Skip to main content
Monthly Archives

May 2012

WHY EMPLOYERS SHOULD ADD CSPs TO THEIR TEAM

By Workplace Safety

CSPs gain certification from the Board of Certified Safety Professionals, which is commonly referred to as the BCSP. The Council of Engineering and Scientific Specialty Boards and the National Commission for Certifying Agencies are responsible for accrediting Certified Safety Professionals in the United States. The ISO/IEC is responsible for international accreditation. To become a CSP, an individual must have a bachelor’s degree in any field or an associate’s degree in health and safety. They must also satisfy the following requirements:

  • Pass the Comprehensive Practice and Safety Fundamentals exams.
  • Provide the BCSP with proof of maintaining competency by re-certifying every five years.
  • Have at least four years of professional safety experience.

Why Companies Should Hire CSPs. Companies that hire CSPs enjoy an enhanced reputation. CSP certification is one of the most coveted credentials in the United States today. Having an individual who is certified in environmental positions, health and safety is an asset. Employers in many fields seek these professionals. They work with not-for-profit organizations, government agencies, businesses, various industries and consulting firms. In addition to this, many lawyers have started using CSPs as expert witnesses in trials where expert testimonies in health and safety are required. They have been involved in cases with OSHA citations, Workers Compensation, injury lawsuits and several other types of court proceedings. Many government and private agencies require CSPs in their contracts for assurance of experience and knowledge.

Employer Benefits of Hiring a CSP. Employers enjoy many benefits from hiring a CSP. The following are some of the most desirable advantages:

  • The company name is associated with a prestigious global certification.
  • An individual is identified as a source of expertise by extensive examination.
  • Company relations with environmental, health and safety communities are improved.
  • Enhances company reputation by keeping an individual certified in safety, health and environmental positions on staff.
  • Establishes an examination basis for assessment of employee competency.
  • Offers easy access to current information on applicable laws, regulations, consensus standards and licenses.
  • Demonstration to other parties that certificate holders have been tested and deemed competent under the highest standards.
  • Recognition of the highest level of professionalism in certified health, safety and environmental executives.
  • Standards of practice for certification maintenance exemplify enhanced professional credibility.

EPA and OSHA standards show recognition of CSP certification in regulations, standards and laws. Many local and state government contracts require CSP services. These professionals continue to grow in value through government, public and employer recognition. They also continue growing in value because of the national accreditation benefit and the high standards they must abide by.

FOUR PRACTICAL USES FOR FIRE BLANKETS

By Workplace Safety

Fire blankets are an essential accessory that are often excluded from workplace or home safety plans. These blankets are highly effective in snuffing out fires, so it’s essential to have them available. There are different types of fire blankets, which will be discussed further in the following paragraphs. Keep reading to learn how these valuable accessories can save lives in common situations.

1. Electrical & General Indoor Fires. Usually a wool fire blanket is versatile enough to stand up to these types of fires. Sometimes poorly-wired outlets, frayed cords or the cords of old heaters are likely to start an electrical fire. When this happens, a fire blanket is just as effective as a fire extinguisher. However, people who panic have an easier time using a fire blanket than a fire extinguisher. When people panic after seeing a fire, they often fumble or forget how to activate an extinguisher. Simply throwing the flame-retardant wool blanket is a fast way to put out small flames. Choose blankets that are large enough to cover the room area they’re placed in. If necessary, purchase multiple blankets. Whether using these in a home or office, place them in locations where they’ll be easily accessible. Educate family members or employees about how to use them.

2. Kitchen & Grease Fires. Wool blankets are often suitable for kitchen or grease fires. There are some fire blankets on the market that are specifically intended for kitchens. If desired, purchase these instead of a general wool blanket. Be sure to purchase enough of these blankets to cover a large grease fire. Store them in a place that isn’t too high. For example, never put one above a stove or indoor grill. In the event of a grease fire on the stove, it might be impossible to reach the blanket without getting burned. Restaurant businesses should always have these blankets available to minimize equipment damage. By the time employees use an extinguisher, equipment might be damaged beyond repair or the fire might have already spread.

3. Infant & Child Fire Protection. Fires often occur unexpectedly. Unfortunately, dangerous flames claim the lives of many infants each year. To minimize the risk of infant harm, use a special infant fire blanket. They’re sold at fire safety companies and baby supply stores. Every daycare business should always use these fire-retardant blankets on napping infants. They can also be used at home on unattended infants who are napping. Never cover an infant’s face. These blankets cling to the outline of the baby’s body, so it’s easy to wrap them up and keep them safe from flames while exiting a structure that’s on fire.

4. Outdoor Fires. Large fire blankets are ideal for outdoor fires that arise from grills, fire pits or candles. Since there is usually plenty of oxygen outdoors, it’s easy for fires to flourish. By the time a fire extinguisher is obtained, the fire might have spread far. It’s best to keep a fire blanket handy when any candles, torches or grills are lit outdoors. If the flames become out of control, throw the blanket on the fire immediately.

To prevent fires before they start, put a fire blanket over flammable materials that aren’t constantly stored at optimal temperatures. People who catch fire should try to use a fire blanket instead of rolling on the ground. Stopping, dropping and rolling doesn’t immediately eliminate the oxygen exposure as a fire blanket does. To keep as calm as possible during a fire, always remember that they are easy to put out by simply eliminating the source of oxygen with a fire blanket.

HEALTH AND SAFETY IMPLICATIONS OF SHIFTWORK

By Workplace Safety

According to recent data collected by the Bureau of Labor Statistics, approximately 15 million people in the United States work on a rotating shift, night shift, or evening shift schedule. In addition, the total number of hours worked by employees in the United States is higher than most of Western Europe and Japan. Both working irregular shifts and working long hours have been shown to contribute to safety risks and health problems.

Shift workers tend to be more tired than the general population, which can lead to difficulty concentrating and slower reflexes. As a result, shift workers are more likely to make errors on the job or be involved in accidents. The stress of shiftwork might also cause such employees to acquire certain health conditions.

When an individual works at night, he or she is unable to get enough restorative sleep. Sleep following a night shift is usually shorter and less regenerative than sleep during the night would have been. During nighttime hours, body functions and brain activity slow down. Because the individual is already lacking sleep, he or she is likely to exhibit performance problems. Individuals who work rotating schedules will experience additional problems each time they must switch between day and night shifts.

In addition to fatigue and concentration problems, shiftwork can also lead to serious health problems. Research has shown that employees who work rotating shift schedules are more likely to experience digestive problems, such as nausea, constipation, and stomach ulcers. Heart conditions are also more common among shift workers than in the general population.

Because shiftwork is often unavoidable, it is important to design the work schedule so that it minimizes the stress of shiftwork as much as possible. A properly designed work schedule can prevent accidents, improve worker morale, and decrease the likelihood of employee health problems.

All workers have a natural circadian rhythm that tells their bodies when to sleep and be awake. For this reason, employees who must be at work during late night and early morning hours are likely to have more trouble focusing. Certain shift times might also prevent workers from seeing family and friends. To prevent problems that might result from unusual shift times, many employers avoid scheduling the same worker for late night or early morning shifts during all work periods.

Though it might seem like it would be easier for workers to adapt to an unusual shift if it were a permanent assignment, most workers readjust to a normal schedule on their days off. For this reason, the majority of employers assign shiftwork on a rotating schedule. Rotating schedules prevent a worker from constantly experiencing the stress associated with the night shift. However, rotating schedules require workers to make changes to readjust to new sleep patterns regularly. To prevent serious health problems, it is advisable to rotate a worker’s shift every few weeks, rather than weekly or after only a few days.

Another important factor to consider in shiftwork is the amount of time an employee has to rest. Employees who work eight-hour shifts have more hours in the day remaining for rest than employees who work 12-hour shifts. Unfortunately, the other tasks employees must perform after their shift will not decrease when they work overtime, so employees who work long shifts must often sacrifice sleep in order to make ends meet. To prevent a buildup of fatigue, employers of employees who must work long hours should avoid scheduling too many consecutive workdays for the same employee.

Employers who require workers to perform shiftwork should also teach employees effective coping skills to deal with the stress of the schedule. Employees working rotating shifts can improve their situations by getting as much sleep as possible during their time off. They should also make an effort to spend time with family and friends, exercise, and eat a balanced diet.

TAX CREDIT AVAILABLE FOR SMALL BUSINESSES

By Employment Resources

If you are a small employer and you sponsor a health plan for your employees, you might be eligible for a lucrative tax credit for tax years 2011, 2012 and 2013. As part of the Patient Protection and Affordable Care Act, Congress authorized this tax credit to help small businesses offset the costs of managing a health care plan for their employees.

How It Works

The IRS will refund up to 35% of premiums you pay toward your employer group Health insurance plan, in the form of a credit against your business income taxes. If your organization is tax-exempt, you may qualify for a credit of up to 25%.

To qualify for the credit, you must meet the following criteria:

  • You must have fewer than 25 full-time equivalents.
  • Your average worker must earn less than $50,000 per year from his or her employment with you.
  • You must pay at least half the premium to cover your employees, although not your employees’ dependents.

If your business has fewer than 10 employees, and you pay them annual wages of $25,000 or less, you may be able to qualify for the full credit. The credit phases out as you add more employees, and pay them more, until it phases out completely at the 25 worker and $50,000 mark.

The IRS does not count leased employees, nor owners of sole proprietorships, partners, or shareholders with more than a 2% ownership interest in an S-corporation or a 5% interest in a C-corporation. The IRS also typically does not count family members against you for the purpose of determining your credit.

Limitations on Annual Premiums

The IRS has placed limits on the amount of annual premium you can apply towards the credit. However, the precise limits vary depending upon your state. For information specific to your state, or for businesses with operations in multiple states, please don’t hesitate to give us a call for a free consultation.

How to Claim the Credit

To claim the credit, fill out IRS Form 8941 – Credit for Small Employer Health Insurance Premiums, and submit it with your tax return for the year. Incidentally, the credit has been in effect since tax year 2010. If you would have qualified and simply weren’t aware of it then, or missed it, you may be able to claim the credit by filing an amended tax return for years 2010 and 2011. Be sure to speak to your a qualified tax advisor.

MOST EMPLOYEES ARE WILLING TO TRADE PAY FOR BENEFITS

By Employment Resources

Since the financial crisis of 2008, America’s economy has continued to struggle. Unemployment rates are still high, and pay rates have been cut. In addition, retirement and health plans seem to have less generous offerings. Unfortunately, they are not as secure or predictable as they once were. Many employees are worried about their long-term retirement options. They are waiting to see if further reductions will be made in their benefits, which would result in higher upfront expenses.

Although the economic downturn brought mostly negative changes, one positive change that took place was the sharper focus on health spending and retirement security. With higher health costs and financial losses, more workers value security and want to pay for guaranteed benefits. A 2011 survey was performed to evaluate workers’ attitudes toward their employers’ benefits, their individual household finances and their retirement issues. This extensive survey also examined the impact of health and retirement benefits on retaining and recruiting employees.

Of all the findings in this survey, one that should be especially important to employers is the percentage of employees who said they were willing to pay more for good benefits and security. The survey showed that more than half of the respondents said they would be willing to trade some form of pay for better benefits. Most of the respondents in this percentage were older employees or younger males. Healthy workers and high earners also comprised a notable portion of that number. It is likely that the concerned older workers are still feeling the negative effects of their home values and individual retirement account balances deteriorating.

In comparison with data from prior years, the percentage of employees willing to pay more for good benefits is a substantial change. In 2009, only 46% were willing to pay more. As people gain experience with financial market volatility, their worries about the economy’s future continue growing. This prompts the rise in interest for solid benefits. Employees have learned from the financial crisis, and they know that future benefit cutbacks are possible.

The number of employees who would be willing sacrifice more take-home pay for solid benefits is expected to rise. Many are willing to sacrifice bonuses and other incentives to enjoy more predictable health costs and better retirement benefits. A significant amount of workers are also willing to give up paid time off for these positive changes. These issues are all important considerations for employers. Offering good benefits is a great way to attract and retain quality employees. To learn more about benefit changes, discuss the options with an agent.

SMALL GROUP INSURANCE COVERAGE BASICS

By Employment Resources

Many employers are frustrated because they are under the mistaken impression that they are too small to offer quality health benefits for their employees. Generally, however, this is not the case: Many states require insurance companies to provide group underwriting for companies with as few as two employees, including the owner.

Specific rules and qualifications vary by state. But as a general rule, small businesses with at least two to four full-time employees usually qualify for guaranteed-issue Group Health insurance benefits, provided they offer these benefits to all qualified employees, and that a minimum percentage of employees actually sign up for the plan.

This is important, because it helps put even very small businesses with just a few employees on a more level playing field with larger corporations and government employers, when it comes to attracting and retaining talent in the marketplace.

It also means it is quite possible for even small businesses to provide much needed health benefits even for those employees who have medical problems, or who have families with medical issues. Coverage of Pre-existing Conditions. Under the Health Insurance Protection and Portability Act, federal law restricts the ability of insurance companies to exclude coverage for pre-existing conditions. Specifically, they may impose a “look-back” period of no more than six months, and exclude pre-existing medical conditions for not longer than 12 months. Individual states may shorten these periods, based on their own needs.

Coverage of Pre-existing Conditions. Under the Health Insurance Protection and Portability Act, federal law restricts the ability of insurance companies to exclude coverage for pre-existing conditions. Specifically, they may impose a “look-back” period of no more than six months, and exclude pre-existing medical conditions for not longer than 12 months. Individual states may shorten these periods, based on their own needs.

However, as long as you or your employees maintain coverage, and do not have a lapse in coverage of more than 63 days, insurance companies cannot exclude coverage of any pre-existing condition normally included under the plan. To avoid any problems, ensure you have no break in coverage, whether that coverage comes from an individual plan, a workplace sponsored plan, or from COBRA continuation coverage. As long as the insured maintains coverage, and has no break in coverage lasting more than 63 days, the law limits insurers’ ability to discriminate on the basis of medical history.

If you do have a break in coverage, though, all bets are off.

Tax Credit. Under the new Affordable Care Act, Congress is providing a tax incentive to encourage small employers to provide Health insurance benefits for their workers. The tax credit is a dollar-for-dollar reduction of the business’s income tax liabilities, and is therefore far more lucrative than a tax deduction, which only offsets 35 cents on the dollar, at most.

Not all businesses qualify for the tax credit. The qualification criteria are as follows:

  • You must employ fewer than 25 workers or full-time equivalents.
  • Your average worker must not make more than $50,000 per year from working for you (their outside earnings don’t count against you).
  • You must pay at least 50% of your workers premiums – but not necessarily premiums to cover their dependents.

The credit is calculated on a sliding scale: The lower your workers’ pay and the fewer of them you hire, the greater your tax credit under the Affordable Care Act.

Employers can select a variety of Health insurance plans to offer employees in a small group. Point of service plans tend to offer the richest benefits and the widest choice of providers, but may have relatively high premiums.

To save money, employers may select a health maintenance organization or preferred provider organization, both of which typically restrict non-emergency providers to a pre-approved list in exchange for discounts, which they pass on to customers in the form of lower premiums.

Employers can also choose to offer high-deductible health plans and health savings account combinations, or HDHP/HSAs, which have proven effective in reducing health care premiums for many employers compared with traditional medical plans. However, workers enrolled in these plans bear a greater burden in assuming risk, in the form of higher premiums.

Call us today. Health insurance plans are extremely situational-dependent. Different businesses have different needs, and premiums can be set very differently depending on your location and your employee census. The best course of action is to contact us today for a no-obligation consultation and detailed quote. From there, our agents will work with your staff to ensure an efficient enrollment process.

DON’T LET DOMESTIC VIOLENCE COME TO WORK!

By Risk Management Bulletin

Thousands of workers suffer abuse at home — and, all too often, this abuse spills over into the workplace. According to the American Bar Association Commission on Domestic Violence, there are 30,000 to 40,000 incidents of on-the-job violence a year in which the victims knew their attackers intimately. More than seven in ten human resources and security personnel (71%) surveyed have seen an incident of domestic violence on company property.

A violent episode at work can easily endanger co-workers, as well as the victim. What’s more, female workers who are abused at home have higher rates of absenteeism, drug abuse, and depression that increase Health insurance costs and lower productivity — costing businesses more than $4.5 billion a year.

Federal and state law requires employers to provide a safe workplace for all employees. Failure to act on the knowledge that an incident of domestic violence could threaten workers on the job places a huge potential liability on your company.

In deciding whether an employee might be a victim of domestic violence, beware if the worker:

  • Has unexplained bruises that don’t seem to fit their injuries.
  • Wears inappropriate clothing that might be covering up injuries.
  • Seems distracted at work.
  • Has a high rate of absenteeism.
  • Appears anxious, upset, or depressed.
  • Receives repeated, upsetting telephone calls during the work shift.

If you notice any of these signs, talk to your employee privately, telling them what signs you noticed and expressing concern about possible abuse. Be supportive and keep this information confidential, except for individuals who need to know, such as security personnel. Offer company and community support and be flexible with the employee’s working arrangements.

According to the Family Violence Prevention Fund, supervisors are usually the first people to become aware of an employee who might be a domestic violence victim. The fund recommends that supervisors refer potential victims to your company’s Employee Assistance Program (EAP) or a community domestic violence program. The National Domestic Violence Hotline number is (800) 799-SAFE (7233).

TEN WAYS TO FIGHT PHONE FRAUD

By Risk Management Bulletin

Industry analysts estimate that telephone fraud costs American businesses and residences as much as $4 billion per year. Whether you’re installing a new phone system or just want to take full advantage of your present system, you need to protect your business against this threat.

Although hackers might break into telephone systems for thrills, other criminals make a living at it. These lawbreakers often sell their services to “retailers,” who offer stolen phone-access numbers to drug traffickers or illegal immigrants. This scam can translate into expensive calls to distant destinations in a brief time. The major long-distance carriers all offer protection packages that provide users with 24-hour toll fraud monitoring, training, and liability limits.

Experts recommend these basic proactive measures to protect your business against phone fraud:

  1. Adopt a prevention program. Use the security measures your system provides; change passwords and/or access codes frequently.
  2. Because most thieves are interested in making international calls, block calls to countries where you don’t do business. This means that no one — from the president on down to the cleaning crew — can make the calls. Taking this precaution means that, although hackers might call in, they won’t receive authorization to call Peru, for instance.
  3. Eliminate direct inward system access (DISA) or remote access, which allows outside producers to access an outbound line with an 800 number. Issue phone credit cards instead.
  4. Review call-accounting reports to identify fraudulent usage. Check for repeated failed password attempts. Look for long calls, calls after certain hours, and other suspicious activities.
  5. Secure your voice mailbox and auto-answer attendant system to prevent an inbound caller from getting an outside line through these automated devices. Change passwords to access mailboxes every month or so.
  6. Discuss security measures with your long-distance phone company for ways to decrease your vulnerability. The company might have informational materials for your staff.
  7. Educate employees, starting with your switchboard operator, not to transfer incoming calls to an outside operator. Outside producers should make sure that no one is listening or watching when they read or key in their calling-card number. Phone companies will never call a customer for verification of a personal identification number (PIN) — which means that employees shouldn’t give it out to any caller.
  8. If you have a PBX system, conduct a monthly security audit on the system, and check authorization codes.
  9. Consider buying a PBX protection package, which can help you monitor potentially fraudulent activity, such as repeated searches for a dial tone, and can limit your liability for unauthorized calls. If you have this package, you might be eligible for a discount on toll-fraud insurance.
  10. Consider insurance coverage for toll fraud.

CYBER LIABILITY: IS YOUR BUSINESS PREPARED?

By Risk Management Bulletin

In today’s world, every business needs to keep its digital information secure, available, and organized. We’ve seen an explosive growth in high-profile cyber incidents, such as computer viruses, data theft, identity theft and other cyber-crimes — and most if these incidents aren’t even reported!

What happens when you suffer a loss or breach of data? More specifically, what are the implications from an insurance standpoint?

Consider these scenarios:

  • One of your employees accidently opens an e-mail that has a computer virus. The virus crashes the company’s network, but not before spreading itself to everyone in its contact list, including your customers. As a result, one of your customers gets the same virus, which wipes out his network — and leads him to sue you for damages.
  • A disgruntled former employee logs into your network and blocks access to the company Web site, so that customers can’t access their accounts or do business. After two weeks, you’re still not operating normally — and you’re losing customers by the hour. What’s more, some of them are suing you.
  • A virus hacks into your Web site, corrupts all of the content, and then e-mails a virus link to your customers. You rush to take the site down, but not before suffering extensive damage — not to mention the cost of rebuilding the computer network and site. Meanwhile, a number of disgruntled major customers have taken their business elsewhere.

What do these three scenarios have in common? Most Business Insurance policies wouldn’t cover the losses! The standard Building and Personal Property Form covers loss of data only up to $2,500 a year. Commercial General Liability (CGL) policies exclude both damage to data and that caused by loss of data.

According to the Cincinnati Insurance Board, most small businesses are woefully unaware of the implications of cyber threats. “Cyber losses are increasing, and the cost to recover from a data breach can be staggering,” says the Board’s EVP Ron Eveleigh. “At this time, coverage is limited for these cyber losses, but the coverage is evolving. Although some policies will provide limited coverage for broad data and privacy breaches, most CGL policies still need a specific endorsement for cyber losses.

Our risk management professionals would be happy to help craft coverage to protect your business against losses from cyber crimes.