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April 2011

KNOW THE FACTS TO HELP AVOID BEING A VICTIM OF AUTO THEFT

By Personal Perspective

According to the FBI’s National Crime Information Center, one vehicle is stolen about every 25.5 seconds in the U.S., which amounts to a total of 1,235,226 stolen U.S. vehicles and upwards of 7.6 billion dollars in vehicle losses.

Despite the tremendous expense involved when a car is stolen, many consumers still aren’t preparing in advance to handle the possibility of a vehicle theft. A number of common misconceptions have contributed to consumers adopting a defeatist attitude about vehicle theft. There are a number of vehicle owners that feel it’s all but impossible to prevent becoming a victim of vehicle theft, even when protective methods like anti-theft devices are used. This type of defeatist attitude can have serious and unnecessary consequences for vehicle owners.

The Wiser Drivers Wise Up project was started by the Council of Better Business Bureaus, the Insurance Information Institute, and The National Insurance Crime Bureau to dispel the defeatist attitude and teach drivers how to handle their vehicle being stolen. The program includes five auto theft myths that can actually leave a vehicle owner more vulnerable to having their vehicle stolen:

  1. Older vehicles aren’t targeted by thieves. Statistics clearly show this myth isn’t true. For example, The National Insurance Crime Bureau reports that the five top stolen model years for 2009 were: 1994 Honda Accord, 1995 Honda Civic, 1991 Toyota Camry, 1997 Ford F-150 Pickup, and 2004 Dodge Ram Pickup.
  2. The majority of vehicle thefts occur in unprotected areas. Again, statistics clearly disprove this myth. According to one FBI report on the subject, more than a third of all vehicle thefts take place from a home. The same report showed that only two in 10 vehicle thefts take place in a parking lot and that only a very small number of vehicles are stolen or carjacked along roadways, highways, and alleys. So, parking in an area felt to be secure doesn’t decrease the likelihood of your vehicle being stolen.
  3. Anti-theft devices aren’t hard to install. Unless, you’re trained on the complexities of a vehicle’s electronic workings, then it’s best to pay for a professional to install, wire, and test the anti-theft device for you. It might be tempting to go with the cheapest price, but keep in mind that a cheap price doesn’t always equate to a bargain. Check with the Better Business Bureau to help you determine if the installer is running a reputable business, especially if a business is offering a substantial price difference from their competitors. If the technician that will be installing your alarm system hasn’t been certified by the Mobile Electronics Certification Program (MECP), then you might want to consider a different installer. Make sure that the installer provides instruction on how the alarm system works and is operated. You will also want a written warranty from the installer.
  4. The police usually find stolen vehicles. Only half of all stolen vehicles are ever recovered. The first few days following the theft will be critical, as the chance of recovery diminishes with each day the thief possesses it. The highest number of vehicle thefts occur on Saturdays and Fridays. The highest number of recoveries is from vehicle thefts occurring on a Monday or Tuesday.
  5. Insurance companies always provide victims of vehicle theft with a rental car. Check your policy. Although theft coverage is part of a comprehensive Auto insurance policy, it might or might not include a rental replacement car following a theft.

In closing, vehicle owners shouldn’t make the costly mistake of assuming vehicle theft is an inevitable occurrence. It’s also advisable to do an annual review of your Auto policy for mandatory coverages, needed coverages, and coverage features like rentals and roadside assistance.

STAY AFLOAT WITH PROPER BOATER’S INSURANCE

By Personal Perspective

There are many hidden costs associated with owning a boat: Dock fees, general maintenance, and winter storage, just to name a few. One expense that boat owners should never skimp on is purchasing the best available insurance policy for their watercraft.

Because buying a boat is a huge investment, owners should protect their boat with comprehensive insurance coverage. Plans are often based on the type and size of the boat. Many Homeowners and Renters insurance policies provide limited coverage for property damage if the boat’s engine is less than 25 mph horsepower or if it is a small sailboat, but without additional insurance, no liability coverage is included.

Owners of larger, more powerful boats and yachts will need to purchase a separate insurance policy for their boat. The insurance company will take into account the size and type of boat, its value, and where the boat sails when drawing up the conditions and cost of the policy.

Separate boat and watercraft insurance policies provide much more coverage to the owner. These policies generally include loss and damage coverage to the boat’s hull, machinery, furnishings, fittings, and any permanently attached equipment, like a navigation system. Liability coverage is extended to:

  • Bodily injury to other persons
  • Damage to other’s property
  • Legal expenses associated with non-consensual operation of the boat
  • Medical costs for injuries to the owner and passengers
  • Boat theft

Policyholders can choose the liability limits of their plan, ranging anywhere from $15,000 up to $300,000. The deductible cost for property damage is $250, and it ranges between $500 and $1,000 for theft and medical expenses. Of course, policies can be individualized based on the boat owner’s needs. Other endorsements and coverages can be added to the policy to cover the boat’s trailer, fishing gear kept aboard the boat, and any other accessories. Also, make sure to ask whether or not the policy covers the boat while it is being towed.

Just as Auto insurance providers offer discounts to their policyholders, discounts for watercraft policies apply in certain cases. For example, insurance companies favor diesel-powered engines over gasoline ones because diesel fuel is more stable, making the engine safer to operate.

Other discounts are related to safety equipment kept on the boat. Having items like fire extinguishers approved by the U.S. Coast Guard and ship-to-shore radio equipment could reduce the amount of the premium. Also, completing a boater’s safety course offered by the Coast Guard Auxiliary, the American Red Cross, or the U.S. Power Squadrons can gain some favor with the insurance company.

Maintaining a clean boating record is just as important as being accident-free on the roadways, when it comes to lowering insurance rates. Premiums are usually discounted for every two years the boater goes without an accident or filing a claim. Bundling your Watercraft insurance with Homeowners and vehicle policies is another good way to save money on coverage costs.

A solid insurance policy gives boaters the peace of mind needed to set sail and enjoy the open waters. Nothing is more relaxing than knowing your investment is covered.

UFOV TRAINING AND TESTING: HELPING OLDER DRIVERS STAY INDEPENDENT, MOBILE, AND SAFE

By Personal Perspective

The potential for isolation, lower self-esteem, and loss of independence makes not being able to operate a vehicle one of the most dreaded and devastating factors of growing old. During the past few decades, the safety of older drivers has been a highly researched public health concern. The focus of this research has evolved, bringing with it better understanding and more comprehensive ways to address the issue. The National Institute on Aging’s Division of Behavioral and Social Research has funded a significant amount of aging and driving research over the years. Research into one concept called Useful Field of View (UFOV) has been particularly instrumental in assisting elderly drivers to regain their safe driving skills. But, current UFOV training and testing has been a long process:

Do Older Drivers Pose A Risk? In the 1960s, early driving safety research mainly focused on the effect aging had on driving skills and whether or not elderly drivers posed a public safety risk. Most studies discovered that younger drivers actually had more accidents than their older counterparts. However, the risk of fatal or injury-producing accidents and the risk of accident in proportion to miles driven were both higher among older drivers.

What Factors Impact Driver Performance? In the 1970s, most research shifted to focus on the specific factors behind driving skill losses. Decreased visual acuity, cognitive function losses, and visual field losses were among the top factors that impacted driver performance. Other factors found to have an impact on driver safety included muscular, joint, ligament, tendon, and nerve disorders; cardiovascular disease; and usage of certain medications. However, researchers still couldn’t show a firm correlation between cognitive or vision function declines in older drivers and their involvement in vehicle accidents. Some researchers now attribute this problem to the separate measures that the researchers were using to singularly test vision and cognitive function impacts on driver safety, which didn’t account for the cognitive and visual performance interactions needed to manage the various driving distractions.

Can Older Drivers Retain Driving Skills? In the 1980s, researchers not only focused on identifying the possible factors reducing older driver safety, but also started to explore possible interventions to solve the driving skill decline associated with growing older. Drivers must be able to focus simultaneously on their front field of view; use their peripheral vision to monitor movements and objects beside them; distinguish informational stimuli, such as pedestrian crossings, school and work zones, stop signs, merges, and car signals around them; determine their own speed and estimate the speed of others; and make driving judgment calls, such as distancing, passing, and the timing of traffic lights.

The NIA’s Division of Behavioral and Social Research tackled the above complexities of driving by focusing on UFOV. This is the attention window in which a driver can quickly be alerted to visual stimuli. It measures how well a driver can notice, localize, and identify suprathreshold targets within their environment. Since a suprathreshold target is something that’s in a driver’s peripheral vision field and wouldn’t attract attention unless it’s a hazard, UFOV involves both vision and cognitive processes.

The Surface Transportation Assistance Act of 1987, which called for the investigation of the problems affecting the safety and mobility of older drivers and possible solutions, gave UFOV research a huge boost. The National Academies of Science Transportation Research Board recommended ways to advance UFOV research in a 1989 report and the National Institutes of Health (NIH) established the Human Factors in Aging initiative. University of Alabama at Birmingham researchers were among some of the first to receive UFOV funding. This research showed that while older adults were more apt to have a lesser UFOV than their younger counterparts, UFOV maintenance and loss is very individual. It’s very possible for many older adults to maintain an adequate UFOV into their eighties.

Early UFOV Testing and Training. In the 1990s, the above research had documented thoroughly that impaired mental status and/or visual function can result in UFOV declines. And, by the late 1990s, research showed that older drivers with a UFOV impairment of greater than 40% were almost twice as likely as those without impairments to be involved in an accident within the next few following years. Research also concluded that older drivers with UFOV limitations could improve their UFOV by 30% to 60% from participating in speed-of-processing training 30 minutes a day for five days. Although the training typically showed improved driving skills for up to 18 months, some drivers didn’t retain the skill as long and needed booster courses.

UFOV Testing and Training Today. Thanks to the NIA and the many public and private research teams throughout the years, UFOV testing and training is now available to help many older drivers retain their driving skills, retain their mobility, and operate safely:

  • Florida, Maryland, and California use UFOV testing.
  • Drivers that pass the UFOV test are offered an insurance discount at State Farm Auto Insurance Company.
  • As of 2009, the AAA Foundation for Traffic Safety, a non-profit AAA affiliate, recommends the DriveSharp program.
  • UFOV training programs are offered by TransAnalytics Health and Safety Services.
  • Researchers are currently investigating using an in-car method in determining UFOV performance and alerting older drivers of their performance.
  • One recent study supported by NIA found that the benefits of UFOV also included a decrease in depression and improvement of health-related quality of life.

In closing, UFOV testing and training programs have been a long time in the making and show great potential to make big differences in age-related restrictions on driving.

A ROADMAP TO THE COMPLEX COMMERCIAL GENERAL LIABILITY POLICY

By Business Protection Bulletin

The ISO Commercial General Liability Coverage Form can seem like a map that starts you out on a main road, takes you smack into a dead end, but offers you a right turn that you can take if you meet certain conditions. It begins with a broad promise and a hint that the promise isn’t quite that broad, then continues with a list of items that narrow that promise. However, some of those items contain a few words that actually make the promise a bit broader again. Somewhere in that twisting road lies the answer to whether the insurance will cover your business’s legal liability for an accident.

The form actually has three coverages, but the one most business owners are concerned with is Coverage A, Bodily Injury and Property Damage. The first part of Coverage A is the Insuring Agreement, which states that the insurance company will cover the insured person or organization’s legal liability for bodily injury or property damage to others. A key phrase, however, is that the company will pay amounts for occurrences “to which this insurance applies.” How do you know when the insurance applies? That’s where the list comes in.

Right after the Insuring Agreement is a section labeled Exclusions. This section begins with the sentence, “This insurance does not apply to: … ” and goes on to list 17 categories of occurrences. The insurance does not apply to any occurrences that fall within the meanings of those categories. The categories include things like pollution; injuries to the insured’s employees; ownership and use of motor vehicles, aircraft and watercraft; causing or contributing to a person’s intoxication; damage to property the insured owns or possesses; and loss of electronic data. While these items narrow the insurance coverage considerably, some of them contain clauses that add a little coverage back in. For example, while the insurance does not apply to property damage arising from a contractor’s completed work, the exclusion gives back coverage if the property damage arose from work a subcontractor performed on the contractor’s behalf.

In a claim situation, different burdens of proof apply to either the insurance company or the insured organization, depending on what each one is claiming. The insured has the burden of proving that an accident falls within the Insuring Agreement. To do this, the insured must show that an “occurrence” that took place during the policy term caused bodily injury or property damage to someone else. If the insured cannot prove any one of these elements, the policy will not cover the loss. The policy defines “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Therefore, the insured must prove that an accident (a piece of lumber falls and strikes another contractor’s employee on the back) occurred during the policy term and caused bodily injury or property damage.

Once the insured meets that burden, the insurance company now has the burden of proving that one of the exclusions applies. For example, it must prove that damage to an HVAC system the insured installed arose out of some defect in the system. If it cannot, then the insurance applies to the loss and the company must pay for the damage. If it can, then the burden shifts back to the insured to show that an exception to the exclusion applies. If the insured can show that a subcontractor installed the defective components that malfunctioned and damaged the HVAC system, then the exception to the exclusion applies and the insurance company must pay the claim.

Contractors should work with insurance agents who are knowledgeable about the CGL policy and can answer complex coverage questions. This policy can provide millions of dollars in protection for a business, so it is important for the business owner to understand it.

HOW TO CREATE A SOCIAL MEDIA POLICY FOR YOUR BUSINESS

By Business Protection Bulletin

The second generation of the World Wide Web, commonly referred to as Web 2.0, is ever expanding and giving users more ability than ever to collaborate and interact with each other in a virtual community. Even if you and your clients aren’t actively involved in Web 2.0 sites such as Facebook, Blogger, YouTube, LinkedIn, Twitter, Wikis, Digg, and so forth, it’s highly likely that at least some of your employees are using them. There are actually many business benefits and opportunities to be had by using Web 2.0 portals to link your company with your clients and suppliers, such as lowering your cost to do business, increasing revenues, making marketing more cost effective, the speed and ease of access to information, and such. That said, using social media isn’t risk-free.

One way you can manage the risks associated with social media is by creating a social media policy. A comprehensive policy with the specifics on training, supervisions, and employee responsibility is especially vital if you require, or even encourage, any employee to blog or utilize social media on behalf of your business. You should also consider carrying a media liability insurance policy or a similar social media-specific coverage.

Regardless of whether you require, ask, or encourage employees to utilize social media on your behalf or not, you should still have a policy pertaining to what your employees do with their own time on social media. The following are some key areas that should be covered:

  • If you don’t have bargaining agreements or employment contracts that would limit your options for termination, then you can remind your staff that their employment is at-will, meaning you retain the option to end their employment at any time for any non-discriminatory reason.
  • You should make it clear that your policy on internet usage, privacy, non-competition, nondisclosure, ethics, and so forth will run concurrently with your social media policy. For example, your internet usage policy probably states that you have access to monitor the sent and received messages on your business’s communication systems. You will want to make it clear that you have the same access when the communication systems are used for social media purposes.
  • Inform employees of the risks associated with online publishing, particularly their risk of disclosing information that’s confidential. Give employees a specific contact, such as their supervisor, to check with if they have any doubts about the confidentially of a topic.
  • Your policy should clearly warn against displaying your business trademark or logo, as these may give viewers the false impression that the speaker is representing your business. Employees should also be aware that they’re to disclose their employment and state that their views are entirely their own if they decide to publish anything related to your business.
  • Employees should understand that they’re liable for the content they publish and can be sued for incidences like copyright infringement, libel, and plagiarism. Keeping in mind that state and federal laws allow some degree of privacy for social media communications that occur outside the workplace, have disciplinary actions outlined for the publishing of content that’s damaging or embarrassing to your business. Employees should be reminded that what they post about their employer, competitors, customers, and co-workers should be respectful and that they should delete inappropriate comments from any site under their control.
  • Remind your employees to fact-check, make appropriate attributions, specify all information that’s opinion, and provide a safe means of contact prior to publishing all content. Some bloggers publish anonymously, but anonymous publishing can make malice easier to prove in privacy and defamation cases.
  • Remind employees of the dangers of giving out personal information or clues that could allow online predators to obtain their personal information. Suggest that they review their privacy settings on all online social media sites. Identity thieves can often access sensitive personal information with nothing more than a birthday and name.

PROTECTING A BUSINESS FROM SEXUAL HARASSMENT LAWSUITS WITH EPLI COVERAGE AND PREVENTION STEPS

By Business Protection Bulletin

By now, employers should all realize and understand that sexual harassment is illegal. However, what employers might not be aware of is that the U.S. Supreme Court issued two rulings in June of 1998 that expanded what is termed sexual harassment; expanded the responsibility that employers have to provide a work environment that’s non-hostile; and did away with harassed employees having to prove that their company holds some responsibility or that their career suffered from lack of promotion, firing, demotion, or such. Employers are now directly responsible for employee behavior, thereby giving harassed employees more recourse in bringing about legal actions against employers. Work-related harassment and discrimination cases have been climbing steadily since the Civil Rights Act of 1991 allowed for trial by jury, compensatory damages, and punitive damages in legal cases involving discrimination. In fact, according to the Equal Employment Opportunity Commission, the amount of annual employment harassment and discrimination cases being filed grew by more than 13% between 1997 and 2009.

Any employer that’s ever been involved in a sexual harassment suit can attest that the cost to settle or defend a sexual harassment lawsuit can be jaw dropping. The average award for damages in these types of lawsuits is around $650,000, and that isn’t even including the secondary cost from workplace disruption, bad publicity, and those involved in the suit being absent from work.

What Constitutes Sexual Harassment? The first step in protection is understanding what is defined as sexual harassment. State and federal law prohibits behavior that involves an employee in authority basing professional expectations or decisions regarding a subordinate employee being willing or unwilling to exchange sexual acts. The following are examples of such behavior:

  • Altering expectations of job performance when a subordinate repeatedly refuses advances for a date or sexual encounter.
  • A superior demanding sexual acts in order for a subordinate to receive a raise or promotion.
  • Disciplinary action, including termination, of a subordinate that refuses sexual advances or ends an existing romantic relationship.

However, sexual harassment doesn’t always involve a subordinate/authority figure relationship. An offender can be anyone from a coworker to a customer or business vendor. The offender can be male or female, as can the victim. Furthermore, the victim doesn’t even need to be the employee actually harassed. Anyone that’s affected by the harassing or offensive behavior can be termed a victim; for example, an employee that overhears two other employees discussing a taboo subject. The two employees directly involved might not be offended, but if the overhearing employee is offended, then it can constitute sexual harassment.

Verbal, visual, physical, or written behavior that causes another employee to view the work environment as hostile, are unwanted, or focus on the sexuality or gender of another person may constitute as sexual harassment. Specific examples of such would be teasing, suggestive objects or pictures being displayed, and repetitively requesting sexual acts or dates verbally or in writing.

Protection with Employment Practices Liability Insurance (EPLI). After knowing what constitutes sexual harassment, businesses can further financially protect themselves with Employment Practices Liability insurance (EPLI). This is an insurance to protect employers when an employee makes the claim that their legal rights have been violated. Although policies vary, EPLI generally doesn’t cover criminal or civil penalties and punitive damages. EPLI does generally cover settlements, judgments, and incurred legal costs arising from an array of incidences – wrongful termination, employment contract breaches, employment and promotion failures, wrongful disciplinary actions, wrongful emotional distress infliction, negligent employee evaluations, employee benefit plan mismanagement, discrimination, and sexual harassment.

Coverage is specific. So, before purchasing a policy, decide who should be covered. For example, should full and part-time employees, contracted persons, supervisors, department heads, subsidiaries, company divisions, and so forth be covered or not? One other note about EPLI is that it’s mandatory for employers to report incidents within a reasonable amount of time. Some policies might feature an ERP (extended reporting period) or prior acts. The length, cost, and availability vary by carrier.

Purchasing EPLI has been challenging for small companies in the past. However, the 2004 rate increases have somewhat plateaued. Some rates have even decreased. Keep in mind that EPLI cost is figured based on the business type, employee numbers, and past lawsuits associated with the business.

Prevention of Harassment Lawsuits. Prevention is the cornerstone in decreasing the risk of a sexual harassment lawsuit. Prevention steps include the following key elements:

  • If the business has EPLI, any incident should be reported immediately.
  • Create, communicate, and enforce a zero-tolerance policy for workplace sexual harassment.
  • Have an effective harassment complaint process in place and take immediate, consistent, and appropriate action when a complaint is made.
  • Thoroughly document all complaints and the following investigation and actions.

COMPLETED OPERATIONS COVERAGE IS ESSENTIAL FOR CONTRACTORS

By Construction Insurance Bulletin

An accounting firm on a building’s top floor accused the roofing contractor of ruining its computer network equipment, even though the contractor wasn’t working on the building at the time. The contractor had finished replacing the roof in September. Heavy snows fell that winter, and it started melting rapidly when March brought above-normal temperatures. The accounting firm’s systems support analyst came in to work on a Monday morning to find pools of water in the server room and the servers inoperable. Given that the first four months of the year are a somewhat busy time for accountants, the firm could not remain without its computer network for long. It rush-ordered new servers, paid a premium for express shipping, then paid even more to have technicians remove the ruined servers, install the new ones, load the data from backup records kept off site, and perform network testing, all within a period of a few days. The cost to the firm was high, both in terms of repair and replacement costs and extra expenses for its accountants to access an alternative network. The firm sued the building owner and the roofing contractor to recover thousands of dollars in losses.

This is where the contractor’s Completed Operations Liability insurance coverage came in handy. This insurance covers the contractor’s legal liability for bodily injuries or property damage that his work causes after he has finished it. Before the insurance applies, however, the incident must meet several conditions:

  • The incident must be an “occurrence.” The policy defines this as an accident, but it can also be damage that happens over time because of harmful conditions. The roof suddenly letting melting snow gush all over the servers is an occurrence. So is the roof allowing melted snow to seep into the walls over a period of months, causing plywood and insulation to rot?
  • It must occur during the policy term. It is not necessary for the contractor’s mistake to happen during the policy term, but the injury or damage must occur then. The contractor finished the roof in September, his liability insurance policy renewed in January, and the damage to the servers occurred in March. The policy that took effect in January applied, not the one in effect in September.
  • It must occur away from the contractor’s own premises. Liability insurance does not apply to damage to premises the contractor owns or rents.
  • The injury or damage must arise from the contractor’s work. This means that the contractor’s portion of the job led to the injury or damage. The roof was supposed to keep water out of the building; water entering the building implicates the work done.
  • The contractor’s work must be completed or abandoned. It’s complete at the earliest of: When all the contract work is complete; when all the work at that job site is complete; or when the customer puts the work to its intended use. The contractor finished the roof in September and the building owner put it to immediate use, so the insurance company will consider it to be complete.
  • The insurance will not apply to bad work that did not cause damage to something else unless a subcontractor did the job for the contractor. If the building owner discovered the problem with the roof before the accountant’s servers took a shower, the insurance would not apply to fixing the roof. It also doesn’t cover liability for the building becoming unusable or less usable because it contains the contractor’s defective work. Work with one of our insurance agents to ensure that you have the proper coverage. Completed operations losses can be catastrophic; financial protection is essential!

DON’T LET SHABBY INCIDENT INVESTIGATIONS LEAVE YOU VULNERABLE

By Construction Insurance Bulletin

Employers should always make it a top priority to provide workers with a safe working environment. That said, accidents can still happen, even when employers strictly enforce safety practices and employees strictly adhere to them. Incidents happen due to a breakdown, departure, or failure in the acceptable method of performance. When an accident does occur, the incident investigation report will serve in several important objectives. So, it’s vital that a timely and thorough incident investigation takes place.

The Purpose of Incident Investigation. The main purpose of an incident investigation is for the employer to learn why the breakdown happened and determine procedures that could be put into place to prevent it from reoccurring. The employer should gather and examine the data they collect to figure out where and why the departure from acceptable behavior happened. Employers can learn from errors and increase future productivity from knowing if there was any indication of the breakdown prior to it occurring, or if there was any possible point that the breakdown could have been interrupted and stopped.

Legal liability is another purpose of investigating the incident. During the investigation, the employer will gather information that could be paramount in mounting a possible defense against any resulting lawsuit(s). The defense team in such lawsuits will build their strategy based on the what, when, who, where, why, and how of the incident, data that’s often revealed during the incident investigation.

How Should the Investigative Process Take Place? The investigative process will begin as the scene of the incident is reviewed and examined. This can provide an exact reason, or possible scenarios, as to why the incident happened. Pictures should be taken of the incident scene. The pictures can later be compared to blueprints, diagrams, or drawings of the area to help determine what chain of events led up to the incident occurring.

Now, it’s time to question all witnesses that might have information leading up to, during, or just after the incident. You can use forms created by regulatory agencies or internally created forms to guide the questioning process. Either way, using the completion of the form as a format for the questions asked will help to maintain objective questioning of witnesses, no matter who is asking or being asked the questions. It’s human nature for most people to immediately form assumptions and theories following the incident. Keep in mind that this type of non-factual information is useless and adds nothing to the validity of the investigation.

All the gathered information will be carefully analyzed by the investigator to determine what elements are explainable and what elements still need an explanation. The chronology of the chain of events will be explored. Then, the actions of those involved are examined alongside concurrently occurring actions to see if any of the concurrently occurring actions had any bearing on the incident.

Following the analysis, the investigator will make a written report that contains a description of the incident, the circumstances and elements that led to the incident occurring, why the incident occurred, and any recommendations to prevent it from reoccurring. The report should accompany the physical documentation collected by the investigator.

Although an incident investigation is initially about investigating, it makes little sense to know the what, how, and such of the incident if nothing is done to prevent it from reoccurring. So, the last stage of the incident investigation is about implementing the recommended changes suggested in the final report. For optimal success during the implementation stage, the employer should assign a task force to ensure that the recommendations are put into place, supported from the top down, and are subsequently followed by everyone.

CAREFUL HANDLING OF CONSTRUCTION MATERIALS SAVES LIVES AND MONEY

By Construction Insurance Bulletin

In October 2010, a construction worker in Pennsylvania was crushed to death by a section of a steel plate. The month before, a worker in Houston died when a pallet carrying a one-ton load struck him. In Maryland, two bar joists fell off a stack of joists on a flatbed truck, killing a worker. The U.S. Occupational Safety and Health Administration reports that material handling accidents account for hundreds of thousands of injuries each year on construction sites. Safe material handling practices can prevent much needless suffering and also save contractors and their insurance companies millions of dollars in medical and disability benefit costs. These practices involve three distinct areas: Safe handling, safe storage and disposal. Safe handling of construction materials involves several measures, including:

  • Properly securing all materials that are stored in tiers. Pipes, steel beams, poles and other heavy materials can slide or tilt if they are not stacked and blocked adequately, allowing them to potentially fall on workers.
  • Keeping combustible and flammable materials in fire-resistant containers.
  • Determining and prominently posting the maximum safe load limits of floors where materials are stored, and taking care not to exceed those limits.
  • Maintaining clear and sound aisles and passageways for moving materials.
  • Constructing ramps or graded walkways between work areas on different levels to make accidents and spills less likely.

Improperly stored material can shift or topple over, causing potentially serious injuries. Sound storage practices required by OSHA include:

  • Stacking bricks in piles no more than seven feet high, with every layer above four feet tapered back two inches for every foot. While masonry blocks can be stacked in taller piles, but contractors should also taper the piles above the six foot mark.
  • Limiting stacks of lumber to 20 feet high (16 feet if workers will handle lumber without machines) in stable piles on level sills that provide good support. Prior to stacking, remove all used nails.
  • Keeping materials more than six feet from hoistways.
  • Not storing materials in floor openings.
  • Storing materials more than 10 feet from an exterior wall that is shorter than the top of the pile.
  • Not storing materials on scaffolds or runways unless the contractor is about to use them.

In the hurry to get the job done, workers often dispose of construction debris in unsafe ways, such as tossing pieces of lumber off the side of the building. This risks injury to anyone standing below. Contractors should follow these guidelines for proper waste disposal:

  • Remove all scrap, especially combustible materials, as it accumulates instead of letting it pile up. However, do not remove it until workers are certain that the people working over their heads are finished tossing it to the ground.
  • Use an enclosed chute to drop debris from the higher points of the building.
  • Barricade areas where workers will drop debris without using a chute.
  • Use separate containers for materials covered with oil or flammable liquids.

An insurance company’s loss control department may have resources available to assist contractors with improving material handling. Those who want this help should check with their agents to arrange a meeting. Sound material handling practices help prevent injuries, fines and penalties, and reduce workers’ compensation costs. They will also enhance the employer’s reputation with potential employees. Putting these safeguards into place makes both moral and practical sense.

CONSIDER SAFETY A TOP PRIORITY WHEN PLANNING WORKPLACE TEAM-BUILDING ACTIVITIES

By Workplace Safety

In recent years, team building has gained a foothold in corporate America as a fun and effective management tool. To be successful in the business world, employees must be able to effectively plan and execute programs as a team, communicate clearly, use resources efficiently, and be able to adapt to changing circumstances.

Team building is designed to do utilize these skills, in a fun environment. It can encourage out-of-the box thinking and enhance group dynamics, breaking down barriers that prevent employees from working together as a team. Activities foster decision-making, challenge resolution and leadership skills. Exercises can be designed to encourage individuals in a group to entrust their safety in one another or to experience the exhilaration of overcoming a physical challenge. Participants return to work infused with renewed vigor. The goal is to transfer the collaborative effort, positive energy and learning that take place during a team-building activity back into the workplace.

But team building can also be a risk manager’s nightmare when activities include dangerous physical elements. Companies must consider the risks involved in such hazardous activities. They can lead to an increase in the frequency and severity of employee injuries, leaving the company vulnerable to higher workers’ compensation costs – not to mention employee lawsuits.

If team-building activities are part of your company’s management philosophy for bringing employees together to work cohesively as a group, make certain that safety is part of the equation. Consultants brought in to design such programs should know your expectations and concerns and abide by them. A company in Miami that hired a consultant for team building found that a dozen or so of its 100 employees suffered 1st and 2nd degree burns when they were forced to engage in a firewalk. The consultant called the injury rate “acceptable.”

Activities such as white water rafting, rock climbing, and paintball might not be suitable for all employees. Besides the physical hazards, planners need to consider whether or not an activity might be embarrassing for some employees. An activity that requires participants to wear a bathing suit, for example, might make some employees self-conscious and inhibit their ability to fully engage in the collaborative effort.

To promote safe team building:

  • Include team-building activities as part of any formal risk management program.
  • Emphasize the need to exercise caution on the job and in any physical team-building exercise.
  • Define your needs clearly to management consultants, hired to design a team-building program.
  • Ensure team-building activities are properly supervised.
  • Stop any activity if an unsafe situation is observed.

Team building has an important place in business. Activities should focus on bringing employees together. Make team building a safe experience that everyone can participate in and enjoy.