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April 2010

Apr 01
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WILL YOUR LIABILITY INSURANCE COVER YOUR SUBCONTRACTOR’S SHODDY WORK?

By Construction Insurance Bulletin

A general contractor builds a new home. The GC hires a subcontractor to install certain components. After the home’s completion, those components turn out to be defective. Not only that, but their defects begin to affect other parts of the building. The homeowner sues, and the GC, facing large legal defense costs and potential judgments, submits claims to its insurers. The insurers deny coverage, saying that this was no accident, as the insurance policies use the term. Was this incident indeed an accident for which the GC should have insurance coverage, or was it merely a business risk that comes with hiring subcontractors? In the opinion of a federal appellate court, it was an accident.

The case, Stanley Martin Companies, Inc. v. Ohio Casualty Group, involved the construction of 24 duplex townhouses in a suburb of Washington, D.C. Stanley Martin, a home builder, hired Shoffner Industries to supply the wood trusses for the new homes. In its contract, Shoffner gave Martin a warranty guaranteeing that the trusses were free of mold, and it agreed to reimburse Martin for any liability or other costs that might arise out of defects in the trusses or any negligence. After Martin completed the homes, some of the homeowners began to complain of mold infestations. Investigations of the problem showed that the mold growth started with defective trusses and surrounding materials. The affected homeowners sued Martin, who ended up spending a long time in litigation and paying more than $1.7 million to clean up the mold.

Martin sought coverage under its General Liability and Umbrella insurance policies. The court’s decision does not say what the General Liability insurance company did, but Ohio Casualty, who provided the Umbrella policy, denied the claim. Ohio Casualty’s policy covered an “occurrence,”� which it defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.”� The company argued that the mold damage caused by the subcontractor’s defective work did not fall within this definition of “occurrence,”� and therefore the insurance did not apply. Martin sued Ohio Casualty for breach of contract, but the trial court sided with the insurance company. Martin appealed the decision, and the higher court ruled in its favor.

The court relied on a Maryland ruling which held that damage spreading from a subcontractor’s defective work to the general contractor’s non-defective work qualified as an “occurrence.”� Rejecting Ohio Casualty’s argument that the spread of mold was a further deterioration of already defective work, the court cited a legal definition of “accident”� as an event that takes place without one’s foresight or expectation. Martin, the court said, did not expect or intend for the subcontractor to supply moldy trusses, nor did it expect or intend for mold to spread throughout the buildings. The court held that the mold’s spread to non-defective building components was an “occurrence,”� and therefore Ohio Casualty was obligated to provide coverage for the replacement of those components. However, the court said that the need to replace the trusses was not unexpected nor unforeseen, and therefore the policy did not cover that.

This decision might not bind courts in all states, but it provides a useful guideline to them and to insurance companies and contractors. Because of this decision, insurance companies might demand that the general contractors they insure be very selective about the subcontractors they hire, with special attention to their reputations for quality of work. They might also insist that policies include deductibles for property damage claims, to encourage contractors to use loss control practices. Both the insurance companies and the contractors will need to make every effort to prevent these types of claims from occurring.

Apr 01
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AFTER ON-THE-JOB INJURY, AUTOMATIC DRUG AND ALCOHOL TESTS NOT ALWAYS A GOOD IDEA

By Construction Insurance Bulletin

Imagine two accident scenarios. In the first, a construction worker falls off a ladder from 12 feet up and breaks his ankle. His employer has a policy requiring drug and alcohol testing for all workers who suffer work-related injuries that are likely to result in Workers Compensation claims. Can the employer legally do that? If it can, is it a good idea?

In the second, the construction worker is on the ground near the ladder. Someone asks him a question and he turns around to answer. At that exact moment, a worker 12 feet up on the ladder is stung by a bee and drops a component of the air conditioning unit he was installing. The component strikes the worker on the ground, fracturing his shoulder. His employer has the same policy about automatic testing after a workplace injury. Again, is this legal? Is it a good idea?

Employers have good reason to be concerned about the effects of drug and alcohol use in the workplace. A 2002-2003 workplace study showed that, in the prior 12 months, 7% of U.S. workers had consumed alcohol during the workday, 1.7% had worked while under the influence of alcohol, 9% had suffered from hangovers while at work, and 3% used illicit drugs on the job. To combat this, many employers have drug- and alcohol-free workplace policies that they enforce through testing workers for these substances. However, automatically testing all workers following work-related accidents might not be wise. In fact, it could end up hurting the employer.

First, automatic testing might be illegal in the employer’s state. A West Virginia court in 2002 found that Walmart violated the privacy rights of an employee when it required him to take drug and alcohol tests after he injured his back on the job. The jury relied on earlier court decisions holding that employers violated the state’s constitution by requiring testing without having a reasonable suspicion that the employee was using.

A 2001 decision from an Ohio court went even further. It struck down a state law that permitted employers to deny Workers Compensation benefits to employees who refused to submit to post-injury drug and alcohol tests. The court ruled that requiring testing of employees for whom the employers had no reason to suspect substance abuse amounted to a search of the employees. This search, the court said, violated the U.S. Constitution’s prohibition against unreasonable searches and a similar provision in the Ohio constitution.

Even where state law permits automatic testing, it might harm employee morale. Otherwise loyal and productive employees might feel offended if an employer demands that they submit to testing after they’ve been injured on the job. In the long run, this might hurt the employer’s ability to retain employees and recruit new ones.

It might also invite disability discrimination claims. When the employer does not routinely test all employees but tests only those who suffer workplace injuries, the injured employees might view this as discrimination against them due to their disabilities. They might seek redress under the Americans with Disabilities Act and pursue monetary damages from the employer.

As was the case with the West Virginia and Ohio decisions, automatic testing might invite invasion of privacy claims. At the least, this will subject the employer to long, expensive, and distracting litigation.

Employers should take sensible steps to ensure that their workplaces are safe. While post-injury drug and alcohol testing might make sense in many cases, it is not always appropriate or desirable. Employers should consult with human resources professionals to establish sensible testing policies, and seek the advice of our professional insurance agents to verify that you have the necessary insurance coverage in the event of a discrimination or privacy violation claim.

Apr 01
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TAKE A STAND AGAINST ALCOHOL AND DRUGS IN THE WORKPLACE

By Workplace Safety

Everyone is well aware that drinking and driving is a dangerous combination, but we also need to recognize that drinking and/or using drugs in the workplace is equally hazardous. Impaired workers might not be able to concentrate on the task at hand. Depending on your job function, an error could cause injury or even death to yourself or a co-worker.

All employees need to share the responsibility of workplace safety. If you know that a co-worker is impaired on the job, then you must report his or her condition to a supervisor immediately. If you choose to close your eyes to the situation, you could be putting yourself or others at risk of an accident or injury. Your supervisor will be able to assist the employee in finding a company-sponsored or community-based treatment plan. The critical thing to remember is that the workplace is no place for drugs and alcohol.

Key Points to Consider:

  • Difficulty in job performance can be caused by unrecognized personal problems, including addiction to alcohol or other drugs.
  • Help is always available to any employee who is struggling with substance abuse.
  • It is an employee’s responsibility to decide whether or not to seek help.
  • Addiction is both treatable and reversible.
  • An employee’s decision to seek help is private and will not be made public.

If your company offers an Employee Assistance Plan (EAP) and you or a co-worker seeks help through the plan, you can be assured that:

  • Conversations with an EAP professional — or other referral agent — are private and will be protected.
  • All information related to performance issues will be maintained in his/her personnel file, but data relating to treatment referrals will be kept separately.
  • Information about treatment for mental illness or addiction is not a matter of public record and cannot be shared without a release signed by the employee.
  • If an employee chooses to tell co-workers about his/her private concerns, that is his/her decision.
  • When an employee tells his/her supervisor something in confidence, supervisors are required to protect that disclosure.
Apr 01
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TAKE PRECAUTIONS TO PREVENT HEAT-RELATED ILLNESS DURING THE LONG, HOT SUMMER

By Workplace Safety

Although the human body naturally cools itself, continuous exposure to extreme heat can overwhelm those mechanisms, leading to illness and even death.

The following are four types of heat-related ailments listed in order of severity (four being the most severe). Even a less severe condition can become more severe unless steps are taken to remedy the problem as early as possible.

  1. Heat Cramps – painful muscles spasms in the arms, legs, or abdomen, often with dizziness, weakness, and profuse sweating. Such cramps actually occur more often in well-conditioned people after prolonged heat exertion and are caused by the loss of sodium through sweating. Increasing daily sodium intake slightly during hot weather exertion can help prevent cramping.
  2. Heat Syncope – fainting caused when the body compensates for too much heat by diverting blood from the brain to the skin.
  3. Heat Exhaustion – extreme fatigue with muscle aches, nausea, and fever. Additional symptoms can include clammy skin, diarrhea, rapid pulse, vomiting, and weakness.
  4. Heat Stroke – failure of the body’s temperature control systems. Symptoms can include disorientation, agitation, hyperventilation, racing pulse, lethargy, convulsions, and eventually loss of consciousness. The body temperature rises to extremely high levels, sometimes above 110 F.

Helping a victim of heat-related illness:

  • Take the person out of the heat.
  • Loosen their clothing.
  • Apply cool, wet cloths (not freezing or cold) and/or soak the victim’s clothing with water.
  • Elevate the feet eight to 10 inches.
  • And, if the person is conscious and not vomiting, offer plenty of fluids.

Preventing heat-related illness:

  • Wear loose-fitting, lightweight, light-colored clothing.
  • Use sunscreen to prevent sunburn, which can hinder the skin’s ability to cool itself.
  • Wear a hat that provides shade and allows ventilation.
  • Limit vigorous activity during hot, humid weather.
  • Drink plenty of water — even more than you need to satisfy your thirst — before, during, and after exercise. Drinks with sugar and/or caffeine will not help; they actually rob your body of fluids. Alcohol causes you to lose more fluid than you consume.
  • Avoid hot, confined places. If you can’t, then work in shifts. Work a while, and then rest in a cooler place for a few minutes.
    Electric fans might provide comfort, but when the temperature is in the high 90s, fans will not prevent heat-related illness.
  • Some prescription and over-the-counter drugs can interfere with the body’s ability to regulate temperature. Discuss with your doctor whether any of your medications might have this effect and, if so, be especially careful to limit your exertion and drink plenty of water.

At the first sign of heat illness such as cramps, nausea, dizziness, or severe headaches, get away from the heat. Find a cool spot and rest for a few minutes and get some fresh air. Remember, it is easier to prevent heat illness than to treat it once symptoms develop. And always seek immediate medical help if you or a co-worker develops any of the symptoms described above.

Apr 01
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STEER CLEAR OF DANGER WHEN OPERATING HEAVY EQUIPMENT

By Workplace Safety

Bulldozers, scrapers, and tractors, oh my! A jobsite crawling with heavy equipment can sometimes feel like a danger zone. However, with the proper heavy equipment safety guidelines in place, you can reduce risk on your jobsite and ensure your workers head home unscathed each and every day. There are three main ingredients to safe heavy equipment operation: Safe equipment, proper training and a safe attitude, and constant awareness of all jobsite activities. If heavy equipment operators are armed with these three tools, they’ll have no problem playing it safe. Read on to learn more about these and other essential safety factors for operating heavy equipment on the jobsite.

Play it safe with dependable equipment

The Occupational Safety & Health Administration (OSHA) puts a lot of emphasis on the safety features of heavy equipment. However, there’s much more to keeping equipment safe than just inspecting the machine’s safety features. After all, countless things can go wrong with this complex equipment, and these problems can lead to some major risks on the jobsite.

Therefore, it’s extremely important to create customized inspection checklists for each unique piece of equipment. Safety experts recommend that heavy equipment operators conduct a pre-operational walk around and pre-start up (in cab) inspection each and every day before they crank up.

During this inspection, the worker should ensure that service, emergency, and parking brakes are all functioning; headlights, taillights, and backup lights are operating properly; and that the horn is working. Of course, these are just a few of the items that should be included on the checklist. Employers should create customized checklists for each piece of equipment based on both OSHA guidelines and the information provided in the equipment operating manual.

Steer clear of jobsite dangers

Heavy equipment operators should be well aware of all jobsite activities so they can avoid any potential dangers. That’s why it’s critical for equipment operators to walk through site activity checklists daily. Here are a few obstacles and activities operators should stay on the lookout for:

  • Overhead lines: Many fatal occupational injuries occur each year in the U.S. due to contact between large jobsite equipment and overhead lines. That’s why equipment operators must exercise extreme caution when working anywhere near overhead power lines. Workers should assume that all overhead lines are energized, unless electrical utility authorities have indicated otherwise, and that they’re grounded visibly and marked appropriately. OSHA provides specific requirements for the safe use of equipment near overhead lines.
  • Barricades: Barricades must be used on any jobsite where heavy equipment is in operation. These barricades help to notify workers where equipment is in use so that they can stay out of the area and avoid serious injury.
  • Hand Signals: If a crane is operating on a jobsite, the crane operator and the signaler must know the hand signals that are required by OSHA. These hand signals can be used for other types of equipment, as well.

Ensure safety with well-trained workers

Of course, a jobsite is only as safe as its workers. That’ why it’s so important to employ only well-trained, safety-conscious workers for a heavy equipment jobsite. According to OSHA requirements, jobsites, materials, and equipment should undergo frequent and regular inspections only by “competent persons”� designated by the employer. It takes training to be a competent worker.

It’s extremely important to train your employees on proper equipment inspection and operation safety. After all, your workers’ lives could depend on it. For more information, visit the OSHA website at www.osha.gov.

Apr 01
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ONCE AGAIN, CONGRESS EXTENDS COBRA SUBSIDY PROGRAM

By Employment Resources

Congress has extended for a second time the COBRA subsidy eligibility period under The American Recovery and Reinvestment Act of 2009 (ARRA). Signed March 2, the Temporary Extension Act (TEA) extends ARRA an additional 30 days to March 31, 2010. It also makes the 65% subsidy available to eligible individuals who first experience a reduction in hours followed by an involuntary termination. Previously individuals who had their hours reduced and were later involuntarily terminated were not eligible for the subsidy.

If an individual is involuntarily terminated during March 2010, the employer will now need to determine whether their hours were reduced all the way back to September 2008 and whether they were offered COBRA at that time. If the individual did not elect COBRA after their original reduction in hours, they will be given another option to elect COBRA as of their involuntary termination date, if they are eligible for the subsidy; any gap in coverage would be disregarded for pre-existing conditions and no catch-up premiums would be required.

Summary of new provision:

  • If an individual’s COBRA qualifying event is an involuntary termination of employment during March 2010, normal COBRA procedures will apply.
  • If an individual had a reduction in hours later followed by an involuntary termination and the individual elected COBRA immediately following the reduction in hours, no additional COBRA election period is required.
  • If an individual had a reduction in hours and did not elect COBRA (or elected coverage but later dropped it) and is involuntarily terminated between March 2, 2010 and March 31, 2010, the involuntary termination is considered a new “qualifying event”� and will trigger an additional round of COBRA notices for employers (or their administrators). However, irrespective of the new qualifying event, the maximum period of COBRA coverage (usually 18 months) will be applied from the original reduction of hours date, not upon involuntary termination.

As an example, an individual has a reduction in hours on September 30, 2009, triggering COBRA eligibility on October 1, 2009. She fails to elect COBRA within the required timelines, and is later involuntarily terminated on March 10, 2010. In this example, March 10th is deemed to be a new qualifying event, triggering a new round of COBRA eligibility. However, the employee’s general COBRA eligibility period will have commenced on and date back to October 1, 2009.

Next Steps

  1. Employers will need to comply with these changes and notify effected individuals immediately.
  2. Employers should keep track of individuals who are eligible for COBRA due to a reduction in hours so that appropriate notices can be delivered if those individuals are later involuntarily terminated during March 2010.
  3. Employers should continue to track these employees because it’s highly likely the COBRA subsidy will be extended again.
Apr 01
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HELP YOUR PLAN MEMBERS TO KEEP AN OPEN DIALOGUE WITH THEIR DOCTORS

By Employment Resources

The Commonwealth Fund’s 2008 International Health Policy Survey reported that in the U.S.:

  • 38% of study participants left the doctor’s office without getting important questions answered.
  • Only 53% said their doctor involved them in treatment option decisions.
  • 41% said their doctor had not reviewed their list of medications in more than two years.

Each of the above problems can bring about serious health consequences. How do your plan members compare with these statistics? Is there a potential drug interaction crisis looming, with the potential to create an outlier cost for your company to bear? Below are a few tips you can share with your plan members to encourage open and detailed communication with their doctors.

  1. Write down the names and the dosage of all the medications you take. Although you might feel that you have your medications memorized, it is not uncommon to confuse bits of data when you’re trying to pass the information along to your doctor. It is better to hand the doctor a written list so that he can quickly extract the data he needs.
  2. Before you visit the doctor, think about topics you would like to discuss during this visit. For example, if you were diagnosed previously with high blood pressure, your doctor might have asked you to reduce salt intake, exercise more, quit smoking, and take an anti-hypertensive medication. Since he will be curious about your progress, make notes of what you plan to tell him.
  3. Make a list of questions you would like to ask the doctor. You will be more able to think clearly about questions in the comfort of your home, than when you are sitting on an exam table and wearing a paper gown.
  4. Arrive on time for your appointment. If you are anxious because you’re late, and the doctor is aggravated that he is running behind schedule, the lines of communication might not be open.
  5. Be aware that your doctor is neither a miracle worker with a perfect solution to every problem; nor is he an adversary purposely ignoring your needs. He is a highly trained professional using his best judgment to guide you in both treatment options and preventive care. If you feel he is veering off course, speak up and be involved in guiding the conversation.
  6. Don’t be discouraged if the doctor refers you to a nurse or physician’s assistant. These professionals are also highly trained and will often spend significant time explaining medical information to you.
  7. Jot down new instructions as well as answers to your questions. It can be difficult to remember all that is said during an office visit, especially if you received unexpected news or information.
  8. If you get home and realize you are confused about the doctor’s instructions, don’t hesitate to call the office. It is far better to get the information straight in your mind, than to make errors in your care or medication routine.
  9. Pay your doctor bills. A medical office is a business, and if you fail to pay your bills, your relationship with your doctor can suffer.

Overall, remind your members to be active partners with their doctors as they pursue both medical treatments and preventive healthcare.

Apr 01
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PRICE TAGS OF SPECIALTY DRUGS POSE COST-MANAGEMENT CONCERNS

By Employment Resources

Overall spending on prescription drugs has increased an average of about 10% a year since 2000, with a “small but growing subset”� of drugs having “extraordinary price increases,”� according to a report from the General Accounting Office (GAO). In particular, specialty drugs drive especially high costs. Specialty drugs are generally defined as high-cost drugs that typically target a smaller group of patients with a narrow indication or complex medical condition; they also might have special shipping and/or handling requirements and require close supervision and/or monitoring during drug therapy. Cost data on these types of drugs emphasizes how important it can be for employers to develop specific cost control strategies aimed at specialty drugs. According to the GAO report, between 2000 and 2008, 416 brand-name drugs had price increases that ranged from 100% to 499%, but in a few cases were 1,000% or more. In most cases, the products sustained the new price: 87% of these products remained at the increased price or rose even further, while only 13% had a price decrease.

Specialty drug prices are especially acute. A report from pharmacy benefit manager (PBM) Prime Therapeutics LLC shows, though specialty drugs represented 1.1% of prescriptions filled for its members, they accounted for 15.4% of overall drug costs. An article in the Journal of Managed Care Pharmacy lists 10 specialty drug therapeutic classes, with the average annual cost of therapy ranging from a low of $5,000 to as high as $150,000 or more. Drugs in these classes treat rheumatoid arthritis, HIV/AIDS, multiple sclerosis, cancers, growth disorders, hepatitis, hemophilia, infertility, osteoporosis, and other conditions.

When developing strategies to manage specialty drug costs, it is important to remember that, unlike non-specialty prescription drugs, some specialty drugs require administration by a health care professional in a doctor’s office, infusion center, or outpatient hospital department. When a specialty drug is administered by a health care professional, it might be paid through the medical benefit rather than through the prescription drug benefit. This can have the effect of hiding the actual expense of specialty drugs from the plan sponsor. According to the Prime Therapeutics report, more than half of specialty drug costs may be paid as a medical benefit. Separate payments through the medical benefit also make implementation of cost management strategies more difficult, since different billing codes may be used for drugs under the medical benefit than are used in the prescription drug plan, with the pharmacy benefit coding more specific. More specific coding enables better identification and analysis of prescription drug use.

For specialty drugs covered by the pharmacy benefit, many plan sponsors have adopted a four-tier copayment/coinsurance structure, in which the first, lowest-pay tier is for generics, the second for preferred brand-name drugs, the third for nonpreferred brand-name drugs, and the fourth tier-requiring the highest cost for specialty drugs. Given the potential high annual cost for specialty drug therapies, plans with a fourth tier typically set a maximum out-of-pocket cost per prescription or for the plan year. If cost-sharing results in a financial burden for the patient, noncompliance with the therapeutic regimen is more likely to occur, which can result in a worsening of the medical condition and the need for hospitalization or other treatments that are more costly. Consider whether it is appropriate to include some specialty drugs in the lower-cost tiers, in an effort to drive compliance.

The Prime Therapeutics report notes that growth in the number of specialty drugs presents the opportunity to establish formularies and preferred drug lists that encourage use of those specialty drugs that are identified for their clinical safety, effectiveness, and value. Thus, though costs for all specialty drugs might be high, formularies can be used to optimize use of those medications that best combine therapeutic and cost value. This report also suggests use of efficient drug delivery channels; a pharmacy program that offers streamlined processes, detailed utilization reporting, integrated care management, and the opportunity for aggressive discounts on specialty drugs; and controls on “buy and bill” arrangements by health care providers administering specialty drugs.

The Journal of Managed Care Pharmacy article notes that another possible cost management strategy is to move all specialty drugs into the pharmacy benefit, with the goal of having more uniform application of patient cost sharing and clinical and utilization management. Implementation of this strategy might pose its own challenges, however, due to specific plan provisions, vendor contracts, and contractual arrangements with health care providers.
Though specialty drugs offer innovative therapeutic opportunities for patients, their price tags pose cost management concerns. Consultation with a benefit consultant, PBM or health plan is a good starting point for developing strategies for optimizing the value of specialty drugs for your employees.

Apr 01
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MOLD HAZARD AND PREVENTION: THE INSIDE STORY

By Risk Management Bulletin

The bad news: Exposure to indoor mold can trigger serious allergic reactions and even infections among workers and visitors to your building, leading to lost productivity not to mention the costs and hassles of litigation.

The good news: Taking precautions against this risk can help prevent health problems, limiting your exposure.

The potential for indoor exposure to mold has increased in recent years because of the way we live. To conserve energy, buildings are being built more tightly — and the tighter the structure, the greater the exposure to indoor mold. Using synthetic building materials literally seals buildings and reduces air movement, creating a higher moisture content that nurtures mold growth.

Poorly designed or maintained heating, ventilation, and air-conditioning systems contribute to indoor mold exposure; Air filters and air filtration devices provide a comfortable habitat for mold, especially in high humidity conditions. HVAC systems can re-circulate air that contains mold spores and toxins if there are no effective filter systems to trap them. Failure to maintain and clean systems leads to unchecked mold growth and circulation indoors. Humidity worsens the problem; mold thrives in humid conditions.

Human factors contribute to mold exposure, including the fact that we spend so much time indoors, and many of us have compromised immune systems from diseases and medications. What’s more, new and harmful mold organisms are circulating constantly.

Although there’s no practical way to eliminate all indoor molds and mold spores, to stop indoor mold growth and reduce the presence of mold in the workplace, we’d recommend taking these steps:

  1. Clean small-scale molds ASAP, using a 10% solution of chlorine bleach; always wear the proper Personal Protection Equipment (which includes gloves, eye protection, and a mask to protect against airborne spores) and dry surfaces completely after cleaning.
  2. Fix leaks quickly; moisture from leaks provides an ideal environment for mold growth.
  3. Seal surfaces with a substance such as paint to which fungicide has been added.

Large-scale mold problems require the use of professional cleaning services that employ such treatments as oxidizers, fungicides, bactericides, and shielding compounds, which seal the antimicrobial agents within the treated surface.

Our risk management specialists would be happy to help you deal with mold problems in your workplace. Just give us a call.

Apr 01
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INSPECT YOUR WAY TO SAFER WORK AREAS

By Risk Management Bulletin

The ideal workplace inspection isn’t one that follows a safety incident, or a surprise visit from OSHA it’s the inspection that you arrange yourself!

Self-inspection audits offer the most effective way to improve safety management, prevent accidents, and ensure compliance with safety regulations.

Work area inspections will:

  • Evaluate compliance with safety and health policies and procedures
  • Identify hazards for correction
  • Determine the need for safety training
  • Ensure that your work areas get a high grade in the event of an OSHA inspection
  • Demonstrate your concern for employee safety and health

The Occupational Safety and Health Act requires periodic evaluation of workplaces. The timing of self-inspection audits depends on the type of work areas involved. Very hazardous areas might require formal, weekly inspections, while office areas might need only a monthly inspection.

Supplement scheduled inspections with informal daily walkarounds, targeting areas that have had more than their share of safety problems. Follow up to make sure that previously identified problems have been fixed effectively. Use checklists (preferably written) for every inspection.

Although management needs to take the lead in work area inspections and is ultimately responsible for making sure action is taken to correct problems, make sure to involve employees. Work area safety inspections provide a great training tool and an effective way of motivating employees to work more safely. Here are a few ideas for getting workers involved in self-inspection audits:

  • Ask workers to help develop inspection checklists for their work areas.
  • Appoint individuals or, even better, a team to conduct inspections. To get everyone involved, have team members serve on a rotating basis.
  • Meet with employee inspectors after inspections to discuss safety problems and corrective actions.
  • Share the results of work area inspections with all employees in weekly safety meetings.

Safety is all about awareness and knowledge. Knowledge gives you the power to prevent accidents. One of the best ways to keep informed about ever-changing work area conditions is to perform routine safety inspections. Don’t wait for an accident to find out about a hazard that could have been corrected!

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