Risky Business

TO RECORD OR NOT TO RECORD? WHAT ARE THE OSHA REQUIREMENTS?

2008-12-15T15:49:00.002-05:00

I am often asked to clarify what should be included on the OSHA 300 logs. I am frequently asked to explain or clarify the OSHA standards so I thought it would be helpful to provide a brief summary of the requirements.

Workplace related injuries should be recorded on OSHA 300 logs. When is an injury or illness considered to be work related?

OSHA states that, "An injury or illness is considered to be work-related if an event or exposure in the work environment caused or contributed to the condition or significantly aggravated a pre-exisiting condition. The work environment includes the establishment and other locations where one or more employees or are present as a condition of their employment." Keep in mind that this does not include travel to and from the workplace as the employer does not have any control over road conditions.

Which work related injuries and illnesses should you record?

OSHA states that work related injuries or illnesses that result in the following should be recorded:
• Death
• Loss of consciousness
• Days away from work
• Restricted work activity (light duty) or job transfer
• Medical treatment beyond first aid
• Any injury or illness diagnosed by a physician or licensed health care professional. This includes any work related cases involving cancer, chronic irreversible disease, a fracture or cracked bone or a punctured ear drum. See 29 CFR 1904.7
• Any needle stick or cut from a sharp object that is contaminated with another person's blood or infectious material
• TB infection
• Hearing test that reveals the employee has experienced a Standard Threshold Shift in one or both ears

The OSHA record keeping regulation is 29 CFR 1904. Here is a link to the OSHA Record keeping site. The site provides a wide variety of helpful information such as the actual regulation document, necessary forms, Q & A sheets, etc. http://www.osha.gov/recordkeeping/index.html

Use this link to open the pdf version of the OSHA 300 logs and an easy explanation of how to complete the forms. www.osha.gov/recordkeeping/new-osha300form1-1-04.pdf

Your Consolidated agent can also set you up on our loss control and safety website tailored specifically for your organization. Included in this password protected website is a digital OSHA 300 log which will allow you to print off OSHA approved reports by injury type, location, and class of employee. Just give us a call and our trainer will get you up and going in minutes.

Make it your New Year’s resolution to get your OSHA reporting records in great shape!

STOLEN LAPTOPS

2008-11-17T16:10:00.004-05:00

Law enforcement agencies are reporting a recent uptick in the number of lost or stolen laptop computers. It's not clear yet whether this is a random fluctuation, a consequence of the troubled economy or something else but it is a disturbing trend.
Laptop computers represent one of most significant information risks for any company because of the sheer volume of confidential information that they can hold. Worse, even if you don't think you've ever saved a confidential document onto your computer, the computer will almost certainly have the access credentials needed to access information that is centrally held. One stolen laptop can put all of your data at risk. In those situations, the state-level breach disclosure laws put the burden on the breached company to show that their information was not compromised. When in doubt, the company must disclose. So unless you know positively what information got stolen, you might have to assume that all of it was and notify everyone in your database. Thousands of notifications, leading to lawsuits, wasted time, panicked customers and, most seriously, a loss of trust with your customers.
For most companies, there are two thin lines that protect your customer information.
One is each individual employee's practice of protecting the computer itself. The vast majority of laptop thefts are crimes of opportunity so don't give the criminal the opportunity. Have a policy that requires your staff to keep their laptops locked up at night. If leaving the computer at the office, put it in a desk drawer or cabinet - out of sight, out of mind. Don't assume that the door lock will be sufficient to keep the thieves out. If your staff are taking the computer home, make sure they know to either bring it in with them or lock the computer in the trunk if they have to stop on the way. Never let the computers be left exposed.
The second line of defense is encryption. Scrambling your data can provide protection in case the unthinkable happens. That encryption, however, is no stronger than the key used to unlock it. For many companies, the encryption is based on a password (often the same password used to log onto the computer in the morning). Always pick a strong password. Don't just pick a word, capitalize the first letter and add some numbers at the end. This is a natural tendency for english-speakers and the hackers know it. They optimize their cracking routines to break passwords in this pattern and will crack them in mere minutes. Use whole sentences instead. Whole sentences are easy to remember but far harder to break.
And never, never, never write down your password and leave it with the device you are trying to protect. That would be like buying a $3000 security door for your home, then leaving the key in the lock. You'd never be that careless at home. Don't let people be careless at work, either.
If you have a laptop, protect it. Even one loss is too many.

DOES THE GOVERNMENT'S TAKEOVER OF AIG MEAN THAT I SHOULD BE CONCERNED ABOUT THE STRENGH OF MY INSURER?

2008-10-06T10:37:00.002-04:00

It’s certainly been an interesting last two weeks reading the increasingly gloomy news about the credit crises and the government bailout of some of our most venerable financial institutions. Certainly one of the big surprises was the federal government's action to take an 80% stake in AIG, one of the world’s largest insurance companies. As a business owner you may have been wondering about the solvency and strength of your own insurance company(s). Insurance risk transfer is a major component of your risk management program, and solvency of your insurer is sometimes taken for granted. So let’s look at the AIG situation and see what it means to the broader insurance marketplace.

First of all, AIG is a major player in more than just insurance. They are a leader in the marketplace for derivative financial products such as credit default swaps and other complex financial instruments not regulated by the Feds or state insurance departments. Their traditional insurance products are still a profitable venture for them. Most traditional property and casualty insurance companies are not involved in these highly speculative risky instruments of credit. Regulation is the key issue. An insurance company’s solvency is monitored by several sources. State insurance departments regulate insurers and classify them as either Admitted or Non- Admitted insurers. Admitted insurers are licensed by the states, pay state premium taxes, and are backed up by state guarantee funds which agree to pay claims according to state law to the customers of insolvent insurers. A Non-admitted company is not licensed, and its customers are not protected by the state guarantee fund. It is very important that you and your agent/broker are aware and have discussed what if any part of your insurance program is provided by Non-admitted insurers.

Second, there are rating agencies such as BESTS who regularly monitor and report financial strength ratings for each insurer. These ratings are available to your agent/broker, to the public on the internet, and on the reports to stockholders. Again, you and your agent/broker should make this a part of your regular review of your insurance risk transfer program. Your agent/broker should help you monitor the financial status of your insurance company.

Finally, there is the question of what affect the fall of stock and bond prices in the market will have on insurers’ solvency. Even though most traditional insurers, life, health, and property casualty, don’t deal with high risk derivative financial products, their asset base of investments has a lot to do with the profitability and ability to provide insurance protection. Just like banks, the more assets they have the more insurance they can underwrite. It remains to be seen whether there will be a tightening in the supply of insurance in the coming year which could drive up insurance pricing. We will monitor that and keep you apprised of developments.

The ABC's of Indemnity and Hold Harmless Agreements

2008-09-02T10:27:00.009-04:00

As I sit here at my desk this first workday of September, I see definite signs of fall in the air. I’m rededicated to getting back to Risky Business and sharing some loss control and safety issues with you. One of the topics that a reader asked me to delve into was the topic of indemnity agreements and additional insured endorsements. Whether your business relies on outside vendors to provide goods and services, or you’re a provider of goods and services to your clients, you should be aware of how to take contractual precautions to protect your business against potential losses or damages. An indemnity agreement secured by an additional insured endorsement is a risk-transfer tool that can help insulate your business from potential risks.

It is a common practice to enter into contractual agreements with those involved in a project to formalize the terms and responsibilities for all parties. These contracts often include an indemnity agreement, also known as a hold harmless agreement, as a means to transfer the risk of future losses or damages from one party to another.

There are basically three kinds of indemnity or hold harmless clauses typically contained in contracts.
1. Limited - obligates the indemnitor (the party paying compensation) to hold harmless the indemnitee (the party receiving compensation) only for the indemnitor’s own negligence.
2. Intermediate - obligates the indemnitor to hold harmless the indemnitee for all liability except that which arises out of the indemnitee’s sole negligence.
3. Broad form - obligates the indemnitor to hold harmless for all liabilities, including the indemnitee’s negligence. (Considered unenforceable in Ohio)

To support the terms of the indemnity agreement, the contract will often include insurance requirements. These spell out the insurance required by the various parties entering into the contract. It is common for one party to include another as an additional insured under its Commercial General Liability (CGL) policy. For example, owners or general contractors of construction projects commonly require those who are actively involved in the project operations, such as subcontractors, to sign a contract and name them as an additional insured on their CGL policy to limit their liability for damages caused by the subcontractor.

Carefully review the indemnity agreement prior to finalizing the contract to determine the extent of your company’s liability. Once the scope is understood, you may want to negotiate the terms to limit your exposure. The application and enforcement of an indemnification agreement does, however, depend upon the statutory and common law of the jurisdiction in which enforcement is sought.

Additional Insured Status
When reviewing the insurance requirements section of a contract, pay particular attention to the additional insured requirements. There are numerous additional insured endorsements. The specific additional insured endorsement, required in the contract, must be reviewed in order to determine the scope of coverage. Contact your Consolidated Insurance agent to obtain sample endorsement wording.

The Insurance Services Office (ISO) released new additional insured endorsements in 2004. The intent of the endorsements is to provide liability coverage for additional insureds (typically the general contractor or project owner) with respect to damages caused by the named insured (subcontractor). The endorsements do not provide coverage for the additional insured’s sole negligence, but they can provide coverage for the additional insured’s contributory negligence. Make sure that the actual additional insured endorsement satisfies contract requirements.

Understanding Your Coverage
Understanding the terms of the contract, the extent of liability assumed in the indemnity agreement, and the insurance requirements—including the coverage provided or afforded by the additional insured endorsement—are critical to minimizing future liabilities and exposure to losses.

Keep in mind, the liability assumed in the indemnification agreement of the contract can be broader than the coverage provided under the additional insured endorsement. A comparison of the two should be done to determine what is covered by insurance and what is not.

Many businesses choose to transfer or accept risk through contracts, purchase orders and lease agreements. However, not all contracts or endorsements are created equal. Contact us at 937-3995500 to learn more about contractual risk transfer and how it can be a part of your overall risk management program.

YOU’RE A VOLUNTEER BOARD MEMBER: WHAT ARE YOUR RISKS?

2008-07-28T08:00:00.001-04:00

Most business executives and managers are from time to time asked to participate as a volunteer board member of a local or state association non-profit. It’s considered a civic duty and an honor to participate in these boards. But seldom do the board members consider their personal risks by being on these boards. Even though state law in Ohio reduces the degree of responsibility (fiduciary liability) for volunteers of non-profits, there still are statutory risks inherent in these activities. That’s where non-profit Directors & Officers Liability Insurance comes into play. One of the first questions you should ask when approached to serve on a non-profit board is “do you carry D&O insurance, and if so, in what limits? Do you have a contractual responsiblility in your by-laws to reimburse your board members for personal financial loss?"

To help you understand more about this subject and to provide you with some suggestions on how to minimize and control your exposure, please link to an article on this subject at:

http://consolidated-ins.com/images/stories/docs/protection%20for%20nonprofit%20organizations.pdf

It might be helpful to your fellow non-profit board and executive directors to share this article with them and have them audit their procedures and decision making processes. Hopefully this will be an effective way to reducing your exposure to personal loss as a volunteer.

WILL THOSE SKIPPED COFFEE BREAKS BY YOUR EMPLOYEE LEAD YOU TO THE COURTHOUSE STEPS?

2008-07-07T08:00:00.002-04:00

Maybe you haven’t noticed but there’s been an explosion in wage-and-hour lawsuits in the last few years against employers, especially in class actions. According to AIG Insurance the largest number of class actions coming in every insurer’s door is FLSA claims (Fair Labor Standards Act). These actions can range from missed employee meal breaks to improper classification of employees as exempt from overtime pay. The Chicago law firm of Seyfarth Shaw, which defends employment cases, reports that FLSA collective actions pursued in federal court produced more rulings last year than either actions of discrimination or actions under the ERISA act. Defense costs can reach as high as $3 million when brought as collective actions. Just this morning in the Springfield News/Sun an article states that Wal-Mart was ordered by a federal court yesterday to pay 6.5 million in damages and 2 billion in punitive damages for failing to pay overtime per FLSA standards. But smaller companies run the risk of being hit with wage-and-hour lawsuits. All you need is one employee. A car wash in New York paid over $700,000 in a wage-and-hours dispute.

Can you look to your Employment Practices Liability insurance coverage to provide defense and judgment coverage? Probably not! All policies that we have reviewed exclude coverage for these claims. A few are providing a sublimit of $100,000 for defense only of wage-and-hour lawsuits, but still not coverage for judgments. So as a prudent business owner or HR specialist what can you do to prevent, avoid, or reduce your exposure? First and foremost, education. Work with your legal representatives and make sure your HR staff is up to date on FLSA regulations. In 2004 the Department of Labor updated the FLSA by changing the way employers should determine overtime exemptions and raising salary thresholds of exempt employees. Some believe the intent was to decrease the number of DOL actions, but with the publicity of these changes, they rang a bell for the plaintiffs bar, substantially increasing the lawyer’s interest in wage-and-hour suits. The risk of not being up to date on these regulations could lead to serious consequences.

MANAGING WORKPLACE STRESS

2008-06-09T08:00:00.001-04:00

For this issue of RISKY BUSINESS we thought it might be a good idea to talk about a subject that we deal with almost every waking minute and is a major factor in the degree of risk we face in our personal and business lives. Stress is a part of our everyday life. It can be a motivator but it can also be destructive if not managed to be constructive. As managers we tend to take stress for granted and ignore warning signs that can lead to reduced productivity and greater risk of accidents. Following are considerations to think about when recognizing and managing stress:

Financial

Stressed employees take more sick days and file more disability claims than contented employees.

Disgruntled employees often quit after extensive investment has been made in their training, and another person has to be trained in their place.

Job stress can result in decreased productivity.

Errors made by stressed workers can result in faulty products that cannot be sold, or worse, that fail after the sale, which can lead to lost business, lawsuits, etc.

Emotional

Stressed workers may become depressed or angry.

Alcohol or drug use increases as self-medication for distress, which in turn creates more problems.

Safety

People who are overly stressed are less attentive and can accidentally damage equipment or injure themselves or others.

At the extreme, stress can lead to violence, and management or co-workers can be hurt or killed.

Early warning signs of job stress in employees

Headache

Sleep disturbances

Difficulty in concentrating

Short temper

Upset stomach

Job dissatisfaction

Low morale

Primary causes of job stress for employees

Individual's response

Working conditions

Job conditions that can lead to stress for employees

Task design

Management style

Interpersonal relationships

Work roles

Career concerns

Environmental conditions

Strategies for stress management and reduction

Establish an employee recognition program for rewarding good work performance

Provide opportunities for career development

Promote an organizational culture that values the individual worker

Ensure management actions are consistent with organizational values

Provide stress-management training and an Employee Assistance Plan (EAP)

Look for ways to improve working conditions

For an excellent hand out piece/bulletin board article for employees on how to manage their stress go to:

http://consolidated-ins.com/images/stories/docs/managing%20workplace%20stress.pdf

DO YOU HAVE EMPLOYEES WHO EVER TRAVEL IN OR WORK IN KY? IF SO, YOU MAY BE IN VIOLATION OF KY WORKERS COMP LAWS.

2008-05-12T08:00:00.002-04:00

Many Ohio employers do some business in the state of Kentucky, whether it is construction work or having sales representatives calling on Ky. businesses. A common misunderstanding is that so long as an Ohio employee is covered under an Ohio Workers Compensation policy and has signed form C-110, election to be insured by Ohio Workers Compensation while out of Ohio, you are in compliance with the statues in the visiting state. In the case of Kentucky that is not the case. We contacted the Enforcement Branch of the Office of Workers Claims in Frankfort, Ky. And received the following response to the question of whether it is necessary to carry a separate Ky. WC policy: "The Kentucky workers comp statute requires Kentucky coverage for any work done in this state regardless of the length of time. With regards to Ohio a separate policy would be required. Kentucky courts cannot enforce the C-110's. An injured worker from Ohio or any other state can still file a claim and be awarded benefits in Kentucky." In response to our follow-up question about the necessity for coverage on salespersons that travel in the state calling on customers but not doing any other work, their response was: "We would require coverage on the salesperson making business calls in the state."
Although it may sound farfetched to think that a salesperson traveling in the state would incur a WC claim, an auto accident while on company business would probably fall within the requirements of the Ky statutes.

We recommend that you contact your insurance agent to discuss any exposure you might have to the Kentucky law or the laws of any other states in which your employees do business. Are you in compliance?

PREVENTING WORKPLACE VIOLENCE

2008-04-28T09:00:00.002-04:00

Special Request: We need a little feedback from our friends. Please take a minute to respond to the survey on the right margin telling us if you are finding any value in this safety and loss control blog. Your answers are anonymous and will help us evaluate whether to continue this blog or not. Thanks in advance for your help.

Editor

While everyone's goal is to provide a safe workplace for employees, violence in the workplace is a serious safety and health issue. It can occur inside or outside the workplace, and can range from threats and verbal abuse to physical assaults and homicide. In fact, according to the United States Department of Labor, workplace violence is the fourth-leading cause of fatal occupational injury in our country.

Violence in the workplace can happen anywhere, and no one is immune. Through a Workplace Violence Prevention Program, you should clearly state that management doesn't tolerate threats, bullying, harassment or any other form of workplace violence. Here are some tips to help everyone identify workplace violence and how to stay safe.

Identifying Your Risk

Workplace violence can include actions or words that endanger or harm you, or result in other workers believing they may be in danger, including:

Verbal or physical harassment.

Verbal or physical threats.

Assaults or other violence.

Any other behavior that causes you to feel unsafe, like bullying or sexual harassment.

Staying Safe

Nothing can guarantee you will not become a victim of workplace violence, but you do have the right to expect a workplace that promotes safety from violence, threats and harassment. To contribute to the safety measures and other efforts you have in place, you can also actively contribute to reduce your odds of experiencing violence in the workplace as follows:

Become aware of and report violent or threatening behavior by co-workers or other warning signs.

Take all threats seriously.

Follow procedures established by our Workplace Violence Prevention Program, including those for reporting incidents.

Learn how to recognize, avoid or diffuse potentially violent situations by attending personal safety training programs.

Alert supervisors to any concerns about safety or security and report all incidents immediately in writing.

Avoid traveling alone to unfamiliar locations or being in unusual situations whenever possible.

Overall, stay alert and aware. Make sure you are effectively trained in how to handle a potentially dangerous situation, including conflict resolution. Adhere to all policies and be aware of the hazards to reduce your risk of being involved in volatile situations that may escalate to dangerous physical violence.

COST CONTAINMENT THROUGH PROMPT CLAIM REPORTING

2008-04-14T08:00:00.000-04:00

By: Mary Jo Leventhal, CIC

Most discussions about controlling or avoiding workers compensation and personal injury losses have to do with actions preventing the loss. This week we're flipping to the other side of the coin and discussing the best way to control the loss after it happens. Claims cannot be effectively managed until they are reported. It makes intuitive sense that, all else being equal, the sooner a claim is reported the less it will cost. Prompt response and investigation of claims helps control medical and indemnity cost and discourages attorney involvement. A recent study done by one of the leading insurers of workers compensation insurance quantified the relationship between the lag time of a claim and its severity. Lag time is defined as the number of days from the occurrence of a claim to the report of that claim to the insurance carrier or claim administrator. The results showed a distinct increase in average cost per claim with increasing lag time for WC medical only claims. For example, there is a 25 percent increase in average severity between medical only claims reported in the 0-3 day lag time and the 15-21 day lag time interval. This relationship exists for all lines studied including workers compensation, general liability, and commercial auto liability. But the study showed that the average lag time of medical claims was 4-14 days, an important conclusion because it showed that many organizations had room to improve, and organizations that improve their average lag time can expect to improve their program's bottom-line cost. It is crucial for every organization to use the most efficient communication channel to eliminate delays among the employer, injured employee, and claims manager. Take some time to impress upon your supervisors and department managers how important this is to controlling your costs.

DOES YOUR DISASTER PLAN NEED A DUSTING OFF?

2008-03-31T07:54:00.001-04:00

As we approach Spring and the inherent hazards of windstorms and tornados, I was thinking recently about the subject of disaster preparedness and business contingency planning. My experience over the years after discussing this matter with many of our clients is that the level of preparedness runs the gamut. Some have very good plans in place, but their plans have collected dust on the shelf over the years. Some have procrastinated doing anything because it seems like a daunting task and they don’t know where to start. Others have been very diligent in keeping their plan up to date with regular meetings of the disaster team. Personally, I’m resolving to get our team back together in the next week to do a refresher on our plan and make necessary updates. Where do you stand?
If you’re one of those who has not gotten around to preparing and implementing a plan for disaster recovery for one reason or another, or who hasn’t reviewed and updated yours for awhile, check out our link to BUSINESS CONTINGENCY PLANNING – A BUSINESS RECOVERY CHECKLIST at:
http://consolidated-ins.com/images/stories/docs/recovery%20assessment%20checklist.pdf

This is an excellent checklist to evaluate your plan. If however you have not started a plan, we can be of assistance. Contact your Consolidated Insurance agent as we have a great deal of material to assist you in planning and implementing your disaster recovery plan. It may be the most important step you ever make in assuring the perpetuation of your business.

WORKERS COMP FRAUD - 15 WARNING SIGNS

2008-03-17T09:00:00.006-04:00

Whew! Is Spring ever going to get here? Let's hope that it's just around the corner as we're sick and tired of this snowy stuff.

So far in this blog we've not addressed much about workers compensation and loss contol. I ran into an interesting article on prevention of workers comp fraud losses. Hopfully this can help you in reducing your rates and claims by looking out for key signs.

While the majority of WC claims are truthful, the National Insurance Crime Bureau reports that billions of dollars of false claims are submitted each year. To help you detect possible WC fraud, experience shows a claim may be fraudulent if two or more of the following factors are present:

1. Monday Morning: The alleged injury occurs either “first thing Monday morning,” or late on a Friday afternoon but not reported until Monday.
2. Employment Change: The reported accident occurs immediately before or after a strike, a layoff, the end of a big project, or at the conclusion of seasonal work.
3. Job Termination: If an employee files a post-termination claim:
· Was the alleged injury reported by the employee prior to termination?
· Did the employee exhaust their unemployment benefits prior to claiming workers’ compensation benefits?
4. History of Changes: The claimant has a history of frequently changing physicians, addresses and places of employment.
5. Medical History: The employee has a pre-existing medical condition that is similar to the alleged work injury.
6. No Witnesses: The accident has no witnesses, and the employee's own description does not logically support the cause of injury.
7. Conflicting Descriptions: The employee's description of the accident conflicts with the medical history or First Report of Injury.
8. History of Claims: The claimant has a history of numerous suspicious or litigated claims.
9. Treatment is Refused: The claimant refuses a diagnostic procedure to confirm the nature or extent of an injury.
10. Late Reporting: The employee delays reporting the claim without a reasonable explanation.
11. Hard to Reach: You have difficulty contacting a claimant at home, when they are allegedly disabled.
12. Moonlighting: Does the employee have another paying job or do volunteer work?
13. Unusual Coincidence: There is an unusual coincidence between the employee’s alleged date of injury and their need for personal time off.
14. Financial Problems: The employee has tried to borrow money from co-workers or the company, or requested pay advances.
15. Hobbies: The employee has a hobby that could cause an injury similar to the alleged work injury.

Please pass this on to your HR department, supervisors, or employees responsible for reporting Comp claims. It just may help you prevent that large fruaduent claim that makes a difference in your rates.

TO INSURE THE RENTAL OR NOT TO INSURE THE RENTAL....THAT IS THE QUESTION.

2008-03-03T08:00:00.004-05:00

I know, corny, and Shakespeare I’m not! But by far the most frequently asked question that we get is – “Does my insurance policy cover a rental car? Do I need to buy the collision damage waiver? Why should I spend $15 per day if I don’t have to?” The answer to this question is not as simple as it used to be. Rental car companies are getting very aggressive in trying to collect for more than direct physical damage to their vehicles. Claims for diminuation of value and loss of rental income are two areas that are causing a lot of problems due to lack of protection in the insurance contract. It is not unusual to see significant charges against the renter’s credit card for these claims only to find out that they are not covered for these claims. The decision to sign the rental contact and NOT buy the CDW coverage has become a “buyers beware” consideration. For a more detailed explanation of this situation, we recommend you link to THE TOP 10 REASONS TO PURCHASE RENTAL CAR COLLISION OR LOSS DAMAGE WAIVER CDW/LDW, http://consolidated-ins.com/images/stories/docs/top%2010%20cdw%20consumer.pdf

JUST OUT!! SUPREME COURT’S DECISION ON 401K INVESTMENT RESPONSIBILITIES

Last week’s blog concerned the subject of 401K plans. Interestingly, this week the US Supreme Court handed down a decision that put a much greater fiduciary liability burden on employers concerning investments in our plans. If you have not read about that decision you can see the LA Times article at: http://consolidated-ins.com/images/stories/docs/supreme%20court%20permits%20workers%20to%20sue.pdf

OSHA LOG SUMMARY REMINDER - FEB 1 DEADLINE

It's that time of the year: Feb 1 marks the deadline for you to tabulate your annual OSHA Log Summary (OSHA Form 300A) and post it in a common area wherever notices to employees are usually posted.

DO YOU UNDERSTAND YOUR RETIREMENT PLAN FEES?

2008-02-18T08:00:00.004-05:00

Conributing Editor: Eddie Bell, CFP, CHFC

(Note from Editor) OK. What's with the funky sunglasses on your editor? Well, thanks to our good friend and blog reader Pat Weeks at CoilPlus Ohio, I lost a bet that if he provided glasses just like Tom Cruise wore in the movie RISKY BUSINESS I'd put them on the blog page. So you win Pat! Now to important stuff.

What does understanding your retirement plan fee structure have to do with business risk? Great question. The answer is this: not knowing about hidden or back end fees risks overspending and under-performance on your plan. As a sponsor of a qualified retirement plan, you are responsible for making many important decisions about the plan’s management. Some of these decisions include selecting a plan service provider, decision-making on how you will select and monitor the investments you will offer to your participants, and what level of educational support your participants will receive. All of these decisions will require you to understand and evaluate the overall cost of your retirement plan. In fact, as a fiduciary of the plan, you have a responsibility to ensure that the costs of the plan are controlled and accounted for. This does not mean that the plan sponsor should choose the least expensive option. In fact, the Department of Labor provides guidance that fees and expenses need to be reasonable in light of the level and quality of services received. Rather, the plan sponsor needs to know what is being charged and whether that charge represents a value to the plan.

The problem with evaluating retirement plan fees is they can be extremely difficult to understand and account for. There are a variety of plan fees and expenses that may affect your retirement plan. We generally classify plan related expenses into two broad categories: Plan Administration Fees and Investment Fees (or Asset Based Fees).

Plan Administration Fees: Plan administration expenses are paid to cover the day-to-day operation of the plan. Some examples of administration expenses include plan recordkeeping, accounting, tax filing, legal and trustee services, loans, distributions, plan document services, and participant statements. Plan administration fees can be netted from plan assets (deducted directly from investment returns) or billed separately.

Investment Fees: In most instances, these are by far the largest component of plan fees and expenses and also the most difficult to account for. Some examples of investment fees include the following:

1. Mutual Fund Expenses - Mutual funds charge expenses associated with their ongoing management and distribution.

2. Investment Advisory Fees - These are ongoing charges for the management of the plan (participant education, investment consulting, etc).

3. Insurance-Related Charges - Insurance companies frequently offer a range of investment alternatives for plans through group variable annuity contracts. Insurance Related Charges include items such as sales expenses, mortality risk charges, the cost of administering contracts, surrender and transfer charges. Insurance-Related Charges are typically expressed as a percentage of plan assets and deducted directly from plan investment performance.

How can you determine what fees you’re paying? Consider an annual audit report by your plan administrator of expenses. To see an example of an actual audit report, link to http://consolidated-ins.com/images/stories/docs/blog%20excel%20asset%20fees%20illustration.pdf

Please contact us if you would like us to do a complimentary analysis of the fees charged under your retirement plan.

HOLD HARMLESS & INDEMNITY AGREEMENTS. ARE YOU AWARE OF THEIR IMPACT?

2008-02-04T09:00:00.000-05:00

Contributing Editor: Jim Gray, CPCU

There are few areas more misunderstood and or ignored than hold harmless and indemnity agreements commonly used in contracts today. At one time or another we are all subjected to signing legal agreements that include hold harmless and indemnity agreements. On the other hand, you and your attorney have probably used this risk transfer tool to protect your interest and asked others to sign one in your favor. Construction contracts, purchase orders, and leases are some examples where these are used. Under a hold harmless agreement, one party agrees not to attempt to recover payment for damages from the other party. The intent of an indemnity agreement is to transfer the liability for risk to another party, usually the party in control of the risk of loss, and protect the innocent party. But, the misuse and abuse of these clauses is common. Ohio law provides some protection for misuse of hold harmless agreements.

The most common questions we get as insurance agents are,

ARE THESE AGREEMENTS INSURABLE?

WILL MY INSURANCE COMPANY DEFEND THE PARTY I AGREE TO INDEMNIFY?

DO I VIOLATE ANY PROVISIONS OF MY LIABILITY INSURANCE BY SIGNING THE AGREEMENT?

SHOULD I AGREE TO ADD ANOTHER PARTY TO MY POLICY AS AN ADDITIONAL INSURED?

Space and time in this blog do not allow me to address all the issues involved with this subject. Seminars that we’ve attended addressing this subject last six to eight hours and just scratch the surface. But, we can help you in making informed decisions about hold harmless/indemnity agreements. We recommend that you allow us to review these agreements so that we can evaluate them as they relate to your insurance coverage. We are not a substitute for your attorney, and many times we have recommended that our customers discuss the specific agreements with legal counsel. Next time you encounter one, give us a call. Your agent will be most happy to help.

PS: I hope you have been finding this blog of some use. I hope to get some feedback as to your opinions, criticisms, or practical examples. At the end of each blog is a link to “comments.” Please let me know you’re there. It’s lonely out here!

A PORTABLE AED: ISN'T THE RIGHT TIME...NOW?

2008-01-21T09:40:00.000-05:00

If your company is anything like ours, you’ve probably not given much thought to portable AEDs. That’s the fancy term for portable defibrillators. I must admit we hadn’t given any thought to it until Mike Larson, director of the local chapter of American Red Cross, called on us last week. Since the departure of American Heart Association from our community, the Red Cross has taken up the slack providing CPR training and the supply of AEDs. I’d read a little about these gizmos but had my suspicions about the usability and safety of having them in my office. But how wrong I was! First, Mike introduced me to two different models, both of which were in the $1800 range. Both were extremely easy to use and very safe. But here’s the kicker. The Red Cross provides CPR training and AED training for up to four hours for three of my employees at no additional cost. Additional employees can be trained for $20 each. This is not meant to be a commercial for the Red Cross, but it occurs to me that if I’m preaching safety and loss control in this blog, what can be more important in this area than safety and health of my own employees! I’m probably typical of a lot of you when it comes to CPR training. I took a course about ten years ago and have not done any refresher training. I’m told that there are new techniques, and the neat thing about these AEDs is that they include voice prompts that take you through the steps of CPR before and after the electrical shock from the AED. I know I’m serious about improving my ability to save my employees from the number one killer. Are you?

FLEET SAFETY POLICES….ARE YOURS UP TO DATE?

2008-01-07T09:00:00.000-05:00

We received a call recently from a good customer asking if we have any samples of wording addressing personal use of company vehicles. That got me thinking about bringing to the blog the topic of fleet safety policies. Does your company have a written fleet safety policy? Has it been updated? Is it periodically communicated to your drivers?
Even policies written ten years ago may not address some of the new risks facing us today. Cell phone usage is a prime example. Today, text messaging and the cell phone calls have become one of the leading causes of traffic accidents and fatalities. Every one of us has encountered the erratic driving of someone on his or her phone. Some national statistics are showing a very high incidence of young drivers text messaging while at the wheel. Personal use of company vehicles while off duty is another major exposure to risk. Are your company guidelines addressing these exposures? If the answer to this question is no, we would like to help. Contact your Consolidated Insurance account representative who can forward to you sample templates that you can adapt for your usage. Even if you have a fleet safety policy, you may find some new ideas to add to the old. AND….we have payroll stuffers, safety newsletters, and posters for effective communication of your fleet safety goals. Give us call. We’d love to help you reduce your fleet risks.

2008 NEW YEAR'S RESOLUTION - REVIVE THE SAFETY COMMITTEE!

2007-12-21T11:15:00.000-05:00

Contributing Editor: Andy Bell

With a new year right around the corner, we tend to think about what goals we’ve accomplished and not accomplished as the year winds down. Quite often we hear our customers express that they want to get their safety committee more active and energized for the coming year but find it difficult to find relevant topics and materials for subject matter to discuss. That’s where we can be of help. Your account representative at Consolidated Insurance can provide you with a large array of safety and loss control material free of charge. Payroll stuffers, technical bulletins, videos, monthly newsletters, and PowerPoint presentations are just a few of the tools available. Subjects concerning OSHA, Workers Compensation, property protection, and disaster recovery are a few examples. Give your account representative a call, and we’ll share a list of “goodies” available to your committee. And, why not let us meet with the committee to get their input on what they need?
Happy New Year from all of us at Consolidated Insurance.

OFF DUTY CONDUCT - EMPLOYEE LIFESTYLE DISCRIMINATION?

2007-12-07T10:17:00.000-05:00

There have been some interesting developments in the area of employment law that employers may not be aware of. At a recent seminar put on by a local law firm Martin, Browne, Hull & Harper, attorney Lauren Ross enlightened us on a new minefield having to do with off duty conduct of employees, or lifestyle discrimination.

Examples of actions taken by employers against an employee include: refusal to employ or provide health insurance due to off-duty smoking; punishment or retaliation for employees’ off- duty blogging in which the employer is cast in a negative light; punishment or retaliation for employees’ open participation or advocacy for gay rights or other hot-button political issues.

A case in point is Simonetti v. Delta Airlines where a flight attendant was terminated for posting pictures of herself in her Delta uniform on her personal blog. She sued her employer for sex discrimination and retaliation, claiming male employees posted similar content on their blogs and were not terminated. The case was dismissed prior to any decision.

I don't profess to know everything there is to know about this new legal trend. What I do know is this, we as employers need to be aware of this developing situation, keep abreast of and communicate with our representatives on new legislation proposed in the Ohio Legislature (i.e. HB 28 on Sexual Orientation), and discuss with our HR staff and attorneys the risks that we may encounter. What will be next?