Uncertainty in Energy Supply Could Spur Risks for Businesses

In the coming months, companies will face several risks as they are confronted with complex choices regarding energy supplies, and it is not only due to the severity of the BP oil spill in the Gulf of Mexico, according to a report by Lloyd of London and U.K. think tank Chatham house.

Supply chains in almost all industries are reliant on potentially vulnerable energy sources. The need to find new sources of energy could pose risks for the shipping industry as fuel prices increase and shipping routes become less easily navigable. Also, future weather-related events related to climate change could both cause an increase in shipping accidents and disrupt existing energy or water supplies, prompting political, economic and security risks.

Further, increased regulation on carbon emissions is likely. Companies that haven’t already considered the effect carbon policies could have on their operations must find ways to cost-effectively manage their carbon output and ready themselves for whatever changes future legislation may bring.

The Impact of Health Care Reform on Workers’ Compensation

Although occupational medicine was not a direct target of federal health care reform and is therefore left to the states, the passage of federal reform will certainly have a variety of consequences, both explicit and subtle, on workers’ compensation insurance over the next several years. While experts can only speculate whether these changes will ultimately be positive or negative regarding workers’ compensation for employers, there are several reasonable arguments that suggest a bit of both.

Obligatory insurance could mean that chronic diseases will be better controlled, decreasing the severity of work-related claims. Further, employees with insurance generally file fewer workers’ compensation claims, possibly implying that the reform will also decrease the total number of claims.

On the other hand, the increased volume of employees requiring treatment could lead to decreased availability of care, delays in workers’ compensation-related treatments and less willingness by providers to participate in occupational medical networks.

Other provisions of health care reform could affect workers’ compensation. The sizeable adjustments in Medicare reimbursement levels may pressure providers to shift costs – possibly signifying higher costs per claim as the changes begin to take their toll. The absence of the pre-existing care exclusion means less incentive for employees to claim that certain conditions are work-related, but greater demand on employers for workplace and job accommodations, a source of new exposures.

Whatever the ultimate impact of the reform, each employer will need to stay alert and work with an insurance professional to capture advantages and navigate legislation.

The Importance of Risk Management

A survey conducted last month by Travelers found that nearly 44 percent of small firms operate with no business continuity strategy to protect them in case of a disaster. Almost two-thirds revealed that they had not even spoken to their insurance agents about contingency planning. Small business owners preferred to focus on sales and marketing opportunities, the survey found, many spending less than 10 percent of their time on risk management.

Why is this worrisome? First, small businesses are more vulnerable to disaster because they lack the risk managers of larger firms and often gather information from a variety of sources.

Second, the expectations of the market have changed. Whereas 10 years ago a small company could reasonably expect to stay in business if it suffered a disaster and closed for a week or even a month, today such a closure could become permanent. By the time a business gets up and running after a disaster, the customers may no longer be there.

Third, small businesses are often dependent on their community as opposed to larger firms, which can often transfer their operations to a different location should they become unable to operate in a specific area. Even smaller losses can significantly affect revenue and put a small business’s future on the line.

What can a small business do today to protect itself from these sizable risks? Speaking with your insurance professional about creating a business continuity plan, which helps keep your business running smoothly even in the event of a disaster, is a good start.

Having a solid understand of the hazards your business faces, ranging from the risk of natural disasters to that of lawsuits, allows you to make educated decisions about preventing and dealing with those risks. Insurance professionals are a key resource for this information and guidance.

Beware of the Silent Killer: CO is on the Loose!

Carbon monoxide, or CO, is a colorless, odorless, toxic gas, whose dangers can strike without warning. Though it is non-irritating, exposure to CO is deadly. According to the Consumer Product Safety Commission, 200 people die and several thousand seek treatment for CO poisoning each year.

CO is produced when gas furnaces, ranges and water heaters are not installed properly, which allow high levels to escape into the air. Individuals who work with gasoline-powered tools and generators may also be exposed to dangerous levels of CO.

While using this type of equipment at work:
• Use machines outdoors only
• Opt for tools powered by electricity or compressed air instead of gas, when possible
• Make sure there is three to four feet of clear space on all sides of the machine you are using

In addition to these precautions, you should also look out for CO poisoning symptoms, which often mask themselves as the flu or food poisoning. Despite this, if you feel dizzy, drowsy, nauseated, have tightness across the chest or vomit while working with gas-powered tools, you should be concerned. If you're at work, notify your supervisor, get fresh air immediately and seek medical attention, if necessary.

Employee Count Down... Claims Count Up!

According to a recent study by data integration company OCI, fewer employees do not always translate to fewer medical claims and lower costs. In fact, the large-scale staff reduction across most companies in the wake of the economic crisis caused a spike in the number of high-risk, high-cost claims for many affected businesses.

Downsizing and turning to a younger workforce to save on salary costs and medical claims seems to be the norm, but it is not necessarily the right solution for every business. In addition to the OCI study, the National Council on Compensation Insurance (NCCI) has also found that making cuts in staff causes a spike in claims from remaining employees.

This phenomenon may occur in part because remaining workers must take on more duties to complete their work in addition to the responsibilities formerly belonging to others, leading to increased stress. It also could be because remaining workers feel more pressure to perform well for fear of being laid off, pushing themselves to unsafe limits.

However, both OCI and NCCI suggest that one of the biggest reasons for this inverse relationship is that remaining workers have been suffering injuries, often times long-term, and are afraid of missing the opportunity to file a claim if they get laid off.

To combat this issue, work closely with CLG Insurance to develop programs that will help mitigate costs and eliminate risks in the workplace that may result from staff deduction.

What to do in the event of an auto accident

Auto accidents are unexpected and even the most careful drivers can be involved in one. One of the easiest ways to save on auto insurance costs is by being informed yourself and training your employees how to properly engage in claim filing procedures and respond correctly to an incident. Use these simple auto insurance tips to to save money when you are involved in an accident or when you file a property claim.

• Stay as calm as possible.
• Check for injuries. Life and health are more important than damage to vehicles. When in doubt, call an ambulance.
• If the accident is minor and there are no serious injuries, move the vehicle to a safe place, rather than risk being in moving traffic.
• Turn on hazard lights. If warranted, and possible, use cones, warning triangles or flares for safety.
• Call the police, even if the accident is minor.
• Notify your insurance agent about the accident immediately.
• Don't sign any document unless it is for the police or your insurance company.
• Don’t assume an accident is harmless if there is not much visible damage. Always gather the necessary information from the other driver, let a professional mechanic assess the damage and allow insurance companies to determine who was at fault.
• Document the scene of the accident carefully and accurately, including photographs or hand-drawn diagrams when a camera is unavailable.
• Do not apologize to the other driver, as this translates into you admitting fault. This will place the liability on you and could lead to higher premiums.
• For property claims, do not try to fix the damage yourself unless not doing so will cause more damage. Wait until your insurance company assesses the situation to get an accurate cost estimate.
• Be sure to document all of your company’s property, including electronic equipment, furniture and anything else that would require replacement in the event of catastrophic damage. In the event of a claim, this makes it easier to support your claim.

Print this out and keep in your vehicle's glove compartment and give copies of it to your employees to refer to in case of an accident.

Drive safely.

Take Control of Workplace Stress

Job stress is a very common health complaint, ranking above financial troubles and family problems, according to the National Institute of Occupational Safety and Health. Many experience stress due to heavy workloads, pressure to perform, excessive travel and conflicts with co-workers.

Though some daily stress is common, excessive stress can contribute to insomnia, anxiety, depression, short temper, headache, and stomach and back problems. These symptoms can eventually lead to more serious problems, so try the following tips to help keep your workplace stress under control:

• Set realistic deadlines and plan ahead
• Break larger tasks into smaller, manageable steps
• Think things through before you act
• Keep the end goal in mind
• Search for alternative ways of doing things, which may save you time
• Use all available resources to assist you
• Take periodic breaks to clear your head and de-stress
• Debrief from the day: talk about how you’re feeling and possible stress-relieving techniques with someone close to you

DID YOU KNOW?
A belly laugh is actually a good stress reliever! It stops the flow of stress hormones triggered by your “fight or flight” response.

There's No "I" in Team

You’ve probably already heard the familiar phrase “there’s no ‘I’ in team,” perhaps back in grade school. Well, this lesson does not stop at age 10—it is just as important to work as a team in a workplace setting as it was back then.

It is even more crucial to act as a united front when it concerns workplace safety. A staff that pulls together can safely accomplish whatever they set out to do. To be a team player:

 Ask for assistance. By seeking help from others, you are reducing the risk of accidents by not trying to do something on your own.
 Identify potential problem areas with your co-workers and discuss them with your supervisor. You and your co-workers may be able to better identify safety hazards in your daily tasks.
 Look out for other co-workers at all times and they will do the same for you.
 Analyze near-accidents carefully so similar incidents do not occur in the future.
 Share your concerns and suggestions with coworkers and your supervisor, and encourage others to do the same.

Whether it is aimed at workplace safety or just getting the job done, teamwork is what makes companies successful, competent and safe.

Contractors Face More Stringent Safe-Lead Work Practices

In 2008, the U.S. Environmental Protection Agency (EPA) released stricter regulations for those performing work on buildings with lead-based paint. All parts of the final rule officially went into effect April 22, 2010.

The rule, called the Renovation, Repair and Painting Program, was developed to prevent lead poisoning among employees, supervisors and building inhabitants.

Those affected by the regulations are paid renovators working in pre-1978 housing and child-occupied facilities. This includes:
- Renovation contractors
- Maintenance workers in multi-family housing
- Painters and other specialty trades

While the EPA has been slowly rolling out this program since its inception in 2008, the final step in implementation requires that all renovations in pre-1978 housing and child-occupied facilities be completed by a certified renovation firm that uses workers with accredited training and that follows all work practices of the final rule.

To ensure compliance with EPA regulations, contractors, property managers and maintenance personnel should consult this handbook.

Navigate the Liabilities of Job Interviewing

In a turbulent economy, it is important for employers to take every precaution to avoid costly lawsuits down the road. Some experts say that cases against employers on the rise and that nearly three out of five companies will be sued by an employee at some time. The hiring process opens up liabilities that require careful planning, training and attention to avoid.

The most important assurance for employers against claims made by potential employees is employment practices liability insurance. This type of coverage protects against discrimination, wrongful termination, sexual harassment and other employment-related claims.

Just as important as purchasing coverage to protect your company is asking the right kinds of questions during the interview process. While it is important to screen employees to find the right fit for your business, certain questions could expose the company to unforeseen costs and potential liabilities.

As a rule of thumb, train your staff to stay away from questions that directly relate to any of the common employment practices liability suits. Anything that could lead to discrimination accusations should be off limits.

Remember that warning candidates that their answers will not be used against them or telling them they do not have to answer does not count as proper liability coverage. Below are some examples of questions that you should avoid to protect your company’s bottom line in the long run:

- Are you planning on having children/are you pregnant?
- Have you ever been arrested?
- Have you ever declared bankruptcy?
- What is your ethnic background?

Motor Carriers Gain Access to Complete Driver Records Pre-Hire

In mid-May, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced the launch of the new Pre-Employment Screening Program for commercial motor carriers.

The new program will allow commercial motor carrier companies to access all records related to a driver’s past inspections and crash records electronically. This includes performance data, compliance reviews, inspection reviews, enforcement data, state-reported crashes and motor carrier census data. It will allow carriers to view these records as part of the hiring process, therefore leading to more informed hiring choices and making the roads safer for all drivers.

This FMCSA program gives employers access to the past five years of driver crash data and three years of inspection data across all 50 states and regardless of the carrier’s jurisdiction. Data will be updated on a monthly basis and is populated by the agency’s Motor Carrier Management Information System.

Carriers will be required to pay a $100 subscription fee for the service annually in addition to $10 for each requested driver history. Smaller carriers may qualify for price discounts. Individual drivers will also be able to access their own records under the program for a $10 fee.

For more information about the initiative and for a list of frequently asked questions, access the official FMCSA Pre-Employment Screening program website at www.psp.fmcsa.dot.gov.

Our first blog post.

Hello everyone. We are very excited to launch our blog here. Our goal is to provide helpful and informative posts that meet the needs of our customers as well as anyone interested in insurance products and services.

We look forward to your comments and feedback.