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Monthly Archives

November 2010

EVERY CONTRACTOR SHOULD CONTROL THESE SIX SAFETY HAZARDS

By Construction Insurance Bulletin

Construction accidents have wide-ranging effects on a contractor’s business. They cause pain and suffering for employees, hurt the morale of other employees, deprive the business of the injured employee’s talent and skill, hurt productivity, require paperwork, increase Workers Compensation costs, and possibly subject the business to penalties from regulators. It makes both moral and good business sense for a contractor to implement safety measures. When choosing the specific protections to put in place, the contractor should consider a number of factors to ensure the effectiveness of the program.

The contractor should examine the reasons why an unsafe condition exists. If the contractor integrates safety considerations into all procedures, injuries will become less likely and less severe. Therefore, it is important to look into the reasons why, for example, a scaffold was improperly guarded, why workers using cutting tools were not wearing eye protection, why a crane operator left the engine running while he was out of the cab, or why workers used power drills with frayed electrical cords. These are symptoms of a workplace culture that overlooks safety concerns. Sending the right messages and incentives about safety will gradually change the culture and reduce accidents.

With a new system and culture in place, the contractor can focus on specific hazards, such as:

  • Power lines overhead. Cranes, cherry pickers and even ladders can contact live power lines, possibly resulting in fatal injuries. Workers will always feel pressure to complete a job as quickly as possible, but if they rush too much, they might ignore dangerous conditions overhead.
  • Power and gas lines underground. The consequences of striking these are potentially as catastrophic as those of striking overhead lines. Ruptured gas lines, combined with a heat source, can lead to explosions. Workers should never dig in an area until they have verified that it is safe to do so.
  • Fire hazards. Many fire prevention measures are simple to implement. Regularly cleaning up jobsite debris, keeping combustible material away from the structure, and enforcing no-smoking rules near combustibles will all help prevent fires. Equally important is to have effective procedures for informing workers of a fire and evacuating them. The HVAC contractor with men working on the 10th floor of a building must have a plan for notifying them and getting them out of there if a fire breaks out on the 7th.
  • Lifting hazards. Inexperienced, incompetent or pressured work crews might use a crane to move something that outweighs its lifting capacity. They might also operate the crane on uneven ground or with inadequate supports. The result can be a crane collapse that causes extensive property damage and can cause serious injuries or deaths.
  • Falling hazards. Falls from heights as low as 10 feet can seriously injure or kill workers. Contractors must pay attention to the condition and stability of ladders, the adequacy of safety rails on scaffolds, the consistent use of safety harnesses, and the weight of materials placed on scaffolds.
  • Confined spaces. Crawl spaces, underground tanks, sewers and similar areas can expose workers to lack of oxygen and toxic or explosive gases, all of which can kill them quickly. Contractors must enforce rules for testing the atmosphere of confined spaces, closure of lines supplying the space, providing ventilation, and usage of safety harnesses and lifelines.

Construction is dangerous work, but contractors can control the dangers with planning and effort. Those that do reap the benefits of loyal workers, increased productivity, good reputations and lower insurance costs. With focus, safety can become a regular part of the business and a profit driver.

REVIEW YOUR COMPANY’S EMERGENCY PLANS ANNUALLY

By Workplace Safety

Part of a comprehensive health and safety program should be a well-defined plan to deal with major emergencies. Would people know what to do in the case of an explosion at your workplace? Who would be in charge? Who would contact the fire department, the police, and the hospital? Does your company have an evacuation plan? What are the proper procedures if the power goes out?

An emergency plan would answer all of these questions, hopefully long before a real emergency occurs. It is much better to be prepared than to be surprised. For employees, it is helpful to know in advance what your responsibilities are in an emergency situation, rather than to find out after disaster strikes.

A good emergency plan begins with a vulnerability assessment. This assessment shows the organization where potential risks lie, and helps identify what can be done to prevent such situation. Finally, the assessment should outline the immediate steps to be taken if the risk becomes a reality.

If an emergency does occur, then a set of procedures must be followed that will protect individuals and property. In the special case of fire, the procedures may include:

  • Declare that there is an emergency
  • Sound the alarm
  • Evacuate employees from the danger zone
  • Call for help
  • Initiate rescue operations
  • Attend to casualties
  • Fight the fire, if absolutely necessary

To accomplish all of these steps, there must be an emergency plan outlining individual authority and responsibility, all necessary supplies and equipment, and a storage map that shows where they are located. Needed supplies might include anything from flashlights to back-up generators, bandages to respirators. But most importantly, each employee must be trained and well informed of the emergency plan, as well as any role they are expected to play.

To be effective, an emergency plan must contain the following elements:

  • An evacuation plan that all staff is familiar with and an easy to follow route that must always be clear of obstacles.
  • Safe locations for employees to gather outside the emergency zone so that everyone can be accounted for.
  • The ability to treat injuries, search for the missing, and simultaneously contain the emergency.
  • An alternate source of medical assistance when the normal facilities may be affected by the emergency.

If you don’t have an emergency plan at your workplace, it is critical to devise one and to revisit the plan on an annual basis. If you do have a plan, find out what your role might be in the case of an emergency. At a minimum, know the plan and route so that you can evacuate, help others to do so, and prevent confusion at the last minute.

IMPROVE YOUR COMPANY’S BOTTOM LINE BY KEEPING NEW EMPLOYEES SAFE

By Workplace Safety

As the economy begins to grow again, businesses will start to add workers to their payrolls. This is good news for those workers and for the economy, but statistics show that the first year on a new job is also very risky to the workers’ health. The U.S. Bureau of Labor Statistics reported that 41% of work-related injuries occur each year to workers who have been on the job for less than a year. On top of that, younger employees get hurt on the job more often than do their older colleagues. A National Institute for Occupational Safety and Health study showed that workers under age 24 are twice as likely as older workers to have non-fatal workplace accidents. In addition to the pain and suffering these workers endure and the disruption to their lives, employers face increased Workers Compensation costs. Therefore, preventing new employees’ accidents should be a top priority for all employers. There are several things employers can do toward that end.

  • Review and update job descriptions. If management has not compared job descriptions to the actual work being done recently, this is the time to do it. Work tasks are changing constantly as new tasks take priority, old tasks become less important, and technology changes how workers perform current tasks. Without a clear understanding of how employees are performing their work (or, more importantly, how they should be performing it,) managers will be unable to train new employees effectively or to determine why they are getting hurt.
  • Conduct training programs that require the employee’s active participation. When people learn how to drive, they do not just watch a video or listen to a lecture about which pedal is the brake and which is the accelerator. They get behind the wheel and actually drive. Safe job performance works the same way. An employee will retain the knowledge far better if he watches a demonstration and then performs the tasks in a safe, controlled environment. He should practice the steps until he can perform them safely. Hands-on training will engage the employee’s mind and take advantage of his natural desire to perform his job well and in a way that will protect him. This will result in better work performance and a lower likelihood of injuries.
  • Closely supervise new employees. Interactive training alone will not guarantee safe work performance. Supervisors should pay close attention to new workers during their first days and weeks on the job to make sure that they are using the knowledge gained during training and not falling into bad habits. Pointing out unsafe practices and correcting them quickly should instill good habits and make working safely an automatic part of the employee’s routine. Ideally, the employee should need less supervision the longer he is on the job without injuring himself or others.

Every day in business, competition becomes more fierce; only high-value, low-cost providers of products and services can thrive. A company gains an edge by attracting and retaining excellent workers and by holding down variable costs. Preventing workplace injuries does both. By making the effort to keep all employees, especially new employees, safe, the company will develop a reputation as a good place to work and reduce workers’ compensation costs, adding dollars to the bottom line. Businesses should view workplace injuries as a preventable expense that they do not have to accept.

MAKE THE EFFORT TO DRIVE SAFELY, REGARDLESS OF WEATHER CONDITIONS

By Workplace Safety

Regardless of the current weather forecast, driving conditions can change in a flash. By following some very basic guidelines, you can reduce the risk of an accident significantly, and ensure that you and your cargo get to your destination safely.

Driving in Bright Sun

Depending on the season, and the sun’s position in the sky, certain times of the day can present problems that impact your visibility while driving. Be sure to wear sunglasses and use your visor to attempt to combat the glare of the sun in your line of sight. Sometimes, the reflection of the sun off of another vehicle creates a visual disturbance while you’re driving. When this happens, it is a good idea to slow down to change the angle at which you see the other vehicle. Or consider changing lanes to reduce the glare. Sunglasses and a visor will also help.

Driving in Fog

The first rule to observe in foggy conditions is never use your high beam headlights. If you did turn on your high beams, it would be counterproductive, because the light would reflect back at you, making it more difficult to see. Always use your low beams in fog. This way, other drivers can see you coming and you can see a bit more of the road. Reduce your speed. If you can see six or more car lengths in front of you then you can safely drive up to 30 miles per hour. If you can see fewer than six car lengths ahead, do not exceed 15 miles per hour. Use your windshield wipers to remove collecting condensation from your windshield. Even if you don’t realize it is collecting it could be reducing your visibility.

Driving During the Rain

Slow Down! Rain impacts visibility and increases the chance of skidding, so a slower speed is necessary. Slowing down also reduces the chances that you will hydroplane — which is when your vehicle moves too quickly to clear water from the road and you end up driving on water instead of pavement. Be especially careful at the beginning of a rainfall. Because oil and water on the road don’t mix, the roads will be especially slippery when the rain first begins. If you normally follow the three-second rule for keeping a safe distance from the car ahead of you, increase that to a six-second rule during rainy weather.

Driving in Snow

Snow that is heavy and slushy can become packed together to create a slippery road surface. When encountering this kind of snow while driving, drive slowly and use extra caution. Be careful when accelerating. Cars often slip or skid when accelerating too quickly in snowy conditions. If you do begin to slip, take your foot off the gas pedal and then start accelerating again more slowly. Avoid braking, as this action could make skidding worse. Use your low beams when driving in snow and avoid the use of high beams. The bright lights would reflect off of the snow and reduce your visibility. Use low beams to see more of the road and make your car more visible to other drivers. Since snow decreases your visibility and reduces your stopping speed, it is important to maintain a safe distance behind other vehicles.

Driving on Icy Surfaces

Black ice, which often forms on roads and is undetectable by sight, can be extremely dangerous. If you notice that the spray from other vehicles on a wet road begins to stop or wane, it might indicate the development of black ice. When that happens, follow the instructions below. Also, remember that bridges and overpasses can be icy even when normal roads are not.

  • Begin braking slowly and well before you need to stop. When a road is covered in ice, it can take up to 10 times longer to come to a stop after braking.
  • Make sure you have a good understanding of your vehicle’s brake system and the best way to use it. For example, anti-lock brakes should never be pumped.

Before you take to the road, think about the conditions you might encounter, and take precautions. A little extra care could prevent an accident, and even save a life.

NEW GUIDANCE AVAILABLE FROM THE IRS ON PPACA CHANGES TO OTC MEDICAL EXPENSES

By Employment Resources

On September 3, 2010, the Internal Revenue Service (IRS) issued Notice 2010-59, a guidance reflecting statutory changes related to the use of health reimbursement arrangements (HRA) and health flexible spending arrangements (FSA) for payment of over-the-counter drugs and medications.

Related to accident and health plans that are provided by employers, including FSAs and HRAs, The Patient Protection and Affordable Care Act (PPACA) revised the definition of medical expenses. The definition of qualified medical expenses for Archer Medical Savings Accounts (MSA) and Health Savings Accounts (HSA) were also revised by PPACA. This will involve several changes for over-the-counter drug reimbursement, cafeteria plans, HRA and FSA debit card usage, etc.

Incurred expenses for non-prescription over-the-counter medications and drugs bought on or before December 31, 2010 can be reimbursed without taxes in accordance with the employee plan. However, as of January 1, 2011, an employer-provided health plan, such as an FSA or HRA, can only pay or reimburse the cost of drugs and medications under the following circumstances:

  • The medication is insulin
  • A prescription is required for the medication
  • The individual acquires a prescription for a medication available without a prescription (over-the-counter medication.)

Note that a prescription is defined as a hand written or electronic medication order for a particular individual to have a particular medication or drug. It must abide state legal requirements and be composed by a healthcare professional who is legally authorized to issue prescriptions for the state it was written in.

HRAs and FSAs that use a debit card will also have new special rules. The IRS notice purports that current debit card systems are not capable of recognizing and maintaining that over-the-counter medications were in fact prescribed by a healthcare professional – as in compliance with the new definition of payable/reimbursable over-the-counter medication medical expenses. As a result, health HRA and FSA debit cards should not be used to buy over-the-counter drugs or medications after December 31, 2010. In an effort to smooth and facilitate the transition, the IRS will not be challenging FSA and HRA debit card usage for incurred expenses through the 15th of January in 2011. Thereafter, plans are required to ensure cards have been reprogrammed so that they cannot be used in the purchase of over-the-counter drugs or medications.

Those with a health FSA should be careful, as some FSAs contain a grace period provision to allow use of unused funds not spent by December 31 of a given year to reimburse incurred expenses for the initial two months of the subsequent year. Even if an individuals’ existing FSA includes this grace period provision, over-the-counter medications bought without a prescription (after the deadline) will not be eligible for reimbursement under the new rules outlined in the IRS notice.

Finally, cafeteria plans may also need revising to adhere to the new over-the-counter medication requirements. Despite the tenet against retroactive amendments, this notice allows an amendment to conform cafeteria plans to requirements adopted by June 30, 2011. For incurred expenses after January 1, 2011 or HRA and FSA debit purchases after January 15, 2011, the amendment may be retroactively effective.

IMPORTANT INSIGHTS REGARDING EFFECTIVE HEALTH CARE COMMUNICATIONS

By Employment Resources

According to experts specializing in language and language testing to help clients sell a product or sway public opinion, a key point to note is that it’s not what’s said, it’s what employees hear about health benefits changes. In fact, it is critical for employers to choose words that are effective and resonate with the workforce to earn employee support for more cost-conscious and waste-reducing health care decision making. When it comes to effectively engaging employees, polling data brings out several key points.

Trust

Employers should understand the world view of their employees. Fearful Americans are more likely to have distrust of leaders and employers. However, when it comes to employer distrust, 51% of Americans identified ethical business practices as what would most likely lead them to be distrusting.

Priorities

Employers should be aware of employee personal priorities and highlight this awareness in health care benefit and benefit change messages. Americans responded as follows when asked about personal priorities:

  • More money (men)
  • More time (women)
  • More choices
  • Fewer hassles

Employee-Driven Choices

Some experts prefer the term “employee-driven” to “consumer-driven” because employee-driven highlights the employer relationship instead of denoting a purely dollar relationship. Employees favor more personal control over health care decisions, which can be a selling point for employee-driven changes, but they don’t look favorably on cost shifting.

As demonstrated by research showing a 51% negative outcome by Fortune 500 employees to an employer saying “positive changes in our benefits” were made, Americans don’t want surprises; they want predictability and stability. So, employers need to show how a change will bring less bureaucracy and hassle. An employer should demonstrate the increase in predictability and simplicity and barrier reduction that comes with shifting decision-making to employees.

Complaints

Monthly premium costs * High co-pays * Plan confusion

The above are common complaints about health care plans. Employers shouldn’t just make meaningless assertions. Instead, they should create value with numbers and emphasize that employee-driven plans are easier to comprehend and can have lower premiums. Furthermore, employees should hear the reasoning behind why it matters. It is also important to note that unsustainable health care spending only results in higher premiums and the business having a less secure position.

Desires

Polls show that employees desire the following factors when it comes to their health care coverage:

  • Company commitment to provide health care
  • Be viewed as humans, not numbers
  • Trust in treatment availability, without delays like prior authorization
  • Doctor-patient relationship protection
  • Decrease triggers (such as abuse, waste and fraud) of higher cost

Essentially, employees want access to their doctor, their hospital, and the ability to afford both. Employees also want a sense of control, which relates to trust that their coverage will be there and predictability and stability in the insurance provider not denying needed services.

Communication and Presentation

Polls clearly show that communication and presentation matter, and that past popularity doesn’t equate to current popularity. Polls from just five years ago showed that a booklet was the No. 1 response on preferred delivery of health care information. However, a recent poll showed only 26% still favoring a handout or booklet and 51% preferring email or online delivery. Employers should be aware that:

  • Most employees don’t want or read verbose text. Effectiveness comes from a brief, simple, consistent, and credible message that isn’t presented in a patronizing manner.
  • Employees are 60% more apt to read a page with a health care applicable graphic.
  • Question and answer style formats work best.
  • The message should always be positive.

Polls are clear – employee trust, personal priorities, choice, desires, common complaints, and employer presentation and communication all matter when it comes to health benefit changes.

NEW W-2 REPORTING REQUIREMENTS TAKE EFFECT IN 2011

By Employment Resources

The Patient Protection and Affordable Care Act (PPACA) enacted this year has many titles and subtitles that don’t actually have much to do with how health care coverage is provided or delivered by health plans. One such provision includes a requirement for employers to use employee W-2 forms to report the value of whatever Health insurance is provided to an employee. This provision is set to become effective in 2011. All W-2 Forms issued in January 2012 must include the Health insurance value information.

However, employers need to be primed for the new requirement before the effective date, as IRS regulations have a “quirk” where former employees can request a W-2 from employers at any time during the year. By law, the previous employer only has 30 days to respond to the W-2 request. Essentially, this quirk means that employers should be ready to comply with the valuing Health insurance provision by early 2011.

There are two main reasons behind the new provision to value Health insurance. Firstly, it should provide a means to educate employees about the cost of whatever Health insurance benefits are being received. Congress decided that the W-2 Form would be the best portal for employees to get this information. The second reason has to do with the excise on “Cadillac” health plans. It was determined that compliance with the provision to value Health insurance would also help employers to know if they have a high-cost plan subject to the excise tax on “Cadillac” plans. This knowledge would then provide ample time for any desired coverage modification before the excise tax takes effect in 2018. A third reason is that this provision could be a tool to monitor compliance of the PPACA employer and individual “pay or play” mandates that will become effective in 2014.

Although the IRS has yet to issue specific compliance guidance and such for this new Health insurance valuing provision, there are a few points that are already clear.

  • Employer-provided Health insurance is still a tax-free benefit; the provision will not change the existing tax status.
  • All employers offering applicable employer-sponsored coverage must report the collective cost of coverage. Amounts under self-funded medical reimbursement plans, amounts under health reimbursement arrangements or HRA’s, employee assistance plans, employer-provided Medicare Supplemental insurance, mini-med, limited coverage plans, or any other major medical coverage are all examples of applicable employer-sponsored coverage.
  • The following would be examples of that which isn’t required to be reported – value of a specific illness or disease coverage, health savings account contributions, stand-alone vision and dental plan values, and medical flexible spending accounts salary reduction contributions.
  • The basis of the value placed on the W-2 form will be the coverage provided to an employee and employees that are similarly situated. A “similarly situated employee” is determined by the coverage option selected under the plan. Take a plan that offers family, employee plus 2, employee plus 1, and employee only coverage for example. This plan will have four categories of similarly situated employees, with each category being representative of each of the offered coverage types. Employers will report the value of the appropriate coverage option for all employees that select each coverage type.
  • Value is determined using the same method that COBRA premiums are calculated. The determined value will have nothing to do with usage. Employers that aren’t familiar with COBRA, a smaller employer that isn’t subject to COBRA for example, and those that haven’t calculated COBRA premiums for all coverage options will need to start. It will also need to be broken down for similarly-situated employees.

It’s clear that employers need to start planning to implement the requirements of this provision now. Employers are being counseled to periodically monitor for incoming technical IRS guidance on the provision. For example, guidance related to setting COBRA premiums for self-funded plans is expected to be released by the IRS shortly. Until the guidance is available, employers should instruct payroll personnel to initiate system updates that will add a feature to obtain and report the information needed for compliance.

USING POWER TOOLS; DOS AND DON’TS

By Risk Management Bulletin

Although power tools are handy helpers, they’re also a significant source of injuries in the workplace – not to mention at home – capable of delivering painful, even deadly shocks, cutting off fingers, and slashing cutting, and mangling flesh and bones.

The first step in developing a safety program for power tools is to provide your worker with the right personal protective equipment (PPE). For example, they should always wear eye protection (most often safety goggles). Depending on the situation, they might also need:

* A dust mask * Gloves * A face shield * Hearing protection * Safety shoes

If employees aren’t sure about what type of PPE they need to prevent injuries, train them to read the manufacturer’s safety instructions or to check with a supervisor before using a power tool. To keep your worker safe when using power tools, make sure that they understand these essential do’s and don’ts:

Do:

  • Use the right tool for the job.
  • Inspect tools before each use.
  • Make sure there are guards around points of operation and on/off switches.
  • Switch off tools are before you plug them in.
  • Turn off and unplug tools before cleaning or changing parts.
  • Use three-prong grounding extension cords with equipment that requires three-prong plugs. (Never use three-prong cords with two-prong adapters!)
  • Remove damaged or malfunctioning power tools from service immediately.

Don’t:

  • Put a power tool down until it has completely stopped running.
  • Use cords to raise or lower equipment.
  • Fasten cords with staples, nails, or other fasteners that could damage cord insulation.
  • Plug or unplug equipment with wet or sweaty hands.
  • Use any tool that has a damaged casing, cord, or plug.
  • Continue to operate a power tool that sparks, smokes, gives a shock, or gives off a burning smell * Get clothes or body parts near the point of operation.
  • Use electric power tools in wet areas unless the tools have been specially approved for such use.

Our risk management professionals would be happy to help you develop, implement, and maintain a comprehensive power tool safety program for your workplace. Just give us a call.

SAFETY TRAINING: ONE SIZE DOESN’T FIT ALL!

By Risk Management Bulletin

The wide variety in today’s workforce can present a challenge when it’s time for safety training. To do an effective job, take these factors into account:

  • Age. Younger workers might have trouble taking the safety aspect of their jobs seriously. Older workers might feel they already know it all and tune you out. Make it clear to trainees that this is important to all of them, perhaps using dramatic examples of safety failures involving different age groups.
  • English comprehension. Many people won’t admit they can’t read or understand English. Be alert to your workers’ ability — or inability — to understand written instructions and to comprehend English. A recent OSHA enforcement memorandum directed at protecting non-English speaking workers from workplace hazards requires compliance officers to verify that workers receive training in a language they understand. If you don’t speak the workers native language, you might want to involve an additional meeting leader who does.
  • Educational level. If your workers have a wide range of educational backgrounds, your task becomes more complicated. Use an approach that gets the message across to the less educated without being so simplistic that it turns off other workers. Consider using demonstration and practice rather than reading and lectures. – and employ words and concepts that all trainees can understand.
  • Experience with products, processes, and technology. If you’re training relatively inexperienced workers, take a step-by-step approach and limit each meeting to a narrow topic area. Otherwise, you’ll overload participants. Although experienced workers will more readily understand your references to equipment and procedures, because they’re also more likely to resist changes in the way they work, sell them on safety both in terms of their own health and regulatory requirements.
  • Tolerance for length and frequency of meetings. The length of your workers’ attention and concentration span will determine how often you can have safety meetings and how long they can last. The format is also a factor in determining meeting length. People can’t usually sit and concentrate as long for lectures as for videos or programs that involve them directly.
  • Extent of prior safety training. The more training workers have received, the easier each subsequent meeting becomes. Once workers understand certain safety basics and incorporate them into their jobs it becomes easier to add new cautions and procedures. Skip the preliminaries and some of the “safety sell” and get right to the specifics of your meeting.
  • Attitudes toward work and management. If some workers are hostile to you, the company, their jobs, and/or the meeting topic, safety meetings can be stressful. Face up to this problem at the beginning of the session by encouraging workers to express their feelings and ask them to try to keep an open mind. Stress the fact that safety training will benefit them by making accidents and injuries less likely.

RISK MANAGEMENT FOR DISASTERS: THE INSURANCE SOLUTION:

By Risk Management Bulletin

If disaster strikes, the extent of protection against the risks facing your business faces can make the difference between survival and extinction. Once you’ve identified the risks involved, you have three basic options: (1) Reduce or eliminate them (avoidance); (2) Accept them (acceptance); or (3) Limit the financial damage by assigning the risks to an insurance company (risk transfer – or insurance).

Unfortunately, risk management protection through insurance often fails to go beyond Commercial Liability and Property coverages. For example, Key Person Life policy(ies) on one or more key executives will reimburse your business against potential financial losses from their death. Business Interruption coverage can help keep you up and running after a disaster by covering payroll expenses and protecting against the loss of suppliers and buyers. You should also consider other types of business insurance to minimize the damage from a catastrophe.

In deciding on the policies that best fit your needs, ask yourself these questions:

  • Are your coverage limits and deductibles appropriate?
  • For what types of disasters (perils) do you have insurance? Which perils are specifically excluded?
  • Does your insurance provide enough protection to senior management against litigation from inadequate business continuity planning?
  • Does your coverage factor in inflation, improvements, and building code changes?
  • Do you have your coverage for “replacement cost” or “actual value” (cost less depreciation)?
  • Will your Business Interruption insurance pay loss of income and payroll expenses?
  • Is your documentation (serial number, date of purchase, cost, receipts, photographs, etc.) current and detailed enough for your insurance company?
  • Have you secured the originals of all policies in a fireproof cabinet, or off site, with copies readily available?
  • Do you have coverage for loss of power or other critical services?
  • What about coverage for a denial of access order issued by civil authorities?
  • Does your insurance cover losses from a disruption of transportation services?
  • If the Disaster Management Team makes a “disaster declaration,” will your insurance cover the costs charged by your alternate site vendor? What about the extra personnel and other costs associated with activating and operating the alternate site?
  • Do you carry enough Life insurance on key executives? If you implement an effective Business Continuation Plan will your insurance premiums go down? Have you reviewed your coverage with your professional insurance advisor within the past year?

The time to take action is now — before it’s too late. We’d be happy to help. Just give us a call.