Skip to main content
search
Monthly Archives

April 2014

Apr 01
Love0

DISPOSING OF OUTDATED EQUIPMENT? – TAKE CARE

By Risk Management Bulletin

Some businesses pay to put their obsolete equipment in mothballs. Others use it to generate income either by sale or as a tax-deductible donation to charity.  If you choose this option, beware: you could be exposing yourself to a nasty liability claim by the new owner.

Before you decide to sell or donate used equipment ask yourself: 1) was it too old to operate, not operating properly, or were replacement parts unavailable? and 2) has the original manufacturer or seller gone out of business, leaving you liable as the seller or donor?

To help reduce your product liability for outdated equipment that’s sold or donated, follow these guidelines:

  • Make it clear in in a sales agreement that the equipment is being sold or donated “as is,” with no inspections, testing, reconditioning, or repairs.
  • Recommend that the buyer or recipient have the equipment inspected and tested before using it and repaired or upgraded to make sure that it’s safe to operate it.
  • Identify any safety hazards or deficiencies, and either repair them or recommend that the buyer or recipient do so; if this isn’t possible, scrap the equipment.
  • Include a clause stating that the buyer or recipient holds you as the seller or donor harmless for all liability, legal fees, expenses, etc., arising from use of the equipment.
  • Get legal advice to be sure that you’ve taken all appropriate measures to reduce the risk.

For more information, please get in touch with our agency.

Apr 01
Love0

ONLINE EMPLOYEE PORN: EMPLOYER, BEWARE!

By Risk Management Bulletin

Failing to investigate the activities of an employee whose company computer contains pornography could leave your business wide open to a lawsuit.

A  New Jersey case, Jane Doe v. XYC Corp., involved an employer who learned that a worker was using his company computer to visit pornographic web sites and share images with fellow employees. After he was convicted of videotaping his 10-year-old stepdaughter nude and partially clad, the victim’s mother sued the company, arguing that its failure to investigate and report that the employee was viewing, downloading, and distributing child porn on his work computer led to the girl’s victimization. The court held that because viewing child pornography is a federal and state crime, the employer’s knowledge of this activity should have led it to look into this misconduct.

Viewing online porn in the workplace is all too common. Consider that: 1) Approximately 70% of web traffic to pornographic sites occurs from 9 a.m. to 5 p.m.); 2) Billions of pornographic e-mails go out every day; and 3) More than 75% of workers say that they have visited a pornographic web site “accidentally” at least once, while 15 % have made 10 or more visits.

A number of states require businesses to report child pornography on workplace computers to law enforcement or risk facing criminal charges. To remove your employees’ expectations of privacy in using computers, let them know the company is free to inspect or monitor this equipment, and have them agree in writing that they understand this policy.

What’s more, other courts might well rule that the Doe decision applies to other illegal activities by employees who use company computers to cause physical, financial, or other harm to third parties.

A word to the wise.

Apr 01
Love0

BUSINESS INTERRUPTION: THE GOLDILOCKS CHALLENGE

By Risk Management Bulletin

If you suffered a catastrophic loss today, your business interruption insurance will reimburse you for what you the revenues would have earned without the event, minus what you did earn, up to the amount of the policy. However, if you set this amount too high, you could wind up “over-insured” – and paying a higher premium than you need to.

To make sure that you’re in the “Goldilocks Zone” (with neither too much nor too little coverage) when it comes time to renew your business interruption insurance, estimate the revenue stream you’ll need to protect during the policy period by ask such question as:

1.      Has the market for your products or services changed significantly since you last bought coverage?

2.      What do you see as the impact of expected economic or market conditions on your projected revenues – for example, by raising or lowering prices to meet competition.

3.      If you have any new products or services for which there is little or no sales history, check how similar products or services from your competitors are performing.  Be sure to include any unique advantages that you, or they, might have (for example, technological innovation).

4.      Do you have any contracts or advance orders to support a revenue forecast that differs significantly from industry trends?

5.      Have you made recent changes to operations or facilities – such as a new plant, restructured management or marketing campaign – and you expect to increase sales?

The risk management professionals at our agency stand ready to help you answer these questions so that you can protect your projected revenue stream with a comprehensive business interruption policy tailored to your needs.  Just give us a call at any time.

Apr 01
Love0

DON’T BYPASS MACHINE SAFETY!

By Risk Management Bulletin

Although though most machines come equipped with guards, and, despite advances in technology, workplace injuries from the misuse of machinery remain all too common – that’s why OSHA emphasizes and cites employers for machine-guarding violations.

The best way to approach machine safety is to conduct regular inspections. Put yourself in the shoes of the OSHA inspector and take a walk-through of your facility. Check each machine for exposed moving parts, including meshing gears, in-running rollers, reciprocating parts, chain and sprocket drives, cams and rollers, belts and pulleys, rotating couplings, shafts, flywheels, cutting or abrasive surfaces, cooling fans, and conveyors. Examine the guards on the machines, such as barriers, electronic-eye shutdown devices, beam scanners, interlocks, and enclosures. If any of the guards are broken or missing, tag the machine and get it fixed.

Even the best-designed and maintained guards are useless if workers try to bypass them. Training sessions should stress that removing guards or disengaging interlocking devices to make work easier or faster is too risky.

The most hazardous situations involve operators adjusting a machine or removing jammed work or broken parts. Make sure that operators know the specific steps for powering down and locking out a machine before they service or adjust it.

Have a written dress code for working around machinery. Don’t let workers wear long, loose sleeves, hanging drawstrings or tassels, ties, scarves, and open jackets. The same applies to long hair, jewelry, and gloves. Make sure that operators wear proper personal protective equipment, such as safety glasses and face shields or goggles if they’re handling hot or hazardous liquids and safety shoes if they’re placing heavy materials in and out of a machine.

To learn more about you can keep your workplace free of risk, feel free to contact us.

Apr 01
Love0

WORKERS COMP: MYTHS AND REALITY

By Workplace Safety

If you believe you don’t need Workers Compensation insurance, here’s a reality check:

Myth. I only have a few employees, or mostly part-time employees,

Reality: Workers Comp makes sense no matter how many employees you have. It helps cover medical expenses and lost wages for employees with job-related injuries and protects against lawsuits from injured workers if you’re found negligent. What’s more, some customers and clients may require you to carry it.

Myth: My employees won’t sue me.

Reality: Never say never. Injured workers might well sue to pay medical bills that could run into millions – not to mention pain and suffering or punitive damages. Workers Comp provides legal defenses that can slash your liability.

Myth: Workers Comp is too expensive. If one of my employees is injured, I’ll just pay out-of-pocket.

Reality:  Weigh the cost of coverage against potential losses from an injury, especially if the employee sues. The longer a worker is off the job, the more it costs to cover lost wages and productivity. Severe injuries can take weeks or months to heal– or even lead to permanent impairment.

Myth: I provide a safe workplace. My employees won’t get injured.

Reality: Mistakes happen even in the “safest” workplace.  Many companies post signs proclaiming the number of days without an injury on the job,  but rarely do they read “365 days” Even the most minor mishaps can cause major damages.

Myth: Medical costs in the Workers Comp system are too high.

According to the National Council of Compensation Insurance, the medical cost inflation rate for Comp has been similar to that for Group Health insurance during the past several years.  Legislation and regulations have led to the expansion of cost-containment programs.

To make sure you have this essential protection, at an affordable cost, just give us a call.

Apr 01
Love0

SHOULD YOU REQUIRE A WARRANT FOR AN OSHA INSPECTION?

By Workplace Safety

The answer depends on the situation.  While most businesses will let the inspector in, you don’t necessarily have to do so.

Some experts believe that consenting to an OSHA inspection without a warrant is less troublesome, less costly, and more beneficial to the employer.

Others stress the potential benefits of requiring the agency to get a warrant before an inspection. For example: 1) The warrant might be narrowly written (many judges draw up warrants limited to the specific complaint in the affidavit, which might be more restricted  than the inspector would have without a warrant); 2) You might be able to buy some time (because the warrant might not be issued for up to 30 days, you’ll be able to remedy existing hazards or bring OSHA-required records into compliance) ; and 3) Your risk is small (because the agency has little discretion in fining and citations and  the settlement process is the same regardless of whether a warrant has been issued, there’s little risk of a greater penalty for insisting on a warrant).

If you do require an inspector to return with a warrant, review the document carefully

to make sure it describes the scope of the inspection in detail and has enough information to allow a determination of probable cause

As always, it’s wise to follow the Boy Scout motto and “Be Prepared.” Consult with your legal counsel ahead of time, so that you’ll be ready before an OSHA inspector knocks and you’re on the spot.  We’re also ready to offer our advice at any time.

Apr 01
Love0

DON’T TURN COMP CLAIMS INTO EMPLOYMENT PRACTICE SUITS

By Workplace Safety

For years, employers have taken comfort in the “exclusivity rule” of Workers Compensation: Businesses traded their strict liability exposure for workplace injuries in return for limited exposure and payments. However, recent decisions under the Americans with Disabilities Act (ADA), Family Medical Leave Act (FMLA), and state tort laws have been eroding this doctrine. For example, an employer who fires an employee on Workers Compensation leave might face not only a retaliation claim, but a wrongful discharge suit under the ADA, FMLA, or state tort laws.

In dealing with the “Bermuda Triangle” of exclusivity issues – termination of health care and other benefits, “reasonable accommodation vs. light duty,” and termination of employment –experts recommend these guidelines:

  1. Give injured employees every reason to return to work.
  2. Speak to a professional before you take any adverse employment actions against someone who has filed a Comp claim.
  3. Make sure your employee handbook and other policy documents describe how you handle health care and other benefits payments to employees on leave. For example, although your health care provider might terminate coverage after 90 days of non-active employment, you might have a 12-week obligation under the FMLA, and perhaps an even longer obligation under your own policies.
  4. Move slowly. There’s usually no reason to rush.
  5. Finally, although checks and balances, including medical certifications, are essential, take the “high road” and treat employees as you’d want one of your family members to be treated.

Don’t trying to manage these situations on your own. It’s essential to get professional advice from your employment practices attorney or human relations department.

The Workers Compensation specialists at our agency would be happy to share their expertise with you, free of charge.

Apr 01
Love0

SAFETY SIGNAGE: A MATTER OF COLOR

By Workplace Safety

Safety signage plays a key role in protecting your workers. To make the most effective use of these warnings in your facility, and comply with OSHA regulations, be sure all employee are familiar with the three colors of workplace signs and pictographs so they can recognize the degree of danger (or safety) even if they don’t have time – or aren’t able – to read the  specific message.

Here’s how the system works:

  • Red stands for danger. Red danger signs and tags, with contrasting black or white lettering, are used in areas where an immediate, serious hazard that can cause death or serious injury exists. Flammable liquid containers are usually colored. Red markings are also used for some safety equipment, such as emergency stop bars, buttons, and switches.
  • Yellow stands for caution. Yellow and black caution signs and tags warn about potential hazards or unsafe practices that could cause minor injuries. Wet floors, radiation, and “Do Not Enter” signs are colored yellow
  • Green is for safety. Safety instruction signs have a white background, a green panel, and black and white letters or markings. They provide general safety information. For example, to mark the location of emergency exits, first-aid kits, and safety equipment.

These pictographs or graphic signs are usually self-evident.  However, to make sure that all workers understand their meaning, review them in a safety meeting, and then give them a quiz to ensure they can match the hazard to the graphic.

 

The workplace safety professionals at our agency would be happy to help you review your signage policy. Give us a call at any time.

Close Menu