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March 2011

Mar 01
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NEW STUDY SHOWS TEXTING BANS ARE INEFFECTIVE AT CRASH REDUCTION

By Personal Perspective

There are currently 30 states that have made it illegal for motor vehicle operators to text while driving a vehicle. The bans were made in an effort to reduce vehicle crashes. But, since texting is only one known element of distracted driving, some people have long questioned what the effectiveness of such laws would be on accidents related to distracted driving.

A new study by the Highway Loss Data Institute (HLDI) now shows that there have not been any reductions in crash statistics following texting bans. Contrarily, following texting bans, the study found that there is actually a slim increase in how many collision coverage insurance claims are filed for crash-related damage. The findings were very similar to a previous HLDI study concerning driving and handheld cell phone usage, which ultimately found that banning handheld cell phone use during driving didn’t decrease the number of vehicle crashes.

The new HLDI study looked at insurance claims for vehicles less than ten-years-old during the months prior to and following the July 2008 texting ban in Louisiana, January 2008 texting ban in Washington, August 2008 texting ban in Minnesota, and January 2009 texting ban in California. To ensure that collision claim changes not related to texting bans, such as from seasonal driving pattern changes, were controlled, the claims made in the above four states were compared with those made in nearby states that hadn’t substantially altered their texting laws during the time frame of the study.

When the data was compared, HLDI found that banning texting while driving hasn’t reduced the number of vehicle crashes. In fact, crash numbers actually increased after texting bans in three of the four states involved in the study. The data could be an indication that texting bans create an added risk from drivers that recognize texting is illegal, but continue texting anyway. These drivers might attempt to hide their phone from the view of law enforcement, thereby lengthening the amount of time and distance that their eyes are taken from the road. The texting and handheld cell phone ban findings from the HLDI studies could also indicate that singling out and banning one source of distraction over another isn’t an effective approach to address the overall problem of vehicle crashes caused by distracted driving.

Mar 01
Love0

TEENS DRINKING AT PARTIES = INSURANCE ISSUES

By Personal Perspective

Every spring brings with it the prom and graduation party seasons. Unfortunately, these events often become occasions for teens to drink alcohol. Teens at unsupervised parties risk harming themselves and others when they drink. Parents who host these parties might bear responsibility for what happens there and for injuries or damages occurring after the guests leave. Although their Liability insurance might cover any financial damages, the circumstances of the accident determine which policy will respond, and this will affect how much coverage the parents have.

Assume that a guest consumes several beers at the party, drives off in his car, and gets into an accident, injuring himself and a passenger. The parents of both injured teens sue the parents who hosted the party, who in turn notify their Homeowners insurance company. However, the policy’s personal liability coverage does not apply to an insured person’s legal liability for:

  • The occupancy, operation, or use of a motor vehicle by any person
  • The entrustment of a motor vehicle by the insured person to anyone else
  • The insured person’s failure to supervise or negligent supervision of any person using a motor vehicle
  • The actions of a minor involving a motor vehicle.

Because of this, the Homeowners policy will not cover the parents’ liability or defense costs. Their Personal Auto insurance policy might cover them, however. The policy’s liability insurance covers the individuals named on the policy and household residents who are their relatives for their liability for bodily injury from an accident arising out of the use of any auto. Therefore, even though the parents were not actually operating the vehicle involved in the accident, their policy will cover their liability. In addition, the auto policy that applies to the car involved in the accident (the guest’s insurance, or, more likely, his parents’) will also cover the hosts’ liability for the passenger’s injuries. The hosts’ policy will step in if the owners’ policy either does not apply or pays out its maximum limit of insurance.

Now assume that the guest consumes the beer, but a sober guest gives him a ride home. Rather than go straight to bed, the young man goes for a swim in his parents’ pool and drowns. His parents sue the hosts, alleging that his judgment was impaired because the hosts allowed him to drink. In this situation, the homeowner’s policy should pay for the hosts’ liability and legal defense. Because this accident did not involve a motor vehicle, and no other policy provisions that would remove coverage apply, the policy will cover this claim.

Although one policy or the other might apply to a liquor liability claim, there could be significant differences between the amounts of coverage the two policies provide. Most homeowner’s policies provide personal liability coverage of at least $100,000 for each occurrence; many provide limits of $300,000 or $500,000. Auto policies might provide much less coverage. Most states have laws setting the minimum amounts of liability coverage that an auto policy might provide, but those limits are relatively small. For example, New York law requires minimum limits of $25,000 for injuries to one person and $50,000 for injuries to two or more people (higher amounts apply for death claims.) Should a young person become seriously injured or killed, the damages claimed could well exceed these amounts. Parents should consider buying as much liability insurance as they can afford; they should also think about buying an umbrella policy, which pays for damages that surpass the amounts payable under homeowner’s and auto policies.

Of course, the best course of action is to properly supervise parties, so that everyone has a good time and lives to have another one someday.

Mar 01
Love0

BASIC POINTS TO KNOW BEFORE REPLACING YOUR ROOF

By Personal Perspective

A new roof is a major home expense and often a very big job. You can save yourself a lot of headache and money in the long run by becoming familiar with roofing materials, warranties, cost, and contractors before the job begins.

Materials. As far as roofing materials go, they should protect the home from hail, rain, snow, wind, and possibly fire. The life of your roof is actually highly impacted by these common weather conditions. Your geographic location and the specifics of your lot also impact the life of a roof. Take a home located in the southwest desert area for an example; the sun and extreme heat can cause your roof to age and disintegrate more rapidly than in other areas of the country. Another example would be the negative impacts on a roof caused by dampness or tree materials, such as a home in a humid area being positioned under a large mossy tree.

Roofing material manufacturers aren’t required to submit their products for testing to measure for resistance to fire, wind, hail, and so forth, but some manufacturers opt to have their product rated. This rating can help determine which material best suits your home. Unrated products have either failed their rating test or not been tested. UL 2218, a test designed by Underwriters’ Laboratories, measures resistance to hail. Under this test, the greatest hail resistant product is a Class 4 roofing material.

Roofing products can receive a Class A fire rating, which indicates effectiveness against severe fire exposure; a Class B fire rating, which indicates effectiveness against moderate fire exposure; or a Class C fire rating, which indicates effectiveness against light fire exposure. You can also use some common sense to help you determine fire resistance, such as clay shingles logically offering greater fire protection than wood shingles. Keep in mind that some local building codes might require you to use a certain standard or class of material.

Windy conditions can rip shingles from the roof or lift the edges up and allow water to seep into the roof. Local building codes in wind-prone areas might suggest that additional nails be used to hold down certain types of shingles, such as asphalt composite shingles.

Warranties. Whatever grade or type of product you choose to complete your new roof, always read the fine print of the warranty very carefully and save one in case you need to refer to it in the future. There are several different types of warranties, including any of the following:

  • First owner – only the owner that bought the roof is covered.
  • Pro-rated – the claim is based on how old the roof is.
  • Wind – only covers damage caused directly by wind.
  • Hail – only covers damage caused directly by hail.
  • Material defects and workmanship- most products come with a manufacturer warranty covering defects in their product for 20 or more years. However, be aware that this manufacturer warranty is useless if your contractor installs the product incorrectly. This is why you need a workmanship warranty written into your contract with your contractor.

Cost. The cost of a new roof varies depending on what materials are used and the labor necessary to install the chosen materials. The weather conditions and specifics of the geographic location, as mentioned above, mean that certain roofing materials and products will be more common to specific areas of the country. Additionally, your homeowner’s association might have stipulations on what type(s) of roofing material you may use. Keep in mind that certain types of roofing materials will require more extensive labor to install, therefore raising the overall price. A roof with a steep pitch also generally increases the cost of labor since it takes more time to install the materials and poses a greater safety risk to workers. When comparing prices, also keep in mind that a roof is measured in squares. One square is equivalent to a 10×10 foot or 100 square foot section.

Contractors. Choosing the right roofing contractor is just as important as choosing the right roofing materials. Shop around and seek multiple bids on your roof. You are looking for a roofer that is established, licensed, and bonded. Before hiring a contractor, ask for references and verify their certificate of insurance and license. You might also check the businesses’ status with the Better Business Bureau and/or local chamber of commerce. Ask the contractor for a written estimate that contains details regarding all material charges, labor charges, a specified start date, and estimated completion date. Remember, when picking a contractor, the lowest bid isn’t necessarily the best deal. Make sure that your payment method and workmanship warranty is specified in your contract.

In closing, knowing these basic points on roofing beforehand can help you choose the right materials and contractor, at the right price, for your home.

Mar 01
Love0

FOUR QUESTIONS ANY BUSINESS OWNER SHOULD ANSWER TO DETERMINE INSURANCE NEEDS

By Business Protection Bulletin

Owning and operating a business is a risky endeavor. Not only do business owners face general risks such as theft and fire, but also specific risks that are inherent to the operations of each individual business. For these reasons, it’s vital that you have the right type and amount of insurance for your business. To help you get the coverage you need, the Insurance Information Institute (I.I.I.) has developed the following list of questions every business owner should consider when determining their insurance needs:

1. Do I have enough insurance to rebuild my business property and replace all of my merchandise and possessions? A Building and Personal Property Coverage (BPP) policy covers any combination of the following three categories: The building, your business personal property and the personal property of others. The covered building can be owned by the insured, or it can be leased. Your business personal property coverage includes:

  • Furniture and fixtures
  • Machinery and equipment
  • Stock
  • All other personal property you own that is used in your business
  • Labor, materials or services furnished or arranged by you on the personal property of others
  • Improvements you have made while a tenant
  • Leased personal property that you are contractually obligated to insure

2. Do I have enough insurance to protect the personal property of my employees? Adding Personal Effects and Property of Others coverage to your policy will extend up to $2,500 worth of its business personal property coverage to your personal effects, as well as that of your partners, staff, and others in your care, custody or control. The personal effects coverage does not include theft, even if theft is a covered cause of loss.

3. Do I have enough insurance to keep my business open? Closing a business down completely while needed repairs are being made could spell financial ruin. That’s why you should have Business Interruption insurance. The following types of Business Interruption insurance can be purchased individually, or in any combination that meets the needs of your business:

  • Business Income Coverage – If your company has to vacate the premises because of disaster-related damage that is covered under your property insurance, Business Income Insurance will compensate you for the profits you would have earned, based on your financial records, had the damage not occurred. The policy also covers expenses that continue even though business operations are temporarily stopped.
  • Extra Income Coverage – Provides reimbursement for a reasonable sum of money spent over and above normal operating expenses to avoid closing during repairs.
  • Contingent Business Interruption Insurance – Protects your earnings if your suppliers or customers suffer physical loss or damage to their property.

4. Do I have enough insurance to protect my assets in the event of a lawsuit? A Commercial General Liability (CGL) policy cover claims in four categories of business liability:

  • Bodily injury
  • Property damage
  • Personal injury (including slander or libel)
  • Advertising injury

Commercial General Liability policies also cover the cost to defend or settle claims.

Mar 01
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DON’T FORGET INSURANCE FOR YOUR ORGANIZATION’S CYBER RISKS

By Business Protection Bulletin

The federal Internet Crime Complaint Center received more than 330,000 complaints in 2009, and more than a third of them ended up in the hands of law enforcement. The damages from those referred to the authorities totaled more than a half billion dollars. The Government Accountability Office estimated that cyber crime cost U.S. organizations $67.2 billion in 2005; that number has likely increased since then. With so much of business today done electronically, organizations of all types are highly vulnerable to theft and corruption of their data. It is important for them to identify their loss exposures, possible loss scenarios, and prepare for them. Some of the questions they should ask include:

What types of property are vulnerable? The organization should consider property it owns, leases, or property of others it has in its custody. Some examples:

  • Money, both the organization’s own funds and those it holds as a fiduciary for someone else
  • Customer or member lists containing personally identifiable information, account numbers, cell phone numbers, and other non-public information
  • Personnel records
  • Medical insurance records
  • Bank account information
  • Confidential memos and spreadsheets
  • E-mail
  • Software stored on web servers

Different types of property will be susceptible to various threats, such as embezzlement, extortion, viruses, and theft. What loss scenarios could occur? The organization needs to prepare for events such as:

  • A fire destroys large portions of the computer network, including the servers. Operations cease until the servers can be replaced and reloaded with data.
  • A computer virus infects a workstation. The user of that computer unknowingly spreads it to everyone in his workgroup, crippling the department during one of the year’s peak periods.
  • The accounting department discovers a pattern of irregular small funds transfers to an account no one has ever heard of. The transfers, which have been occurring for almost three months, were small enough to avoid attracting attention. They total more than $10,000.
  • A vendor’s employee strikes up a casual conversation at a worker’s cubicle and stays long enough to memorize the worker’s computer password, written on a post-it note stuck to her monitor. Two weeks later, technology staff discovers that an offsite computer has accessed the human resources database and viewed Social Security numbers, driver’s license numbers, and other personal information.

In addition to taking steps to prevent these things from happening, the organization should consider buying a Cyber insurance policy. Several insurance companies now offer this coverage; although no standard policy exists yet, the policies share some common features. They usually cover property or data damage or destruction, data protection and recovery, loss of income when a business must suspend operations due to data loss, extra expenses necessary to maintain operations following a data event, data theft, and extortion. However, each company might define these coverages differently, so reviewing the terms and conditions of a particular policy is crucial. Choosing an appropriate amount of insurance is difficult because there is no easy way to measure the exposure in advance. Consultation with the organization’s technology department, insurance agent and insurance company might be helpful. Finally, all policies will carry a deductible; the organization should select a deductible level that it can afford to pay and that will provide it with a meaningful discount on the premium. Once management has a thorough understanding of the coverages various policies provide in relation to the organization’s exposures, it can fairly compare the costs of the policies and make an informed choice.

Computer networks are a necessary part of any organization’s environment today. Loss prevention and reduction techniques, coupled with sound insurance protection at a reasonable cost, will enable an organization to get through a cyber loss event.

Mar 01
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HIRING THE WRONG PERSON CAN LAND YOUR BUSINESS IN COURT

By Business Protection Bulletin

In 1999, a California plumbing company hired a man who had once been convicted of domestic violence against his ex-wife. In 2003, the man made a house call that sparked a friendship with the woman living there, a relationship that eventually grew romantic. That same year, the plumbing company fired him for a variety of offenses, including drug and alcohol use and alleged physical threats against a co-worker. Two years later, the woman he was with ended the relationship and sought a restraining order against him. He responded by shooting her to death, a crime for which he was convicted.

The victim’s daughter sued the plumbing company, alleging that it was negligent in hiring the man. Although that suit was unsuccessful, the case illustrates the vulnerability businesses have to claims of injury caused by their employees. Courts may find an employer guilty of negligent hiring if all of the following factors are present in the case:

  • When the employer hired the person, it knew or reasonably should have known that he was unfit for the job and dangerous. For example, if an accounting firm knowingly hired a person who has served time in prison for embezzlement, a client who suffered a theft loss because of him could plausibly claim that the employer should have known that he was unfit for the job.
  • The employer should have foreseen that the employee would harm someone. The accounting firm should have anticipated that a convicted embezzler left in charge of clients’ assets would feel tempted to pocket some of them. In the California case, the victim’s daughter argued that the plumbing company should have foreseen that its employee could injure or kill a female customer. The court rejected that argument, saying that no reasonable person could foresee that the man would turn violent two years after being fired.
  • The employer’s act caused the victim’s injury or harm. A client of the accounting firm could argue that, if the firm had not hired the convicted embezzler, he would still have $1 million in the bank. The California court said that the plumbing company’s act of hiring the woman’s killer did not cause her death because the relationship developed outside of his work duties and did not turn into romance until after the company fired him.

There are two ways businesses can obtain Liability insurance to protect themselves against claims like these. In cases of bodily injury or property damage, the Commercial General Liability insurance policy might provide coverage. Businesses should review their policies carefully with an insurance agent, however, because some policies might contain endorsements that remove coverage for liability resulting from employment practices. Also, the CGL policy would not cover a loss such as the embezzlement claim against the accounting firm because there is no bodily injury or property damage. Employee Dishonesty insurance might cover incidents such as this. Also, some Employment Practices Liability insurance policies might provide coverage, but they must have special endorsements adding coverage for liability to non-employees. Again, businesses should work with their insurance agents to verify that they have the proper coverage.

Insurance is no substitute for an employer doing a thorough background check on job applicants before hiring them. Taking steps to reduce the likelihood of a negligent hiring claim will save the business costs that insurance doesn’t cover, such as those arising from poor workplace morale, harm to the business’s reputation, and difficulty attracting skilled employees. A new employee is a significant investment for any business; making careful hiring decisions will save it long-term trouble and expense.

Mar 01
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HOW DOES A HOLD HARMLESS CLAUSE WORK IN THE CONSTRUCTION INDUSTRY?

By Construction Insurance Bulletin

Construction work, by its very nature, is a high-risk type of business. It usually isn’t a matter of if a loss occurs, but when and how much. When a loss does occur, such as an electrical wiring fire, all the parties involved with the project quickly point the finger at the other parties. In the construction industry, having a hold harmless clause in a contract is one way that a specific party can ensure that another party involved shares or pays the cost of an incurred loss. General contractors and owners commonly use hold harmless clauses to reduce their exposure to risk, thereby helping them maintain lower insurance premiums.

Hold harmless clauses can be like a cat and mouse game. The owner applies pressure to the general contractor, the general contractor then pressures the subcontractors, and the subcontractors then pressure their subs, with each attempting to get their share of express indemnification into the contract during the process.

Express indemnification is a written agreement in the contract that will secure or protect a person from the legal responsibility of a loss. Essentially, it holds a person harmless and a person responsible. The indemnitor is the named person taking responsibility for a potential loss or risk. The indemnitee is the named person to be protected. There are generally three types of these clauses used in construction contracts. Be cautious, as some of these clauses can even be found within the fine print of a purchase order.

A Type Three, also called a comparative fault clause, will hold the indemnitor liable for the loss or extent of loss he/she causes. For example, a contractor could agree an owner will be harmless in any claims related to the project, but only to the degree the claim was partly or entirely caused by the omissions or negligent acts of the contractor.

A Type Two, also called an intermediate form clause, is the most commonly used. The indemnitor assumes all the risk unless the indemnitee is attributed as the lone cause of risk. For example, a contractor could agree an owner will be harmless from any claims related to the project if the claim is caused partly or entirely by an omission or negligent act by the contractor and without regard to if the claim was caused in part by an omission or negligent act by the owner.

A Type One, also called a broad form indemnity clause, involves the indemnitor holding the indemnitee harmless from risk, even if the indemnitee is the cause of the entire loss. For example, a contractor might agree to hold an owner harmless for any and all claims related to the project, without regard to whether or not the owner’s negligence was the sole cause of the claim.

Due to the fact that construction is such a highly competitive business, many subcontractors and contractors often feel forced to assume total liability on a construction project, regardless of fault, in order to win the bid for the project. The contractor can easily go bankrupt if an accident happens with losses more than the contractor can cover. Many states have sought to protect the construction industry by passing laws that limit the types of clauses allowed in contracts. In most cases, the state where the work is being performed will be the applicable state law. For example, a company in Michigan wrote a construction contract with an intermediate form clause for work to be done in Delaware. A loss occurred and the Michigan company attempted to hold the contractor responsible through the clause. Even though Michigan recognized such clauses, Delaware didn’t and threw it out.

Overall, those at the top of the ladder, such as the owner and general contractor, favor hold harmless clauses. After all, they only benefit by leveraging blame downward. For the subcontractors at the bottom of the ladder, these clauses are much less appealing. Although a common part of the doing business in the construction industry, having a hold harmless clause with a general contractor or owner that has a reputation for unsafe operations or excessive demands might not be the best idea.

Mar 01
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WHEN DOES THAT CLIENT NOTICE BECOME A CLAIM YOU HAVE TO REPORT?

By Construction Insurance Bulletin

Consider the following chain of events:

  • An engineer designs the site and grading plan for a construction project.
  • After the project’s completion, the developer finds that the parking lot is not draining.
  • In March, the developer writes to the engineer, accuses him of failing to follow recommendations in a geotechnical report, and orders him to create a plan to correct the drainage problem.
  • The engineer responds by saying that his design was sound but the contractor’s work was defective.
  • The engineer and developer hold several meetings to determine what caused the problem. The engineer sticks with his version of events.
  • In May, the developer writes again to the engineer, accusing him of committing design errors and shirking responsibility for the problem.
  • In August, the engineer notifies his liability insurance company that the developer is making a claim against him.
  • Sometime later, the developer sues the engineer, architect and contractor.

Question: When exactly did the claim occur, and when should the engineer have reported it to the insurance company? In this case, the company said it did not have to provide defense or coverage because the engineer violated the policy conditions by reporting the claim late. In the company’s opinion, the developer’s March letter was a claim that the engineer should have reported. A court said that the case would have to go to trial, as the report’s lateness was unclear. The policy insured against claims occurring during the policy period and made within 60 days after the end. When, however, does a dispute become a claim, triggering the obligation to report it to the company? The answer turns on the policy’s definition of “claim”:

“ … a demand for money or professional services received by the Insured for damages, including but not limited to, the service of a lawsuit or the institution of arbitration proceedings or other alternative dispute resolution proceedings, alleging a wrongful act arising out of the performance of professional services.”

The court applied this definition to the March letter, asking whether a reasonable person would have considered the circumstances known to the engineer as a possible claim. In the court’s opinion, the answer was no. Until the developer’s May letter, the court said, a reasonable person could have concluded that the developer was unsure as to who was responsible for the drainage problem. The letter ordered the engineer to develop a plan to correct the problem. The engineer believed he would be paid for creating this plan, an assumption the court found to be reasonable. Because one reasonable view of the letter was of a request and not a demand for services as compensation for damages, the court said that the case must go to trial to resolve the question of facts.

This case illustrates a dilemma for all sorts of organizations. If they fail to report incidents that eventually turns into lawsuits, their insurance companies might try to deny defense and coverage because of late reporting. Conversely, if they report every incident, no matter how minor, their companies could eventually decide to drop their coverage because of frequent losses, even if most of the reports amount to nothing. To deal with this problem, some policies permit circumstance reporting. The policy that ultimately covers the claim is the one in effect when the insured reports the circumstance to the company, if a claim results from that circumstance.

Check with one of our insurance agents to find out what the reporting requirements are in your professional liability policies. Know what’s in your policy and what it requires you to do so that you don’t jeopardize your coverage.

Mar 01
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ELIMINATE CONSTRUCTION SURPRISES WITH EVENT CHAINS METHODOLOGY

By Construction Insurance Bulletin

The contractor managing the construction of a new 20-story hotel had a well-planned schedule for the project. The schedule contemplated every scenario the contractor could think of that might sidetrack the project — natural disasters, material shortages, workplace accidents, even strikes. Unfortunately, he didn’t think of everything: Vandals hopped the fence at the excavation contractor’s storage yard and disabled four $200,000 excavators. This delayed digging by three weeks. Shortly after work began, the general contractor had to suspend the project because the municipal employee responsible for approving the plans and issuing work permits became ill and checked into a hospital. Due to severe budget cutbacks, the municipality had no one on staff to perform her work while she was out.

All these events threw the contractor’s schedule out the window and caused delays that cost the owner thousands of dollars in lost revenue. Had the contractor been able to accurately factor these risks into the plan and cost estimate, dealing with them would have been easier and less costly. Some contractors are using Event Chain Methodology to do just that. Event Chain Methodology is a way of creating models of uncertainties in time-related business processes so that businesses can accurately measure them. This method is based on six principles.

  1. External events affect work tasks during the performance of the tasks. These effects can be both positive (14 straight days of sunny weather, allowing for the completion of exterior work ahead of schedule) or negative (an unexpected downpour occurs before the roofing contractor can cover roof openings, flooding the top floor).
  2. Events can cause other events, creating chains that affect the project. Municipal authorities question something in the architect’s plans. The architect answers, but the authorities question the answers. Construction halts while the questions are being settled; when it finally resumes, subcontractors accelerate the work to make up for lost time. As a result, three employees suffer injuries on the job.
  3. If a contractor can define events and event chains, he can analyze them to measure how uncertain they are and calculate how event chains will impact the project.
  4. Critical chains of events are those that have the greatest potential to affect a project. If contractors can identify these critical chains in advance, they can plan for them and keep their impact to a minimum. They do this by analyzing each chain and determining its potential to affect a major project parameter, such as its length or total cost. If a contractor knows that a squabble with the authorities over plans can set a project back two months, he can build that into the schedule and budget.
  5. Contractors can use data from similar past projects to determine how likely a chain of events is and what its impact will be on the project.
  6. To aid in the analysis of risks, contractors can create Event Chain Diagrams. These display the relationships between events and tasks and how one affects the other.

Using event chain methodology can lead a contractor to alter the original plan in a number of ways. Certain events (fires, flooding, vandalism) can make unplanned activities (clean-up, repair, replacement) necessary. Other events (contractor or designer errors) can force subcontractors to repeat already completed tasks (wiring, plumbing, installation of air quality systems). As deadlines approach, a task might require additional resources (personnel, materials, tools,) requiring the contractor to re-allocate these from other planned activities.

Event chain methodology allows project managers to assign mathematical values to risks, helping them decide how to prioritize loss prevention efforts. Ideally, this will enable the project to come off with few surprises, resulting in a safe, on-time and profitable project.

Mar 01
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TIPS FOR DESIGNING A SENIOR-FRIENDLY WORKPLACE

By Workplace Safety

A September 2007 study titled Profit from Experience conducted by the AARP, examined how the world’s leading economies, known as the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) are dealing with the declining number of younger workers and the anticipated shortages of skills in certain areas as older workers near retirement. The consensus is that the solution to these problems lies in retaining older workers beyond the typical age of retirement.

Older workers can be as productive as younger ones, but they do require different considerations. In order to integrate older employees into the workplace successfully, employers must design programs that take advantage of the strengths and capabilities of age while accounting for its limitations.

To create an effective integration program, employers should focus on four key areas:

  1. Work environment – Workplace ergonomics and human factors engineering can lessen the exposure to hazards so older workers can continue working injury-free. Some ergonomic techniques that should be incorporated include limiting the number of extremely repetitive tasks, reducing stressful postures and rotating jobs. Some of the human factors engineering strategies that will make the job site conducive to older workers include reducing the risk of injuries from trips and falls by placing hand rails along travel routes, reducing clutter, installing slip-resistant floors, repairing uneven floors, and using color contrast between stairway risers and treads.
  2. Work arrangements – Many employees want alternatives to the abrupt transition from full-time work to full-time retirement. Non-traditional job arrangements like flexible hours, job sharing, telecommuting or phased retirement are examples of some alternatives.
  3. Disease prevention and wellness promotion – Offering clinical services, like influenza immunization, mammography, and cholesterol and blood pressure screening can prevent or delay disability from chronic conditions. In addition, employers should provide on-site programs that encourage no smoking, healthy eating, and moderate exercise.
  4. Issues that impact on the ability to remain employed – Many daily living tasks become increasingly difficult with aging and can interfere with an employee’s ability to continue working. Older workers who can no longer drive to work easily can benefit from being allowed to telecommute or becoming part of a carpool. Changing family needs can also prevent a worker from remaining in the workforce. An employee with a spouse that needs home care would be able to stay on the job if their employer offered elder care benefits.
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