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December 2008

Dec 01
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AVOID FIRE ON THE CONSTRUCTION SITE BY TAKING PROPER PRECAUTIONS

By Construction Insurance Bulletin

With all the attention garnered in recent years by the California wildfires, it’s a vivid reminder of the constant threat that jobsite fires can pose on construction projects. Contractors need to continually reassess their risk management plans to adequately prepare for a potential fire. The International Marine Underwriters Association offers the following 10 tips for keeping construction sites free from fire:

  1. Maintain a written loss control plan that addresses risks of fire exposure comprehensively. Your plan should include general safety measures and specific objectives that are enforced actively by job site management, with a specific person in charge of on-site safety coordination.
  2. A no smoking policy should be enforced at all times during the project.
  3. Daily on-site inspections by project managers should investigate the work area, material and equipment storage, and any locations with hazards. A log should be maintained of all daily inspections for future reference.
  4. During “hot works” operations like cutting, welding or brazing, a designated person should look for sparks that could lead to fires by maintaining a line of sight to the working and adjacent areas. This person should watch actively for sparks, slag, and products of combustion, as well as inspecting the surrounding areas for at least 30 minutes after operations have ceased.
  5. All portable heating equipment should be placed on non-combustive flooring or platforms. Adequate clearance, maintenance and fueling should be in accordance with manufacturer’s specifications and/or recognized standards.
  6. Build temporary enclosures that contain designated travel paths for materials and emergency personnel. Ideally, these enclosures should be located away from overhead exposures and should be built with approved Underwriters Laboratory or Factory Mutual non-combustible construction materials.
  7. During roof construction, place at least one portable fire extinguisher on the roof level that has sufficient capacity for the task at hand.
  8. Properly clean roof vents to reduce possible ignition sources, such as lint, prior to roof surfacing operations.
  9. Review identification and labeling requirements on flammable liquid and gas containers prior to allowing them on the jobsite. Designate safe storage areas for flammable materials and clearly identify them with signs and stable barriers.
  10. Firefighting equipment should be readily available on the jobsite at all times. Project managers should ensure that such equipment is implemented properly, connected to a reliable water supply and easily adaptable to local fire department equipment.
Dec 01
Love0

REDUCE JOBSITE THEFT AND VANDALISM WITH THESE PRECAUTIONARY MEASURES

By Construction Insurance Bulletin

Jobsite theft continues to be a major challenge for all contractors with industry experts estimating annual losses at roughly $1 billion to $2 billion in the residential construction sector alone. Meanwhile, the National Equipment Register estimates annual thefts of heavy equipment, such as bulldozers and skid-steers, at $300 million to $1 billion – with only 10% of all stolen equipment ever being recovered. Contractors, equipment dealers, and insurers all suffer when jobsites are vandalized or equipment and materials are stolen. In what starts a vicious cycle, a stolen piece of equipment or material can shut the jobsite down temporarily adding to indirect costs for the contractor. Rental equipment companies may refuse to rent to contractors who don’t properly safeguard their assets. And finally, insurance premiums are bound to rise for all parties to mitigate losses associated with equipment theft.

The phenomenon of theft and vandalism of construction sites is not new and not limited to any one region. This is a national problem that will most likely only get worse over time. Whether we like it or not, jobsite theft is here to stay and the industry must focus on limiting the incidents as much as possible by making it difficult for the perpetrators to succeed.

Contractors can demonstrate commitment to stopping theft and vandalism on their sites by following these tips:

  • Inventory Assets and Property. All assets on a construction site should be identified, inventoried, and tracked as closely as practical.
  • Enlist Neighborhood Support. A company representative should contact neighbors around the jobsite to solicit their support in maintaining a safe and secure jobsite.
  • Control Keys. Keys should be issued to as few people as possible. A log of issued keys should be maintained which includes the type of key issued, to whom, on what date, and for what purpose.
  • Lock Gates after Hours. The number of gates on the jobsite should be kept to a minimum. If possible and practical to do so, uniformed guards should be utilized during working hours to check vehicles entering and leaving the jobsite. Gates should be closed and locked at night and on weekends.
  • Secure Tools and Equipment When Not in Use. Storage sheds or fenced areas should be provided on the jobsite for the secure storage of tools and equipment. When vehicular equipment is not in use, ignition keys should be removed and the cabs locked.
  • Engrave Construction Equipment in at least two obvious and one hidden location.
  • Install Motion Activated Lighting. Lighting can be an effective deterrent to theft and vandalism on the site. Lighting systems triggered by a motion detector are recommended as such lighting gives the impression an intrusion has been detected and might also warn neighbors of potential intruders.
  • Fence the Jobsite. Ideally, the entire jobsite should be enclosed in sturdy fencing topped with multiple strands of barbed wire. If it is not practical to enclose the entire site, at a minimum the area around trailers and material storage should be enclosed.
  • Hire a Security Company. It might be advisable to employ the services of a bonded and insured security company either to maintain guard staff on-site or to conduct periodic patrols of the construction jobsite.

Although this list might be lengthy, the time spent reading these tips and implementing them could save you a lot of time and money.

Dec 01
Love0

SLEEP DEFICIT CAN BE A RECIPE FOR DISASTER ON THE JOBSITE

By Workplace Safety

Too many employees work long hours for several days in a row without sufficient sleep — and that’s a recipe for disaster. When you haven’t had enough sleep, you’re more likely to feel tired, depressed, keyed up, or irritable. That’s why a jobsite staffed with fatigued workers creates a hazardous work environment.

The problem with sleep debt. Experts say that the average adult requires seven to eight hours of uninterrupted sleep every day. When you don’t catch enough ZZZs each night, you build up a dangerous sleep debt that adds up over time.

If you only sleep four hours one night, your work performance might not be affected right away. However, repeated nights of insufficient or disrupted sleep over a period of days or weeks will eventually wear you down. Over time, this growing sleep debt will not only make you feel tired and irritable, but it could ultimately lead to depression, loss of appetite and digestive problems. Insufficient sleep can also increase your risk of getting sick.

Fatigued Workers = Dangerous Jobsite. If you and/or your co-workers are sleep deprived on the worksite, you’re more likely to make mistakes or miss potentially dangerous situations. Sleepy workers often react more slowly than usual, show poor judgment, and are unable to stay focused on the job at hand. When you’re tired, you could also lose motivation, become forgetful, and take greater risks. This could lead to serious accidents and injuries on the jobsite. It all adds up to an unsafe work environment for yourself and your fellow workers.

This is why it’s so important to ensure that you get at least seven hours of sleep every night. If you are planning to work an extended shift, make sure that you make time for a good night’s sleep as soon as your shift is over. Although it might be tempting to run out after work and socialize with your friends, it’s more important to your safety and overall health to go home and get plenty of sleep.

Employers can help. Employers can pitch in and help make the workplace safer by ensuring their workers get plenty of sleep. Some employers require a certain number of mandatory off-duty hours. This increases the likelihood that workers will go home and get enough sleep before they return to the jobsite.

If workers are taking on extended shifts, employers can help by offering prepared meals and a quiet place where workers can rest during their breaks. Supervisors should also be aware of the dangers workers face when they are exposed to loud noise, chemicals, and extreme temperatures for extended periods of time.

If you are planning on asking employees to work lengthy hours, make sure that you consult with an occupational hygiene specialist first. This type of expert can evaluate the situation and determine whether or not it’s safe to increase a worker’s exposure to these potentially dangerous factors.

Dec 01
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LEARN ABOUT BACK PAIN – AND THE BEST WAYS TO TREAT IT

By Workplace Safety

Whether you work a job that requires a lot of heavy lifting or sitting at a desk all day, you’ve probably heard plenty about back pain — and you might have experienced it first-hand. About 80% of all adults in the U.S. have experienced back pain at some point, according to the Consumer Reports Health Ratings Center.

In 2009, the Center surveyed more than 14,000 subscribers who experienced lower back pain in the past year but never had surgery. More than half said the pain limited their daily routine severely for a week or longer and 88% said the pain recurred throughout the year.

Unfortunately, misconceptions and myths about back pain abound. Read on to learn the truth about back pain and the best ways to treat it.

Surgery isn’t always the best solution. Many people falsely believe that surgery is the only solution for a slipped disk (also known as a herniated or ruptured disk). However, this is not necessarily the case. First of all, most back pain is not caused by a herniated disk. Oftentimes, it’s simply a pulled muscle or another problem that will heal on its own. Back pain is extremely complex, and each case is unique. As a matter of fact, doctors cannot make a specific diagnosis for more than 70% of patients with chronic back pain.

Therefore, you shouldn’t assume that you need surgery as soon as your back starts aching. Your doctor will have to put you through some extensive testing to determine if your pain is coming from a damaged disk. Even if the doctor does confirm that you have a slipped disk, you might be able to recover without surgery.

Some studies show that about 90% of patients with a herniated disk gradually improve within six weeks. If your pain persists longer, then you might be a good candidate for surgery. However, because back surgery can be extremely invasive and require lengthy amounts of recovery time, you should view it as a last resort.

You might not need to take it easy. Another common misconception is if your back hurts, you should take it easy and get plenty of rest until the pain subsides. However, many medical experts say exactly the opposite. If your back hurts, you should try to continue your every day activities. People who stay active tend to heal more quickly than those who banish themselves to bed rest.

Of course, if you are experiencing severe pain, you might need to take some time off from work, especially if you have a physically demanding job. However, you might consider coming to the jobsite for some light work until you recover fully. This will give you an opportunity to stretch your back and remain somewhat active while your back heals.

Not all back pain is caused by an accident or heavy lifting. Although you might be quick to assume that your back pain was caused by lifting something heavy, that might not be the case. Of course, people with physically demanding jobs that involve a lot of lifting and carrying of heavy materials are more likely to experience lower back pain. However, there are many other causes for back pain.

As a matter of fact, people who sit still at a desk all day long are actually at higher risk for a disk injury than those who do moderate amounts of physical work. That’s because these desk workers remain sedentary for much of the day, sitting in unnatural positions in front of a computer and placing constant pressure on their spine.

There are many other factors that contribute to back pain. For example, your age can play a role, as well as your gender. Men are more likely to injure their back when they’re around 40 years old, while women generally suffer from back pain between the ages of 50 and 60. Your lifestyle can also affect back pain. Smoking, obesity, and stress are often linked to lower back pain.

A back injury doesn’t mean the end of your career. In the past, many workers assumed that if they injured their back, they would never be the same again and would be unable to return to their job. However, most people who experience back pain eventually get better — with or without treatment.

Studies show that most people who take time off from work due to back pain return to the job within six weeks. Only a small percentage of people never return to work again after a back injury. Unfortunately, once you’ve suffered from back pain, you’re most likely going to experience it again at some point. Luckily, even these recurring incidences of back pain will generally go away on their own.

There are many treatment options. If you’re suffering from severe back pain, don’t feel like you’re alone. You can turn to many different types of experts to help you manage the pain and recover.

First and foremost, visit a trusted family physician. He or she can rule out a serious health problem and may be able to refer you to a specialist. Many back pain sufferers turn to chiropractors, physical therapists, pain management doctors, and other specialists. Although back pain usually resolves on its own with time, these experts can help you through the pain, give you valuable advice, and offer you some relief.

Dec 01
Love0

BE AWARE OF SIGNS THAT COULD INDICATE THREAT OF WORKPLACE VIOLENCE

By Workplace Safety

On average, 20 workers are killed each week on the job, making homicide the second leading cause of death at the workplace (after motor vehicle accidents). Additionally, an estimated million workers are non-fatally assaulted each year, according to data from the National Institute for Occupational Safety and Health, a division of the U.S. Centers for Disease Control and Prevention. Though the vast majority of workplace violence is related to robbery and perpetrated by individuals from outside a business, about 9% involves co-workers or former employees.

Workplace violence committed by current or former employees has a devastating impact on a business and its employees. Although the real and immediate injury to the victim(s) delivers the biggest blow, the business itself can suffer bad publicity and, likely, an expensive lawsuit. Regardless of whether or not workers who were not involved in the incident witnessed the event, many are likely to experience emotional after-effects.

What are the causes of workplace violence? According to a guide published by the Minnesota Department of Labor & Industry, workplace violence can occur at any business, because the business environment is not the only trigger of brutal incidents. Family stress, substance abuse issues, and an employee’s overall psychological status, can carry into the workplace and provoke an incident of violence. Other situations that can lead to tragedy include an employee developing an unrequited crush on a co-worker, being rejected for a promotion, or feeling they are treated unjustly by a supervisor. In some cases, an individual cannot handle the resulting feelings of rejection appropriately. The pressure to produce and/or fear of layoffs can also trigger violence in an unbalanced employee.

An analysis by USA Today of 224 incidents of workplace violence committed by employees concluded that, in 80% of cases, the employee had exhibited clear warning signs of possible violence, which were ignored or minimized by supervisors or co-workers. Although some red flags of violence are clear — such as wielding a weapon or making verbal threats — others are less obvious. Experts in the field urge caution when the following behaviors are present:

  • Continuous complaints of unjust treatment
  • Inability or unwillingness to be held accountable, as well as the need to place blame on others
  • Difficulty in accepting criticism
  • Deterioration of job performance
  • Mood swings or personality/behavioral changes
  • Emotional outbursts

Although workplace violence cannot be eliminated completely, businesses can take action to lessen the chances that an incident will take place. Supervisors, managers, and all other employees should be made aware of actions and attitudes that can indicate potential violence. Companies need to make it perfectly clear that non-physical precursors to violence — such as bullying, intimidation, aggression, and threats — will not be tolerated. Policies should also encourage employees to report such red flags, with reasonable assurance of their personal safety. Managers and supervisors require training in how to diffuse workplace tensions effectively and deal with confrontations before they turn violent. Employee Assistance Programs (EAPs) or other counseling services can be helpful in taking these steps.

Although people can and do change, many perpetrators of violence have a history of brutality, or of red flags for potential violence. For this reason, background checks, pre-employment screenings, thorough resume reviews, and pre-hire interviews can be beneficial tools in workplace violence prevention, according to information from the International Risk Management Institute. Other warning signs include frequent job changes that are not explained adequately; mysterious holes in an applicant’s work history; demeanor during a pre-hire interview that is unresponsive, uncooperative, or somehow unsettling; and, of course, any history of violent or threatening behavior.

With the right policies and preventive measures, a business can know that it has taken appropriate steps to deter workplace violence and protect their employees to the best of their ability.

Dec 01
Love0

DESPITE SUBSTANTIAL HEALTH CARE COST SAVINGS, GENERIC DRUGS REMAIN UNDER-UTILIZED

By Employment Resources

Despite their proven reliability in safely reducing health care costs, many consumers continue to have doubts about the use of generic drugs. Communications programs that increase employees’ knowledge about generics and their comfort level in speaking with prescribers about generic medications can help to overcome these doubts, increase use of generics in a health plan and, ultimately, result in substantial cost savings.

Data on consumers’ limited knowledge of generic drugs comes from a survey from Prescription Solutions, a UnitedHealth Group company. Among the surveyed adults, 31% did not know or did not believe that generics have the same active ingredients and same effectiveness as brand-name drugs. Furthermore, two-thirds did not understand the actual cost difference between generic drugs and brand-name drugs. On average, a brand-name drug costs 50%-70% more than its generic counterpart. A separate analysis from the Food and Drug Administration (FDA) indicates that drug costs per day can fall by 14% to 16% if an individual uses generics instead of brand-name drugs, depending on the individual’s medical needs. Individuals who can fully satisfy their medical needs with generic drugs can see as much as a 52% reduction in their daily medication costs, according to the FDA analysis.

Consumers’ reluctance to try generics is especially surprising, given that a majority of the Prescription Solutions survey respondents: 71%-remain concerned about prescription drug costs, and 27% have either delayed filling, not filled, or not taken a prescription as prescribed in an effort to save money.

The survey also found that doctors and pharmacists are the key influencers in encouraging the use of generics. Of those surveyed who take generic drugs on a weekly basis, 64% said their doctor recommended the generic and 43% said a pharmacist recommended the generic. Of those surveyed who do not take generic drugs on a weekly basis, 58% said they would if a pharmacist brought a generic to their attention as a less expensive yet identical substitute, and 52% said they would do this if their doctor made the recommendation.

As noted at the beginning of this article, communications programs that increase employees’ knowledge about generics and their comfort level in speaking with prescribers about generic medications can address misconceptions and concerns about generic drug use. A study published in the March 2009 issue of the journal Medical Care found that generic drug use was most closely associated with communications with providers about generics, and with an individuals’ comfort level with generic substitution, leading to the conclusion that educational campaigns that focus on these two areas might be most effective in influencing generic drug use.

To increase individuals’ comfort level with generic substitution, an educational campaign should stress the key facts about generics:

  • Although generics might differ in appearance from their brand-name counterparts, they have the same active ingredients and adhere to the same FDA standards.
  • Generic medications cost less, not because they are of a lesser quality, but because the manufacturer of the generic has no research and development costs to recover, and also spends no money on promoting the product to physicians and consumers.
  • Plan design, too, can encourage generic use. Plan designs that require a higher member copayment for a brand-name drug than for the generic substitute can lead to higher generic use, as can completely waiving the copayment for generics (or for certain classes of generics). Generic use also can be increased through mail-order programs.

Overcoming ignorance or unawareness of the true nature of generics can reap savings for an employer, making the money spent on communications and education a worthwhile investment.

Dec 01
Love0

ELECTRONIC FILING OF FORM 5500S REQUIRES CHANGES TO REPORTING FORMS AND SCHEDULES

By Employment Resources

Beginning with 2009 plan years, employers will be required to file Form 5500 for pension and other employee benefit plans electronically. Mandatory electronic filing — known as the ERISA Filing Acceptance System, or EFAST2 — was slated to become effective for 2008 plan year filings, but in final regulations implementing the electronic filing requirement the agencies with Form 5500 oversight (the Department of Labor, Internal Revenue Service and Pension Benefit Guaranty Corporation) delayed mandatory electronic filing to the 2009 plan year. Since Form 5500 is due at the end of the seventh month after the close of the plan year, this means that employers with calendar year plans will have a first required electronic filing deadline of July 31, 2010.

The Form 5500 Annual Return/Report is the primary source of information concerning the operation, funding, assets and investments of pensions and other employee benefit plans. Form 5500 filings serve as a disclosure document for plan participants and beneficiaries, a compliance and research tool for the agencies with 5500 oversight, and a source of information and data for assessing pension and employee benefit trends and developing policy.

Electronic filing is intended to streamline and simplify the filing process, especially for small businesses; increase the transparency of plan-related fees and expenses; and provide additional information about plan investments. To this end, some schedules associated with 5500 filing that were required only for the IRS have been eliminated, and other schedules have been modified. Specifically, Schedule E for ESOP information and Schedule SSA (identifying separated participants with deferred vested benefits) will no longer be required once e-filing is fully implemented (i.e., beginning with reporting for the 2009 plan year). Information previously included on these schedules will be captured in other ways.

Certain small plans (single-employer plans covering fewer than 100 participants, which meet specified conditions regarding their investments held or issued by regulated financial institutions, and which have a readily determinable fair market value) will be able to file a Form 5500SF (Short Form) instead of the regular 5500.

As to specific attachments:

  • Schedule A (Insurance Information) is required if any pension or welfare benefits under the plan are provided by, or if the plan holds any investment contracts with, an insurance company, insurance service, or other similar organization. Schedule A remains largely unchanged, but will now include a space for administrators to report a failure or refusal by an insurance carrier to provide necessary information. Other minor changes are intended to improve Schedule A’s usefulness for reporting insurance fees or commissions.
  • Schedule B (Defined Benefit Plan Actuarial Information) has been divided into two separate schedules, Schedule SB for single employer plans and Schedule MB for multiemployer plans and certain money purchase plans. These schedules are required for defined benefit plans subject to minimum funding standards. In general, the revised schedules will require more detailed information on asset allocation.
  • Schedule C (Service Provider Information) is filed by large plans, to report payments made to service providers. The $5,000 reporting threshold has been retained for identifying any person who received at least this amount during the plan year, directly or indirectly, in connection with services rendered to the plan or their position with the plan. To enhance disclosure, direct compensation paid by the plan will be reported on a separate line item from indirect compensation received from sources other than the plan or plan sponsor. Additionally, current codes have expanded to better identify the types of services and types of fees. The schedule includes an alternate reporting option for service providers whose compensation in relation to the plan is limited to “eligible indirect compensation” (certain specified types of common investment-related fees). As with Schedule A, revised Schedule C includes space for plan administrators to list service providers who failed or refused to provide information necessary to complete the schedule.
  • Schedule R (Retirement Plan Information) will now ask for information previously requested in the eliminated Schedule E. Other modifications include additional questions required by the Pension Protection Act of 2006 and to collect information needed by the PBGC to enable it to properly monitor the plans it insures. For example, the schedule now includes asset allocation questions for defined benefit plans with more than 1,000 participants, which now must provide a breakdown of plan assets by type of investment.
  • Schedule I (Small Plan Financial Information) will require small plans to report administrative expenses separately from other expenses. On both this schedule and Schedule H (for large plans) a standard format has been adopted for use in connection with an independent qualified public accountant rendering an opinion on information relating to delinquent participant contributions.

As noted at the beginning of this article, full electronic filing begins with filings for the 2009 plan year. For many plans, compliance will require updating information management and recordkeeping systems and necessitate changes in the way plans collect and keep plan information. Consult with your plan administrator or one of our benefits professionals for what your company needs to do to prepare.

Dec 01
Love0

EMPLOYERS SHOULD TAKE STEPS TO GUARD AGAINST SEASONAL AND H1N1 FLU VIRUSES

By Employment Resources

Due to the possibility of a serious flu pandemic, the U.S. Government is asking business leaders to make response plans for a range of flu outbreak scenarios. For this flu season, predictions range from a moderate increase in flu-related absenteeism, to a full-blown influenza pandemic. The most up-to-date information regarding flu risk can be found online at the Centers for Disease Control and Prevention Web site; on the World Health Organization Web site; as well as on the U.S. Department of Health & Human Services Web site (refer to Guidance for Businesses and Employers to Plan and Respond to the 2009-2010 Influenza Season).

For both business and public health reasons, it is critical for employers to be ready for the possibility of a pandemic. A pandemic might involve your clients as well as your workforce, as employers face the potential for supply chain disruptions, workforce shortages, and even panic among employees and their family members.

Business experts and government officials have developed the following guidelines to help business leaders coordinate plans in the event of a pandemic:

Identify a Team

Name a pandemic coordinator or team with specific responsibilities for preparing and response planning. Go over emergency preparedness plans with your identified team members. Remember that your planning process needs to remain fluid and dependent on circumstances, not a fixed or finite plan.

Communicate with Your Employees

Have emergency communication systems and plans in place. Communicate pandemic preparedness and response plans to employees and, if necessary, to your customers and suppliers.

Educate your employees on flu preparedness. By involving employees, they might feel less anxious and more in control. Stress the importance of the message that employees should stay home when they are sick.

Prepare for Widespread Absenteeism

Create a plan for how critical functions will be carried out elsewhere if work sites must be closed temporarily. Review health care, disability, and leave policies with employees. So that tasks can be handled by more than one person, provide cross-training to employees. Whenever possible, plan to have employees work remotely. Create policies for reducing travel to affected geographic areas.

Immunize and Sanitize

Set up immunization clinics for your workforce through your EAP or insurer. Encourage employees to practice good hygiene by washing hands, using sanitizers, and covering their mouths and noses with a tissue when coughing or sneezing. It is also recommended to avoid touching eyes, nose, or mouth, as this is a good way to spread germs.

Remain Informed

Consult the U.S. Department of Health and Human Services site, the Centers for Disease Control and Prevention site, and the World Health Organization site.

Dec 01
Love0

CURBING EMPLOYEE THEFT

By Risk Management Bulletin

According to the U.S. Commerce Department, employee crime costs American businesses as much as $40 billion a year — that’s “billion with a ‘B’.”

To help prevent a fox from getting into your henhouse, a leading risk management group recommends these guidelines:

  • Screen job candidates. You might discover that a potential employee was fired from another job for stealing. A thorough background check can give you hard evidence when doing an interview. Look for discrepancies between what the candidate says and what’s on paper; too many differences will point to a problem.
  • Reduce the temptation to steal. Be careful when making operational changes. The thief might become quite familiar with the change and believe that they have specialized and private information to use to their advantage. To avoid this danger, let everyone know about new procedures. Also, lock and bar all windows in warehouses or storerooms, create employee sign-ins in these areas, and never leave anything lying around to be picked up easily.
  • Protect monetary assets. Thieves sometimes write checks to ghost employees or vendors and use the money for their own finances. Separating accounts payable from accounts receivable will reduce the chances of such a fiasco. Also, if Jim in sales never, ever takes a vacation, something might be amiss; he could be snooping around or doing something besides genuine hard work.
  • Schedule periodic audits. If this isn’t possible, have an outside party review accounting and bookkeeping practices.
  • Create a zero-tolerance policy. Potential in-house thieves won’t be as inclined to steal if they know they’re risking their job.
  • Investigate suspected fraud. The Association of Certified Fraud Examiners (www.acfe.org) offers expertise in this field.

For an in-depth review and analysis of your in-house security systems, please feel fee to contact our risk management specialists.

Dec 01
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IS YOUR BUSINESS INSURED AGAINST DISASTER?

By Risk Management Bulletin

In the aftermath of storms, flooding, or wildfires , thousands of small-business owners are being hit with the bills for salvaging their building or the business itself, because they didn’t carry enough (or the right type of) coverage. In some cases, the culprit was ignorance; the owners might not have realized that a policy didn’t cover certain hazards. In others, a difficult economic climate created cash flow problems that led businesses to forgo the cost of insurance.

For example, you might not think your business needs insurance against flood damage. However, no matter where you’re located, if a small stream near your business swells up after an unusually long period of rain and water pours in, coverage through the federal National Flood Insurance Program will pick up the tab. For more information, visit the program’s Website, www.Floodsmart.gov.

Similarly, a standard policy probably won’t cover earthquake damage – and quakes are by no means limited to California. The largest temblor in U.S. history was centered near New Madrid, Missouri in 1812, causing damage in half a dozen states, ringing church bells on the East Coast, and re-routing a section of the Mississippi River.

You buy Property insurance to protect your business against losses from such perils as wind, rain, and hail. But do you have Business Owners Policy (BOP), which combines Property coverage, together with Business Interruption insurance – which will pick up the tab for operating expenses and lost profit if your business is shut down for an extended period. That can include salaries and employee benefits, rent and line-of-credit payments. It doesn’t have to be a natural disaster that shuts down the business; even losses stemming from a power outage can be covered.

Some small companies should carry special policies because of the kind of business they’re in. For example, a heavily damaged bed and breakfast that would need to restore its quaint ambience by purchasing antiques would probably need additional “guaranteed replacement” coverage.

Our risk management professionals would be happy to help you develop a comprehensive program to protect your business. Just call or e-mail us.

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