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Loss Control

01 Oct

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Why is it important to keep property values up-to-date in my business policy?

October 1, 2016 | By |

Insurance companies determine premiums by taking in to account the risks associated with the business, the amount of coverage needed for full protection of the business, the business’s history, and statistics predicting the losses and claims by businesses. The amount of property insurance coverage is based on the cost to rebuild and restore the business, not the property’s market value. Insuring property to-value protects businesses against major losses.

For more information on this and other insurance topics and coverage, please call our office.

13 Sep

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5 Steps to Reduce Workplace Injuries

September 13, 2016 | By |

Ben Franklin once said, “An ounce of prevention is worth a pound of cure.” Workplace injuries accounted to $170 billion (OSHA) of costs paid by small businesses in the US. Direct expenses associated with worker injuries include medical care, lost wages, overtime, and additional training and human resource expenses. Further, indirect costs such as decreased productivity, lower morale, higher workers’ compensation premiums, damage to reputation or brand, and increased turnover quickly add up resulting in lost profits.

However, businesses can take a proactive approach to preventing worker injuries in order to reduce the costs involved with injuries. Here are 5 steps that a business can take today to reduce worker injuries:

Commit to safety and engage employees. Commitment to safety should begin with owners and upper management team members, and should be communicated clearly throughout the organization. Managers promote safety by following safety guidelines themselves and by modeling safe practices at all times, while encouraging employees to do the same.

Responsibility for safety should be assigned to appropriate team members. Safety responsibilities should also be included in employee job descriptions.

Internal meetings further increase awareness of safety initiatives and allow for open discussion on the importance of safety in the workplace. Initially, a meeting should be held to communicate management’s commitment to keeping employees safe on the job.

Analyze current operations and workplace hazards. OSHA offers several resources to assist employers in assessing safety. Self-inspection checklists are provided in OSHA’s Small Business Handbook and OSHA has an on-site confidential consultation program to assist businesses with analyzing workplace safety. Business insurance companies often offer loss control services to help with identifying potential exposures and reducing workplace injuries, and often have credits or discounts available for companies who show a commitment to safety.

Develop and implement an action plan to lower hazards. After safety issues are identified, implement a corrective action plan. Assign responsibility for follow through to appropriate team members, and use action steps and deadlines that can measured. Document hazards that were identified and the steps taken to prevent future injuries.

When an injury occurs, immediately perform an investigation to determine what happened and how the injury may have been prevented. Make appropriate changes to procedures in order to prevent future injuries.

Provide training to employees. It is imperative that employees understand how to perform their jobs safely. Consistent training should be provided that instructs employees on safety policies, safe practices, and actions to take in the event of injury. OSHA offers a large inventory of training resources. Insurance companies also often provide resources for safety training.

Monitor the safety program and adjust as necessary. Inevitably, industries change and procedures need to adjusted. Make it a point to revisit your safety program at least semi-annually and make adjustments as necessary.

By committing to safety and taking steps to protect workers from injury, businesses can reduce the costs associated with workplace injuries. The “ounce of prevention” taken today could result in future profits that are retained and invested rather than spent on worker injury costs.

At Pioneer Business Insurance Agency, we work hard at being accessible, helpful, and result-oriented. Learn more about us at PioneerBusinessInsurance.com. How can we put our expertise to work for you?

25 Jul

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What You Should Know Before Adding an Additional Insured to Your Policy

July 25, 2016 | By |

I often receive requests from my clients to add an additional insured endorsement to their commercial general liability (CGL) policy due to a contract requirement. It is not uncommon for a general contractor, a customer, a mortgagee or a lessor to require that they be named as additional insured to a policy. However, the policyholder should understand the endorsement and how it modifies their CGL policy before adding the endorsement.

What is an Additional Insured endorsement?

An additional insured endorsement allows a person or organization that would not normally be covered on a CGL policy to be added as an insured on the policy. The endorsement modifies the policy to afford general liability coverage to the additional insured.

Those requesting to be added as an additional insured generally see the endorsement as further protection should a claim be brought against them for damages caused by the policyholder. However, there are several additional insured endorsements, and whether the endorsement provides the coverage that the requester is actually looking for depends on the actual endorsement that is added.

What are the different types of additional insured endorsements?

The additional insured endorsement used most commonly today is the Additional Insured Endorsement CG 20 10. While this endorsement provides coverage to an additional insured for ongoing operations, the endorsement does not cover completed operations. Prior to 1985, the CG 20 10 included coverage for an additional insured “with respect to liability arising out of ‘your work,’” which encompassed both ongoing operations and completed operations. However, in 1985 the endorsement was changed and removed coverage for completed operations.

If coverage for completed operations is desired, the Additional Insured Endorsement CG 20 37 should also be added. This endorsement provides coverage for completed operations, but needs to be added along with the CG 20 10 endorsement if both ongoing and completed operations are to be covered.

Organizations who have the CG 20 10 11 85 endorsement (the endorsement used prior to 1985) added to their policy do not need to add the CG 20 37 to their policy because the pre-1985 endorsement covers both ongoing and completed operations.

Blanket Additional Insured Endorsements

Some insurance companies offer a blanket additional insured endorsement, which allows automatic coverage for an additional insured under certain conditions. The automatic coverage applies to additional insureds for whom the insured is performing work, and for whom the insured has a written agreement in place which requires additional insured status. While the blanket endorsement offers convenience, the requirement for a written contract needs to be understood by the policyholder and the person or organization being added as an additional insured. Should there be upstream parties, such as a general contractor that does not have a direct relationship or contract with a sub-contractor, there is also an additional form that can be added to cover the upstream party.

What else should you consider before adding an Additional Insured endorsement to your CGL policy?

When an additional insured is added, the person or organization named as an additional insured has access to the coverage provided by your policy. In other words, your policy limits could potentially be exhausted in the event that an additional insured seeks coverage for a claim under your policy.

Further, the policy could cover losses that the policyholder is not intending to cover. There have been documented cases of the additional insured endorsement being interpreted by courts to include coverage for damages that the were not caused by the negligence of the policyholder.

In conclusion, it is important to understand additional insured endorsements before requesting that one be added to your policy. Asking questions to determine what coverage is needed, considering the scope of coverage provided, and considering potential consequences prior to adding coverage will help you to be selective when adding an additional insured endorsement and manage your risk wisely.

At Pioneer Business Insurance Agency, we work hard at being accessible, helpful, and result-oriented. Learn more about us at PioneerBusinessInsurance.com. How can we put our expertise to work for you?

08 Nov

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Safety first! Prevention for Cumulative Trauma Disorders

November 8, 2012 | By |

More than half of workplace injuries are caused by musculoskeletal disorders (MSDs), such as cumulative trauma disorders (CTDs).  In fact, $1 of every $3 of workers’ compensation costs are attributed to MSDs. Employers who are aware of risk factors, and take action to minimize these types of injuries ultimately benefit by controlling losses and improving the productivity of their workers.

What are Cumulative Trauma Disorders?

CTDs are injuries of the musculoskeletal and nervous systems attributed to repetitive motion, over-exertion, vibrations, pressure from hard surfaces, and prolonged or awkward positions. Disorders associated with CTDs include carpal tunnel syndrome, tendinitis, low back pain, bursitis, and several others.

Who is at risk?

Employees who perform repetitive motions are especially susceptible to developing CTDs. Office employees who spend extended periods of time working at a computer, and manufacturing employees who perform repetive motions (such as snapping a part in place) are among those most at risk.

What can I do to prevent or minimize CTDs in my company?

First, Employers should increase awareness of CTDs, and the risk factors that contribute to these types of disorders. Designate someone on your staff to handle safety at your workplace, by researching safe practices and ergonomics (the process of adjusting workstations for safety and comfort).Your business insurance agent should also be able to provide you with helpful resources.

Next, talk with your employees about the importance of good posture while sitting or standing for extended periods of time. For example, while sitting at a computer, feet should be flat on the floor or on a foot rest, the head should face forward with a slight tilt downward, wrists should be in a nuetral position, and elbows should be within a 70-135 degree angle. Encourage employees to take short breaks to reduce injuries caused by sustained positions, and to consider deep breathing and stretching when in the same position for an extended period of time.

If you would like to learn more, visit us at PioneerBusinessInsurance.com, or call us at 888-596-7242. At the Pioneer Business Insurance Agency we work hard at being accessible, helpful, and result-oriented. How can we put our expertise to work for you?