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September 2017

Handling Construction Materials Safely

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.

Different Types of Artisan Contractor Insurance

By Construction Insurance Bulletin

As an artisan contractor, you have invested years in perfecting your craft. Protect your professional reputation, personal assets and business future with artisan contractor insurance.

Who is an Artisan Contractor?

An artisan contractor performs a single trade or job. Examples include:

  • Cabinet Installers
  • Drywall Installers
  • Electricians
  • HVAC Contractors
  • Interior Decorators
  • Landscapers
  • Masons
  • Painters
  • Paperhangers
  • Plumbers
  • Roofers
  • Tree Surgeons
  • Tile Setters

What is Artisan Contractor Insurance?

Insurance protects your business, your work and your assets whether you own an artisan business or work as an independent contractor. Because your needs may vary between projects, consider these common types of artisan contractor insurance coverage options.

Liability Insurance

Despite your skill, accidents happen on the job site and as you perform your duties. Liability insurance covers expenses if you are sued. A general liability or more specific liability policy can cover:

  • Property damage
  • Personal injury
  • Negligence
  • Products
  • Cyber liability and data breaches
  • Employment practices
  • Owners and contractors protection

Workers’ Compensation Insurance

As an artisan contractor business owner or a self-employed artisan contractor, you should purchase Workers’ Compensation coverage. It’s usually a requirement if you employ three or more employees, and some general contractors only hire independent artisan contractors who show proof of Workers’ Compensation. Check with your insurance agent for details.

Property Insurance

Your business premises are insured under a property insurance policy. This policy can include an office you own or any permanent additions or upgrades you make to a rented office or business property.

Floaters Insurance

The valuable machinery and equipment you own or install requires its own insurance. Purchase floaters insurance to cover items such as your hand or power tools and air conditioning units or wallpaper as you transport, install and test them. You can purchase this insurance for a single job or report each new contract to your insurance agent.

Business Vehicle Insurance

In most cases, your personal auto policy will not cover your business vehicle. A business vehicle insurance policy provides you with adequate coverage in case you’re involved in an accident or cause property damage while operating your work vehicle.

Umbrella Liability Insurance

While you may have adequate liability coverage in place, consider purchasing an umbrella liability policy that stretches your insurance coverage. It can provide up to $5 million in additional protection that protects your business and personal assets.

Artisan contractor insurance is essential. Be sure to talk to your agent about your specific needs. Then purchase a customized policy with adequate coverage that protects your business.

Types of Welders Insurance

By Construction Insurance Bulletin

Welders can use over 100 different processes to join or cut metal. As a welder, you work around hot metals and tools in a variety of hazardous locations. To protect yourself, your business and your personal assets, purchase welders insurance.

Types of Welders Insurance

Insurance for welders includes general liability and other options. Understand the types of welders insurance available to you as you select the coverage that meets your unique needs.

General Liability

General liability gives you a variety of protections. It also grows with your business as you expand services, land larger contracts or hire employees.

Bodily Injury

If a customer visits your shop and is burnt by a flying spark or touches hot metal, your bodily injury insurance will cover related medical expenses.

Medical Expense Limit

Customer injuries sometimes don’t require extensive medical treatment. Medical expense limit coverage pays for related injuries and allows you to avoid admitting any fault for the injury.

Property Damage

While welding a customer’s boat, sculpture or metal barn, you may damage it. Property damage insurance pays to repair the damages or replace the damaged property.

Products and Completed Operations Coverage

The welded products you create, manufacture or sell could injure a customer or cause someone to get sick. Products and completed operations insurance covers any related medical care.

Personal and Advertising Injury

Someone could claim that you stole their intellectual property or made false accusations or slanderous statements about them. Personal and advertising injury insurance covers lawsuits related to these charges.

Damage to Premises Rented to You

Many welders own their own shop, but you may occasionally need to rent work space. If you damage that space, you are responsible to pay for repairs. Rental damages liability coverage pays these expenses.

Business Owners Policy

Also known as BOP, a business owners policy is customizable coverage for your specific business. Options you can choose include:

  • Buildings and Contents for a stationary or mobile shop
  • Business Income and Extra Expense
  • Electronic Data
  • Employee Dishonesty Coverage for fraud or theft
  • Equipment Breakdown
  • Newly Acquired or Constructed Buildings

Business Auto Insurance

Cover the vehicle you use for work with your business auto insurance. It covers property damage and bodily injuries if you or an employee is involved in an auto accident while driving your business vehicle.

Workers’ Compensation Insurance

Protect your employees with Workers’ Compensation insurance. It pays for medical and other expenses if an employee suffers a work-related injury or illness. This insurance could also be required if you work as a self-employed, independent contractor.

Welders insurance protects your business and assets. Discuss your business needs with your insurance agent as you purchase adequate insurance coverage.

Workplace Fraud

By Your Employee Matters

A Report to the Nation on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners provides a wealth of valuable information for any company. According to the report: Organizations with fewer than 100 employees have a higher rate of fraud exposure to billing, check tampering, skimming, expense reimbursement, cash on hand, payroll, and larceny than their counterparts do.

Conversely, employers with more than 100 employees have a greater exposure to corruption and non-cash theft. The most common anti-fraud controls include audits, codes of conduct, management review, hotlines, and training.

Companies with 100 or more employees are almost twice as likely as smaller organizations to employ anti-fraud controls.

It generally takes some time to detect fraud. Financial statement fraud had a median duration of 27 months. Check-tampering, expense reimbursement, billing, and payroll scams 24 months; corruption, cash on hand, skimming, and larceny 18 months.

The list of fraud examples is instructive:

  1. Skimming a small percentage of cash payments or assets.
  2. Accepting payment from a customer, failing to record the sale and instead pocketing the money.
  3. Stealing cash and checks from daily receipts before they can be deposited into the bank.
  4. Creating a shell company and billing employer for services not actually rendered.
  5. Purchasing personal items and submitting invoices to employer for payment.
  6. Filing fraudulent expense reports for personal travel, nonexistent meals, etc.
  7. Stealing blank company checks, and making them out to themselves or an accomplice.
  8. Stealing outgoing checks to a vendor and depositing them into their own account.
  9. Claiming overtime for hours not worked.
  10. Adding ghost employees to the payroll.
  11. Fraudulently voiding a cash register sale and stealing the cash.
  12. Stealing inventory from a warehouse or storeroom.
  13. Stealing or misusing confidential customer financial information.

Nearly one in five frauds were exposed by tips from fellow workers. Many organizations provide employee-tip hotlines. Perhaps you should too. Click Here to read the report.

How To Address Work Complaints

By Your Employee Matters

Four of the most common work complaints include theft, harassment, discrimination and violence. Employees have the right and responsibility to report anything that affects health, safety or culture in the company. However, if these issues are handled improperly, your business could face serious consequences, including fines or penalties. Learn how to address work complaints the right way as you reduce liability and create a positive work environment.

Establish a protocol for reporting complaints.

Every employee should know how to report a complaint. It can be done in person, over the phone or online. Usually, these reports are filtered through the Human Resources department, but plan a reporting system that works best for you. Also, be sure employees have options that allow them to report to someone other than their direct supervisor.

Get full details.

The employee with the concern should fill out a complete written statement or form with details about the complaint. The form should include the:

  • Description of events
  • Names of the individuals involved, including witnesses
  • Times and dates of the incident/s
  • Other relevant details

Determine if you should formally investigate the incident.

While you must take all complaints seriously, an odor in the break room or an employee who doesn’t work well with others do not require formal investigations. You should investigate reports of theft, harassment, hostility or discrimination, though.

Investigate promptly.

Investigate complaints as soon as possible. Interview the complainant, the accused and witnesses, and gather supporting documents that substantiate the complaint, including memos, emails, photos or voicemails. If you are a party in the complaint, ask a neutral party from another department to oversee the investigation.

Insist on confidentiality.

The complainant, accused and witnesses should maintain confidentiality rather than spreading any details or rumors about the complaint. Also, remind them that they should not retaliate or tolerate any type of retaliation.

Conclude the investigation.

After you interview the relevant individuals and collect the documentation, notify the complainants that the issue is resolved. Share, too, if the complaint was substantiated or not.

Take appropriate action.

The complaint may warrant employee discipline, further training or referral to your employee assistance program. If so, recommend these steps and monitor the employees involved to ensure the incident does not happen again.

Hire a mediator.

In certain cases, you will need to hire a mediator. He or she will provide conflict resolution, training or other services that improve future interactions between employees.

All workplace complaints should be handled properly as you protect employees and your company. For more assistance, talk to your Human Resources manager.

Planning on Living Abroad?

By Employment Resources

Although living abroad for the next year is an exciting prospect, there is much to plan and consider. One aspect that’s often overlooked is extended medical treatment. Most people living abroad would want to return home for treatment and recovery and to be close to loved ones if they become critically ill. Many mistakenly assume that if a critical illness should arise, then their managed care plan would take care of things. This couldn’t be further from the case.

Your health insurance plan in the United States isn’t designed to cover you when you are out of the country for an extended stay. Medicare and Medicaid don’t offer any coverage for any medical expense that develops outside the United States. HMOs (Health Maintenance Organizations) generally will cover emergency room treatment wherever you are, but routine health coverage is offered through the state provider networks of your resident state. If you use a network doctor, PPOs (Preferred Provider Organizations) will cover a greater portion of the expense.

Some might turn to Travel insurance as a source of extended medical treatment coverage. This too isn’t quite the case. Yes, Travel insurance generally will provide you with a certain degree of coverage for illness and injury. The amount and extent of coverage is based on what plan you choose. However, the benefit period is usually only six months. So, if your trip is a year long, then you will only be covered for half of your stay and then be responsible for any incurred medical expenses thereafter.

Expatriate Health insurance, by its very name, should alert you that this might be the Health insurance you’re seeking. In Latin, “ex” means away from and “patria” means fatherland. This insurance is geared toward those who will be away from their home, especially stays that extend past six months. Expatriate Health insurance is specifically designed so that you don’t have the geographical limitations and restrictions to provider networks that you have in your managed care plan.

Coverage is often only half of the problem when trying to navigate a foreign health system. The Expatriate Health insurance will also help when dealing with language barriers, transportation to U.S. health care centers, and currency exchange.

Expatriate Health insurance plans are divided into two categories:

The first is the basic expatriate plan. This plan offers coverage for care in-hospital and in-patient, meaning it will cover areas such as a hospital stay, services from a number of medical providers, and ambulance transportation. Home health nursing care and emergency dental services are also usually covered. Enhancements to the basic plan, such as outpatient services, certain therapy services, and prescription drugs, may be purchased for an additional cost.

Many of the basic plans will also offer emergency medical evacuation coverage for an additional cost, which will transport you immediately from wherever you are to the nearest advanced medical treatment center in the event a medical emergency should arise. Most medical evacuation coverage will also include a return fare.

The second category is the Comprehensive Expatriate Health insurance plan. This is useful if you require more extensive medical coverage, such as for dietary, psychiatric, eyes, ears, chiropractic, osteopathy, rehabilitation, labor and delivery, and home nursing care needs. Certain prescription medications and diagnostic testing may be covered as well.

Like any health plan, expatriate coverage usually has certain exclusions and restrictions. Most carriers will generally not cover preexisting conditions; injuries from war, rioting, and terrorism; and those with hazardous occupations. In cases of preexisting conditions, certain carriers may underwrite it for an additional cost.

How to Classify Employees as Exempt or Nonexempt

By Employment Resources

Employees can be classified as exempt or nonexempt. This classification affects their paychecks, and a misclassification could cost your business thousands of dollars, so understand how to classify employees properly.

Who Determines Classification

The Fair Labor Standards Act (FLSA) oversees equal pay, overtime pay, child labor and record keeping standards for employees. This federal law establishes minimum wage and standard work week hours. It also determines an employee’s classification as exempt or nonexempt.

Exempt employees are exempt from minimum wage and overtime provisions of the FLSA law. They are not required to receive overtime pay when they work more than eight hours a day or on weekends or holidays.

The FLSA requires that employers pay nonexempt employees 1-1/2 times their normal pay rate for any overtime hour they work. This rate is based on a 40-hour workweek.

The Difference Between Exempt and Nonexempt Employees

According to the FLSA, there are several key differences between an exempt and nonexempt employee.

Exempt employees often work in white-collar jobs often as professionals, executives and administrators. Certain employees in sales, computer and retail industries also exempt. These employees meet certain FLSA tests regarding job responsibilities and duties. They’re also paid a certain minimum salary.

Nonexempt employees typically work in blue-collar careers. Examples include clerical, construction, maintenance and semiskilled workers such as laborers and technicians. Nonexempt employees are paid by the hour.

How to Determine Exempt Versus Nonexempt Status

The Department of Labor’s Wage and Hour Division has placed regulations on employee classification. They are based on an employee’s salary and duties, so use these guidelines as you properly classify your employees.

Salary

Exempt employees are typically paid a salary of at least $455 per week. Its total is not based on the employee’s performance or the number of days worked.

Duties

An employee’s duties rather than job title affect classification. Administrators, executives and professional employees are generally classified as exempt.

Consequences of an Employee Misclassification

Deciding if an employee is exempt or nonexempt can be tricky. You’ll want to classify your employees correctly, however, to comply with FLSA and avoid consequences.

As many as 280,000 employees were misclassified in 2016, resulting in the U.S. Department of Labor collecting back wages of over $266 million or an average of $950 per misclassified employee. The common violators worked in construction, food services and retail.

You, too, could face financial implications if you misclassify employees. You would have to pay back wages, fines, penalties and legal fees.

Classifying employees as exempt or nonexempt is important. It’s your legal obligation, and you owe it to your employees. For assistance, talk to your financial advisor.

Smart Work Habits to Help Your Legs, Back and Neck

By Employment Resources

After several hours of sitting at your work desk, it’s finally time for your break. The moment you stand up for your break, you realize that your legs are numb, stiff, or just won’t work. This is a common scenario experienced everyday by a variety of desk workers. Not that being devoted or working hard is a negative thing, but it can be detrimental to the body if smart work habits aren’t employed.

When workers become immersed in their work, it’s often hours before they even realize that they haven’t moved their lower extremities. This type of prolonged motionless work might seem like something that would increase productivity, but it can lead to an array of health problems, such as obesity and stress. The resulting problems actually make for a less productive employee.

Obviously, the first smart work habit is to get up and stretch the lower extremities and get blood flowing again. Ideally, workers should get up from their desk every hour for just a few minutes. This can be accomplished simply by walking to the water cooler, bathroom, copier, or such.

The computer is a key source of bad work ergonomics and negative impacts on the health of workers. Experts suggest that computer monitors be positioned directly in front of and arms-length away from workers. To minimize any eye strain from glares on a computer monitor, it should be tilted slightly downward. The worker can help minimize eye strain by blinking frequently to keep the eyes moist. It might be necessary to focus from a different angle, such as by slightly tilting the head upward.

Likewise, the computer keyboard should be placed directly in front of workers. It should be positioned at a comfortable distance. Try the computer at a sloped and flat position to see what feels more comfortable. It might also be helpful to rest and relax the palms when not typing.

Now that the computer and keyboard are positioned properly, workers should make sure that their own body is in good alignment. Make sure that the feet are flat on the floor and the back is supported. A lumbar support may be helpful to support the back. Stores that sell ergonomic office supplies will have work equipment, such as a chair with the lumbar support or a lumbar support insert, that’s been designed scientifically for comfort and ease of use.

Workers who take care of their body at work will feel better at work and at home. Even with the tiny amount of time lost to stretching and ensuring proper body mechanics and equipment positioning, this worker will also ultimately be more productive.

Nine Tips Teach You How To Ask For A Raise

By Employment Resources

You may believe you deserve a raise, but asking for more money can be uncomfortable, intimidating and risky. Nine tips teach you how to ask for a raise the right way.

Discover the value of your job.

Every job, including yours, has a value. Research the going rate at other companies for the responsibilities you perform. This figure helps you calculate a reasonable raise for your duties.

Consider your earning potential.

A variety of factors affect how much money you can make. Your education, credentials, number of years in the field and location play a role in your potential earnings.

Focus on the value you bring to the company.

Show your boss that you’re invaluable to the company. Have you increased sales by 20 percent in the last quarter or recently completed a certification course? Share specific accomplishments, relevant skills and everything you plan to do for your company in the future as you focus on your value to the company.

Put yourself in your boss’s shoes.

A boss who’s assertive will appreciate if you get to the point and boldly ask for more money while a boss who values data will want a chart that outlines your performance. Know your boss’s personality, interests and goals as you plan your raise request.

Schedule a face-to-face meeting.

A conversation about your raise should happen face-to-face, not over the phone or by the water cooler. Schedule a meeting to improve your chances of getting a yes.

Consider timing.

The best time to ask for a raise is after you’ve achieved a goal, solved a problem or mastered a challenge. Avoid asking for a raise after a big mistake or when your company is downsizing.

Ask before your performance review.

Typically, companies make compensation decisions before they schedule annual performance reviews. Try to plan your raise conversation several weeks in advance of your scheduled review to give your boss time to consider additional compensation.

Stay calm.

Maybe you do have financial pressures and desperately need a raise. However, you’re more likely to get what you want when you stay calm. Keep the meeting focused on how you help your company rather than how a raise will help you.

Be prepared to handle a “no.”

Despite following these tips, you may get a “no” from your boss. Decide if you’ll quit, ask for a raise in a few months or forget it. You can also ask for feedback that will help you get a raise in the future and request another meeting to revisit your raise.

Receive the compensation you want and deserve when you learn how to ask for a raise. It’s as easy as following these nine tips

5 Retirement Risks

By Life and Health

Retirement has always been a tough undertaking but in today’s tumultuous economy, it sometimes seems like an impossible task. There’s no question that countless risks go hand in hand with retirement. However, even during a recession, you can manage these risks. Here are the top five most common retirement risks and the best ways to deal with them:

Risk #1: Outliving Your Money. 

Running out of money is not only a scary prospect it’s also one of the biggest risks that all retirees and soon-to-be retirees face. In the retirement planning world, this is known as “longevity risk.” According to the Society of Actuaries (SOA), Americans are living longer, which means the risk of outliving their money is much higher.

The SOA estimates that the average life expectancy for 65-year-old Americans is 17 more years for men and 20 years for women. However, 30% of women and 20% of men aged 65 will live until they’re almost 90 years old. That means many people might live up to 25 years or longer after they retire.

How to deal with it: As long as you save up enough money for retirement, avoid overspending and invest wisely, you should be able to avoid this problem. You might also consider taking on a part-time job after retirement or even delaying retirement a while so you can earn income for a few more years.

It’s also critical for soon-to-be and current retirees to properly manage their assets. You might consider investing in payout annuities, managed payout plans or “longevity insurance” – an annuity that does not start paying benefits until an advanced age, such as 85. Many retirees also apply for a reverse mortgage to protect against longevity risk.

Risk #2: Skyrocketing Inflation. 

Unfortunately, none of us are immune to inflation – all retirees will be affected by it. The trouble is that the rate of inflation can be difficult to predict. According to the SOA, annual inflation in the U.S. varied from 1.1% to 8.9% from 1980 to 2007 quite a large range. However, the average inflation rate throughout these years was 3.5%. Based on that percentage, a product that cost $1 in 1980 cost $2.82 in 2007.

And the rate of inflation can have an even bigger impact on retirees, especially for things like health care an expense that becomes a growing portion of a retiree’s budget. As a matter of fact, studies show that health care represents only 5% of the average person’s budget before retirement, but it grows to 10% for retirees ages 65 to 74 and increases to 15% for retirees 75 and older. On top of that, health care expenses generally increase much more rapidly than other goods and services. According to the Bureau of Labor Statistics, the cost of medical care is nearly four times higher than it was in December 1982. In other words, health care that cost $100 in 1983 would now cost $387.

How to deal with it: To prepare for the effects of ever-growing inflation, the SOA says that retirees and soon-to-be retirees should invest in assets that grow in times of inflation, such as common stocks, inflation-indexed Treasury bonds (TIPS), inflation-indexed annuities, and commodities and natural resources. Retirees might also consider taking a “semi-retirement” for a couple of years before they officially retire so they don’t drain their retirement assets too soon.

Risk #3: Unpredictable Interest Rates. 

Although many consumers are thrilled about today’s low interest rates, retirees and soon-to-be-retirees aren’t too happy about it. That’s because when interest rates are low on both short and long-term investments, retirees might be forced to re-invest their money at lower rates. Plus, many soon-to-be retirees who are investing in fixed income will have to save more to build up a big enough retirement fund. While the SOA points out that government spending, inflation and business conditions all affect interest rates; it’s difficult to predict what the future holds.

How to deal with it: To manage the risk of interest rates, the SOA says retirees and would-be retirees could invest in immediate annuities, long-term bonds, mortgages or dividend-paying stocks.

Risk #4: Stock Market Fluctuations. 

Because it’s practically impossible to forecast what will happen to stocks, many retirees fall prey to major stock market losses. One major stock market downturn, and your nest egg could disappear in the blink of an eye.

How to deal with it: First of all, the SOA says retirees and older workers should limit their stock market exposure. If you do invest in the stock market, be sure to diversify your stocks and spread your money among different investment classes and individual securities. This will greatly decrease your risk. You might also consider investing in financial products that invest in stocks, but guarantee against the loss of principal, such as mutual funds.

Risk #5: Disappearing Retirement Funds. 

If your employer declares bankruptcy, what happens to your pension? If your annuity insurer becomes insolvent, where does that leave you? Many terrible things can happen to your retirement funds but there are ways to manage these risks.

How to deal with it: Before you invest your money do your homework. Find out your employer’s credit rating to determine if they might be at risk for bankruptcy. Look into your insurance company’s claims-paying ability rating. Of course, you are already protected from many of these risks. If your employer does go out of business, the Pension Benefit Guaranty Corp. will insure your defined-benefit pension plan (up to certain limits.) Annuity companies are covered by state insurance guaranty funds up to specified limits which means if the insurer becomes insolvent, the claims will still be paid.