Risk Management Bulletin

Rising healthcare costs are a major concern for many businesses, and learning how to keep those costs low is important not just for the bottom line, but also for improving employee health and, in turn, increasing productivity. As a result, many companies have begun conducting workplace health assessments to identify where and how meaningful improvements can be made. Before an assessment can be conducted, though, management needs to understand its purpose and value.

What does a workplace health assessment involve?

The purpose of an assessment is to gather data about all the factors that have an impact on the health of employees while they’re on the job, and then to determine which of those factors are good and which ones need to be improved. It’s also a time to consider new programs like health incentives and interventions that can help improve employee health, decrease worker absenteeism, increase productivity and decrease overall health costs. Sometimes, those interventions can be as simple as upgrading lighting; in other cases, a complete ergonomic overhaul of an office may be in order.

At the end of the assessment, the management team will be in a much better position to set goals, develop strategies, and set aside time and money to achieve established end points.

Individual and Organizational Effort

Both the employees and the employer and management teams have an influence over the effectiveness of any workplace health assessment and initiative. On an individual level, workers have their own personal behaviors or health issues such as smoking or obesity that can have a direct impact on their absentee rates as well as their healthcare costs. From an organizational standpoint, health benefits have a significant impact by determining how affordable it is for employees to get the care they need to remain healthy. The employer also influences design elements that can affect health, such as ventilation systems and furnishings.

Depending on the size of your company, a health assessment can be fairly complex and extensive, but the savings achieved through such a large-scale project can be a tremendous boon to your bottom line.

Obesity costs business more than $150 billion annually in productivity losses, according to a recent Gallup poll,and nearly 50 percent more in healthcare costs. The poll also revealed about 66 percent of those who work full time are either overweight or obese, and most of them have at least one additional chronic health problem. Even for relatively small companies, the impact on the bottom line can be substantial.

The obesity problem has grown significantly during the past decade, with the CDC estimating more than a third of adults in the U.S. are obese. Because obese men and women tend to have additional chronic health conditions, it’s no surprise workers’ compensation claims associated with overweight workers is substantially more than for those of “normal” weights. In fact, studies indicate workers with BMIs above 40 file two times as many claims as non-obese workers, and the probability of an obese person being injure don the job is significantly higher than for workers with normal BMIs. One study from Johns Hopkins found medical costs associated with obese workers were nearly seven times the amount of claims filed by people with BMIs in the normal range. Indemnity costs were a whopping 11 times more.

So what can a business do to reduce its potential costs associated with obese employees? Here are some tips:

·         Consider developing a workplace wellness plan that includes reimbursement for health club membership or incentives for losing weight.

·         Consider the health risks most commonly faced by obese employees – lower extremity injuries and lower back problems are very common – and include risk management objectives based on limiting or addressing those health risks.

·         Encourage health screening to identify comorbidities, like diabetes, high blood pressure and high cholesterol, perhaps by providing free screenings at your workplace.

·         Identify special furniture or equipment designed for obese workers that can help avoid injuries and reduce claims.

·         Be proactive in helping injured obese workers return to work (hereby limiting the duration and cost of their claims) by learning about their needs and accommodating them as much as possible.

Obesity is a health problem that’s on the rise. Being proactive is the best way your business can minimize the costs it can cause and its ultimate impact on your company’s bottom line.

Mention a business’ resources, and the focus inevitably falls to money; but time is also a resource, and unlike money, you can’t “earn” more of it. Risk manager who learn to manage their time as wisely as possible can maximize the results they achieve, both in predicting and managing risk, and ins recognizing and seizing opportunities. As part of your New Year initiative, try incorporating a few of these time management strategies into your routine and see how they affect your overall performance and results:

• Learn how to allocate your time. Jot down estimates of how much time a task should take and then try to stick with those general guidelines. Don’t get hung up on small details that can cause other responsibilities to derail.

• Work on your ability to focus on one task at a time. A few years ago, it was all about multitasking; but then, several studies emerged demonstrating that multitasking can actually decrease efficiency. A better approach: Dedicate blocks of time to a single task and focus only on that task during that time period. You don’t have to complete tasks – just make progress. Set aside more blocks until the task is complete.

• Understand how to achieve balance. Make sure to spend as much time relaxing as you do working to avoid burnout and ensure peak efficiency while on the job. It’s also a good way to release stress so you enjoy better workplace relationships overall.

• Know the 80-20 rule. There’s a well-known principle that says 80 percent of results or outputs come from 20 percent of actions or inputs. Identify which tasks are most important – for instance, the 20 percent of activities that result in the most risks to your company – and spend most of your time addressing those before moving on to tasks with less of a potential impact.

• Learn how to delegate. This is one of the most difficult skills to learn for many people, but it’s also the one that can yield the biggest rewards. Set goals and make sure the person understands what they are, and check in frequently to make sure the task is on target. It also helps if you can identify the strengths of different employees and assign tasks accordingly.

The New Year is here, and that means it’s time for lots of resolutions. When it comes to managing risks, there are lots of tasks you can adopt to help manage risk, both in terms of identifying and limiting “bad” risks and in determining which risks represent potential opportunity for growth. Here’s a quick list of a few of the most important resolutions to consider adopting for 2015:

• Revisit your current risk management process. Is it streamlined? Does it need to be updated to address new or emerging issues such as BYOD or BYOX? Does employee training need to be improved? Be thorough!

• Write your goals down. Studies have shown that people who write down their goals are much more successful in actually achieving them, especially when those goals are very specific and incorporate a time line. Write down your risk management goals for 2015, and make sure your plan facilitates overall business goals rather than hindering them.

• Communicate better. Being able to gather information from all quarters is the key to identifying problems before they occur. Making an effort to improve communication and engagement is one resolution that can have a positive ripple effect across your entire company.

• Think outside the box. Be open to new ideas that can help you approach problems and opportunities with a new perspective. Not only can it help you find more cost-effective solutions, but it can also foster a more open sense of communication, support and sharing.

• Understand others’ expectations. Too often, we proceed based on our own expectations and assume they align with others desires. Looking at the risk management process in terms of the expectations of other stakeholders can result in a fresh approach, better outcomes and even lower costs. Remember: Risk management is a team effort; going that extra distance to meet others’ expectations can increase support and make it easier to achieve goals.

This new year provides plenty of opportunity for managing risk better as well as identifying and building on opportunities. Fine-tune your program so you’re ready to respond, no matter what comes your way.

It may seem like the stuff of a James Bond movie, but today’s wearable tech – from Google Glass to belts that keep you sitting up straight to bracelets that keep your fitness goals on track — is about more than staying connected and tech-savvy: It can also pose serious cybersecurity risks to your company. The sales and use of wearable tech is expected to grow by leaps and bounds during the next few years, so taking steps now to be sure your company is prepared just makes good sense. Here’s what you need to know about developing an agile BYOx (“bring your own everything) policy for your SMB:

• Consider banning them — but do so at your own peril. Many employees consider wearables an important part of their lives, especially those that help them maintain healthy habits. Banning them can take a toll on morale. Plus, some wearables have been shown to increase worker productivity and satisfaction, so an across-the-board-ban could be doing your business more harm than good.
• Specify which wearables may and may not be used. Be sure to craft this policy carefully to cover all possibilities and update it frequently as technology evolves. Make employees aware of any changes as they occur.
• Educate employees on why you’re establishing a policy. Many employees may not recognize the risks wearable technology can pose — for instance, accidentally (and illegally) recording or transmitting sensitive company-related data when connecting to the Internet. Many devices can serve — intentionally or unintentionally — as surveillance equipment, relaying movements and activities via video or audio to a central hub which could be hacked into.
• Create a separate network specifically for wearables. This requires a cash outlay to develop the network and purchase and install equipment, and it also relies on the employees to use the correct network while at work.
• Track everything. Implementing a media access control (MAC) system lets you keep track of everything that’s connected and all data that’s being transmitted. Let employees know ahead of time when such a system is being implemented to avoid potential privacy issues (e.g., lawsuits) down the road.

Whatever steps you take, make sure the system you use is easy to abide by and keep your employees educated and up to date.

It’s been a year since the notorious Target data breach, and there have been several more since then. If you’re worried about your company’s online security, here are four important tips that can be implemented right now without breaking the bank:

1. Enable two-factor authentication (2FA). This relatively simple approach takes security a step beyond usernames and passwords, employing multi-digit authentication codes or pass phrases to gain access to specific documents or programs. Some programs, like Google’s Authenticator, use special codes sent to your mobile phone to provide that added layer. There are other services as well, or you may choose to have your IT manager implement a system unique to your company.
2. Consider online security a business problem rather than strictly an IT issue. To effectively combat hacking threats, all levels of business need to be brought in to address the problem. Even if you use a cloud service with a stellar reputation for security, that still doesn’t mean you can just forget about cybersecurity risks. Employ the same actions to cybersecurity as you do in other aspects of your business, identifying risks and developing responsive solutions — and do it on a regular basis.
3. Dedicate one computer to sensitive functions like financial transactions. By using just one computer (or several, depending on your needs) only for sensitive data transmission, you can more easily monitor what information potential hackers have access to. Make sure employees know not to use that computer for any other functions to increase security.
4. Restrict the data that’s on the network. If your company handles sensitive data, is there a reason that data needs to be on systems that are connected to the Internet? If not, keeping it on computers that aren’t network-enabled prevents hackers from ever gaining access to it.

Most importantly, make cybersecurity a part of your regular conversations during meetings with staff, company executives and board members. The more you talk about your cybersecurity risks, the more likely you are to prevent hacking and find real solutions that work.

Looking for a way to keep insurance costs down? Making sure your employees are as healthy as possible is a good place to start. And for many companies, that means establishing a wellness program in addition to their health plan.

What’s the difference? While health plans focus primarily on care of disease, wellness plans are squarely focused on preventing disease — and their concomitant healthcare costs. Given the skyrocketing costs of healthcare, incorporating a wellness program can be a smart financial move for many companies. In fact, studies have found that on average, healthcare costs can be reduced by more than $3 for every $1 spent on wellness programs. And while it used to be that wellness plans were only offered by major companies, many insurance carriers now offer plans that are affordable for small businesses too.

Most carriers offer some flexibility in the level of wellness benefits they provide, but most plans include:

• health education
• screening for specific risks such as high blood pressure and high cholesterol
• nutrition counseling
• fitness programs
• stop-smoking programs
• health club membership subsidies

Wellness programs have also been associated with a decrease in both workers compensation and disability claims as well as lower rates of worker absenteeism.

Encouraging employee buy-in

Because wellness programs are typically voluntary, providing incentives can be a great motivator to get employees to participate. Incentives might include promotional items like t-shirts or lunch bags, as well as more costly items like gift cards to local businesses or online retailers. You might also consider a tiered reward program based on the level of participation or consider implementing a contest with different prize levels. Even with the cost of incentives added in, wellness programs still offer significant savings when compared to the relative costs of healthcare services and losses due to employee illness.

And of course, there’s another benefit: Adding a wellness program is an important step in maintaining employee morale. To learn more about wellness programs, contact your insurance rep today.

When it comes to managing risk, reputation management often falls of the radar. But making sure your company promotes a positive, engaged image is critical to building your brand and reducing risks. Here are a half dozen tips to implement in the New Year:

1. Don’t let your social presence wither. Many businesses make the mistake of simply establishing account at social sites and then never — or rarely — maintaining them. In the meantime, visitors may be saying things about your company that need to be addressed. Visiting on a regular basis — at least daily — prevents potential damage from going too far.
2. Watch what you say. Likewise, when you do post, make sure the person posting uses proper etiquette to avoid saying something that could get your company into legal trouble, either by making untrue or unfounded claims or being rude to posters. Establish a social policy that spells out precisely how to respond in different situations, such as when a customer makes a complaint.
3. Don’t argue. When a customer does complain, online, in person or on the phone, don’t engage in an argument; instead, be humble and apologize to defuse the initial anger. Then focus on what simple things you can do to make it right.
4. Protect your execs’ reps. If you’re serious about your company’s rep, you probably search for it online regularly to see what people are saying. That’s a good policy to use for your business execs as well. Make sure your execs take part in positive activities that benefit the community, then talk about it on blogs and social sites. You might even consider buying eponymous domain names — for instance, “johndoe.com” or “johndoe.net.”
5. Start — and regularly update — a blog. Blogs are incredibly powerful marketing tools that allow you to proactively and strategically position your brand. Just be sure to keep it updated regularly.
6. Show gratitude. Use your social accounts to say “thanks” to customers or offer incentives for purchase. Stay engaged in your community — locally and online — and be positive. And take some words of advice from your mom: If you can’t say anything nice, don’t say anything at all.

Sometimes, making smart decisions about workplace safety is all about having access to data: When you understand, for instance, which accidents are most prevalent, it can make it easier to know what types of safety practices you should be focusing on to decrease injuries and reduce risk-related costs. The Occupational Safety & Health Administration (OSHA) provides some useful statistics about OSHA violations that can aid in determining certain risks your company might be facing. For example, in 2013, the most frequently cited OSHA violations included inadequate fall protection, improper use of scaffolding and ladders, improper use of respiratory equipment, poorly designed electrical systems, workplace truck accidents, and machinery and machine guard violations.

And OSHA isn’t the only place a company can look for insight into accident statistics. Top insurance carriers frequently list aggregate claims data to aid businesses in making risk management decisions. According to a survey of leading carriers nationwide, these are the top-reported worker’s compensation injuries for 2013:

* Overexertion injuries: These are injuries that occur as a result of lifting, carrying, pushing and pulling — injuries that use the big, major muscles.
* Slipping and tripping: Slipping and falling on wet or slippery floors or over objects left lying on the floor was the second most common type of injury.
* Falling from a high location: These include falls from roofs, ladders, scaffolding, stairs and any other high location.
* Reaction injuries: Essentially, these are slips and trips that do not result in falls, but can still result in injury and trauma including whiplash-like symptoms.
* Falling object injuries: This category includes injuries form objects that are dropped or that is dislodged or falls off shelves, equipment or the building itself.
* Walking into injuries: It may be funny when the Three Stooges do it, but at work, walking into concrete, glass, metal or other hard objects can result in broken bones, cuts and other types of serious trauma.
* Vehicle accidents: This includes accidents that occur when employees are driving as part of their jobs.
* Machine and equipment entanglement: These are most common in factories and manufacturing plants where heavy machinery and processing equipment are in use.
* Repetitive motion injuries: Carpal tunnel syndrome is probably the most familiar of these injuries, but other injuries can occur among employees who repeat the same motion over and over again throughout the day.
* Injuries due to violent acts: The number 10 cause of workers comp injuries, most violent acts occur following arguments.

Providing a safe workplace is an important part of reducing risk, as well as decreasing worker absenteeism and keeping insurance premiums as low as possible. It’s also the best way to make sure you stay in line with standards and regulations established by the Occupational Safety & Health Administration (OSHA) and other regulatory bodies. Use these tips to determine where safety improvements can be made in your own company:

* Identify potential hazards. The first step in any workplace safety plan is to identify problems that could cause accidents. Identifying potential hazards requires a team effort so you can benefit from different viewpoints and different experiences. Use what you learn to create a comprehensive safety plan and review it often to make necessary changes.
* Get familiar with the laws. OSHA provides one set of regulations, but your state, locality and even your industry provide regulations and guidelines aimed at helping you keep your workplace as safe as possible. Know which laws apply to you and make sure you adhere to them.
* Meet with your insurer. Make sure your business is properly classified so you’re not paying higher premiums than necessary. Your insurer can also provide you with information about trends in workplace accidents and claims results to help you pinpoint areas where you need to make improvements.
* Establish an emergency response protocol. Develop a plan detailing what to do when an employee becomes injured. Mae sure emergency numbers are handy to all employees, and keep a first aid kit well stocked with supplies. You may also want to provide first aid training to your employees for added protection.
* Follow up. When an accident does occur, review how the issue was handled and identify areas that need improvement to avoid a similar accident in the future. Make changes to your safety protocol, determine if there’s a need for new safety training and keep written records of everything you do during follow-up.

When it comes to keeping your workers safe, forget the snappy logos and pithy slogans, and instead take actions that can result in tangible, risk-lowering results. Make safety a priority for all of your employees and hold everyone accountable for their actions and their roles in safety implementation.