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Nov 01
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AVOID AN UNINSURED LOSS BY UNDERSTANDING GENERAL AND PROFESSIONAL LIABILITY INSURANCE

By Construction Insurance Bulletin

A computer consultant is upgrading servers at a client’s site. While explaining a problem to one of the client’s employees, he gestures with one hand and knocks over a hot cup of coffee. The drink spills on the employee, causing a serious burn. The consultant reports the incident to his insurance agent, who submits a claim to the company providing his commercial general liability insurance. However, the company responds by denying coverage, citing a change attached to the policy. This change removes coverage for bodily injury arising out of the rendering of computer consulting services, advice or instruction by the policyholder. According to the company, the employee’s injury resulted from the computer consulting services.

The consultant’s policy contains this provision because losses “arising out of the rendering of computer consulting services” are more properly insured under a Professional Liability policy. The provision’s intent is to exclude coverage for losses resulting from errors in his professional judgment. However, its wording seems to support the insurance company’s contention that there is no coverage. The consultant argues that spilling a cup of coffee is something that could happen to anyone, not just someone providing professional services. What is the correct interpretation?

A Commercial General Liability policy insures the policyholder for bodily injury, property damage, and personal and advertising injury, caused by an occurrence taking place during the policy period, and for which the policyholder is liable. The policy takes this broad starting point and limits coverage with several provisions (called “exclusions”) that describe types of occurrences to which the insurance does not apply. The insurance company added a special exclusion to this policy so that it would not cover errors and omissions the consultant makes while acting in his professional capacity.

Unfortunately, if the consultant has purchased a Professional Liability policy, it might exclude coverage for losses involving bodily injury or property damage. Insurance companies write this provision into the policies in the belief that the CGL policy will cover these losses. The result is that the consultant might have no coverage under either policy for this incident. The company providing the CGL policy denies coverage because he was acting as a consultant at the time; the other company does not cover loss from injuries.

To reduce the chances of a situation like this occurring, professionals such as physicians, architects and engineers, and consultants should work closely with an insurance agent. The agent should explain any special changes to the CGL policy that eliminate coverage, such as professional liability exclusions. She will also review and explain the provisions of a Professional Liability policy. The consultant should ask how the two policies coordinate with each other, especially with regard to injury and property damage losses. The agent should have experience with the companies’ claim paying practices. She might know that a particular company is likely to deny injury claims under the CGL policy because of a professional liability exclusion.

The best way to avoid an uninsured loss like this is for the businessperson to become informed about exactly what he is buying with his insurance premium dollars. As an informed buyer, he can insist that the policies meet his needs. If a particular insurer cannot or will not do that, he has plenty of competitors to choose from.

Liability insurance can be a significant business expense; the last thing any business wants is a surprise gap in coverage at claim time. Contact us today to review your specific liability needs.

Nov 01
Love0

TRAIN WORKERS TO PRACTICE SAFETY WITH NAIL GUNS

By Workplace Safety

Pneumatic nail guns are easy to use, and can significantly reduce work time, but they are also deadly weapons. Driven by compressed air, they can blast upwards of 30 nails a minute at speeds of 490 feet per second. According to a 2007 study by the Centers for Disease Control and Prevention, a large number of those nails not only find their way into the heads, hands, and necks of the employees who use nail guns, but also those of their co-workers.

The lead author of the research, Dr. Hester Lipscomb, an epidemiologist from Duke University in North Carolina, studied data from the Consumer Product Safety Commission’s National Electronic Injury Surveillance System about reported nail gun injuries from 1995 to 2005. Her findings reveal that the number of persons with nail gun injuries seeking treatment in hospital emergency rooms increased from about 12,000 in 1995 to roughly 42,000 in 2005. Lipscomb said the data highlighted the need for better training, and an increased awareness that nail guns must be treated just like any other loaded weapon.

To help workers use nail guns safely, The National Association of Home Builders has established the following guidelines:

  • Inspect the tool before each use.
  • Wear safety glasses, a hardhat and appropriate hearing protection whenever you use a nail gun.
  • Keep guards and other safety devices on nail guns working in accordance with the manufacturers’ recommendations.
  • Never carry the tool with your finger on or under the trigger; always remove your finger from the trigger when not driving nails or fasteners.
  • Use the nail gun as directed. For example, with a pneumatic nail gun, you should first contact the surface, and then squeeze the trigger. “Bumping” or “bouncing” the nail gun against the work surface with the trigger engaged could cause the nail gun to go off when it hits something else by accident, like your leg.
  • Drive nails/fasteners into the work surface only, never into materials that are too hard to penetrate.
  • Do not drive nails/fasteners close to the edge of the work surface, on top of other nails/fasteners, or with the tool at too steep an angle. This could cause the nails/fasteners to ricochet and hurt someone.
  • Never point the tool at yourself or others in the work area.
  • Keep your hands and feet away from the firing head during use.
  • Remove all nails/fasteners from the tool before connecting it to the air compressor and do not exceed the manufacturers’ recommended working air pressure rating.
  • Fasten the air hose securely to the tool to prevent it from becoming disconnected.
  • Disconnect the air before clearing jams, performing maintenance, leaving the work area, or moving the tool to another location.
Nov 01
Love0

EMPLOYERS SHOULD TAKE STEPS TO ELIMINATE HAZARDS OF SLEEP DEPRIVATION

By Workplace Safety

Everyone knows how important it is to get eight hours of sleep each night so that they can be at their best the following day. What you might not know, however, is that if your employees don’t get enough rest, they will experience decreased motor skills, impaired thought processes, and memory loss, all of which can make them susceptible to injury.

In addition to being a safety hazard, sleep deprivation can also affect your employees’ health. Research shows that night shift workers typically get an hour less of sleep per day than day workers. Taking away this hour of sleep interferes with their circadian rhythms. These are the events that occur within a 24-hour period, like sleeping/waking, which are regulated by an internal clock. If you try to readjust that clock, such as when you switch sleep times, it can cause difficulties, because circadian clocks affect almost every level of bodily functions. As a result, employees can develop peptic ulcers, hypertension and cardiovascular diseases.

Not getting enough sleep also causes an employee to consume more calories. That’s because sleeping plays an important role in regulating the body’s leptin levels, a hormone that tells the brain when the body needs more food. Low levels of leptin cause the individual to eat more which can lead to obesity. Obesity can lead to diabetes, hypertension or other health problems, as well as decreased productivity and increased absenteeism.

As an employer, you need to find ways to combat the effect sleep deprivation can have on your workers’ health and safety. Here are some steps you can take:

  • Break up the monotony of repetitive tasks – A sleep deprived employee’s attention span wanes after one to two hours of doing the same task over and over. To reduce mistakes, schedule frequent, short break periods in which the employee stops work and stands up, or moves around.
  • Put high-intensity lighting in the work area – The short-term effect is that the lighting keeps workers alert. Over time, exposure from this type of light retrains the body’s circadian rhythms to delay the onset of sleep. When the worker does go to sleep, because the body has been retrained that this is the new sleep period, the worker actually experiences a more restorative sleep.
  • Permit napping – When employees first begin working a night shift, it is important that they have an opportunity to nap until they become acclimated to their new schedule. Allowing an employee to nap for 30 minutes can significantly improve their ability to function.
  • Use the buddy system – Create employee teams of two who are responsible for monitoring each other for signs of sleep deprivation. If an employee notices their teammate is looking tired or starting to make mistakes, they can insist that their co-worker stop what they are doing, and take a break.
Nov 01
Love0

AVOID COMMON MISTAKES WHEN ADMINISTERING FIRST AID

By Workplace Safety

Doctors, nurses and safety experts constantly preach to us about how we should all learn first aid. But is it really that important? The answer is a resounding yes. When a person is injured, the proper first aid techniques can greatly lessen the severity of their situation. In particularly grave situations, first aid can even save a life. Even a seemingly minor injury, such as a small cut on your hand or a bump on your head, can lead to serious medical problems if you don’t take the appropriate first aid measures. If things get bad enough, you might have to miss work — which means you’ll lose valuable time and money. To help protect yourself and those around you, it’s critical to know first aid. Sign up for a first aid course with a qualified instructor and you’ll learn how to respond quickly and properly to almost any type of injury.

People who have not taken a first aid course often make mistakes when attempting to help an injured person. Sometimes, these mistakes can be deadly. Here are a few of the most common first aid mistakes:

1. Treating burns with butter or ice: If you burn your skin, do not treat the area with butter or ice. Butter can prevent your skin from healing properly and ice can cause frostbite, damaging the skin even more. Also, never cover a burn with a bandage or any other covering.

If you are suffering from a mild burn, wash the affected area with cool water and apply antibiotic ointment. If the burn is severe or located in a sensitive area, such as around your eyes or mouth, see a doctor immediately.

2. Telling someone with a nose bleed to lean back: If someone is suffering from a nose bleed, the last thing they should is lean their head back. They could actually choke on blood. If you have a nosebleed, sit down, lean forward and pinch your nose just below the nasal bone for five to ten minutes. Once the bleeding stops, do not blow your nose or bend over for several hours — this could cause the bleeding to start up again. If you have a nose bleed that lasts longer than 20 minutes, seek medical attention.

3. Trying to move a badly injured person: If someone is badly injured, do not try to move them. Even if an injured pedestrian is lying in the middle of a busy street after being hit by a car, DO NOT try to move him. If you attempt to move him, you could make his injuries even worse.

Instead, call 911 immediately and wait with the victim until the ambulance arrives. Only a trained professional, such as an EMT, should move a severely injured person.

4. Not acting quickly enough: One of the biggest first aid mistakes people make is simply not acting quickly enough. Let’s say your co-worker John cuts himself badly, and is losing a lot of blood very quickly. If you don’t act right away by applying pressure to the wound to stop the bleeding, John could die within a matter of minutes.

You should also react quickly to smaller injuries. For example, imagine that you scrape your finger on a rusty old nail sticking out of your workstation. If you simply wipe off the blood and go back to work, the cut could get badly infected and even lead to blood poisoning.

This is why it’s so important to act quickly. Instead of ignoring your scrape and assuming it will be fine, you should thoroughly clean the area with soap and water, apply antibiotic ointment, wrap your finger in sterile dressing and see a nurse immediately.

With the proper first aid training, you will know better than to make these mistakes. Oftentimes, first aid can mean the difference between life and death. Play it safe and sign up for a first aid course today.

Nov 01
Love0

IN TOUGH ECONOMIC TIMES, GET EMPLOYEES MORE INVOLVED IN BENEFITS AND HEALTH MANAGEMENT

By Employment Resources

When times get tough economically, both businesses and individuals alike examine how they can cut expenses. For a business, this could mean looking for ways to cut costs in the employee benefits program. Health benefits, which carry the highest tab in most companies’ benefits programs, might seem like the most reasonable target for cost cutting measures. But before taking a knife to your health plan and/or other aspects of your company’s benefits program, it’s important to consider the possible consequences and alternatives. Large premium increases can cause employees to drop coverage, in particular younger, more healthy employees, leaving your plan with a less desirable risk pool. Cost-shifting that involves higher copayments and/or deductibles can cause employees to defer routine care, delay seeing a doctor when symptoms of illness first arise, and fail to fill prescribed medications. In the long run, these decisions can end up not only costing your health plan money, but also add to absenteeism and disability costs and lower employee productivity and morale.

As an alternative, make sure that your benefits dollars are being applied to measures that enhance employee health and well-being. These include:

  • Generous coverage for preventive care.
  • Incentives for participation in activities designed to detect potentially serious medical conditions, such as health risk assessments and health screenings for blood pressure, cholesterol and blood sugar levels.
  • Incentives for participation in other wellness activities, such as smoking cessation classes, weight loss efforts, nutrition counseling and fitness activities.
  • Making available employee assistance programs (EAPs). An EAP can be particularly important to employees during trying economic times, providing a resource for or referral to financial counseling, as well as stress management and crisis intervention services.
    If cost shifting is a must, there are ways to soften the impact on employees:
  • Flexible spending accounts (FSAs) enable employees to pay for health care expenses with before-tax dollars. This lets employees get the most out of the dollars they use for health care.
  • Consumer-directed health plans (CDHPs), which couple a high-deductible health plan with a health savings account (HSA), make employees more conscious of how they are spending their HSA dollars, since these funds can carry over year after year.
  • Voluntary benefits can add a wide range of personalized options to an employer’s benefits program, at little or no cost to the company. At the same time, they offer employees cost savings and convenience over finding and purchasing these benefits on their own in the individual market.

All of the above require employees to become more involved in the management of their benefits and of their own health. Whether it be participating in wellness activities, keeping on top of scheduling regular preventive care, thinking ahead and budgeting for anticipated health care needs, or researching provider networks to find the most appropriate care at the most cost-effective price, all of these measures enhance individual involvement. And, in the long run, the individual responsibility your employees assume for their health care and benefits management can serve as one of the most important cost-management tools you’ll ever find.

Nov 01
Love0

GROWTH OF THE CHRONICALLY ILL INCREASES HEALTH CARE SPENDING

By Employment Resources

The number of Americans with chronic health conditions continues to grow, so that today more than half of insured individuals are taking a prescription medication to treat at least one chronic health condition. With a health care system more attuned to treating episodes of illness rather than long-term chronic conditions, employers can find themselves especially challenged to come up with ways to moderate the health care costs and productivity losses that result from their employees’ chronic illnesses.

Reports from various sources document the increase in the number of Americans with chronic health conditions, along with the costs associated with these long-term illnesses—

  • According to a report from the Kaiser Family Foundation, the number of working age adults with at least one of seven major chronic conditions (heart disease, hypertension, stroke, diabetes, asthma, emphysema, cancer) grew 25% since 1997, to a total of 58 million by the end of 2006. Individuals with these conditions account for three-quarters of all personal medical spending in the United States. However, even at that rate of spending, these folks still might not be receiving the care and treatment they need to effectively manage their conditions: Among the insured with a chronic health condition, the share unable to meet their prescription drug needs doubled from 5% in 1997 to 9.5% in 2006.
  • Pharmacy benefit manager Medco Health Solutions reports that, in 2007, 51% of insured Americans were taking prescription drugs to treat at least one chronic health condition, and 20% used three or more medications for chronic conditions. Though this trend was most pronounced among seniors, it also was seen among younger individuals. For example, 48% of women ages 20–44 are being treated for a chronic condition, with the most common condition being depression. But, in general, prescription drug treatments for high cholesterol and high blood pressure were the ones most used by those with chronic health conditions, with more than 20% taking hypertensives and almost one in seven taking cholesterol-lowering drugs.
  • According to a report from researchers at Johns Hopkins University, 65¢ of every health care dollar spent in the United States is for treatment of people with two or more chronic health conditions, and this group represents only 26% of the population. Individuals with at least one chronic condition have yearly health care spending more than five times greater than those with no chronic conditions. After pondering this data, it’s clear that employers will want to do what they can to moderate the impact of their employees’ chronic health conditions on health care costs and workplace productivity. It’s best to attack the problem on a number of fronts, and here are some approaches to consider—
  • Since prescription drugs are a staple in the treatment of chronic health conditions, a prescription benefit with employee copayment pricing that strongly encourages use of generics will be important to cost management.
  • Many chronic conditions are closely related to obesity (hypertension, high cholesterol, diabetes, osteoarthritis). Therefore, wellness programs that feature weight management tools can motivate and assist employees in their efforts to exercise, lose weight and develop eating habits that avoid the high fat/high sodium/high sugar foods that can exacerbate certain chronic conditions.
  • Disease management programs can target individuals with chronic conditions and actively work with them to help them manage their diseases. Services can include monitoring prescription drug compliance and sending refill reminders, educating members on their chronic condition, providing information on self care, and making sure that individuals are seeing a physician as is appropriate for their condition.

With any of these approaches, the goal is that better management of a chronic condition will reduce hospitalizations and emergency room visits—which are among the costliest forms of health care—and decrease the times that a chronically ill employee must miss work on account of the illness. Realizing these goals can help to control health care costs and improve employee productivity, while enhancing the quality of chronically ill employees’ lives.

Nov 01
Love0

COMMUNICATE WITH EMPLOYEES REGARDING BENEFITS TO MAXIMIZE YOUR COMPANY’S INVESTMENT

By Employment Resources

Most employers’ investment in the benefits packages they provide to employees is significant. According to data from the Department of Labor’s Bureau of Labor Statistics, employee benefits account for close to a third of employee compensation costs, an average $8.63 per hour worked (includes legally required benefits such as Social Security). With such an investment, employers of all sizes want these benefits to engender loyalty within the workforce. In smaller businesses, benefits do play this role to some degree, according to a survey from MetLife, but employers are not utilizing their benefits packages to their full strategic advantage.

MetLife polled employees and benefits decision makers in companies with at least two employees. More than half—55%—of the employers with fewer than 500 employees said that benefits play a very important role in employee retention. However, only 34% of employees at companies of this size said the benefits they receive are a very important reason to remain with their current employer, compared to 53% of employees at larger companies. This last finding is somewhat puzzling, since among employers that offer benefits, a higher percentage of smaller employers contrasted to larger employers pay the full cost for many benefits, including medical, dental and prescription drug coverage. Specifically, 36% of smaller employers paid the entire cost of employees’ medical coverage and 29% footed the full bill for prescription drug coverage, compared to 15% and 13%, respectively, of larger firms that did this for employees.

Whether or not your company is among those that pick up the full tab for certain employee benefits, you do invest significantly in the benefits you provide, and you want to realize a good return on this investment. The key to maximizing this is to take steps to use benefits strategically.

Using benefits strategically requires that the benefits your company offers are those that your employees really need and want. Although you can safely assume that medical, some type of retirement plan, and time-off programs would top this list, beyond these employees’ benefits needs can vary greatly. If you haven’t done so recently, get input from employees—through surveys, focus groups, even a suggestion box—as to what’s on their benefits “wish list.” You might find that some of the most coveted benefits are those that require little financial investment, though they could demand some creative thinking on your part. For example, flex-time, job sharing and telecommuting are prized by many workers, and if you are able to figure out a way to implement them in your company you will score a hit with employees without dipping into the benefits budget.

Similarly, you can greatly expand your menu of benefits offerings at little or no cost through voluntary benefits. Your company can give employees convenient access to coverages such as dental, vision, hearing, group legal, various types of Life insurance, and disability through a voluntary benefits strategy. Though employees pay the full cost of voluntary benefits, they generally get a good price because they’re purchasing at a group rate; plus, they save time not having to shop for the benefits in the open market and have the convenience of paying for them through payroll deduction. Most importantly, since employees choose which, if any, voluntary benefits to enroll in, they’re only paying for what they’ve decided they want and need, which is important, psychologically, to feeling that they’ve gotten their money’s worth.

Finally, regardless of the benefits you decide to offer to employees, don’t skimp on communications. The MetLife survey suggests inadequate communications might be part of the cause for employees’ under-appreciation of their benefits, with only about a third of both smaller employers and their workers rating their benefits communications as highly effective. Where to start in shoring up your benefits communications? Consider personalization, for which 54% of employees in smaller companies expressed a preference.

Nov 01
Love0

THE RISK MANAGEMENT CASE FOR SHIFT WORK TRAINING

By Risk Management Bulletin

We’ve all heard the expression “24/7”and we’re likely to be hearing it more often as more countries move toward 24-hour societies. But shift work (shifts outside of the traditional 7 a.m. to 6 p.m. workday) brings with it a variety of problems for businesses: a higher rate of injuries, accidents and health-related problems; increased employee absenteeism and substance abuse; more production errors, etc. – all of which boost your insurance costs and slash your bottom line.

The good news: You can reduce or eliminate many of these problems by providing effective shift work training. “Worker lifestyle training provides measurable benefits for the company, its employees, and their families,” notes a 2007 report from Circadian Workforce Solutions. “In addition to improved alertness levels, health, and quality of life, such training can also reduce accidents, decrease legal liability, and reduce overall operating costs.” These programs can also help curb turnover; a Circadian survey found that shift training cut turnover rates by more than 4% — and replacing a single employee cost survey respondents from $12,000 to $60,000.

An effective worker lifestyle program should show your employees how to get enough rest off the job by following these guidelines:

  • Always go to bed at the same time, preferably as soon as possible after work.
  • Sleep in a dark, quiet room. Use room-darkening shades or drapes and turn off the phone. If people or traffic noises disturb them, try using earplugs or turning on a fan that covers the noise.
  • Eat balanced, nutritious meals. Eat only light snacks before bed. Avoid food that’s heavy, rich, or spicy. Also try to stop drinking alcohol or caffeine or smoking a few hours before going to bed.
  • Exercise regularly, although not in the two hours before trying to sleep. Avoid sleeping pills. In case of insomnia, consult a physician.

To maximize safety during working hours, have your employees:

  • Turn on all lights in their work area and in hallways, stairways, bathrooms, etc.
  • Replace or report any burned-out bulbs promptly.
  • Make sure that they have adequate task lighting. If they can’t see their equipment controls, read container labels, or have similar problems, have them alert their supervisor.
  • Be sure that all work areas are ventilated, and report any ventilation systems that aren’t working properly.
Nov 01
Love0

WINTER SLIPPERY SURFACES: DON’T GET TRIPPED UP!

By Risk Management Bulletin

Every year several hundred thousand workers suffer on-the-job falls – many of them related to slipping accidents. Weather-related slips and falls are especially common during winter. Weather-related slips, trips, and falls become a serious hazard, as snowy conditions often make for wet or icy surfaces outdoors. Even wet leaves or mud can create treacherous walking conditions. And spills and leaks indoors can always lead to slips and falls anytime during the year.

Although slips and falls usually aren’t fatal, they can cause broken bones and back injuries. If an employee suffers a slip or fall injury, it could cost you lost workdays, not to mention workers’ compensation, and other medical expenses. If a visitor is injured, you could face an expensive lawsuit. To prevent or reduce slip-ups on your property, in winter and throughout the year, we’d recommend that you:

  • Focus on awareness training. Short safety meetings in every department will get people thinking about slipping hazards-and taking precautions to prevent falls.
  • Create a slip-free zone … inside and out. Inside, remind employees to clean up spills, drips, and leaks immediately (even a little coffee spill on the floor can cause an injury). Make sure maintenance personnel and other employees put up signs or barriers to warn people when floors are wet, slippery, or otherwise hazardous. And be sure that on wet days, somebody is assigned to put down mats near entryways to help keep floors dry. Outside, see that slippery spots are sanded or salted immediately. Encourage employees to wear sensible shoes with nonskid soles. Also remind them to wipe their feet when they come in, and to walk slowly and take smaller steps on wet or slippery surfaces.
  • Encourage employees to report slippery conditions. Make sure that they know how, and to whom, to report any slipping hazards they can’t clean up effectively inside. Make it easy for them to report any slipping hazards they notice outside, on walkways, in parking lots, or anywhere else on your property; that way, maintenance can get to the scene quickly and remove the hazard before an employee or visitor slips and falls. (As a matter of course, stress that every employee must fix or report any hazardous condition that they find at your facility.)
Nov 01
Love0

DISASTER PREPARATION CLASSES TARGET SMALL BUSINESSES

By Risk Management Bulletin

If disaster struck your workplace, how well would you, and your employees cope until first responders arrive – which could take hours? Disaster preparation can seem overwhelming. For busy small businesses, committing time to prepare for a potential problem can take a back seat to dealing with more immediate concerns. Trying to help small-business owners and other citizens get a handle on how to prepare and what to do during and after an emergency is the goal of the Community Emergency Response Team (CERT) programs, sponsored by the Federal Emergency Management Agency. Fire departments and private companies throughout the nation are coordinating these programs that provide free or inexpensive training in lifesaving skills. “If you can be prepared, then when disaster hits you’re not going to be a victim, you’re going to be part of the solution,” says Los Angeles County Fire Department Capt. Jeff Vrooman, who coordinates CERT training for the department. “We touch as many people as we can because it’s going to pay off greatly.”

Small-business owner Jeff Edelstein (SOS Survival Products, Van Nuys, CA) credits disaster preparation classes with helping him organize a safe evacuation of his neighborhood during the 2005 Chatsworth fire. “You don’t want to practice when a disaster happens,” says Edelstein. “Make your mistakes in a drill and learn from those mistakes.”

CERT trainees learn how to assess their workplace (or home or school) for potential hazards during a disaster. They’re taught the basics of fire suppression, how to triage injured people by the severity of their condition and to handle life-threatening injuries. Courses might also include basic search-and-rescue operations, classes on disaster psychology and the organization of volunteer teams, together with guidelines for working with professional emergency response teams.

Training geared to small-business owners will be added next year by the Business and Industry Council for Emergency Planning and Preparedness, a group of local emergency planners from business and government.
The program is needed to keep businesses in operation so they can provide the products, services, and jobs that communities will need to recover after a major disaster.

For a national overview of CERT programs, go to www.citizencorps.gov/cert/

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