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Monthly Archives

May 2009

SECURE THE RIGHT INSURANCE COVERAGE TO PROTECT YOUR RV INVESTMENT

By Personal Perspective

A recreational vehicle, such as a motor home, can be a significant investment. RV owners shop for their vehicles carefully before they plunk down tens of thousands of dollars. Although finding the right RV and arranging financing are the first steps toward ownership, it is important to pay as much attention to the next step: Securing the right insurance coverage for the new vehicle.

Some RV owners might be tempted to simply add coverage to their existing Auto insurance policy. Many Auto insurance companies will do this, but it might not make the most financial sense for the owner. For several reasons, a special RV insurance policy might better meet the owner’s needs. First, motor homes are larger and heavier than most passenger cars and trucks. In an accident, they are capable of causing injuries and damage much more severe than lighter vehicles. It might make sense for the owners to buy larger amounts of Liability insurance for the RV than they have for a car. Liability insurance pays for the owner’s liability to others for injuries or damages. The amount of insurance covering a car might not be enough to properly cover an RV.

Also, insurance companies calculate Auto insurance premiums based on several factors, including commuting distance. They assume that the car owner will use the vehicle frequently. These rates are inappropriate for RVs, which normally receive much less frequent use.

Standard Auto insurance policies provide little or no coverage for personal belongings that suffer damage in a car accident. Often, Homeowners insurance will cover these items, but the policies might limit the amounts of coverage or might carry deductibles of $500 to $1,000 or more. Insurance companies that specialize in RV insurance design policies to cover the items that customarily travel in a motor home, like clothes, tools, electronics, dishes and sporting goods.

The RV insurance policy might also do a better job of protecting against damage to the vehicle itself. Comprehensive and collision coverages in Auto insurance policies pay the cost of repairing or replacing the vehicle after deducting an amount for depreciation. This can leave the RV owner with a large out-of-pocket cost if he has a balance outstanding on his loan and his vehicle is a total loss. Also, the depreciated payment amount will probably be too little to purchase a comparable replacement vehicle. An RV policy provides Agreed Value Coverage, which means that the insurance company and the owner agree in advance on the RV’s value and the company does not deduct anything for depreciation. The company will need a copy of the RV’s bill of sale or a professional appraisal before it agrees to a value.

RV policies also often provide unlimited coverage for towing and roadside assistance, whereas Auto policies might limit this coverage to a small amount. The RV policy might also provide Emergency Expense Coverage to pay for transportation and lodging if an accident disables the vehicle. RV policies might feature “disappearing deductibles,” where the deductibles decrease for every year that the owner is claim-free. Discounts often apply for safe driving, passing driving safety courses and vehicle safety features.

Are you a current and prospective RV owner? Contact one of our agents today. We can explain the different coverage and price options available and recommend financially solid companies. With the right insurance, RV owners can relax and enjoy a mobile lifestyle.

DOES CAR COLOR REFLECT SAFE VS. NOT-SO-SAFE DRIVING?

By Personal Perspective

Many people latch onto a certain color in preschool and remain ever-faithful to that shade throughout their lifetime. Whether it’s blue, pink or green, they might deck out their childhood bedroom in their favorite hue, refuse to wear any other shade in junior high and even dye their hair that color in high school. Later, when it comes time to buy their first car, these color-faithful people usually choose a vehicle in — what else — their beloved favorite color.

Although this is no surprise, some research reveals that the color of your car actually speaks volumes about your outlook on life, your personality — and even your driving style. For example, a United Kingdom study shows that black cars were twice as likely to be involved in U.K. car accidents than cream-colored cars.

Here are a few more interesting findings from the same U.K. study:

  • Black cars are usually driven by aggressive people who consider themselves “outsiders.”
  • Silver cars are usually owned by cool, calm, and slightly detached drivers.
  • Green cars are often driven by people with “hysterical tendencies.”
  • Yellow cars are typically chosen by idealists with upbeat, optimistic attitudes.
  • Blue cars are usually driven by introspective people who are cautious drivers.
  • Gray cars are usually chosen by calm, sober drivers who are dedicated to work.
  • Red cars are driven by energetic people who are fast talkers, movers, and thinkers.
  • Pink cars are often chosen by gentle, loving people.
  • White cars can signify status-seeking extroverts.
  • Cream cars, the least likely to be involved in an accident, are generally driven by self-contained, reserved people.

Does color affect rates?

Based on this particular U.K. study, car color can reflect a driver’s personality — but can it affect their insurance rates? Many people seem to believe so.

According to a 2005 Chicago Sun-Times article, 25% of surveyed drivers said they believe the color of a person’s car does affect their Auto insurance rates. After all, aren’t drivers of red cars typically risk-taking, speed-demons and drivers of black cars overly aggressive, road ragers? If that’s the case, wouldn’t drivers with those color cars be viewed as a higher risk to the insurance company and therefore be forced to pay higher rates?

The answer is no. Insurance companies do not take the color of your car into consideration when they calculate your premium. Your insurer probably has no idea what color car your drive unless you offer up that information.

Typically, insurance companies determine your rate based on some or all of the following factors:

  • Your vehicle’s make, model, body type and engine size
  • Your personal credit history
  • Your driving record
  • Your usage of the car (such as if you are using the car for work, pleasure or as a collectible)
  • How many drivers will be using the car and their ages
  • How many vehicles you own
  • What kind of coverage limits you want
  • Where you live
  • Your weekly, monthly, or annual mileage

So, go ahead and buy your next car in your favorite hue to match your house, your clothes or even your hair. Although it might advertise your personality to the world, your car color will have no affect on your insurance rates.

USE THE INTERNET WISELY WHEN CONSIDERING JOB APPLICANTS

By Business Protection Bulletin

With the recent explosion in popularity of social networking Web sites such as MySpace, Facebook, LinkedIn, Twitter and others, individuals’ personal information is more widely available than ever. People post photos of themselves and details of their lives online with almost no hesitation. Although they might intend for their families and friends to see this information, others with an interest can also see it. Chief among these are current or prospective employers. An Internet search about a job applicant can be very revealing, but is it wise for the employer to do so?

A search on a prospective employee can uncover information that is much more in-depth than that revealed on a resume, job application, or in an interview. For example, an employer could find news stories involving the candidate, articles written, critiques of their work, information about volunteer work, and more. Conversely, they might find photos, videos, audio files, or text that present a less positive image. Blog posts that include profane language, photos or videos of wild parties or intimate situations, negative comments about former employers on Web sites — any of these might influence an employer’s hiring decision.

One risk from Internet searches is that the employer might discover information that would complicate a decision to not hire the applicant. For example, an employer might learn that an applicant has children, which may lead them to conclude that they will resist putting in long hours on the job. If they were to decide not to hire the applicant, and it should come out that they did an Internet search, they would have the burden of proving that they did not base the decision on the applicant’s status as a parent. Otherwise, the applicant might be able to pursue a successful action against the employer for discrimination.

Some states prohibit employers from discriminating against workers on the basis of their legal, off-duty activities. For example, suppose an employer learns that an applicant is actively involved in political causes with which the employer does not agree. The applicant engages in these activities only during non-work hours and their political views are irrelevant to the work duties. The employer cannot deny the applicant the position based on political activities; they must be able to cite a legitimate business reason.

Federal law requires businesses that take “adverse actions” against a person because of their credit history to disclose this fact. Similarly, some states are beginning to require employers to disclose to an applicant adverse information found in public records. Not only is this costly and inconvenient, it raises concerns about the reliability of the information. It might actually pertain to another person with the same name, especially if the names are common. Also, because anyone can create a Web page in less time than it takes to eat lunch, someone with a grudge can post distorted, misleading or false information about another person with ease.

Although these might sound like arguments for not doing an Internet search, there are also risks to that approach. Should an employee someday turn violent or commit other crimes on the job, and the employer could have found information about those tendencies from an Internet search, he could become the target of lawsuits for failing to properly evaluate the employee.

The best approach for employers could be to use an Internet search as one tool among many as they consider a job applicant. Gather information from a variety of sources, including the traditional ones — references, interviews, aptitude tests, and applications. Supplement that with information found on the Internet. Evaluate the information from all credible sources and make an informed business decision based on the job requirements. The Internet can be a valuable hiring tool, if employers use it wisely.

HOW WILL THE LILLY LEDBETTER FAIR PAY ACT AFFECT YOUR BUSINESS AND YOUR INSURANCE NEEDS?

By Business Protection Bulletin

On January 29, 2009, President Barack Obama signed into law the Lilly Ledbetter Fair Pay Act of 2009. Congress approved this law to make it easier for workers to win wage discrimination lawsuits against their employers. What does the law say, and what does it mean for employers? Will a business’s Employment Practices Liability insurance (EPLI) policy cover the suits that this law will allow to go forward?

Lilly Ledbetter was a production supervisor at a Goodyear tire plant in Alabama. Shortly before her retirement, she learned that for years the company had paid her substantially less than it had paid male employees for the same job. Because the company calculated her pension benefits based on her earnings while employed, the lower wage affected both her past and future income. Six months before her retirement in 1998, she sued the company for equal pay under the federal Civil Rights Act of 1964. This law imposes a 180-day statute of limitations for filing a discrimination lawsuit, meaning that the worker must file the suit within 180 days of when the discrimination occurred. Ledbetter argued that the company unfairly discriminated against her due to her gender, while Goodyear claimed that it based evaluations only on competence.

The trial court ruled in Ledbetter’s favor. Goodyear appealed on the grounds that the law barred all claims for discrimination occurring more than 180 days before she first inquired into it; the appellate court agreed. She appealed to the U.S. Supreme Court, but in 2007 a divided court ruled in favor of the company. Soon after, Democrats in Congress introduced a bill to overturn the ruling. It passed the House of Representatives but was unable to overcome procedural obstacles in the Senate, and the 110th Congress adjourned without further action. The new Congress quickly enacted the bill in January 2009, and it became the first law President Obama signed. It amended the Civil Rights Act to provide that the statute of limitations resets with every payment of unfairly discriminatory wages. This allows employees to file suits at the time they learn of alleged discrimination, even if the discrimination began years or decades earlier.

An EPLI policy covers an employer for a variety of acts, including discrimination, wrongful termination, harassment, retaliation, and other types of inappropriate conduct. Most policies define discrimination as including violations of federal, state and local laws that give protected status to certain individuals. Because of these provisions, EPLI policies should cover employers for damages they must pay as the result of violations of the Civil Rights Act. In addition, the policy will pay the costs of defending the organization against the claim, even if the claim is groundless.

EPLI policies cover claims made during the policy period, but only if the alleged wrongful act occurred on or after a specific date, known as the “retroactive date.” For example, a policy written for the period January 1, 2009 to January 1, 2010 and with a retroactive date of January 1, 2005 will cover a claim made on November 1, 2008 for an act that happened on July 1, 2008. It will not cover a claim made on the same date for an act that happened on July 1, 2001. There is no standard EPLI policy, so the policies will vary by company. Our agents can explain the differences among different policies.

The Lilly Ledbetter Equal Pay Act makes employers more vulnerable to successful wage discrimination suits. To avoid financial loss from this, employers should be certain that their wage practices comply with the Civil Rights Act, and they should obtain a comprehensive EPLI policy from a reputable insurance company.

CONSIDER YOUR COMPANY’S COVERAGE OPTIONS IN EMPLOYMENT PRACTICES LIABILITY POLICIES

By Business Protection Bulletin

Uninsured employment practices claims can devastate a company. Many organizations find Employment Practices Liability Insurance (EPL) essential to their risk management programs. Once a firm decides to buy EPL coverage, it must weigh several important coverage options.

A business can buy a stand-alone EPL policy or as an additional coverage on a Directors & Officers Liability policy. Adding it to a D&O policy might be less expensive, easier to manage, and the defense provisions for the two coverages will be consistent. However, a stand-alone policy provides additional limits, offers more flexibility in terms of defense provisions, and might offer broader coverage.

The firm also must choose the deductible amount (also called the “self-insured retention”). A relatively low deductible means lower out-of-pocket costs when a loss occurs but a higher premium. It can also mean even higher future premiums or policy non-renewal if the firm suffers frequent small losses. A higher deductible reduces the immediate premium and might help lower future costs, but can also be a strain on a firm with frequent losses or troubled finances.

Policies can either obligate the insurance company to provide defense when a loss occurs or they can relieve the company of that duty. With a “no duty to defend” policy, the firm controls the selection of legal counsel, decides which claims to contest, and manages its reputation. However, this can involve considerable upfront expense — the firm must pay for the defense and settlement first, then seek reimbursement from the company. Also, the firm might lack the expertise in claims handling that an insurance company can offer.

Some firms, such as retail stores, medical offices, and restaurants, have frequent exposure to customers. These firms might be susceptible to claims that an employee harassed customers. Standard EPL policies and Commercial General Liability policies do not provide third party coverage for claims made by people other than employees or job applicants. Therefore, firms like these might want to add this coverage to their EPL policies. This will cost an additional premium, but the additional cost might be much less than the cost of uncovered claims.

Studies have shown that courts award punitive damages in a large number of employment practices cases. These damages can run into hundreds of thousands of dollars. Although not all states permit insurance to cover punitive damages, firms in those states that do might want to consider buying it. Insurance companies may offer it subject to the regular policy limits, or only with reduced limits. The cost is normally some percentage of the standard policy premium.

EPL policies provide coverage on a “claims made” basis, meaning that they cover claims submitted to the insurance company during the policy term. The policies normally contain a “retroactive date”; they will not cover claims for incidents that occurred prior to that date. For example, a policy with a retroactive date of January 1, 2004 will cover claims submitted during the policy term if they occurred on or after January 1, 2004. The retroactive date can be the same as the policy’s inception date or some prior date. The earlier the retroactive date, the more claims the policy may potentially cover and the higher the policy premium will be. Firms buying EPL coverage for the first time or switching insurance companies might want to purchase early retroactive dates.

The correct choices for these options will vary greatly, depending on a firm’s characteristics and needs. One of our insurance agents experienced with EPL policies can provide guidance for these decisions. Because employment practices claims can be so costly, it is worth it to weigh these options carefully.

TAKE CHARGE OF EMPLOYEE BEHAVIOR TO REDUCE WORKPLACE INJURIES

By Construction Insurance Bulletin

Despite common belief, the majority of workplace injuries are not caused by unsafe conditions, but rather employee behavior. These “misbehaving” workers often overestimate their physical limits and make unsafe choices — such as lifting a 300-pound piece of equipment without assistance.

When DuPont conducted a study of all its workplace accidents over a 10-year period, they discovered that 96% of the incidents resulted from employees working beyond their limits. A 2006 Liberty Mutual Workplace Safety Study showed that more than 50% of all workplace injuries were a result of overexertion, falls, twisting the wrong way and other such “behavioral” accidents. These injuries led to an estimated $46 billion in annual worker’s compensation costs.

The OSHA factor

Considering these eye-opening statistics, it’s obvious that workers need an on-the-job attitude adjustment. Some believe the industry should turn to The Occupational Safety & Health Administration (OSHA) to reverse this disturbing trend. Unfortunately, OSHA might not be the solution. Although the organization has acted as the watchdog for workplace safety for the past 30 years, OSHA generally focuses on making the workplace safer as opposed to changing employee behavior. After all, it’s a lot easier to modify a facility or repair a piece of machinery than it is to change the way a worker thinks and acts. Plus, many employers are wary of opening their doors to OSHA in fear that the organization will become overly involved in their every day affairs.

Taking charge

Because OSHA doesn’t seem to be the answer, it looks like employers are on their own when it comes to changing employee behavior. That means business owners must take the initiative to educate employees and cut down on preventable workplace injuries. Here are a few steps employers can take to cut back on “behavioral” accidents:

  • Appraise the situation: Take a closer look at past employee injuries that have occurred in your workplace. If you notice any patterns or trends, it’s time to make significant changes in that area. For example, if most injuries occurred when employees were attempting to carry heavy boxes, focus on teaching workers to safely move boxes with the assistance of another worker or a forklift.
  • Get supervisors on board: Ensure that your front line supervisors make injury prevention a top priority. Not only should they constantly enforce safety guidelines, but they also need to raise awareness throughout the ranks.
  • Work as a team: Workplace injury prevention requires plenty of teamwork. Make sure that all your employees understand the importance of working together and keeping an eye out for their fellow workers.
  • Create incentive programs: Consider offering your workers special rewards for sustaining a safe workplace. For example, let workers know that if there are no injuries within a 6- or 12-month period, they’ll be rewarded with a party, gift certificates or even an extra vacation day. This will give them greater incentive to make safe choices on a daily basis.
  • Hire the right people: Try to employ safety-conscious, reliable workers who are genuinely concerned with injury prevention.
  • Train your workers: Without the proper education and training, workers cannot be expected to perform their jobs safely. Ensure that all your employees are well-trained in safety guidelines and offer refresher courses each year.

Changing human behavior is no easy task. It will take loads of time and hard work to change your employees’ ways, but it will be well worth the effort in the long run. If you can successfully adjust your workers’ attitudes, you’ll enjoy lower insurance premiums, more productive workers and fewer injury-related absences. You might even be eligible for inclusion in OSHA’s Safety and Health Achievement Recognition Program (SHARP). This program recognizes small businesses with an exemplary safety and health management system. If you receive this prominent recognition, your worksite will be exempt from programmed inspections as long as your SHARP certification is valid.

KNOW THE IMPLICATIONS OF THE RIGHT LEVEL OF WORKERS COMPENSATION RESERVES

By Construction Insurance Bulletin

Workers Compensation is often one of the largest items in a business’ insurance budget. Relatively small claims for injuries like cuts or abrasions can impact the coverage’s cost, but more influential are the larger claims for more serious injuries. This type of loss requires the insurance company to set up a reserve, or estimate of a claim’s ultimate cost. The accuracy of a reserve has important implications for both the employer and insurer.

Businesses might feel that insurers set reserves too high, and that can happen. Over-reserving unnecessarily inflates the insurer’s liabilities and reduces its surplus (net worth.) This in turn reduces the amount of insurance the company can provide without raising fears about its financial stability. Although the experience modification formula penalizes a firm more for frequent claims than for severe ones, over-reserving does make the firm’s modification greater than it should be, resulting in higher premiums. Finally, over-reserving distorts a firm’s loss ratio, which makes the firm’s business less attractive to underwriters.

Under-reserving presents the greater threat to insurers. If the company sets the reserve too low, the claim can develop more rapidly than expected. The company might eventually find itself with a large obligation for which it is not prepared to play. Also, company managers tend to focus their attention on large claims and delegate handling of smaller ones. This means that an under-reserved claim will not receive proper management attention; the company will not apply claim control measures until it is too late for them to make a difference. Inadequate reserves can also affect a company’s financial stability ratings. Rating agencies such as A.M. Best might decide to lower a company’s rating if it finds significant under-reserving. This might cause customers to move their business to companies with higher ratings.

Certain types of claims are more likely than others to develop into high-dollar ones. Back injuries tend to be very expensive. Aging factory or warehouse laborers who have endured years of stress might need long-term treatment and, in some cases, surgery. Depending on the worker’s age, he might not return to work. Older employees who suffer injuries to their feet and legs might also have expensive claims. These employees might have pre-existing conditions, such as diabetes or hypertension, which worsen the consequences of an injury, resulting in amputations or heart attacks. Other injuries might aggravate conditions such as obesity or spinal problems, making the worker’s diagnosis more severe and increasing the disability period.

Other claims might develop into large losses because of the worker’s circumstances. Suppose a two-earner household has been paying for childcare for years, and the youngest child reaches the age where such care is no longer necessary. The parents are accustomed to a standard of living where they live on the after-childcare income. Workers Compensation benefits with no childcare expense might be similar to a parent’s wages after paying for childcare. This gives the worker less of an incentive to return to work. Workers who are nearing retirement also have a reduced incentive to return to the job after experiencing a period of disability, as they might be mentally prepared to stop working. Conversely, seasonal employees who need income to carry them through the off-season have incentives to prolong their disability periods. So do workers whose companies are laying off employees or whose plants are closing.

Employers should work closely with our insurance agents and companies to monitor Workers Compensation claim activity. Claims that fit into any of the types described above need special attention. The art of claim reserving is one of making educated estimates based on evidence and experience. Employers should verify that their insurers’ claim reserves are both fair and realistic.

COMMUNICATION IS KEY IN AVOIDING SAFETY HAZARDS

By Construction Insurance Bulletin

Before employees in high-risk jobs like construction will act on the safety information their employers provide, they have to be convinced that it is both reliable and useful. This is the finding of a study appearing in Communication Currents, an online publication of the National Communication Association. Another significant outcome of this research is the discovery that workers who feel confident about the quality of the safety information they are receiving are more likely to perceive that they are working safely.

The author of the study, Kevin Real, Ph.D., from the University of Kentucky, used surveys to examine employee perceptions of how available safety information was at their job site, how likely they were to seek out available information, and how their personal safety behaviors were influenced by risk and the usefulness of the information they were given. The list below outlines some of his other pertinent findings:

  • Workers’ perceptions of how much risk is posed by a particular situation are influenced by how much confidence they have in their ability to stay safe. Workers who feel capable of dealing with risks might view them as challenges to be overcome. However, workers who feel they don’t have the ability to stay safe might see themselves as vulnerable to injury. Accordingly, workers with a high level of confidence will respond differently to a hazard than workers who feel vulnerable. This response manifests itself in how well workers follow safety regulations. For example, employees who believe that wearing proper safety protection, such as hard hats, safety glasses, and earplugs, will keep them safe typically have a greater sense of their own capability to maintain their safety.
  • Developing worker confidence begins with using first-line supervisors to provide safety information, both in word and by example. Workers surveyed indicated that having interaction about safety with the same individual in charge of productivity show how important safety is to the organization. Supervisors should make safety information available to workers who show they are proactive about safety as a way of helping them meet their personal safety goals.
  • Safety messages must be simple. Messages that contain too much information about too many procedures and that do not prioritize the more important activities will likely be ignored. That’s because too many details leave employees confused about how to improve their own safety on the job. Real believes that while simplicity is best for safety discussions with the general work population, employers should always make more information available to workers who are proactive about safety. He believes that these workers are more likely to want more information and will seek it out when they know it is available. Making safety information available can also overcome suspicion that the organization isn’t doing enough to protect workers.
  • Organizations should emphasize positive behaviors as opposed to trying to stop negative ones. Explaining that earplugs prevent hearing loss shows a positive way to avoid a hazard. However, telling workers to stop fooling around on the job provides them with no positive behavior to substitute for the negative one. The employee doesn’t learn what is considered “fooling around,” why it should be avoided, and what are acceptable expressions of social interaction in the workplace.

Safety messages need to be reinforced by being delivering the same message through more than one medium. Asking workers to watch, hear, and read safety messages acknowledges and accommodates the different ways in which people learn and makes it more likely safety messages will be integrated.

SPILL PREVENTION AND RESPONSE CRUCIAL IN THE WORKPLACE

By Workplace Safety

The old proverb says, “Don’t cry over spilled milk.” Whether it’s milk, coffee, oil or chemicals, any kind of workplace spill can lead to serious problems or injuries. Not only could your workers slip and fall, but they might also be exposed to dangerous substances and fumes. Follow these tips on how to handle spills and a few ways to prevent spills in the first place.

Spill Response:

  • Know your materials: Ensure that all your employees are familiar with the proper storage, handling techniques and spill response methods for each material in your workplace.
  • Draw up a spill response plan: Create a worksite spill response plan and train your employees on how to respond to different spills. Maintain material safety data sheets for each material on the worksite. These sheets should cover the correct spill response, cleanup and disposal techniques for each material. Make sure that each worker reads and understands your worksite spill response plan, and keep copies of the material safety data sheets easily accessible so employees can refer to them quickly if necessary.
  • Use the right gear: When cleaning up a spill, workers should wear the appropriate protective gear, including gloves, safety glasses, coveralls and respirators. Make sure that all employees know where this gear is stored and when and how to use this equipment.
  • Respond immediately: If a worker causes or finds a spill, they should notify their supervisor and surrounding coworkers immediately. If the spill is flammable or volatile material, shut off all flame sources and air out the area if it’s safe. Barricade the spill area so workers avoid exposure to the substance, and try to prevent the spilled material from entering floor drains or outside areas. If a worker is exposed to dangerous spilled material, get them to a well-ventilated area and use emergency eye washes or showers on them for at least 15 minutes. If necessary, seek medical attention.
  • Ask for help: While workers can handle some spills themselves, other spills should only be cleaned by an expert. Ensure that all your employees understand when it’s okay for them to clean a spill and when they should contact their supervisor or an outside professional for help.
  • Size matters: Different sized spills should be handled differently. Generally, if a spill is equal to one cup or less, workers can simply wipe it up with paper towels or other absorbent materials. For a one-gallon spill, you can typically clean up the mess with spill socks, pads or absorbents. As workers clean these larger spills, they should surround the puddle with absorbent materials and work toward the middle of the spill—this will reduce spreading or splashing of the material. If the spill is two gallons or more, you might want to contact your emergency spill response team or an outside resource to handle the cleanup.
  • Use proper disposal methods: Once you have soaked up the spill, use a broom and dustpan to sweep up all the wet towels, spill absorbents or other cleanup materials. Thoroughly clean and decontaminate the floor as well as any tools, machinery or other surfaces that might have been exposed to the spill. Double bag all the contaminated clean-up materials in plastic and place the bags inside a plastic or metal drum. Label the drum as “Hazardous Waste” with the date and the type of materials spilled. Arrange for proper storage and/or disposal of the drum.

Spill Prevention:

  • Use smart storage techniques: Store materials in appropriate, well-sealed containers in the proper environment. Group similar materials together and post each material storage area with the proper spill response technique and emergency phone numbers. Store all materials indoors, away from exterior doors and drains, to prevent accidental spills into the environment.
  • Limit materials: Try to limit the amount of hazardous materials stored in your workplace. This will minimize the risk of major spills. If you must keep a large amount of a certain material or if you have any toxic or hazardous materials, store these substances in double containers.
  • Move materials carefully: When you or your workers are moving materials, carry one container at a time or place multiple containers on a rolling cart.
  • Look for leaks: Check all of your storage equipment, material lines and materials dispensing areas for signs of leaks as often as possible.

PRACTICE OSHA GUIDELINES FOR HEAVY EQUIPMENT USE NEAR POWER LINES

By Workplace Safety

Incidents involving contact between heavy equipment and overhead power-lines are more common than you might imagine. Some of the more typical occurrences include workers lifting loads with cranes, operating trucks with raised beds, and placing drilling equipment into position. In each of these instances, the danger exists because workers failed to realize just how close they were to power lines.

Machinery that makes contact with an overhead power line conductor becomes energized with electricity ranging from several thousand to more than 10,000 volts. When this happens, there are three ways that injury can occur:

  • Workers in direct contact with both the machine and ground become a pathway for electrical current.
  • Equipment operators, who are unaware of the line contact, or of their imminent danger, dismount the equipment, which causes them to bridge the high voltage between the equipment and ground.
  • Nearby workers who try to help co-workers involved in the incident make contact with energized equipment or victims.

Because accidents involving power lines and heavy equipment are such a problem, OSHA established the following guidelines:

  • All equipment covered by Subpart O—Motor Vehicles, Mechanized Equipment, and Marine Operations, must comply with 1926.550(a)(15) when working or being moved in the vicinity of power lines or energized transmitters.
  • Any overhead line must be considered energized unless and until the person owning the line or electric utility authorities indicate that it is not and has it visibly grounded. There are three OSHA approved methods to protect equipment operators from coming into contact with live overhead lines:
    • De-energize lines and visibly ground them before work begins. The owner of the property or the utility company is responsible for performing this step.
    • Construct insulating barriers that are separate from the equipment to prevent physical contact with the lines.
    • Operate equipment only if the required clearance between the lines and the equipment exists. If the line is rated 50 kV or below, there must be a 10 foot clearance. If the line is rated over 50 kV, there must be a minimum of 10 feet plus 0.4 inch for each 1 kV over 50 kV. Keep in mind that the required amount of clearance must be between the line and all parts of the equipment.
  • Transporting crane-type equipment with no load and boom lowered requires a minimum of 4 feet of clearance for voltages less than 50 kV, and 10 feet of clearance for voltages between 50 kV and 345 kV. Voltages over 345kV, up to and including 750 kV, require a 16 foot clearance.
  • A person must be designated as a spotter to ensure line clearance of the equipment. The spotter is also required to give a timely warning for all operations where it is difficult for the operators to see if they are maintaining the desired clearance.