Risk Management Bulletin

That Works has an extensive report and checklist about what’s known as the “contingent workforce.” This includes temporary employees, leased employees, and more. Here are some questions to consider in these relationships:

Who is responsible for what? — As with any arrangement, it’s important to study the contract. For example, if an employee isn’t working out, who should be responsible for firing them? Consider every aspect of managing personnel from hiring through performance management and retention to termination.

How much are you paying to outsource various HR functions? — Whether you’re outsourcing because you don’t have the time, expertise, or desire to do the job in house, you’ll have to pay for someone else to do it for you. What’s the competitive rate? What about the provider’s experience and results? Do your homework and interview at least a couple of providers and their clients before you choose one.

What is the provider’s hiring process? — They should be able to show it to you in writing. If they can’t, pick someone else. Make sure that the provider does proper skill testing, character assessments, background checks, extensive interviews, immigration checks and pre-hire physicals.

What references can the provider offer? — Don’t just ask for references, get the names of companies who have used the vendor during the past year. See if the vendor is willing to share this information and allow you to interview those companies. Ask “What will these companies tell us?” Then do Google research to see what comments you can find online. What’s the knowledge on board at the vendor? — How long has the person who does the hiring and staffing been doing their job? What are their credentials? Is there expertise on board to help you with any compliance concerns?

Does the agent carry the right insurance? — Depending on whose payroll is involved, the law requires employers to provide Workers Compensation benefits, as well as withholding unemployment and Social Security taxes, and more. If the temp or leasing agency treats their workers as independent contractors you could end up being in a heap of trouble.

Does the agency provide employees benefits? — Remember, if a worker walks and talks like your employee, they’re probably going to be considered your employee, whether they’re a sole employee or in a joint employer relationship. If an employee receives no benefits from the provider, you can easily face a hefty benefits claim down the road.

What about union activities? — To what extent has the agency been faced with unionization efforts? Your temporary workforce might be considered part of an existing bargaining unit and thus covered by your union contract. HR That Works members should view the extensive Contingent Worker Report and Checklist.

Winter weather often includes snow and ice, two hazards that can create dangerous conditions on your commercial property. Prepare to keep your employees and customers safe when you prep your property for winter snow and ice removal.

Inspect Lighting

The exterior, walkways and entrance lights on your property should be in good working order. Inspect them now to ensure the bulbs work and that they adequately illuminate your entire property.

Remove Debris

Leaves, branches and other debris on the ground can cause falls and slips, and this debris hinders snow and ice removal. Clear your property before winter weather arrives, and maintain ongoing clean-ups as needed so your property remains tidy and safe.

Prune Landscaping

Accumulating ice and snow can cause tree branches to bend and break, which affects safety on your property. Prune trees and bushes to prevent this hazard. Remember to trim bushes near walkways and the plow route, too.

Improve Water Drainage

Dangerous ice puddles can form in areas where water accumulates, so improve the water drainage around your property. A professional landscaper can help you prepare your sidewalks, parking lot and entire property for winter.

Prevent Slips and Falls

You are responsible to prevent slips and falls in every area of your commercial property. After you identify potential risks around the parking lot, walkways, entrances and steps, correct any issues. You may need to install rubber mats, secure handrails or fix sidewalks.

Examine the Roof

Because wet snow weighs heavily on your property’s roof, it can cause severe damage. Examine the roof to ensure it’s in good repair, and clear debris from the downspouts and drains. When snow storms start, clear the roof as often as necessary.

Prepare for a Power Loss

If ice or wind damages power lines, you could lose power, which affects the lighting and safety on your property. Purchase a generator, become familiar with how to use it properly and test it before you need it.

Stock Appropriate Equipment

Make a list of winter equipment you need to keep your property safe. Your list may include shovels, ice melter, flashlights and a snowblower.

Review Snow and Ice Removal Contracts

Before winter weather strikes, review your snow and ice removal contracts. The person or company you hire should be reliable, show proof of adequate insurance and be experienced with the proper techniques for removing snow and ice on your specific property.

This winter, you can maintain safety on your commercial property when you take these steps. Your insurance agent can also share invaluable tips with you and update your business insurance policies as you prepare your commercial property for winter weather.

Security should be one of your company’s top priorities as you protect your merchandise, equipment and technology. Consider 10 security tips that reduce your risk of break-ins.

• • Erect a Fence

    If possible, erect a security fence that allows visibility for neighbors and police but keeps intruders away from your building. A vertical iron bar fence or vinyl-coated chain link fence are two adequate options.

• • Trim Landscaping

    Bushes, shrubs and trees can hide burglars and give them access to the second story of your building. Remove unnecessary landscaping or trim it regularly as you improve security.

• • Remove Potential Access Points

    Trash receptacles, sheds, ladders and vehicles located near your building give burglars access to the roof and provide hiding spots. Remove these items away from your building as you eliminate potential access points.

• • Turn On Lights

    Lighting around the exterior of your building illuminates potential hiding places and entry points as it deters burglars. Use unbreakable mercury vapor lamps or cover the lights and power sources with vandal-proof covers. You may also turn on select interior lights after-hours and install motion sensors on strategic lights.

• • Buy an Alarm

    A full-building or strategic silent or audible alarm system connected to a remote monitoring station provides 24/7 protection. Post signs prominently around your building to advertise the alarm’s presence.

• • Install Locks

    Locks and padlocks secure exterior and interior entrances and interior doors. Use double-cylinder deadbolts with a one-inch throw, hardened steel insert, latch guard and removable cylinders. Hide serial numbers, too, so a burglar can’t make new keys for the locks.

• • Replace Doors

    The exterior and interior security doors throughout your building should be solid. Purchase metal-lined doors with metal crossbars, then pin the hinges. double-check that the jambs are solid, too.

• • Secure Windows

    Every window in your building must remain locked. Add burglar-resistant glass treatments such as a polyester security film, too. A glass break sensor alarm or metal grates add an extra layer of security.

• • Control Keys

    A master key system offers convenience for you and burglars, so consider distributing a limited number of master keys. You can also code keys, lock up extra keys when they’re not in use and implement a strict return policy. Change locks if you suspect a compromised key, too.

• • Create an Inventory

    Photograph and record the serial numbers of all your equipment, technology and over valuables. Also, clearly mark an ID number on equipment to deter burglars.

These 10 security tips can prevent break-ins at your commercial building. Be sure to update your commercial building insurance policy after you make these security improvements and reduce your risk.

Nuclear energy is the future of our energy needs both domestically and around the world. This atomic energy has been proven to be much more cost-effective over conventional methods of attaining energy. Essentially, nuclear power plants can cover more customers using less energy and it is considered environment-friendly.

The NRC (Nuclear Regulatory Committee) has available data on everything nuclear including consultants. Errors and Omissions insurance allows for protection against unknown mistakes. For everything Nuclear, the NRC has pages of information available. A registrant list can also be found for consultants in the NRC. There are many reports, documents and information within the NRC website to support errors and omissions insurance.

Nuclear Power Plant Consultants are pertinent personnel to plants. Consultants handle a variety of responsibilities including design, materials, analysis, vibration/seismic concerns, fracture mechanics and improvement processes. They are responsible for testing and troubleshooting. Along with the variety of jobs handled, consultants also have major accountabilities and obligations within the organization.

Nuclear Power Plant Consultants handle everything from engineering to a wide range of technical support services. Consultant jobs are crucial to running and maintaining the plant effectively and efficiently. Many engineers are involved in the daily operating procedures for Nuclear Power Plant Consultants.

Nuclear Power Plant Consultants are directly responsible for many of the daily functions. Being a consultant can be a stressful business. Mistakes, whether major or minor, made by the consultant, can become a financial disaster. The consultant is personally and financially responsible for any loss a nuclear power plant experiences if negligence is proven. For this reason, Nuclear Power Plant Consultant Errors and Omissions Insurance is a necessity for all consultants.

A claim in errors and omissions is not only financially devastating, it’s also time-consuming. The consultant is responsible for research, but Nuclear Power Plant Consultant Errors and Omissions Insurance would ease the financial burden. The Nuclear Power Plant Consultant Errors and Omissions Insurance gives consultant’s opportunities to service their clients without the added burdens. In a case where negligence on the consultant’s part is validated, the Consultants Insurance stabilizes the issues that arise. Nuclear Power Plant Consultant Errors and Omissions Insurance can handle all financial obligations for any errors the consultant makes. The Nuclear Power Plant Consultants Error and Omissions Insurance outweigh burdens of non-insurance.

Nuclear Power Plant Consultant Errors and Omissions Insurance is a necessity when protecting Consultants. Having this insurance can mean the difference between staying afloat when a mistake is made or a career-ender. It is financially responsible to have Nuclear Power Plant Consultant Errors and Omissions Insurance and not use it. Troubles and problems are never planned and when something happens it is better to be insured. Mistakes happen and are often unavoidable.

The NRC provides a multitude of information from nuclear power plants to errors and omissions for nuclear power plant consultants. Typographical, environment and infrastructure, administrative, project and technical information are only a few items errors and omissions insurance handles. Nuclear Power Plant Consultants cannot afford to overlook E&O insurance.

In your small business, you may use a variety of equipment, including tools, vehicles, excavators, computers, and landscaping tools. You can lease or buy this equipment. Because both options include risks, compare both options.

Benefits of Leasing

• • Save money right now. Equipment can cost hundreds of thousands of dollars upfront to purchase. A lease requires a smaller initial payment and eliminates interest charges. The payments are tax deductible, too, which reduces the item’s net cost.

• • Enjoy flexible lending terms. Maybe you have bad credit and can’t get a traditional loan. Most leasing companies offer flexible lending terms, giving you access to the equipment you need.

• • Easily upgrade. When your lease ends, upgrade to new equipment and its new technology right away instead of waiting until you save enough cash to buy an upgraded item.

Disadvantages of Leasing 

• • Pay more overall. Leasing and its fees generally cost more than buying in the long

• • Forego ownership. When you lease equipment, you don’t own it and can’t build equity, which is troublesome if your business primarily uses equipment that retains its value over time.

• • Fulfill the lease obligation. You must fulfill the entire lease term obligation even if you no longer need or use the item. Break the lease, and you’ll owe a large early termination fee.

Benefits of Buying 

• • Earn tax benefits. In the first year of ownership, you could deduct the full cost of the equipment you purchase. Talk to your accountant for details.

• • Take a depreciation deduction. You may be able to deduct depreciation on certain purchased assets.

• • Build equity. Because you own equipment, it counts toward your equity and can help you grow your business.

Disadvantages of Buying 

• • Spend more money initially. To buy new equipment, you need a large down payment which can deplete cash reserves. Buying could also limit your future purchasing ability until after you repay the loan.

• • Pay expensive financing fees. Purchase equipment with a loan, and you’ll pay interest on the balance at a rate as high as 20 percent per month, a significant cost over time.

• • Accumulate obsolete technology. Certain types of equipment become obsolete as new technology is introduced, and you could be stuck with unusable and unsellable equipment. Your business could also suffer if you can’t afford to upgrade to the new technology you need to operate.

Ultimately, the decision to lease or buy equipment depends on your business. Compare the benefits and disadvantages of leasing and buying as you choose the right option for you. Be sure to factor in the cost of insurance on the item, too, as you protect your investment and keep your business running economically.

I’m a big fan of using character assessment tools — and one of my favorites is www.zeroriskhr.com. My team and I are currently using their post-employment program to help improve our communication and make me a more effective boss. The folks at ZeroRisk reminded me that the employer’s goal is to match skills and natural abilities with job function. As the saying goes, “Put square pegs in square holes!”

To help reach this goal, consider how employee personalities can differ:

The point is: Match the personality to the job!

As a small business owner, you accept credit cards because it’s convenient for your customers and a smart business decision. You could be overpaying for your credit card processing privilege, though, which puts your business’s financial security at risk. Every month, evaluate your credit card processing statements and take six steps to avoid overpayment.

1. Check each statement carefully.

It’s tempting to glance at your credit card processing statement and simply toss it on the “to be paid” pile. You must take time to review it carefully, though. Look for data entry mistakes, incorrect charges or mislabeled transactions. If you’re not sure what to look for, review your merchant agreement or ask your accountant or CPA for assistance.

2. Look for details.

A statement that merely lists the amount of money you processed and the amount you owe is not detailed enough. You need to know that you’re being charged according to your agreement, so you should see the number and volume of transactions and the tiered, interchange plus or interchange with membership rate for each type of card you accept.

3. Note any lowered fees.

Maybe you notice that some fees have decreased since last month. The credit card processing company could have lowered the fees because of a debit rebate on your plan or as a way to keep your business. Be aware that lowered fees could include hidden charges that outweigh the savings.

4. Know the access fee.

Visa and MasterCard charge an access fee per transaction. While it’s typically less than two cents per transaction, your credit card processing company could boost the fee by several cents without notifying you. Depending on how many credit card transactions your process, even a small increase could cost you hundreds of dollars annually.  Always know the access fee and ensure it’s accurate on each statement.

5. Watch monthly and annual fees.

Your credit card processing company will charge various fees each month. If the statement, PCI, regulatory and other fees adds up to more than $300 per year, you could be paying too much for the service.

6. Evaluate your plan options.

Your small business may have outgrown the plan you picked when you signed your credit card processing contract. Review your credit card transaction history and sales. You may benefit from switching plans or even companies as you save money and accommodate your business’s needs.

Accepting credit card payments is wise for your small business, but you must know how to read your monthly credit card processing statements to reduce your risk of overpayment. Contact the credit card processing company with questions or ask your accountant or CPA for assistance.

Corrosives are solid or liquid substances that exact extreme caution when handling. They are usually either an acid, such as nitric acid, sulfuric acid, chromic acid, hydrochloric acid, hydrofluoric acid, or acetic acid, or a base, such as ammonium hydroxide, sodium hydroxide, or potassium hydroxide. Anyone that has ever seen the effects that corrosives have on metal or other strong materials can easily imagine the damage that a corrosive would do to the delicate human skin.

Adding to the danger is the fact that corrosives act upon contact, meaning that damage begins the moment that the corrosive or its vapors come into contact with the eyes, mouth, skin, digestive tract, or respiratory tract.

Injuries from coming into contact with corrosive materials might be extensive and, in some cases, irreversible. Keep in mind that the stronger the concentrate of the corrosive material is, the more damage it has the potential of doing. Some of the most common injuries that result from unprotected contact with corrosives are burns to the eyes and skin. The end result might be blindness or severe scarring of the skin tissues.

When the vapors from corrosive materials are inhaled, they might cause burning to the respiratory tract, pulmonary edema (the buildup of fluid around the lungs), or even death. Although less common, if ingested, the corrosive might cause extensive burning or perforation in the mouth, esophagus, and stomach.

Aside from the danger of corrosives coming into direct contact with the body, some are combustible or flammable. These substances can very easily explode or catch on fire if not properly stored and handled. One more danger comes from some corrosives being incompatible with other chemicals. When incompatible chemicals are mixed or accidentally come into contact with one another, the result can be a dangerous, sometimes deadly, chemical reaction. Again, the dangers of corrosive materials demand that they be treated with care, respect, and caution.

Any worker that handles any corrosive material should always protect themselves: 

In the event an accident does occur, immediately seek first aid for the injured. The area should be closed off to prevent subsequent injuries and the appropriate chain of command should be notified. Remember, it’s too late to be cautious once an accident occurs. It only takes one mistake to produce a costly, painful, disfiguring, and potentially deadly injury.

Your small business faces numerous risks every day. To protect your business, you need seven different insurance policies. Learn more about what they are and how they help you.

1. Professional Liability Insurance

A mistake, negligence or failure to perform can result in lost business or a lawsuit. Professional liability insurance covers your expenses in this instance. You can choose a customized policy based on your specific business and needs.

2. Property Insurance

The business space you own or lease should be insured with property insurance. It covers inventory, equipment, furniture, signs and other property if those items are damaged, lost, stolen or vandalized. Because your property insurance does not typically cover events like floods or earthquakes, consider purchasing separate policies for these events.

3. Workers’ Compensation Insurance

After you hire employees, you are responsible to provide Workers’ Compensation insurance for them. It covers medical payments, lost wages, job training and other expenses for any employees who are injured or become ill on the job. Work injuries and illnesses like carpal tunnel, back sprains or a temporary disability can be costly, so always carry this insurance as you care for your employees and protect your business.

4. Product Liability Insurance

Your business may manufacture a product and sell it. In this case, purchase product liability insurance. It covers liability if a customer is injured or becomes ill from your product. You can customize your policy based on the products you sell as you reduce your liability.

5. Vehicle Insurance

If you or an employee is involved in an accident while driving the company vehicle, your business is liable. You could owe thousands of dollars in property damage or medical payments. Fully insure all company vehicles. This way, you are covered in case an accident occurs.

6. Business Interruption Insurance

A disaster that interrupts your business can be expensive. You may lose sales, have to relocate temporarily or be responsible for extra expenses associated with keeping your business open during the restoration period. With business interruption insurance, you can cover expenses when normal business operations are interrupted. It’s particularly important if you operate a retail store.

7. Umbrella Insurance

Sometimes, your liability insurance is not enough to cover a claim filed against you or your business. In this case, you could lose your business as you cover your financial responsibility. An umbrella policy would cover the excess liability. It provides as much as $10 million in extra liability protection and can save your business.

The right insurance products help your business avoid significant financial losses that could potentially harm your small business. Ask your insurance agent to review your policies and ensure you are protected properly

In the recent case of In Re: the Compensation of Mary S. Sandberg, an Oregon court overruled the Workers Comp Board and held that a JC Penney decorator, who was allowed to work from home, was covered by her Workers Comp policy when she tripped over her dog unloading a van.

Because she could not safely store all of the items in the vehicle at one time, she stored the excess items in her home garage. Her employer instructed Sandberg not to store these excess products at the studio, but to keep them at her home or any other place where they would be safe and dry. Thus, she used her home garage to store samples that from time to time she would need to exchange with other samples and materials that she kept in her van.

On the Saturday before the date of injury, a sale collection had ended, with a new collection beginning the next day. Because of the fabric sale change, Sandberg needed to remove the “old” fabrics from her van and replace them with fabrics for the new sale that were being stored in her garage. She was walking out her back door toward the garage to change the fabrics when her foot came down and she “felt something move.” Noticing that her dog was underfoot, she shifted to her other foot, lost her balance, and fell, sustaining a right distal radius fracture.”

Sandberg also regularly performed some work tasks, such as preparing bids and other paperwork, in her home. The employer denied her claim for compensation for the injury, a decision approved by the administrative law judge (ALJ) affirmed the denial, as did the Workers Compensation board.

When Sandberg appealed this decision, the court ruled that:

“In order to be compensable under Oregon law, an injury must ‘aris[e] out of’ and occur ‘in the course of’ a claimant’s employment; ORS 656.005(7)(a). Because the board did not determine whether claimant’s injury occurred in the course of her employment, that issue is not before us. The only issue on review is whether claimant’s injury arose out of her employment. Thus, our focus is on whether claimant established a causal connection between her injury and her employment, that is, whether claimant’s injury resulted from a risk connected to either the nature of her work or her work environment. ….

“[O]nce it is established that the home premises are also the work premises * * *, it follows that the hazards of home premises encountered in connection with the performance of the work are also hazards of the employment. [Editors Note: such as a dog lying around.]

” * * * That the employee is a telecommuter or other home-based worker should not, in and of itself, make any difference. Was the risk of injury a risk of this employment? So long as the employment subjects the employee to the actual risk of injury, the argument follows that the injury should be compensable.

“Here, claimant was walking to her garage for the sole purpose of performing a work task. She fell while moving about an area in which she had to move about in order to perform the work task, given the conditions of her employment. Therefore, we conclude that claimant’s injury resulted from a risk of her work environment. As such, it arose out of her employment.”

The bottom line for employers: make sure that telecommuting employees have safe workplaces and proper insurance coverages. HR That Works Members should use the Home Based Worker Checklist.