Every business is vulnerable to disruptions. Most companies have taken steps to mitigate the impact of major hazards. However many businesses have neglected smaller, more probable perils, ranging from inadequate fire protection and offsite data backup, through the death or disability of key personnel, to over-reliance on a limited number of vendors.
While you can transfer many risks that could disrupt your business to insurance companies (through such coverages as Business Interruption and Extra Expense policies), this probably won’t be enough to ensure that the company will survive or continue its long-term growth and profitability. To prevent and/or reduce the impact of such a mishap, it makes sense to implement Business Continuity Planning (BCP). This process involves three key steps:
- Pre-disruption planning. Assess the “risk and threat environment” of your business and take steps to reduce these hazards and weaknesses.
- Disruption response. The extent and nature of losses will depend on the effectiveness of the emergency plans that you implement during the incident to provide a methodical, rational, and coordinated approach to dealing with the disruptions.
- Post-disruption recovery. While the first two steps can reduce or mitigate risk, the recovery process focuses on rebuilding and restoration. Although many businesses depend heavily on central and distributed computer resources, a comprehensive BCP involves a wide variety of crucial activities that need to continue with minimal interruption.
Your BCP should not be a one-time project that involves creating a plan and then moving on to “business as usual” – but a long-term commitment to design, develop, implement, and maintain a comprehensive, company-wide strategy to keep your business running effectively..
We’d be happy to review the risks facing your business and tailor a Business Continuation Plan to your needs.
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Chances are that you outsource most risk management functions to an insurance company representative or agent. However, to protect your business against the risks you face at a price you can afford, you need to control the presentation of your loss and coverage information to insurers. In other words, it makes sense to provide what an underwriter needs to write your business: a “risk profile” that shows a historic record of your exposures, loss data, and insurance contracts.
Your profile should include these items:
- A history of the firm that’s positive and realistic. The more effectively you’ve adapted to the recession, the better your chances of getting a competitive rate.
- Résumés of key management— to show that you and your team know your business.
- Marketing materials and Web page(s).
- A D&B Report. Without one, you might get a lower grading. If you’ve had financial problems, some insurance companies might be willing to write your business, as long as you provide this information upfront.
- Audited financial statements, if applicable.
- Estimated values, including sales, workers compensation payroll, automobile fleet, property and equipment.
- Sales and payrolls for the past five years.
- Insurance loss runs and claim runs during the past five years for all policies, valued within 90 days of renewal.
- An outline of your workplace safety plan(s).
- Fleet maintenance schedules, if applicable.
- Your workers compensation experience modification factor.
Be sure to review all data on your company in the files of your insurance company and add it to your database.
Maintaining a comprehensive, accurate, and updated risk profile, and staying on top of how you present this information,will play a key role in securing a comprehensive and cost-effective insurance program.
Our risk management specialists stand ready to offer their advice at any time.
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Stress, called the “health epidemic of the 21st century” by the World Health Organization, costs American businesses up to $300 billion a year,
According to “Stressed at Work,” a recent research report by Benzinger, Dupont &Associates, stress impacts work performance in nearly half (49%) of employees surveyed. Difficulties in concentration, absenteeism, and poor work quality are leading the way.
Differences by gender or age can be significant.. Personal problems cause females to be absent from work more often, but males tend to miss more days of work. The frequency of disciplinary action for stress-related acts by males was almost twice as high as for women; with the 56-65 year-old age group having the highest disciplinary rates
The good news: More than nine in ten employees (94%) report improved work performance following participation in an Employee Assistance Program (EAP). The study recommends that companies work with their EAP in identifying and addressing the needs of workers, who are more vulnerable to stress, so they can prevent potential problems becoming serious. These programs and promotion campaigns should consider differences in gender and age. For example:
- Managers need to pay attention to female absenteeism because it might reflect stress at home and/or at work.
- To decrease male disciplinary actions, EAP support and wellness programs should focus on the specific needs of men in the workforce, and use promotional outreach methods that reflect male preferences for brevity (e-mail and text messages).
The more familiar you become with signs and symptoms of stress on the job, the more effective you’ll be in encouraging stressed employees to engage with EAP and workplace health programs: which means the healthier your workers are, the better your bottom line!
To learn more, feel free to give us a call at any time.
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Injured workers who gain weight due to inactivity or as a side effect of medication will probably receive higher workers comp benefits, thanks to the American Medical Association’s recent reclassification of obesity as a disease. That’s the conclusion of a recent six-year study of claims by the California Workers’ Compensation Institute.
According to the report, although this reclassification doesn’t have legal standing, the AMA’s positions often have a strong influence on lawmakers, regulators, and health care providers. Immediately after the decision, senators and congressmen introduced bipartisan bills requiring Medicare to cover more obesity treatment costs, including prescription drugs and intensive behavioral weight-loss counseling, which will give health care providers a financial incentive to use these remedies.
Judging from the results of the California study, this means that businesses can expect to pay more for workers comp. The report found that the costs of comp claims that listed obesity as a “comorbidity,” or additional cause, were far greater than for claims without them. Medical benefits for comorbidity cases cost 81% more than for other cases, while indemnity payments averaged nearly 65% higher. More two in three claimants with obesity comorbidity received permanent disability, nearly five times the rate for the non-obese. Finally, the use of narcotic painkillers was significantly higher among overweight claimants.
Obesity might even become a primary comp diagnosis for jobs such as long-haul trucking or office work that require employees to remain seated for extended periods.
The bottom line: look for the management and financial changes stemming from the reclassification of obesity as a medical condition to create new challenges and incentives for health care professionals, businesses, and workers compensation insurance companies.
We’ll stay on top of these changes to help make sure that your company has the coverage you need at a competitive rate.
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Your business needs an employee referral system that rewards and encourages employee referrals properly. The feature story for Inc. Magazine Database, is to discusses how social media is replacing job boards as the primary outlet for sourcing candidates. According to the Aberdeen Group, 50% of companies with high retention rates decreased their investment in job boards last year. The most popular site use by recruiters is LinkedIn. The most popular tool used by job seekers to find work is Facebook. Interestingly, JobVite stated that employee retention rates skyrocket when they’re referred by other employees. After three years, 47% of referrals were still around, compared to only 14% of job board applicants, (not sure what happened here).
Interestingly, JobVite stated that employee retention rates skyrocket when they’re referred by other employees. After three years, 47% of referrals were still around, compared to only 14% of job board applicants were. As mentioned on this previously, have an employee referral system that properly rewards and encourages employee referrals.
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I remember my wife and I going to a parenting class and learning the mantra, “firm, but fair.” It’s okay to have clear rules in your household and enforce them; however, you want to do so in a fair manner. When we’re clear about the rules, we can be firm. . I’m sure you’ve shared my personal experience where parents or bosses have punished you for rules you never knew existed –until after you were punished for them!Often, the knowledge is so “commonsensical” to the parent or boss that they just assume the child or the employee know it also. Never mind that it took 20 years for that boss or parent to finally “get it” themselves. When we’re clear on the rules, there’s predictability. There’s integrity. There’s consistency. The rules don’t change overnight based on emotions. When we’re out of balance on the side of clarity we’ll see people begin to fear us, rebel against us, and leave us – not a good outcome at home or work!
When it comes to being fair, the first thing to remember is that life wasn’t designed to be fair, either at work or at home. Life was designed to be a learning lesson. However, fairness has become the filter of today’s workplace. Everyone wants to feel they’re being treated fairly. ‘A fair day’s pay for a fair day’s work.’ Of course, what might seem fair to me could seem onerous to you. We treat people fairly when we follow the Golden Rule. By asking how we can serve and help others, practicing kindness and compassion despite any differences we may encounter along the way. We understand to separate the conduct from the person.
Managers will continue to struggle with employees about work hours, compensation, communication, expectations, safety, insubordination, conflict, and more. Great managers, like great parents, strike the appropriate balance between firm and fair.
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