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PATIENTS FIND FAST, AFFORDABLE, AFTER HOURS MEDICAL CARE IN RETAIL CLINICS

By Life and Health

As an increasing number of big box stores and pharmacy chains open up in-store retail clinics, consumers have more options than ever for receiving medical treatment outside of normal doctor office hours. These retail clinics, such as the RediClinic in many Wal-Marts or the Minute Clinic at CVS, offer incredible convenience to people who become sick at night or on the weekend.

In the past, if a child developed an ear infection or started running a high fever on a Friday night, parents had very limited choices. For the most part, they could either take their child to the local emergency room where they might wait for hours to be seen or they had to watch their child suffer through the weekend until the pediatrician’s office reopened on Monday. Even if they did decide to wait until Monday, they often couldn’t get an appointment right away or they’d be forced to sit in the waiting room for an hour before their child could be seen.

Now, as retail clinics become more common, sick consumers can simply stop by their local superstore or pharmacy to receive medical treatment. These clinics are open during the day, in the evening and on weekends, and most of them take insurance. At most of these retail clinics, you can be seen by a nurse practitioner within 15 or 20 minutes. If you receive a prescription, you can fill it right there at the store’s pharmacy.

For years, thousands of free-standing primary care clinics have operated out of malls and other highly populated areas throughout the country. These more elaborate clinics are often staffed by physicians and offer a broad range of services. Unfortunately, patients often pay a hefty price tag for the convenience of these primary care clinics. However, the newer retail clinics, typically staffed by nurse practitioners, offer fewer services at a much lower price. A retail clinic visit typically costs between $40 and $60—much less than an emergency room visit and even cheaper than some doctor’s office visits.

As these retail clinics continue to meet incredible success, the industry is expanding at a rapid pace. There are currently almost 1,000 retail clinics throughout the nation, according to a Verispan survey released in January 2008. These clinics operate in 36 states throughout the U.S. According to the Verispan survey, CVS Pharmacy’s Minute Clinics are the fastest growing pharmacy retail clinics with more than 390 locations. The second largest retail clinic chain is Take Care Clinics, located in 136 Walgreens stores throughout the nation. Wal-Mart currently has 57 in-store clinics throughout 12 states. However, the popular big box store has plans to expand to a whopping 2,000 clinics by 2014. Wal-Mart’s clinics are run by outside medical firms, such as for-profit companies like RediClinic, regional health plans and local hospitals.

Cut-throat competition

Retail clinic prices vary depending on the services provided to the patient. A typical flu shot costs $15 to $30, treatment for poison ivy and pink eye is priced at around $50, and cholesterol, diabetes and pregnancy tests are generally less than $50. However, as the industry continues to mushroom, these prices are dropping. Surprisingly, retail clinics aren’t just competing with other retail clinics—they’re also creating some tough competition for regular doctor’s offices and hospitals. Some internists and family doctors are starting to worry about losing business to these store clinics, and they’re also concerned about the level of care patients are receiving at these centers. To keep up with these popular retail clinics, many doctors are expanding their office hours and some are even offering Saturday appointments—a change that greatly benefits their patients.

Although the retail clinic industry is still relatively new, there’s no doubt that this innovative business model is having a significant impact on the health care industry. First and foremost, these in-store clinics offer affordable convenience to patients who need medical care after regular hours. However, these clinics are also having a desirable side effect on the medical industry—they are forcing family physicians to take a closer look at their business, improve their services and increase their accessibility.

ENSURE COVERAGE WITH SHORT-TERM MEDICAL INSURANCE

By Life and Health

What do you do if you suddenly lose your Health insurance coverage? Should you take a huge financial risk and go without insurance for a few months or should you find a way to temporarily fill the gap? Whether you’re a recent college graduate or a worker between jobs, a Short-Term Health insurance policy might be the perfect solution.

Short-Term Medical insurance (STM) is most commonly used by new college graduates who find that they’re no longer covered under their parents’ insurance plan. Many college grads sign up for STM insurance to fill the insurance gap until they find a job with an insurance plan. This ensures that they’re covered if they suddenly become ill or have an accident.

Even grads planning to start a new job immediately after graduation stand to benefit from STM insurance. Most employers have a waiting period of up to six months before new employees are covered under their health plan. STM insurance can keep them covered until their new insurance kicks in.

An affordable alternative

STM is much more affordable than Individual Health insurance plans or coverage under COBRA (Consolidated Omnibus Budget Reconciliation Act). Similar to most major health plans, STM insurance includes a deductible and co-insurance charges. However, because these policies are limited in length from six to 12 months of coverage, they can offer significantly lower rates. STM insurance usually costs about 30 to 35% less than individual health coverage.
Another benefit to STM insurance? If you have this type of coverage, you generally aren’t required to use specified in-network providers.

Not just for college grads

Although widely used by new college graduates, many other consumers could benefit from this affordable, short-term coverage as well. For example, if you suddenly lose your job and your Health insurance along with it, STM insurance could keep you covered until you find a new employer. STM insurance might also be a practical solution for the following people:

  • Independent contractors
  • Seasonal or temporary workers
  • Part-time employees
  • Recently discharged military members
  • Recently divorced people who are no longer covered through their spouse
  • Workers between jobs

Let’s say you’ve been working for the same company for 12 years and your Health insurance plan covers you, your spouse and your two young children. Suddenly, your company goes through some changes and your position is eliminated. You know it can take up to 10 months to find a new job with the same level of benefits—but how will you cover your family’s health care costs in the meantime.

Obviously, going without Health insurance is not an option, especially considering that you have children under your care. Your first viable option is to enroll in COBRA coverage to continue your current benefits. If you are eligible for COBRA and lose your job either voluntarily or involuntarily, you can receive up to 18 months of extended coverage for yourself and your dependents.

The downside is that you’ll have to shell out some big bucks if you choose this route. Under COBRA coverage, you will be required to pay 100% of your Health insurance premiums in addition to an administrative fee of up to 2%. This can get extremely expensive for someone who is currently unemployed.

Your second option would be to purchase an Individual Health insurance plan to cover your family until you find a new job. This might be less expensive than COBRA, but still not what most would consider affordable.

However, if you choose to purchase a 12-month STM insurance plan instead, you would pay considerably less for a similar type of policy. If you are confident that you can find a new job within a year or less, STM insurance is probably the ideal option.

Additionally, STM insurance is considered “creditable coverage” under the Health Insurance Portability and Accountability Act (HIPAA). Under federal law, if you have a gap in insurance coverage longer than 63 days, you will lose your Health insurance rights as designated under HIPAA. That means if it takes you longer than expected to find a new job and in the meantime you are diagnosed with a serious illness or become pregnant, you might have a difficult time finding an insurer to cover you. However, if you have continuous health coverage under a “creditable” plan such as STM, you cannot be denied Health insurance even if you develop a condition.

A basic plan

The reason that STM insurance is so affordable is because it is an extremely basic major medical plan. Although STM covers basic medical services, these policies do not cover comprehensive expenses such as maternity benefits or treatments for pre-existing medical issues. Therefore, if you are pregnant or have frequent health issues or a pre-existing condition, STM insurance is probably not your best option. COBRA or individual major medical coverage would be a more appropriate plan for you. But if you are generally healthy and need to fill a gap in coverage for a year or less, STM insurance is a smart and affordable solution.

CONSIDER THESE OPTIONS TO REDUCE YOUR MOTORCYCLE PREMIUMS

By Personal Perspective

Buying insurance coverage for your motorcycle can be expensive as bikes present a higher risk than automobiles. They’re more susceptible to accidents caused by bad weather and poor road conditions. They are also less visible to other drivers, and less stable than cars.

In spite of this, you want to be sure you have sufficient coverage for your bike, because you’ve likely invested a lot of money in it. To help you find the best coverage for the best rates, the Insurance Information Institute offers the following tips:

  • Get seasonal coverage – Most bikers aren’t road warriors who consistently ride their bikes all year long. If you store your bike for several months out of the year, there’s no need to fully insure it. Many insurers offer seasonal policies that cover your bike for six to nine month periods of actual usage.
  • Take a motorcycle-safety course – Some states require these courses before they’ll issue a motorcycle license. Even if your home state doesn’t require it, you could be eligible for a 10% to 15% discount on your policy for completing one. Before signing up for a program, it’s a good idea to contact your insurer. Some companies only recognize certain programs. If you’ve been riding for a while, you might be able to get a discount for taking a refresher course.
  • Increase deductibles – A deductible is the amount of money you have to pay before the coverage kicks in. The higher your deductible, the lower your premiums. When choosing a deductible, make sure you can afford to pay out-of-pocket for any costs that are incurred before your insurance kicks in.
  • Ask about multiple bike discounts – If you’ve got more than one bike, or live with someone else who rides, you can usually get a discount. Likewise, it might be worthwhile to insure your motorcycle with the same company that covers your car.
  • Install anti-theft devices – If you financed your bike, you’ve probably taken out comprehensive coverage. Comprehensive protects against theft, fire, and other damages not caused by an accident. Some companies offer a discount on comprehensive coverage if you utilize an anti-theft device.
  • Maintain a good driving record – Insurance companies analyze your driving history to determine rates. How you drive a car usually indicates how you’ll ride a motorcycle. If you’ve only recently obtained a driver’s license, you might want to wait a year or two before getting a motorcycle. If you maintain a good driving record, your rates will be lower once you’re considered an “experienced” driver.
  • Ride with a group – Membership in a motorcycle club, such as the American Motorcycle Association, BMW Motorcycle Owners of America, Harley Owners Group or Retreads can also save you some money on your the insurance premium.

EXERCISE CAUTION TO PREVENT ELECTRICAL FIRES

By Personal Perspective

Believe it or not, there’s a powerful source of fire right inside your home: electricity. From old defective wiring to overloaded outlets, there are electrical fire hazards everywhere we turn.

As a matter of fact, more than 40,000 residential fires are caused each year by faulty electrical wiring, according to the United States Consumer Product Safety Commission (CPSC). Tragically, defective electrical wiring systems have claimed an average of 350 lives a year for the past decade.

So, how can you ensure that your home’s electrical system is fire-proof? Follow these priceless fire prevention tips from the National Electrical Safety Foundation:

  • Check your electrical cords periodically. If you find any cords that are frayed or damaged, replace them. Do not place cords under rugs or carpet.
  • Make sure that your outlets and/or extension cords are not overloaded. If you notice that your lights are dimming, your heater or kitchen appliances are not working properly or your television picture is poor, this could be a sign of an overloaded circuit. Add up the wattage of all the electrical devices plugged into each circuit and keep the total load well below the circuit’s maximum capacity.
  • Do not use high wattage bulbs in light fixtures and lamps that cannot handle them. Always choose the proper wattage bulb for each light.
  • If you have children in your home, install child-proof electrical outlets. This will ensure that a child cannot insert something into an outlet.
  • If your home is more than 40 years old, you should consider updating the entire electrical system. Because older homes often contain aluminum wiring, they are more vulnerable to electrical fires. You should replace the old wires with copper wiring, which is more resistant to electrical fires.
  • Consider installing ground fault circuit interrupters (GFCI) in your kitchen, bathrooms and utility rooms. A GFCI will shut down the electrical system if it detects an imbalance in electricity, which can help protect your family against electrocution.
  • Install power surge protection devices for large electrical appliances and computers. A power surge, which is a sudden rush of voltage in an electrical circuit, can damage electrical devices plugged into the circuit.
  • Avoid arc faults by installing arc fault circuit interrupters (AFCI). Often caused by improper electrical connections, overheated wires or pinched wire insulation, an arc fault is a discharge of electrical currents across a gap that can lead to an electrical fire.

What to do if a fire breaks out?

If an electrical fire starts at a wall outlet, pull the plug by the cord if you can get to it safely or turn off the main switch. If the fire is small, use your home CO2 fire extinguisher. NEVER douse an electrical fire with water.

If the electrical fire is large, evacuate your home immediately and call the fire department. Be sure to notify them that it is an electrical fire. They might be able to turn off the main power source, which could keep the fire from spreading.

TAKE PRECAUTIONS AGAINST HARMFUL SUBSTANCES IN YOUR HOME

By Personal Perspective

Home is where the heart is — but it might also be a danger zone. It turns out that harmful substances found in everyday household items can be hazardous to your health.

According to recent studies, older people and young children are particularly vulnerable to the damaging effects of these products. However, a new study shows that a high degree of environmental awareness can help Americans reduce their exposure to hazardous products. That’s why it’s important to do your homework and understand which products carry a high risk.

Here are a few of the potentially hazardous household products you might want to avoid. Although you might not be able to cut these things out of your life altogether, you should try to limit your exposure to these items:

Cleaning products. Many cleaning products contain substances like ammonia and chlorine bleach—two substances that can be extremely toxic. Ammonia is known to trigger to asthma, and chlorine bleach is a lung irritant that can be fatal if swallowed. Additionally, some cleaning products include a substance called glycol ethers, which is used to dissolve dirt. When absorbed in the skin this chemical can cause nerve damage.

Be sure to wear rubber gloves if you are cleaning with any of these products, and keep the room well ventilated. You might also want to wear a mask so that you don’t breathe in the fumes. If you want to avoid these cleaners altogether, you could try using hydrogen peroxide, white vinegar or baking soda instead.

Paint products. The fumes from paint and paint solvents, including turpentine and mineral spirits, can be harmful to your health. According to the Environmental Protection Agency’s Aging Initiative, when these items are used improperly, the fumes can stress your lungs and heart and even contribute to an irregular heartbeat. This is caused by volatile organic compounds (VOCs) contained in these products.

Be sure to use and store these types of products in a well ventilated area. You might also consider buying VOC-free paints, which are available in some stores.

Pesticides. The EPA says that people who have weakened hearts or lungs should avoid exposure to pesticides because it could lead to arrhythmia or heart attacks. Additionally, some studies claim that there could be a link between exposure to pesticides and Parkinson’s disease. Research suggests that certain people carry a gene that makes them more susceptible to Parkinson’s—and when these people are exposed to pesticides, it could trigger the disease.

Clothing. Believe it or not, the shirt on your own back could be contributing to health problems. Many permanent press fabrics and older flame-retardant and water-repellent materials contain formaldehyde, which can irritate your upper respiratory system. Clothing companies aren’t required to list these chemicals on their labels. However, experts suggest that you stick with untreated clothing made from natural fibers like cotton.

Nonstick pans. As wonderful as these pans are for stick-free cooking, they can also be harmful to your health. At normal cooking temperatures, these pans aren’t dangerous. However, if you leave an empty nonstick pan on a burner for an extended amount of time, it can release 15 different toxic chemicals, including two carcinogens.

Carpet pads and old furniture stuffing. A flame retardant known as polybrominated diphenyl ethers used in some carpet pads and stuffing in older furniture and mattresses can be unsafe. Some studies show that this substance can affect the thyroid gland as well as the nervous and reproductive systems.
If you own an older couch or mattress, make sure that no stuffing is exposed. If there is some stuffing hanging out of a rip in your old couch, seal the rip properly to reduce your exposure.

LEARN TO RECOGNIZE THE SIGNS OF SUBSTANCE ABUSE

By Business Protection Bulletin

In a National Survey report released in 2006, the Substance Abuse and Mental Health Services Administration (SMHSA) estimates there are 13.4 million illicit drug users employed in the U.S. workforce. An estimated 3.1% of all employed adults use illicit drugs before reporting to work and another 2.9 % use illicit drugs while on the job. Additionally, an estimated 42.9 million binge drinkers are also employed in America’s workplace. SMHSA estimates 7.1% of America’s workforce drink while on the job.

These grim statistics also reveal that substance abusers are 5 times more likely to file for workers’ compensation, 4 times more likely to have an accident, and 3 times more likely to use sick time and be late for work than non-substance abuses. Employers who do not know the signs of substance abuse face potentially damaging costs that can shrink their bottom line.

These signs might indicate that one of your employees could have a serious substance abuse problem:

  • Recent or rapid changes in quality of work and level of output
    Irregular attendance, being late or missing more time than normal
  • Atypical or unexpected emotional reactions to ordinary or everyday situations such as random and explosive outburst of temper or dramatic mood swings
  • Expressing a lack of interest in their job performance and avoidance of responsibility to their regular duties.
  • Observable changes in their normal attitude when interacting with others in the social context of the workplace.
  • A deterioration in appearance and personal hygiene and the advent of sloppy grooming
  • Abnormal physical motor skills such as inexplicable nervousness, twitching, odd gait, poor muscle control, rapid or loud speech, or a mask-like facial expression
  • The unnecessary use of sunglasses, dilated pupils or redness in the whites of the eyes, or a distorted sense of sound, time perception, and touch
  • Sleepiness or a trance-like state, speech that trails off or slurs, or unusual forgetfulness during a conversation
  • Breath or clothes with an unusual odor
  • Runny nose, repeated nose bleeds or sniffling, and watery eyes, especially if other cold/flu like symptoms are not apparent or the individual has no known allergies that can account for the appearance of these symptoms
  • Reluctance to expose the arms: wearing of long-sleeved shirts, especially in unusually hot circumstances
  • The appearance of irregularly spaced scars on the inside of the arm or other parts of the body
  • Suddenly appearing to be secretive or furtive, the frequent but inexplicable absence of the employee from their work station, or frequent access to out of the way locations such as basements, restrooms, or storage areas.
  • Excessive activity, maybe in the form of manic behavior or a general inability to sit still
  • Theft of small items from employer, co-workers, friends, or family
  • Excessive borrowing of money from co-workers.

Many of the above physical, mental, or emotional changes can be attributed to a variety of everyday or exceptional physical illnesses, diseases, or non work-related problems that might be of brief duration. Carefully evaluate what appears to be suspicious or unusual behavior because outside influences can be at work as well. Employers must be cautious because if you act irresponsibly and jump to conclusions, you might not be able to avoid potential civil action.

Make sure that a multitude of substance abuse symptoms appear concurrently and persistently before making a decision about how to proceed. The best approach in learning how to recognize and combat substance abuse problems is to contact substance abuse experts through local, state or federal programs. A good second step is to implement a solid workplace policy on substance abuse for your business. As a final step, provide all employees with information on where they can seek counseling and intervention.

EMPLOYERS FACE INCREASED LIABILITY FOR EMPLOYEE CELL PHONE USE

By Business Protection Bulletin

Employers are facing increasing liability as a direct result from their employees’ cell phone use. So why is this the next legal frontier? The number of lawsuits involving employer liability for traffic accidents caused by employee cell phone usage is steadily growing, as well as lawsuits based on health problems associated with cell phone use.

The principal of vicarious liability states that an employer is responsible for the harm caused by its employees if the employees are acting within the scope of their employment at the time an accident happened. In this situation, a company can be held accountable by a third party for auto accidents caused by an employee’s cell phone use if the company provided the phone or if the cell phone is an integral part of the employee’s job. The company can even be held liable for incidents resulting from personal calls made by employees on company-issued cell phones, or phones inside company cars.

There is also an emerging trend establishing that an employer can be found directly negligent if it allowed employees to use cell phones for business without proper training or in spite of safety issues, and an accident results.

Another exposure resulting from employee cell phone use is the rise in the number of claims brought by employees for health problems associated with their cell phones. Employees who consistently use cell phones as part of their job are filing workers’ compensation claims and lawsuits alleging that radio frequency radiation from cell phones causes brain cancer.

The scientific evidence concerning whether or not cell phone use increases the risk of cancer is inconclusive. There are two studies that are most frequently quoted, and their results are contradictory. A study conducted at the Danish Institute of Cancer Epidemiology, whose results were released in December 2006, followed the health of over 420,000 cell phone users over the course of 21 years to determine if cell phone use causes cancer. The researchers concluded that the radio frequency energy produced by cell phones did not increase the risk of contracting brain cancer. However, an April 2006 study conducted by the Swedish National Institute for Working Life, examined the cell phone usage of 905 adults who developed malignant brain tumors. They found that people with more than 2,000 hours of total talk time had 3.7 times the risk of developing brain cancer as compared with non-users. The study also found an increase for tumors specifically on the side of the head where the cell phone was used.

Although there is no way to alleviate all potential liability arising from cell phones in the workplace, companies can offer employees training on the safety issues and possible health risks associated with using cell phones. Promoting a safe workplace is a simple way to reduce the number of accidents and health risks associated with cell phones.

DO YOU NEED ELECTRONIC DATA LIABILITY INSURANCE?

By Business Protection Bulletin

A salesman is robbed in a parking garage and loses his laptop computer. Hackers unleash a Trojan horse virus that infiltrates the computer network of a large retail store chain. The virus compromises a customer database. An unhappy employee spirits customer records home with him and begins applying for credit under customers’ names. These things can and do happen. They are a technological and public relations nightmare for the businesses involved. They will also likely culminate in lawsuits against the firms for mishandling customer information. Without financial protection against these types of events, a business could very quickly go bankrupt.

The rise of electronic commerce and the use of sophisticated computer networks for storing data have caused the insurance industry to develop products to cover businesses against liability for lost customer information. One such product is the Electronic Data Liability policy, introduced in 2004 and now available in many states. Its purpose is to pay for a firm’s defense when customers sue it for allegedly failing to safeguard their information, and to pay any resulting settlements or judgments against the firm.

The policy covers the firm’s liability for “loss of electronic data” caused by an “electronic data incident.” An “electronic data incident” could be an accident, a negligent act, error or omission, or a series of these.

Some examples of the types of incidents this policy might cover are:

  • The previously mentioned Trojan horse virus that enables hackers to access the customer database.
  • During a power blackout, looters break into an office and take employees’ computers.
  • An employee leaves customer files in the open on her desk at night, allowing cleaning staff to obtain bank account information and social security numbers.

Coverage applies on a “claims made” basis. This means the policy will cover incidents that occurred on or after a specific date stated in the policy (known as the “retroactive date”) and reported to the insurance company during the policy period. For example, assume that a policy has a term of January 1, 2008 to January 1, 2009, and it lists January 1, 2005 as its retroactive date. On September 30, 2008, the firm finds out that hackers broke into its systems in the summer of 2006. It reports the incident to the insurance company that day. The policy would cover this claim because it occurred after the retroactive date. This would not be true if the break-in happened in 2004, before the retroactive date.

To keep the policy’s cost down, it does not cover several types of losses. For example, it does not cover losses caused by theft or unauthorized use of electronic data by past or present employees, temporary workers or volunteers. The policy will not provide coverage for the acts of the previously mentioned disgruntled employee. It also does not cover losses arising out of a firm’s providing “computer products or services.” These include, among other things, installing or repairing computer equipment and software, storing data for others, providing Internet services, and providing communications services to others. It also does not cover acts such as alleged copyright or trademark infringements.

Although the policy covers claims reported during the policy period, it has a special provision to give additional time for reporting. The insurance company will treat claims reported within 30 days after the policy expires as if the policyholder reported them while the policy was in force. For an additional premium, the company might extend the reporting deadline to three years after the policy expires. However, this additional premium can be up to 100% of the original premium.

High-speed computer networks have given modern business opportunities it has never had before. However, those opportunities have come at the cost of higher risks with potentially large consequences. Any firm doing business over the Internet or private networks (that is to say, all firms) should discuss electronic data liability coverage with one of our insurance agents. Call our office today!

POLLUTION COVERAGE IS NOT COMPLETE IN THE CGL FOR CONTRACTORS

By Construction Insurance Bulletin

The creators of the standard Commercial General Liability Insurance Coverage Form did not intend for it to cover many pollution events. Pollution events can be extremely costly; businesses with such risk require specialty insurance policies written by companies with expertise in that area. The CGL form covers more routine events such as slips, falls, accidental property damage, and construction accidents. However, a contractor that has an accident involving the release of harmful liquids, fumes or irritants might still find some coverage in the CGL form.

The CGL form covers a contractor’s liability for the release of pollutants at premises that he does not own, occupy, rent or borrow. For example, a contractor, working at a convenience store, who cracks a pipeline that supplies gasoline from the tanks to the pumps might have coverage because the accident happened at premises he did not own, occupy, rent or borrow. However, if the same contractor knocked over a drum of motor oil at his own premises, the policy would not provide coverage for the clean up.

The contractor also has coverage for the release of pollutants at a job site if he did not bring them there. In the above example, the gasoline flowing through the pipeline was already at the job site. Since he did not bring it to the site, the contractor has coverage for this accident. However, a painting contractor completing a job outdoors on a windy day will not have coverage if paint gets blown into a nearby stream.

The policy also covers the contractor for harm caused by gases, fumes or vapors from materials he brought into a building in connection with the work being performed. A painting contractor working inside a building has coverage if the paint fumes make other people in the building sick. By contrast, the policy would not cover similar claims if the source of the sickness were fumes from diesel fuel used in the contractor’s trucks.

Finally, the policy covers the contractor for pollution resulting from completed operations. A contractor that installed a complicated piping system for moving finishing solvents around a manufacturing plant would have coverage if the system leaked months after the job was finished.

Most construction contracts require a subcontractor to cover the project owner and general contractor as additional insureds under the sub’s CGL policy. Although the policy excludes coverage for pollution incidents taking place at premises that were ever owned, occupied, rented or borrowed by any insured, it makes an exception for premises belonging to an entity named as additional insured and where the contractor is working. Without this exception, the subcontractor would never have pollution coverage at job sites where he named the owner or GC as additional insureds (that is to say, almost all job sites.)

The pollution coverage in the CGL is not complete. The contractor has no coverage for the release of pollutants that he brought to the job site. There is no coverage if a hydraulic line on a front-end loader breaks and pours fluid all over the ground, since the contractor brought the loader and its fluid to the site. Also, the policy does not cover release of pollutants in connection with environmental remediation work done by the contractor or a hired sub. Contractors involved in this type of work need a special Pollution Liability policy.

A contractor would be wise to have a long discussion with an insurance agent about all of his operations and potential risks. The agent can identify what is and isn’t covered. If there are gaps in the coverage, the agent can recommend products to fill them. Construction is hazardous work; contractors need to know in advance what financial protection they have from pollution incidents.

OSHA CONTINUES TO BE VIGILANT ABOUT EXCAVATION/TRENCHING BLUNDERS

By Construction Insurance Bulletin

OSHA is well aware of just how many injuries, both fatal and non-fatal, are associated with excavation/trenching. In fact, the Agency has been conducting a trenching initiative for the past several years. In an effort to lessen the number of excavation/trenching-related fatalities, OSHA designated a trench initiative team in 2003 to identify safety issues and to develop outreach materials. Although the Agency’s studies have shown that there has been a steady decline in fatalities, it is still continuing its outreach efforts to remind employers of the need for constant attention to prevent cave-in fatalities.

The trench task force enumerated a number of possible risks that employees might encounter while working in an excavation. However, there are five risks that are most often cited by OSHA inspectors when they examine a site:

1. Lack of adequate protective systems – OSHA Standard 1926.652(a)(1) requires that any excavation between 5 feet and 20 feet deep must have protective systems to prevent a cave-in. The acceptable forms of protective systems include:

  • Shoring – These are timber, mechanical, or hydraulic systems that support the sides of an excavation.
  • Sheeting – A system in which plates or shoring-grade plywood are driven into the ground to keep the earth in position.
  • Shielding (also known as a trench box) – This protects the workers in the event of a cave-in. The box is placed in the trench and moved with the employees as the work in the trench progresses.
  • Sloping – A method of cutting back trench walls at a steep enough angle so that a cave-in isn’t possible. The angle depends on the type of soil.
  • Benching – This technique cuts into the sides of an excavation to form one or more horizontal steps.

2. Failure to make necessary on-site inspections – A competent person on-site must inspect the excavation, the surrounding areas, and all protective systems on a daily basis for indications that a cave-in might occur, protective systems might fail, or that other hazardous conditions are present. Inspections should be conducted prior to the start of workday and before the beginning of each shift. Inspections must also be made after an event that might increase the possibility of a cave-in, such as a rainstorm.

3. No adequate method of access and egress – Excavations/trenches that are 4 feet deep or more must have proper means of egress. OSHA has established the following guidelines:

  • The means of egress must be positioned within 25 lateral feet of workers.
  • A competent person must design structural ramps that are used solely for access or egress from excavations.
  • When two or more components form a ramp or runway, they must be effectively connected to prevent displacement, and be of uniform thickness.
  • Cleats or other means of connecting runway components must be attached in a way that would not cause tripping.
  • Structural ramps used in place of steps must have a non-slip surface.
  • Earthen ramps cannot be used as a means of egress unless a worker can walk them in an upright position, and a competent person has evaluated them.

4. Improper placement of spoil piles – These must be placed at least 2 feet back from the excavation to prevent debris falling into the site.

5. Failure to quickly evacuate at-risk employees – As soon as the competent person discovers an indication that a cave-in might occur, a protective system could fail, or that other hazardous conditions are present, exposed employees must be removed from the excavation until the necessary measures have been taken to make working in the area safe again.