Construction Insurance Bulletin

Your supervisors play a crucial role in managing your workforce to ensure high productivity, quality, and safety outcomes. They need to have performance management (leadership) skills.

Communicating productivity expectations to employees, including coaching and counseling them to meet these goals, learning how to balance the need for production and concern for workers.

There are four possible scenarios in this balance:

1. Low concern for both the workforce and productivity (“minimal management”). This will displease both management and workers, meaning the supervisor won’t be around long.
2. High concern for people, but little interest in production (“Country Club management”). This will please workers, while making management unhappy.
3. High concern for productivity, with little regard for the workforce (“autocratic management”). Although the company might meet its short-term goals, workers will be dissatisfied, leading to turnover and absenteeism issues that will make it tough to meet long-term production.
4. A balanced high concern for both productivity and workers (“team management”). This is the best scenario because the project will probably exceed productivity goals, due to an involved and engaged workforce.

Good supervisors need management skills, but great supervisors must also have leadership skills. Managers do things right, while leaders do the right things. Managers get workers to achieve productivity goals, while leaders get them to exceed these goals.

The “situational” leadership approach gets the best results by combining elements of other leadership styles, “autocratic,” “democratic,” and “participatory.” To lead effectively, your supervisors must demonstrate integrity, fairness and a respect towards all workers, based on understanding immediate needs of the employees.

How well do your supervisors meet this test?

Cold weather will be with us for a few months which can cause a variety of problems for contractors and their employees who work outdoors in winter weather.

To help your workers stay warm and safe on the job, follow these precautions:

• Make sure that they keep their body temperature at or about normal by wearing layers of clothing, both inside and outdoors.
• Provide proper rain gear, gloves, good waterproof boots, and an extra pair of clean, dry socks.
• Have workers protect their neck and ears; they can lose a lot of heat from these areas.
• Treat frostbite properly. The most important symptom is a numbing effect, which many workers tend to ignore. Other symptoms can include red skin turning to white, poor blood circulation, and blisters. To provide first aid: 1) never rub the frozen part in snow or immerse it in hot water (you can use warm water); 2) cover the affected area with extra clothing or a blanket; 3) get the worker out of the cold; 4) apply loose fitting, sterile dressings and splint and elevate affected extremities if possible; and 5) seek immediate medical attention.
• Make sure that portable heaters are maintained and inspected on a regular basis. Defective ventilation and incomplete burning of fuel can lead to carbon monoxide poisoning. Locate fuel containers, regulators, piping, and hoses and secure them in sites where they won’t be subject to damage. Protect the valves from damage also.

Remember, the more effectively you help your employees stay warm and safe on the job, the higher their productivity,– and the lower your insurance premiums.

For more information, please feel free to get in touch with our agency’s Construction insurance specialists at any time.

As kids, we learn that there are two ways to get in trouble: doing stuff we shouldn’t (giving the dog a haircut) or not doing things we should (letting Fido go hungry).

As a contractor, you can get into serious trouble for not doing something,– under a legal doctrine called “negligent supervision.” For example, if one of your employees injures another person by driving a car recklessly while on company business, you might face a negligent supervision lawsuit alleging that you failed to uncover or ignored the driver’s bad record behind the wheel.

To minimize this risk, experts recommend that you:

Understand your exposure to potential negligence. Although it’s an exaggeration to say that anything you do (or don’t do) might be seen as negligent, certain situations demand particular care Promoting or certifying unqualified employees, failing to fire or discipline them for potentially dangerous behavior, or terminating them without an effective investigation.

Never make assumptions about employees. Just because workers volunteer for additional responsibilities for which they might be unqualified (out of boredom, a wish to please, or to earn a higher wage) doesn’t mean they can actually do the work. Check the employees petitions before assigning the work.

Don’t ignore or minimize signs that employees pose a potential danger to themselves or others. After the tragic shootings at the Washington Navy Yard, the media was filled with evidence of the shooter’s troubling behavior that the authorities evidently ignored. If you’re concerned about an employee’s actions, investigate, inquire, and consult with experts, including the police. It’s better to be safe than sorry!

We’d be happy to review your exposure to negligent supervision claims and how liability insurance can protect you against these allegations.

Wrap-up or “Wrap” Construction insurance can be a highly effective tool on large or complex building projects to reduce premiums, minimize cross-litigation, and speed the claims process by providing General Liability, Workers Comp, and possibly other coverages for the general contractor and most – if not all –subcontractors under a single package policy. There are two basic types of Wrap coverage: owner-controlled insurance programs (OCIPs) and contractor-controlled insurance programs (CCIPs).

Although each type has its advocates, more and more project owners prefer have the general contractor sponsor the program because they:

• often use the same subcontractors, who are familiar with the safety requirements of the program – an essential element in a successful OCIP; Shouldn’t this read CCIP?
• usually have more control than owners over safety programs and are more experienced in the administration of OCIPs: payroll reporting, claims management, working with the insurance company, and so forth
• have a financial incentive to minimize accidents and injuries on the project (because insurers usually require the general contractor to pay a six-figure deductible, andin many cases, to prefund these potential losses)
• often have more financial resources than the project owner to provide letters of credit, collateral, or sureties the insurance company requires for projected and developed claims under the program.

However, in some cases, an OCIP can be a better solution than a CCIP. For instance, many owners might be ready to assume the risks of a Wrap-up – and to share the savings with the general contractor for a job completed safely. Picking the best approach for each project should be a win-win for all parties involved. Our Construction insurance specialists would be happy to offer you their input.

Accidents involving vehicles or mobile equipment (excavators, dumpers, etc.) on building sites kill more than a dozen workers a year and injure hundreds more. To help make sure that your workers and outsiders can move around your job sites safely,and keep your insurance premiums down, experts recommend using this checklist:

Keep pedestrians and vehicles apart:

have separate entry and exit gateways for pedestrians and vehicles
• provide safe pedestrian walkways that take a direct route where possible
• make sure drivers with access to public roads can see both ways
• don’t block walkways or vehicle routes
• install barrier between roads and walks

Minimize vehicle movements:

• provide offsite parking
• control entry to the site
• have storage areas so that delivery vehicles don’t have to cross the site

Control people on site:

• recruit drivers and equipment operators carefully
• make sure that drivers, operators, and those who direct traffic are trained
• manage the activities of visiting drivers

Maximize visibility:

• provide mirrors, CCTV cameras or reversing alarms
• designate signalers to control maneuvers by drivers or equipment operators
• install lighting for use after sunset or in bad weather
• make sure that all pedestrians on the site wear high-visibility clothing

Provide safety signage and instructions:

• ensure that all drivers and workers know and understand the routes and traffic rules on the site
• use standard traffic signs where appropriate
• provide safety instructions to all visitors in advance

For a comprehensive – and free– review of vehicle and mobile vehicle safety practices on your job sites, just give us a call. We’re here to help at any time.

Because construction projects are complex operations involving a number of subcontractors under your supervision, onsite accidents or injuries resulting from their work can easily lead to litigation against you. To protect yourself against claims, losses, and expenses if disputes arise during the project, make sure that all subcontractors sign a “Hold Harmless Agreement” clause.

The terms of these clauses will vary from state to state. In some cases, this clause will protect the contractor from claims by corporations or companies that did not sign the agreement.

There are three types of hold harmlessagreements:

Under the Broad Form, the subcontractor assumes all liability for accidents due to negligence of the general contractor, and combined negligence between the two parties. Because of its sweeping terms, this form is relatively rare – and some states prohibit it.

With the Intermediate Form the subcontractor takes on all liability for accidents and negligence, but will not be held accountable for the general contractor’s actions. It doesn’t matter whether the incident was the subcontractor’s fault. If both parties were negligent, the subcontractor assumes liability all for its acts or omissions. Intermediate form agreements are relatively common.

A Limited Form agreement makes the subcontractor liable only for the proportional part of its responsibility for a mishap. Other parties – such as subcontractors – will be held liable under their hold harmlessagreement(s) for their corresponding part of the accident or negligence.

The type of agreement that’s best suited for your needs will vary depending on the nature of the project and state laws. As always, we stand ready to offer you our professional advice.

Falls are the leading cause of construction deaths. In 2010, fatalities from falls accounted for 264 out of 774 deaths in the construction industry.

To curb such deaths and injuries, OSHA has joined forces with the National Institute for Occupational Safety and Health and National Occupational Research Agenda (NORA).The Construction Nationwide Safety Awareness Campaign is comprehensive and based on three key steps for employers: Plan for safety, provide proper equipment, and train workers.

To ensure safety on job sites that involve working from heights, plan how the project will be done and the tools needed. When estimating job costs, include these resources and have them available on site. For example, on a roofing job, think about such potential fall hazards – holes, sky-light, leading edges, etc. – and then select appropriate fall protection equipment, such as personal fall arrest systems (PFAS).

Provide workers who are six feet or more above lower levels with fall protection and the necessary equipment including ladders, scaffolds, and safety gear. If roof work is involved, have a PFAS with a harness for each worker who needs to tie off to the anchor. Make sure the device fits and inspect all equipment regularly.

Finally, give workers “toolbox talk” training on potential fall hazards and the set-up and use of the safety equipment they’ll be using. The OSHA campaign has a number of training tools, job site posters, and other educational resources – (many of which target workers with limited English proficiency).

To learn more about how to keep your workers from falling down (literally)on the job, feel free to get in touch with our construction insurance specialists.

Safety inspectors know what to look for – but they might need a refresher on holding the “correction conversation”: explaining job hazards in such a way that your workers can see the potential danger, understand how it can hurt them, and suggest how to eliminate it.

To have an effective Correction Conversation, we’d recommend that safety inspectors follow these guidelines:

• Try to make it personal. “Kneeling on the floor for the day is going to turn your knees into jelly in a few years.”
• Tie the hazardous activity or condition to pain. “This night watchman dropped his flashlight, and when he bent down to pick it up, the rebar went right through his eye.”
• Make comparisons. These cable clamps might work, but the fist-grips kind are the ones that should be used. See – they look like two fists gripping.”
• Shift the blame. “I’m not sure who set this up, but because those cable clamps are upside down they won’t hold much. Just flip them over and torque them again.”
• Connect the correction to something the workers can share. Pass along additional information. Keep it simple, and use graphics whenever possible, If the concern is not having an eyewash station near a concrete pour, send a photo of a what a worker’s eye looks like after a concrete burn.
• Share a story. “I can beat that!” This phrase continues conversation in bars across the world. Tell a workplace hazard anecdote that you’ve heard or witnessed – and then stop talking! Chances are another worker will share a similar story. One-upmanship is a skill we all enjoy, and helps keeps a good Correction Conversation alive.

Several courts have found yet another way for someone to sue contractors.

This term refers to lawsuits against you for alleged failure to exercise proper control over your employers. For example, one of your employees might be accused of injuring others recklessly while driving a truck on company business. A “negligent supervision” suit would claim that you were negligent in hiring this worker because you either failed to discover or ignored the fact that she had a record of reckless driving.

You also have an obligation to supervise your staff. Although you can’t foresee every incident, a court will look at whether you took reasonable steps to identify and guard against potential wrongdoing by your employees: everything from unsafe behavior on the job site to sexual harassment. It’s not only about whether a worker actually committed an offence – it’s about what you did to prevent it.

To head off liability for negligent supervision, we’d recommend that you:

• Set and enforce clear guidelines for interviewing and hiring employees.
• Provide training in conflict resolution and communication. Supervisors need to know when to report certain behaviors and which behaviors to look for, such as verbal abuse, failing to cooperate with supervisors or co-workers .and making inappropriate comments.
• Conduct regular performance evaluations to address specific behavior or job performance changes.
• Provide multiple avenues to receive allegations of misbehavior, and have unbiased managers investigate complaints so that no conflicts of interest exist. Investigate every incidents promptly and take decisive action.

We stand ready to review your company’s exposure to negligent supervision claims – and how your Liability insurance coverage can help protect you. Just give us a call.

Across the nation, utility lines, tunnels, and structures run under our feet, Each year, excavators strike approximately 700,000 of these underground lines, often triggering potentially fatal accident (from steam, gas, propane, or electricity). A single strike might easily cost a contractor hundreds of thousands, or millions, if the accident leads to an interruption of service that shuts down a factory, hospital, telecommunication lines– even a missile silo.

In most cases, insurance will not cover these losses. To deal with this threat, the Common Ground Alliance coordinates 811 –Call before You Dig, a nationwide phone and online system that contractors can use to notify local utilities so they can “mark out” their facilities before excavation of anything from to a sewer to a subway. These markouts are required under state law.

When you use the call 811.com system, bear in mind that:

1. It doesn’t matter where you are – downtown, in the middle of a suburban street, or building a private home.
2. Call even if you’re confident that you know where something is buried (for example, if you installed the line); many contractors dig up lines that have just put in.
3. Instead of marking the area with wooden stakes – which are all too easy to drive through gas lines – use white paint or “feathers;” even the most shallow excavation can be hazardous.

Remember, failing to contact 811.com before every excavation violates the law – and leaves you wide open to huge liability losses. Don’t take a chance your odds of losing in the Underground Damage Casino!

To learn more, just get in touch with the Construction Insurance Specialists at our agency.