipment, including appropriate personal protective equipment (PPE)
- Provide medical assistance and guidance for employees sustaining workplace injuries/illnesses
- Provide required OSHA training
- Report accidents that result in fatalities to OSHA within eight hours
- Report accidents that result in the hospitalization of three or more employees to OSHA within eight hours
- Keep records of work-related accidents, injuries, illnesses and their causes
- Post annual injury/illness summaries for the required period of time
What are your rights as an employer?
When working with OSHA, you may do the following:
- Request identification from OSHA compliance officers
- Request an inspection warrant
- Receive a reason for inspection from compliance officers
- Have an opening and closing conference with compliance officers
- Accompany compliance officers on inspections
- Request an informal conference after an inspection
- File a notice of contest to citations or proposed penalties
- Apply for a variance from a standard’s requirements under certain circumstances
- Be assured of the confidentiality of trade secrets
- Submit a written request to the National Institute for Occupational Safety and Health (NIOSH) for information on potentially toxic substances in your workplace
What are employees’ responsibilities?
All employees are obligated to help prevent exposure to workplace safety and health hazards by becoming familiar with and adhering to all applicable OSHA requirements.
What are employees’ rights?
With regards to OSHA regulations, employees have the right, among other actions, to:
- Review employer-provided OSHA standards, regulations and requirements
- Request information from the employer on emergency procedures
- Receive adequate, OSHA-required safety and health training on toxic substances and emergency action plan(s)
- Ask the OSHA area director to investigate hazardous conditions or violations of standards in the workplace
- Have his or her name withheld from the employer when filing a complaint with OSHA
- Know what actions OSHA took as a result of the employee’s complaint and have an informal review of any decision not to inspect or issue a citation
- Have an employee representative accompany the OSHA compliance officer on inspections
- Observe monitoring and measuring of toxic substances or harmful physical agents and review related records (including medical records)
- Review the Log of Work-Related Injuries and Illnesses (OSHA 300 Form), if applicable, at a reasonable time
- Request a closing discussion following an inspection
- Object a citation’s set abatement period
- Seek safe and healthful working conditions without your employer retaliation
Why is OSHA important to your business?
OSHA plays a key role in making your facility a safe, healthy place to work. Beyond providing the tools and guidance to work toward an injury- and illness-free workplace, OSHA is important in identifying businesses that are not committed to safety. Employers that do not carefully follow OSHA regulations often face hundreds of thousands, if not millions, of dollars in fines.
How can you get more information on safety and health?
OSHA provides free publications, standards, technical assistance and compliance tools to help you understand the nuances of the regulations. OSHA’s website also offers extensive assistance by way of workplace consultation, voluntary protection programs, grants, strategic partnerships, state plans, training and education to guide you in your quest for workplace safety. To learn more about OSHA and the critical elements of a successful safety and health management system in your workplace, visit www.osha.gov.
This document is an introductory guideline. It does not address all potential compliance issues with OSHA standards. It is not meant to be exhaustive or construed as legal advice. Contact your licensed commercial property and casualty representative at Scurich Insurance or legal counsel to address applicable compliance requirements. © 2009-2012, 2015 Zywave, Inc. All rights reserved.
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The challenge in running a non-profit is that it still takes money and resources. Just because you’re not interested in getting rich off of this idea doesn’t mean that money is not an issue. If a worker suffers an injury on the job, their compensation has to come from somewhere.
Something that may come as a surprise to many: Volunteers are not typically covered by worker’s compensation policies. In more states than not, worker’s compensation only covers, well, workers. If you are paying actual employees at food banks workers’ compensation insurance will cover their injuries. Likewise Meals on Wheels insurance policy will cover the organization’s workers. If you’re working with unpaid volunteers this is not the case.
Your volunteers may wind up covered by a general liability claim, but this is not always the case. If you want to make sure that your people are covered no matter what, then you’re probably going to have to bring them in as paid employees, or at the very least, under an internship program that includes medical and worker’s compensation benefits and so on.
A problem with relying exclusively on volunteers for your workforce is that you don’t really get to pick your staff from the best and brightest. Many who volunteer will bring their A-game, they will take the task just as seriously as they would take their day job. This isn’t always the case, unfortunately, and without any payment or compensation or even the safety net of worker’s compensation to draw talent, you wind up taking what you can get.
Non-profit doesn’t mean nobody gets paid. Non-profits are usually devoted to a humanitarian cause and their primary concern is not making anybody rich, but making a difference, but that doesn’t mean that everyone involved is simply donating time and resources without compensation. Typically you’re going to have benefactors and other income streams that will allow you to hire qualified people for your food bank, and provide them with the appropriate coverage they need in order to provide them, and you, with peace of mind.
To put it bluntly: a volunteer force is a great idea in concept. In reality, you’re asking some of the kindest, most generous people in the world to foot the bill themselves if they get hurt on the job. That’s a recipe for, if not a lawsuit, at least a guilty conscience. The most effective way to make a difference in the long term is to get some money behind your cause and treat your workers like you would paid employees at any other business.
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For the unprepared, workers’ compensation (WC) issues can be both confusing and costly. Fortunately for employers, there are ways to actively engage WC issues to influence their outcomes.
Through management controls and active involvement in the WC process, your organization can effectively influence related costs. To do so you will have to establish a number of your own processes that guide decision making throughout your organization.
By developing a cohesive workers’ compensation process, you can play an active role in reducing related costs.
Areas requiring WC management can be divided into three main categories. These categories include facets that may range from the simple to the complex, but as a whole, address vital issues that can negatively influence WC costs in your company.
Workplace Safety Means Fewer Claims
Simply put, reducing claims reduces costs. Establishing a safety-minded culture throughout every level of your company is essential to keeping workers injury free. However, establishing such a culture isn’t an overnight solution. To be successful, an ongoing commitment to safety must be made. Such a commitment must be supported by management and given the necessary resources to succeed.
Developing comprehensive safety policies for employees builds a firm foundation for your safety culture to grow. Such policies also encourage OSHA compliance, further improving your safety efforts while helping you avoid costly fines.
Mitigate Loss After an Injury
Unfortunately, even with all the right programs in place, it is still possible for accidents to happen. When a workplace incident occurs how you respond can greatly influence the outcome of the claim. Prompt claim reporting is essential to keeping costs down.
It is also important to have a designated injury management coordinator, someone who can supervise open claims and work with both employees and medical personnel to facilitate the timely recovery.
The longer an employee is out of work the more expensive their claim will be. Return-to-work programs that allow injured employees to come back to work at a limited capacity during the recovery process, are one of the most effective tools business owners have to reduce the severity of a claim.
Managing Your Mod
Insurers use what is known as an experience modification factor, or mod, to calculate the premiums you pay for workers’ compensation coverage. By managing your exposures and promoting safety it is possible to manage your mod and decrease your premium rates.
Like a good safety program, controlling your mod is an ongoing process. To reap the benefits of lower premiums you will have to keep in regular contact with your insurance provider to ensure they have the most accurate data to use in their calculations.
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McAfee Report Projects Top Cyber Threats of 2016
The McAfee Labs 2016 Threat Predictions report identifies top threats for the coming year as well as predictions for future cyber threats through 2020. The following is a summary of the report’s findings:
Hardware
Attacks that exploit flaws in both hardware and firmware components are expected to continue; security experts recommend being mindful of this potential avenue of exploitation below the level of the operating system.
Ransomware
Target Agrees to Pay a Nearly $40 Million Settlement
Target has just agreed to settle another huge class-action lawsuit stemming from the retailer’s 2013 data breach. Read on to learn who is getting paid and just how costly that data breach has been for the company.
Target has agreed to pay $39.4 million to settle a class-action lawsuit stemming from its 2013 data breach. The suit was filed on behalf of card issuers, banks and credit unions that had to give new cards to customers after their data was stolen from the retailer. This is just one of a number of lawsuits that have been filed since the data breach, and Target claims that it’s paid about $290 million in costs related to the breach.
Survey Finds Global Companies Worried About Cyber Threat Detection and Defense
According to EY’s Global Information Security Survey (GISS) 2015, “Creating trust in the digital world,” 88 percent of global organizations believe that their information security architecture doesn’t meet their current security needs. In fact, 36 percent aren’t confident that they even have the ability to detect sophisticated cyber attacks.
When asked about the source of cyber attacks, respondents named criminal syndicates (59 percent), employees (56 percent) and hacktivists (54 percent) as their top concerns. To meet this threat, 69 percent of respondents said that they’d like to increase their cyber security budgets by as much as 50 percent.
Cyber Information Sharing Act Passed as Part of Spending Bill
The Cyber Information Sharing Act (CISA), a significant piece of cyber security legislation, was added to the omnibus spending bill passed by Congress and signed into law by President Barack Obama last month. CISA is designed to encourage companies to cooperate with one another and with governmental agencies when disclosing and sharing information about identified cyber security threats, in part, by offering immunity to companies as a result of sharing that information.
Proponents of CISA say that sharing information will allow both the government and the private sector to respond to threats more quickly and efficiently. Critics, however, worry about the privacy of sensitive customer and patient data.
Ransomware attacks will likely become more common and more sophisticated. “Ransomware-as-a-service” is expected to continue growing, which will allow inexperienced cyber criminals access to the ransomware. Additionally, experts predict that ransomware will expand beyond Windows and also start targeting the increasingly popular Mac OSX.
Wearables
Wearable devices are becoming much more popular. While these devices don’t store very sensitive data themselves, they do connect to smartphones via Bluetooth, offering criminals a new potential “back door” into a user’s smartphone. The report suggests that cyber criminals might, for instance, use GPS data gathered from a user’s fitness tracker to create spear-phishing email attacks that the user is more likely to open.
Automobiles
Wired magazine stunned the automotive world in July 2015 when it ran a feature story outlining how a couple of enterprising hackers remotely commandeered a Jeep Cherokee. Experts predict a rise in the number of exploited zero-day vulnerabilities, but even identified threats pose a problem, because some companies cannot issue remote updates to certain car models.
Integrity
Integrity attacks represent a new, and potentially costly, type of cyber attack that most companies have seen in the past. Unlike other cyber attacks in which criminals simply damage or steal data, integrity attacks involve criminals selectively and surgically altering data in communications or transactions in ways that benefit them.
Experts anticipate integrity attacks will heavily affect the financial sector in 2016 as criminals find methods of intercepting and redirecting their targets’ legitimate transactions to their own bank accounts.
The report also mentioned that employees’ home systems, Cloud services and cyber espionage are likely cyber threats in the coming year. Regardless of the source, it’s clear that guarding yourself from cyber attacks involves identifying your exposures and developing strategies to protect yourself from each developing risk. Contact your advisor at Scurich Insurance today to ensure your cyber risks are appropriately covered.
Moody’s to Consider Cyber Attacks in Credit Assessments
Moody’s Investors Service announced recently that cyber attacks are becoming a larger part of the agency’s credit assessment and analysis processes. While Moody’s made it clear that it doesn’t consider cyber risk a principal credit factor, the agency has begun assessing cyber attacks as “event risks.” An event risk is a rare but potentially severe risk, much like a storm or other natural disaster that the company includes in its stress tests as it runs its credit analyses.
The growing number and severity of cyber attacks have made such a move necessary, as companies find themselves sometimes paying hundreds of millions of dollars to counteract the damage of a single data breach. Moody’s has released a report highlighting three important areas for companies to think about when considering the credit impact of a cyber attack:
- The type and importance of the affected asset or business
- The duration of the service disruption
- The scope of the business or assets affected by the cyber attack
For help assessing your cyber liabilities, contact Scurich Insurance today.
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