Risk Management Bulletin

Chances are you employ someone who’s a victim of domestic violence. Is this any of your business? It is when domestic violence enters your workplace!

According to government statistics, there are as many as 40,000 incidents of on-the-job violence in which the victims knew their attackers intimately. More than 70% of human resources and security personnel surveyed by the American Bar Association’ Commission on Domestic Violence reported an incident of domestic violence in their workplace. These events cost businesses millions of dollars a year by endangering co-workers, disrupting workflow, and leading to vandalism and property damage – not to mention lowering the productivity of female victims (due to higher rates of depression, absenteeism, and substance abuse problems).

Consider the legal implications: Federal and state laws require employers to provide a safe workplace If you’re aware of a domestic violence threat in the workplace and fail to, act you could face costly liability if there’s an incident in the workplace.

According to the Family Violence Prevention Fund, supervisors are frequently among the first people in the workplace to become aware that an employee is the victim of domestic violence. Train supervisors to look for employees who:

• Have unexplained bruises or bruises that don’t seem to fit professed injuries
• Wear inappropriate clothing that might be covering up injuries
• Seem distracted, upset, or depressed, at work
• Have a high rate of absenteeism
• Receive repeated upsetting phone calls at work

Supervisors who notice any of these signs should tell the employee – privately – what they’ve noticed, refer the employee to available company or community support, and report the situation to management and security personnel.

To help safeguard employees against domestic violence incidents on the job, we’d recommend taking these basic security steps:

• Encourage employees to notify r supervisors about abuse, stalking, restraining orders, etc., and to provide photos of batterers to security personnel.
• Create a buddy or escort system to walk at-risk employees to and from the parking lot or public transportation.
• Provide a portable alarm that the employee can activate if confronted by an attacker at work.
• Offer counseling services or inform the employee about services available in the community.
• Create and enforce effective procedures limiting access to the workplace (IDs, visitor sign in and escort, etc.)
• Transfer threatened employees from front-line customer service areas to back offices or even to other worksites, until the problem is resolved.
• If possible, adjust the employee’s work schedule and/or grant leave if the employee needs to take time off for medical assistance, legal assistance, court appearances, counseling, relocation, taking other steps organization’s workplace violence policy and discipline or even discharge the attacker needed to enhance personal safety.

When you hire new workers, one of the first things they need to learn is to work safely. Their safety is important to you— and to them. A recent study from the National Opinion Research Center at the University of Chicago found more than 8 out of 10 workers say that their safety on the job is their top concern – ahead of such issues as overtime pay, paid sick days, family and maternity leave, minimum wage, and the right to join a union.

However, new employee orientation often focuses on paperwork and other details, rather than the job hazards new workers will face on a daily basis. This approach leaves the “newbies” vulnerable to injury and put their co-workers at the mercy of people who don’t know the hazards of their jobs or the precautions required for safe performance.

The solution — Make sure that your safety onboarding program:

• Teaches safety basics
• Introduces new workers to safety
• Focuses on accident prevention

Companies with a safety or HR manager should have him or her conduct the classroom part of orientation/training, prepare orientation materials (handouts, forms, checklists, etc.), conduct the Day 1 safety basics orientation, and maintain all documentation about the employee’s orientation. The facility supervisor(s) can do the on-the-job training and observation (with the help of experienced employees).

If you don’t have a safety manager or trainer-qualified HR manager, the company safety committee, HR manager, and department supervisor can share responsibility for new employee safety orientation. The safety committee and HR manager should put together the orientation materials, conduct the Day 1 orientation, and keep the orientation records. The department where employees will work can conduct the hands-on training.

To review, evaluate, and update onboard programs, be sure to review accident and near-miss reports. An evaluation of illness and injury logs can also serve as a catalyst for adjustments to safety orientation and training programs.

If you hire workers from a temp agency, both the temp agency and you are responsible for documenting that the employees were trained to understand and avoid all potential hazards at the your work site. This means that you need to run a safety orientation for temps that familiarizes them with the particular hazards of your workplace and the specific procedures you use to protect employees from those hazards.

To make sure that you obtain the best value in protecting your business against the risks it faces, we work closely with a number of quality insurance companies, providing their underwriters with comprehensive information on your coverage requirements, together with your pricing and servicing expectations. You can help us help you by building and maintaining a “risk profile” that lists your exposures, loss data, and insurance contracts.

This list should include, but not be limited to:

• A narrative history of your firm that’s both positive and realistic. Well-managed businesses that have adapted well during up and down economic cycles will encourage underwriters to provide competitive prices on your account.
• Résumés of key management show that you know your business and have a great team behind you.
• Sales brochures and Web pages, if applicable.
• A Dun &Bradstreet Report on your business. If D&B is unable to complete a report, you might get a lower financial grading. Even if you’ve had a few bumps along the financial road, some insurance companies will be willing to work with you— but not if they have to pull teeth to get the relevant information.
• Audited financials, if applicable.
• Your estimated sales, Workers Compensation payroll, automobile fleet, and property and equipment values.
• Historic sales, payroll, and auto units for the past five years.
• Insurer loss runs/claim runs for the previous five years on all policies, valued within 90 days of your renewal.
• An outline of your safety plan(s).
• Fleet maintenance schedules.
• Your Workers Compensation experience modification factor (Comp mod), if applicable.

Insurance companies have invested heavily in computer systems that track all the relevant data on their clients. Be sure to review this information for accuracy and add it to your own database. Maintaining a comprehensive, accurate and current “risk profile” and staying on top of how you present this information to company underwriters will give you a far better chance of securing a competitive, effective, and affordable insurance program.

You never know when a workplace emergency will strike. Be prepared with an effective Emergency Action Plan (EAP).

Well-developed emergency action plans, and proper training so that workers understand their roles and responsibilities under the plan will reduce the number and extent of injuries, not to mention structural damage to the workplace. On the other hand, a poorly prepared plan and lack of training will probably result in a disorganized response, leading confusion, injury, and property damage.

Your EAP should include:

• Means of reporting fires and other emergencies.
• Emergency procedures and escape route assignments.
• Procedures by employees who remain to operate critical plant operations before they evacuate.
• Procedures to account for all employees after the evacuation have been completed.
• Rescue and medical duties for those employees who are to perform them.
• Names or job titles of persons to contact for further information or explanation of duties under the plan.
• A description of the alarm system to notify employees (including disabled employees) to evacuate and/or take other actions. The alarms used for different actions should be distinctive and might include horn blasts, sirens, or even public address systems.
• The site of an alternative communications center in the event of a fire or explosion.
• A secure on- or off-site location to store originals or duplicate copies of accounting records, legal documents, your employees’ emergency contact lists, and other essential records.

Putting together a comprehensive emergency action plan that deals with emergency issues for your worksite involves three steps: (1) Determining the types of emergencies that could occur in your workplace, including fires, weather emergencies, medical emergencies, workplace violence, etc.; (2) doing a workplace evaluation that describes how you expect employees to respond to each type of emergency; (3) taking into account your specific worksite layout, structural features, and emergency systems.

Be sure to include a diverse group of representatives (from both management and rank-and-file employees) in the planning process. Planners should meet frequently to review progress and allocate development tasks. The commitment and support of all employees will play a critical role the plan’s success after an emergency. So be sure to ask for their help in establishing and implementing your EAP.

For more information in creating an effective plan, please feel free to contact our risk management professionals.

The risk management firm PMA Companies recently released a report, Six Steps to a Safer Workforce: Building Accountability as an Essential Element for Injury Prevention in the Healthcare Industry. According to the report, a safety program that includes top-management commitment, as well as accountability for safety at every level of the business, will help optimize productivity, keep employees safe and healthy, and reduce costs

Although PMA wrote the report for healthcare firms, these guidelines apply to any industry and any workplace.

1. Create a safety environment that begins with top management and focuses on actions.
2. Demonstrate your commitment. Implement a zero-tolerance policy for violations, as well as a strong safety program led by mid-level supervisors. Create a system of accountability for safety that includes effective documentation, thorough training and communication, and follow-through on safety rules Make sure that all parties involved hold each other accountable. Accountability goes beyond performing the tasks assigned to given roles, and involves ensuring that everyone performs their roles safely. This approach will make employees and managers more vigilant in seeking opportunities to improve processes that increase safety.
3. Focus on unit leaders. Your program should include buy-in and participation by mid-level managers and supervisors, who are largely responsible maintaining a culture of safety in the workplace. Address not only unsafe employee behavior, but also the consequences failures by managers and supervisors to enforce policies
4. Give managers authority to take actions to improve safety, whether that involves using safer materials or equipment or changing work practices or schedules.
5. Measure safety. Use reliable loss trend data to set unit-based safety goals.
6. Encourage safety-minded decisions. To integrate effective decision-making into the regular performance of employees, train them to identify the safest solution and hold them accountable for doing so asks.

The report concludes by saying: “The benefits of greater employee safety can be profound. Studies show that employee satisfaction increases and employee turnover decreases when organizations are committed to providing a safe work environment.” Amen.

March 20 was the first day of spring – which makes this a good time to think about some “spring cleaning” around your workplace.

A thorough cleaning can enhance safety by eliminating hazards. Why not welcome in the spring by taking a careful look at some occasional and infrequent housekeeping tasks?

For example, clutter builds up in most work areas, creating such hazards as fire, tripping and blocked exits. Spring cleaning is the perfect time to dispose of:

• Trash. Got a pile of broken pallets on the loading dock? Dumped a lot of construction debris on the back lot? Remove anything not in use that has piled up from the site.
• Equipment. That frayed sling or wobbly ladder might be out of service, but if it’s not easy to repair, why is it still there?, even if it has a “do not use” tag on it, someone in a hurry or not paying close attention might use it anyway — and regret it afterward.
• Chemicals. Old or unused chemicals create unnecessary workplace hazards. They might be flammable or toxic. What’s more, many chemicals that aren’t dangerous when purchased can become so as they deteriorate over time. Dispose of chemicals that are no longer in use, have passed their use-by dates, or have missing or illegible labels.

Clean and Repair

Besides clearing out the clutter, your spring cleaning can address infrequent needs that will boost worker safety and health. For example, maybe it’s time to clean and/or service:

• Heating, ventilation, and air conditioning (HVAC) systems. A health hazard evaluation by the National Institute for Occupational Safety and Health found that properly maintained HVAC systems were associated with a decreased incidence of lower respiratory symptoms, allergies, and asthma among building occupants. Proper maintenance controls mold, bacteria, allergens, and other contaminants within the system.
• Signs and labels. Signs and labels are important for workplace safety, warning workers of low clearances, identifying machinery controls and power sources, showing workers which direction materials in pipes are flowing, and much, much more. However, they also take a lot of abuse. Replace damaged signs and illegible labels, clean signs that have become too grimy to read, and re-hang signs that have been knocked askew.
• Offices. University of Arizona researchers found that office phones, computer keyboards and mice, and desktops harbor 400 times more infectious bacteria than office toilet seats. Yet in most offices, vacuuming and emptying the trash are the only regular cleaning performed. Encourage workers to take disinfecting wipes to office surfaces — not just once a year, but daily if possible — to reduce infectious illness transmission in the workplace. Also, have your cleaning crew do an extra thorough job from time to time.

Remember, the cleaner your workplace, the safer your workers. Our risk management professionals would be happy to offer you guidelines on spring cleaning – just give us a call.

Developing an effective safety culture is something we all seek to achieve. Dr. Earl Blair of Indiana University has tapped into his extensive reading and experience in facilitating labor-management safety-related negotiations to develop these key strategies:

Strategy #1: Work toward a 100% reporting culture

Focus on developing openness in reporting injuries and “near misses,” as well as encouraging workers to identify and report unsafe conditions.

Don’t insult employees with such slogans as, “All injuries are preventable” and “No injuries are acceptable.” Although there’s nothing wrong with a vision of no workplace accidents, avoid evangelizing – most employees don’t believe in this approach, making it counterproductive. Blair cites examples of underreporting based on fear of retaliation adding that these slogans focus on the downstream (injuries), don’t give workers specifics on how to improve, and are often nothing more than “feel good” catch phrases for management.

To develop a 100% reporting culture based on employee trust, management needs to make reporting easy, ensure anonymity (wherever possible) and take high profile follow-up actions – employees need to know that they’ve been heard.

Strategy # 2: Develop safety awareness with meaningful safety rules

Too many companies have such voluminous and complex safety procedures that they’re “unknowable.” It makes sense to invite participation from workers in developing rules that are dynamic, practical and relevant, monitored and enforced, communicated effectively, and improved continually.

Strategy # 3—Help leaders understand how to act consistently in developing a safety culture

“Most CEOs are very bright people,” notes’ Blair, “but they don’t know how to lead in this area.” Safety professionals must help teach leaders how to develop the culture. Workplace safety is a multifaceted web of processes, systems, and people. The best solutions focus on observation: leading by walking around (LBWA) monitoring the workplace, and, most importantly, listening to workers.

Blair’s conclusion: “Developing a safety culture isn’t rocket science – it’s far more complex than that.”

The days of the eight-hour night’s sleep are gone for millions of working Americans. However, getting six hours or less of shut-eye just isn’t enough for most people to function well and safely on the job.

Losing sleep causes an array of health, safety, and productivity problems in the workplace. According to University of California, San Diego Professor Sara Mednick, a strategic nap is not only restorative, but can also make workers safer and more productive. Mednick, the author of Take a Nap! Change Your Life, says a 20-minute doze resets the system and offers a burst of alertness and increased motor performance.

In contrast to caffeine, studies have shown that naps improve both alertness and cognitive abilities without interfering with nighttime sleep. As with exercise, naps help the body and mind recharge.

More and more employers are finding that permitting employees to catch a few ZZZs while they’re on the clock “is good for business and incredibly lucrative in terms of productivity,” Mednick points out. Employers who offer nap breaks consider them affordable.

The benefits become even more significant for people in safety-sensitive jobs in which rest can stave off accidents and injuries. Mednick points to one study which found that in some cases doctors working long hours made 700% more errors due to fatigue than those who worked fewer hours. Napping is also especially important for people who work changing shifts and rarely get the recommended amount of daily sleep. Taking a brief nap before heading to work can benefit shift workers.

Many companies support workplace napping, including Nike, Google, Cisco Systems, and Ben & Jerry’s. Some offer a quiet room with a couch or special napping pods, while others let employees strap on noise-reducing headsets and nod off for a bit at their workstations.

Longer working hours, longer commutes, and less nighttime sleep are making make the case for workplace naps even more compelling. Says Mednick, “There’s no way we can do without sleep. Science has not found a way to replace it with a pill.”

Cyber crime struck more than four in 10 (43%) U.S. businesses in 2009 according to the Computer Security Institute’s Computer Crime and Security Survey.

The number of data security breaches in companies is growing exponentially as they rely more heavily on technology and the Internet. Every organization needs to protect its priceless data and develop ways to prevent breaches that can create hefty direct cleanup expenses – not to mention severely damaging customer trust and loyalty.

Legal protection against this threat remains spotty at best, because laws covering the protection and disclosure of confidential consumer information vary widely from state to state.

To make sure that you invest in technologies and policies that safeguard your confidential data, we’d recommend taking these precautions:

Enlist management in the fight against cyber crime. This responsibility extends far beyond the information technology department. Putting a top manager in charge of your cyber risk management will make all employees more likely to understand the problems involved and work to curb them.

Identify and quantify your vulnerability to cyber crime. Consider hiring a third-party expert to evaluate your exposure to cyber risks and the potential financial impact of a breach. This specialist should provide answers to such questions as:

• Is the firm retaining any private data about clients, vendors or employees?
• What’s the best way to evaluate the costs and benefits of additional IT loss-prevention expenditures?
• Should we buy Cyber Risk insurance?

Get your HR team involved. Implement cyber security processes in every area of the business, including the HR department. As the driver of company culture, HR can help support and strengthen these procedures. Because the lines between employees’ personal conduct and their business conduct — during business hours — can be unclear, HR must define and communicate the company’s privacy policy, as well as rules and requirements regarding employee use of the Internet and social networking sites as public forums.

Because security breaches usually occur both in areas of the organization generally considered to have adequate security protocols — and in unanticipated areas — it makes sense to carry Cyber Risk coverage. A number of quality insurance companies remain committed to this market. Although there’s no replacement for sound risk management, a comprehensive insurance policy can provide a solid last line of defense.

Our risk management professionals would be happy to help you find the coverage that can help protect your business. Just call or e-mail us.

According to federal government statistics, back ailments account for one in five workplace injuries and illnesses –and cost businesses up to $50 billion a year. Because these numbers are so high, it’s vital to help workers avoid back injuries by keeping the 400 muscles, 1,000 tendons, 31 pairs of nerves, and 33 vertebrae of their backs pain-free and in good working order 24/7.

Away from the Job

Remind employees that moderate exercise, including gentle stretches of the legs and back and toning the stomach muscles, are important in keeping their backs free of pain. However, warn them not to strain their backs trying to stay in shape, especially if they’re just starting an exercise regimen.

Stress the need for a balanced diet to prevent weight gain, especially around the middle. A too-soft mattress can cause back pain, as can sleeping on the stomach (the best position is lying on the side with a small pillow between the knees). Lying on the back is OK, too, with a pillow under the knees.

Remind workers about safe lifting techniques at home. Because children can be heavy, adults need to bend their knees when picking up kids. This also applies when lifting a garage door, grocery bags, trash, or doing any other household lifting chores. When workers drive, advise them to sit with their backs against the seat, legs bent, and with knees higher than the seat.

On the Job

Warn workers not to lift loads that are too heavy. Make sure they consider the number of times they have to lift similar loads. Although they might be fine lifting 30 or 40 pounds once or twice, lifting this weight all day can hurt their backs. If workers have to lift all day, the maximum weight should be about 14 pounds. They should also consider how far away from their bodies they have to reach to lift an object. For example, a worker who lifts parts over a workbench to put them on a conveyor two feet away might be able to lift only a five-pound load without back damage.

In some cases, employees should use material-handling equipment. In other cases, they might need to ask a co-worker to help. Let workers know that if they don’t get help from a fellow employee today for the five minutes it takes to lift or move a load, the co-worker might end up doing their entire job for the five days that they were out with a strained back!