Skip to main content
search
Category

Risk Management Bulletin

Jul 01
Love0

Is Your Business Prepared for a Natural Disaster?

By Risk Management Bulletin
Natural disasters can strike anywhere and at anytime, but many businesses fail to recognize that they are at risk for damaging losses when they occur. Even businesses that don’t operate in Tornado Alley or hurricane-prone coastal regions are at risk. For example, the recent flooding in Texas has caught many businesses completely unprepared. That’s why every business must develop a disaster plan that will help keep the business running in case the worst does happen. Additionally, business must thoroughly examine their insurance policies to ensure that they are covered for natural disasters.

Developing a Disaster Response Plan

Developing a disaster response plan starts with identifying the events that are most likely to affect a business. Insurance agents can help with this, as they have access to insurance data that isn’t available to the general public. However, business owners can also review local newspapers or contact their local emergency management officials for information.

Another important aspect is appointing a person in charge of facilitating communication among staff members. Determine what method of communication will occur and at when it will be initiated. Keeping employees informed, both at work and away from work, is critical to maintaining everyone’s safety.

Protecting Business Assets

The next step is to install physical protection methods to reduce the impact of each scenario identified. For example, if flooding is an issue in an area install additional drainage, a retention pond or use waterproofing techniques around the base of the building. Those in tornado-prone areas should have a safe location for employees to wait out the storm. However, they should also install shutters to protect windows and consider upgrading roofing material so that it is wind-resistant.

Update Business Insurance Policies 

It also pays to have an insurance agent review the business’s coverage for natural disasters. Some businesses learn that their policy doesn’t cover flooding or earthquake damage, and opt to add that coverage as an additional rider. Additionally, ask the agent to describe scenarios where the coverage would not apply. For example, does it cover all flooding, including burst pipes from winter storms as well as flash floods?

 

Jul 01
Love0

Hazard Ahead: Company Vehicles Increase Company Liability

By Risk Management Bulletin
Many businesses require travel during the workday, whether to client locations or on short errands around town. During these trips, employees can encounter accidents and other mishaps, which may happen in a company-owned vehicle or in their personal vehicle. Unfortunately, many of the consequences of these driving mishaps can negatively impact the company that employs them. However, there are ways to alleviate the company liability involved with owning company vehicles by establishing safety protocols and obtaining the right insurance.

Developing Safety Protocols

When employees are allowed to drive company vehicles, it is imperative that employers develop a safety program that communicates the popery operating and safety procedures that they must follow. Some important rules to include are:
– Avoid using cell phones during vehicle operation unless using a hands-free device.
– Seat belts must be worn at all times and by all passengers.
– Drivers are required to follow all state and federal traffic laws.
– Only approved employees are allowed to drive the vehicles.
– Establish the times and days of the week that the vehicle may be driven.
– Company policy on personal use of company vehicles.
– Proper procedures for reporting accidents and maintenance issues.

Obtain Proper Insurance

Businesses have additional insurance needs when they own vehicles because most general business policies do not cover vehicles. Instead, they need a separate business auto policy. These policies are flexible enough to provide the same coverage to all vehicles, or provide some vehicles with additional coverage. For example, vans that transport merchandise may need more coverage than cars which simply go to the post office daily.

Employees and Personal Vehicles

Many businesses allow employees to conduct business in their personal vehicle. While employers typically pay the employee a certain amount per mile for wear and tear, they are not required to insure an employee’s vehicle. Instead, employers must make it clear to employees that they are responsible for damage caused to their own vehicles. However, if employees will be transporting anything of value, those items should be insured to obtain compensation if they are damaged or stolen.

 

Jul 01
Love0

Summer Dangers: How Employers Can Prevent Heat Exhaustion

By Risk Management Bulletin
Higher summer temps mean fun in the sun on weekends, but those scorching temperatures can be deadly for workers who aren’t prepared for them. Heat exhaustion affects a wide variety of workers, and unfortunately, most businesses aren’t prepared to handle it. Once the temps start to rise, employers must be proactive to protect employees from succumbing to heat exhaustion and know how to respond if they do.

Who Is Susceptible?

Those most at risk are workers whose job requires them to be outdoors. These include construction workers, HVAC workers, roofers, landscapers and many others. However, there are other jobs, such as automobile sales people, that may seem like an indoor job but actually require time outdoors. Even traditional office workers can succumb to heat if they are required to exert themselves too much during times of warm weather. For example, moving boxes or supplies from storage sheds or walking long distances between buildings.

Preventing Heat Related Illnesses

Preventing heat exhaustion is simply a matter of remembering to take it easy during hot weather. Employees should avoid exerting themselves beyond the physical activity that they are accustomed to. Additionally, they should take frequent breaks in a shady, cool location, especially if they begin to feel weak. Employers can help by supplying adequate drinking water and sports drinks, which can help rebalance electrolytes lost through sweating. Workers such as landscapers and roofers who must be outside, should schedule work as early as possible to avoid the hottest times of the day.

Signs of Heat Exhaustion

Employers and workers must be watchful for signs that someone is experiencing heat exhaustion, as many individuals will continue to push themselves even when lightheaded or weak. Symptoms include headache, blurred vision, nausea, paleness, excessive sweating, a weak pulse and shallow breathing. In severe cases, the individual will pass out. If these symptoms occur, force the individual to stop working, move them to an indoor location with air conditioning and make them lay down. A cool drink of water or a sports drink should also be given in small sips. If symptoms don’t subside within 15 to 20 minutes, call the paramedics.

 

Jul 01
Love0

Summer Electrical Surges are a Serious Risk to Business Technology

By Risk Management Bulletin
Almost every modern business relies on expensive electronic equipment, computers and networks to maintain efficiency and day-to-day operations. While businesses take the proper precautions to secure these components from theft, they often leave them susceptible to another danger, electrical surges. Unfortunately, without the proper protection, surges can result in costly damage to a business’s physical assets.

Causes of Electrical Surges 

Electrical surges are caused by a variety of reasons, but most are the result of direct lightening strikes to a building or a nearby electrical source. In many cases, the strike occurs elsewhere on the utility system’s electrical distribution system and the surge travels into a business via the electrical lines. According to the Lightning Protection Institute, lightening strikes cause approximately $1 billion in property damage every year. Other causes of surges include accidental line crossing by utility companies or during severe weather when lines fall. They can also be caused when the electrical system is overloaded, such as in hot summer months.

Equipment That’s at Risk

Computers, servers, micro-processor-based controllers, telephone switchboards, robotics, cash register systems, and televisions are just a short list of the items that can be damaged by a surge. Basically, anything that is plugging into a wall or directly into the electrical system is at risk of damage when a surge occurs.

Physical Protection Devices

All electronic devices that plug directly into an electrical outlet should be plugged into a surge protector instead. The surge protector, also called a Transient Voltage Surge Suppressor (TVSS), is then plugged into the outlet. When electrical surges occur, the TVSS absorbs the current and stops it from flowing into the device. More advanced surge protectors must be installed on a business’s main switch board and any sub-distribution panels for larger facilities.

Insurance Protection

Of course, even the most prepared business can still suffer losses from electrical surges. That’s why business owners must ensure that all electronics and technology equipment are properly insured. Additionally, the surge protectors themselves can be costly and are also often insured under insurance policies if they fail due to an electrical surge.

 

Jun 01
Love0

The Importance of Technology Security Training for Employees

By Risk Management Bulletin

Many businesses go to great lengths to secure their physical assets, but often leave gaping holes in their electronic security protocols. While IT administrators can provide some protection, it’s up to the users to keep a network secure. Employers must ensure that employees are trained on avoiding common risks that can compromise technology or cause expensive repairs. Here are some critical security areas that employees should be trained on.

Phishing
Phishing occurs when someone attempts to get employees to click on links to fraudulent websites or to provide or verify personal information. Train employees to never click email links from individuals whom they don’t know. If an email looks questionable, call the person or company sending it to verify that it is really from them. Finally, educate employees to never provide personal company or employee information to anyone. All legitimate requests for personal information must go through an HR representative or company leader.

Viruses
Server-wide antivirus systems provide some protection. However, viruses can still slip by, especially very new ones. Teach employees to never download files from individuals that they don’t know or from websites that are not well-known. Additionally, instruct employees to immediately notify the IT department if their antivirus system catches a virus so that their system can be assessed for additional damage.

Unapproved Software
New software is developed daily and much of it has real business benefits. However, much of the freeware that is available from the Internet isn’t secure. The files themselves can contain viruses or the products can have security holes that allow hackers to access your computer through the software. Businesses should have an approved software list and employees should not install anything not on the list.

Mobile Device Security
Today’s mobile workforce uses phones, laptops and tablets in addition to standard desktop computers. However, these items can also cause security issues. Develop protocols for the types of software and apps that can be installed on these devices and periodically check to ensure employees are adhering to them. Items like laptops and tablets also need functioning antivirus software running on them. Additionally, instruct employees to never connect their personal devices to work devices to prevent the infection of the network.

Thomas Fenner Woods Agency 614-481-4300 Website

 

The Most Common Workplace Injuries Aren’t Major Accidents

When many people think of workplace injuries, something major like a forklift accident comes to mind. However, data shows that the majority of workplace accidents aren’t actually that dramatic. In fact, many of them are everyday occurrences that can happen to anyone. However, these seemingly minor mishaps can still cause significant harm to both employees and the employer.

Top Workplace Injuries

Each year, the Department of Labor and Bureau Statistics releases the top injuries that resulted in worker’s compensation claims for the previous year. Interestingly, the injuries don’t really change that much from year to year, and they aren’t life-threatening accidents or chemical spills. In fact, most injuries are due to overexertion, falls and accidental trips. In 2014, the top injuries were:

  • Overexertion
  • Falls on same level
  • Being struck by an object or equipment
  • Falls to lower level
  • Other exertions or bodily reactions
  • Roadway incidents involving motorized land vehicle
  • Slipping or tripping without falling
  • Being caught in or compressed by equipment or objects
  • Repetitive motions involving micro-tasks
  • Being struck against an object or equipment

Avoiding Workplace Injuries

Preventing these types of mishaps is a two-fold process. It requires adequate employee training as well as modification of the workplace to reduce or eliminate the chance or injury. With regards to safety training, it’s clear that employees need reminders on the proper way to lift, carry and move objects around the workplace. Back injuries caused by overexertion don’t just happen on the loading dock. They also happen when receptionists attempt to carry supply boxes that are too heavy. Employers should conduct an annual training class that provides tips on preventing these commonplace injuries.

Modifying the Workplace

In most cases, workplace modifications will also need to be made. For example, to prevent slips and falls, modify all not-carpeted areas to include carpet or slip-resistant flooring. Additionally, remove all tripping hazards from working areas, such as unsecured cords and even boxes and work supplies. If inadequate storage results in piles of supplies near walkways, install shelving or another solution to reduce the risk of accidental injury.

Jun 01
Love0

Can you Really Get Sued for Making an Honest Mistake?

By Risk Management Bulletin

Many businesses don’t realize that they face the same risk of a lawsuit as physicians. Just as a patient can sue a doctor for malpractice, a customer can sue a business if a product or service causes harm or does’t live up to their expectations. The truth is that the causes of many lawsuits are honest mistakes or issues that the business owner didn’t even know about. However, the fact remains that if you provide a service or sell a product to a consumer, you are responsible for the outcome. The good news is, that there are insurance products that can protect you in case the worst does happen.

Examples of Lawsuit Causing Mistakes
Honest mistakes that can result in lawsuits are wide ranging and encompass every industry. For example, if a wedding planner books a reception and wedding for the wrong date, the bride may sue for the cost of the rental, the cost to book another rental at a late date and emotional distress.
Another example is when a service is not performed to the client’s expectation. For example, if a website designer does not deliver a website on time, it costs the client business which they can then sue the designer for. Or, if the website doesn’t meet the quality standards the client wanted, they may claim that it damaged their reputation which they may also sue for.

Professional Liability Insurance
Professional Liability insurance is sometimes called Errors and Omissions coverage and can cover either an individual or a company. Businesses pay premiums and receive certain predefined levels of coverage. This coverage pays for things like court costs, settlements and judgment that are associated with any lawsuit brought against the business.

Business At Risk

Lawyers and accountants are two of the major professions that need to have professional liability insurance. However, there are many other types of businesses, and even side businesses, that need it to. These include advertising agencies, commercial printers, web hosting companies, wedding planners and even caterers. Basically, any business that provides a good or a service to consumers for a fee is at risk of being sued. 

Jun 01
Love0

Employee Online Activity Can Make or Break a Business

By Risk Management Bulletin

Social networking is a valuable and cost-effective advertising method for most forward-thinking businesses. However, it can also be a  land mine for lawsuits, damaged reputations and inappropriate sharing. For this reason, business owners must set clear guidelines on how employees are to act online. Here are some areas to cover when training employees on appropriate online behavior.
Avoid Lawsuits

Because social media is an anything-goes type of world, the potential for lawsuit abound. The most dangerous areas involve posting content, images or logos that are copyrighted. Additionally, making  negative comments about a company or individual is likely to draw an accusation of slander. In general, businesses should train employees to avoid referring to other companies or products at all. Focus only on the positive aspects of your own business.
Avoid Damage to the Company Reputation

Many employees interact on social media the same way that they interact via text message or with their friends. Responses are often off-the-cuff and sometimes off-color or inappropriate. In addition, some people tend to blow things out of proportion online disagreements occur. Businesses must train employees on how to act professionally when using the company’s social media sites. These sites are representing a brand and the company’s reputation must always be protected. Provide examples of how to deal with unhappy clients so that employees are prepared when it happens.
Regulate Employee’s Personal Social Media Sites

Employees with personal social media accounts often want to like, share or post to the walls of their employer’s accounts too. This is actually a good thing and helps generate tremendous marketing for a business. However, business owners must set a strict social media policy that informs employees about what is appropriate and inappropriate for the work sites. For example, a business may not want employees posting to their site if the employee’s profile image is them in a skimpy swimsuit or holding multiple alcoholic beverages. Inform employees that these images are fine for personal use but are not to be displayed in any way on the business site.

 

May 04
Love0

Water Damage Happens: Do You Have a Plan to Fight It?

By Risk Management Bulletin

Spring is a wet and rainy season for most parts of the U.S., and that makes it a good time to make sure your business is protected against losses due to water damage. Most water damage arises from three sources:

1. rain or surface water runoff

2. gray or foul water from ice machines, cafeterias, coffee machines or lavatories

3. water from facility systems like HVAC, boiler rooms or connections to city supplies.

The first step in preventing damage is assessing where damage is most likely to occur. Touring the property and making a list of potential entry points for water can provide you with the information you need to develop a risk mitigation plan.
After identifying potential sources of water damage, create a checklist that can help ensure a consistent review. Keep in mind, checklists should be updated when new features are added or whenever construction takes place that could affect your facility’s risk of damage.

ü  Here are a few potential questions for your checklist:

ü  Is a system in place to surveil for small leaks on a regular basis?

ü  Are small leaks being repaired promptly?

ü  When a leak occurs, is it evaluated to determine if it poses any future risk or if it’s a one-time occurrence?

ü  Are facility diagrams updated with recent plumbing changes and all shutoff valves?

ü  Are shutoff valves regularly checked for proper operation?

ü  Are all storage tanks (including boilers and hot water tanks) regularly checked for leaks?

ü  Is a leak response plan in place and do key personnel understand the protocol for handling leaks?

ü  Who is authorized to call in repair personnel or outside contractors on an emergency basis when leaks are identified?

ü  When outside contractors are called in, is there a process for monitoring them to ensure systems are maintained?

This brief list can serve as a jump-off point for your own checklist, based on your specific facility. Even if your business is not in a moisture-prone area, spring is a great time to develop a water damage mitigation plan.
Need help? Ask your insurance agent for some tips and guidance.

 

May 04
Love0

Why you don’t need – or want – a Wikipedia listing

By Risk Management Bulletin
Wikipedia can be a good resource for lots of information, and because of its high-profile visibility about 8 million page views PER HOUR in North American alone it’s no wonder businesses view a Wikipedia listing as a penultimate achievement in their marketing strategy. But is Wikipedia all it’s cracked up to be for small- to medium-sized businesses? In most cases, no. Here’s why:
Wikipedia is editable by anyone. That means any person a disgruntled customer, a competitor, an unhappy vendor or just a random stranger can edit your company information, and if you aren’t prepared to constantly surveil your page to hunt down and immediately change erroneous information, you could wind up projecting an image that’s extremely damaging to your brand.
It was just three years ago that a misspoken sentence by Alaska politician Sarah Palin caused havoc at Wikipedia’s page on Paul Revere. When Palin said Revere had announced the arrival of British soldiers by ringing a bell during his famous ride to Lexington, supporters ran to the Wikipedia page to change its contents to match Palin’s misstatements. In return, historians and Palin detractors re-edited the page in a series of salvos that lasted for days.
Of course, that’s an extreme case on a very public page. But considering how easily those edits were made most edits appear as soon as any change is made it’s not hard to see how having your business on a publicly-editable page can pose significant reputational risks.
The cardinal rule in putting your name on a publicly available site: Make sure you have control over the content. That means keeping track of comments on your social sites and blog and amending privacy settings to give you the most control over who sees what.
Wikipedia was designed to be a public exchange of information, facts and data, but its openness has left it open to considerable misuse and abuse. Steer clear of the controversy and focus instead on improving your presence on other platforms to take some of the risk out of reputation management.

 

May 04
Love0

Do you need business interruption insurance?

By Risk Management Bulletin
Business interruption insurance can play a critical role in just about any business, yet many business owners fail to purchase it or wind up underestimating the amount they need. Why? Because compared to other types of business-related insurance like equipment damage or fire, the role of business interruption insurance may not be entirely understood.
So just what is business interruption insurance? And why do you need it? It’s actually pretty simple: Business interruption insurance is coverage that protects you if your business activities are curtailed (or interrupted) by some unforeseen circumstance, like a fire, wind damage or vandalism. Any of those events and plenty more could keep you from operating your business, and that could mean a substantial loss of profit and opportunity for you and your company.
A business interruption policy covers the revenue you would have earned during the interruption period, and it also covers operating expenses that continue even though your business has come to a temporary standstill. Most policies offer coverage for interruptions caused by events covered under your property insurance policy, with extras like interruptions due to power outages or power surges following an outage available as riders for an extra cost. Because business interruption insurance is in addition to your property insurance, it can be a surprisingly affordable way to gain some added peace of mind.
To determine your needs, consider the potential losses and costs your business would accrue during an extended period of interruption. Many disasters take more than a few days to correct, so be generous in your estimates. Also be sure to determine when business interruption coverage kicks in; many policies aren’t activated until 24 to 48 hours after an interruption begins.
Like other types of insurance, your policy premiums will be based on your business’ risks for fires or other disaster. Your insurance agent can help you perform an assessment to make sure you have adequate coverage based on your historical financial data and other factors.

 

Close Menu