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Category Archive: Commercial Lines

Illinois OSHA has a Unique Recordkeeping Rule for all State and Local Government Employers

After a recent review of its 2016 final rule to improve tracking of workplace injuries and illnesses (also known as the electronic recordkeeping rule), Illinois OSHA will require all State and Local Government employers in Illinois to electronically report OSHA 300A injury and illness logs.

The following employers are required to submit Form 300A to Illinois OSHA electronically:

  • Establishments with 250 or more employees that are required to keep OSHA injury and Illness records.
  • Establishments with 20-249 employees in Illinois designated high hazard industries. These categories are as follows:
    • Transportation
    • Department of Public Works
    • Local Fire Protection
    • State Nursing and Residential Care Facilities
    • Water and Sewer Treatment Facilities

All the affected State and Local Government employers are to submit injury and illness data into OSHA’s Injury Tracking Application (ITA) online portal.

Injury and illness data for calendar year 2017 must be submitted between June 15th and September 30th, 2018. Beginning in 2019 and every year thereafter, submitting the information for the preceding year will be required by March 2nd.

Additional details regarding the final rule can be found on OSHA’s website. Please note that the compliance schedule timelines outlined in the OSHA resource page are superseded by the information and dates provided by the State of Illinois OSHA. 

Department of Labor Proposes Rule to Better Protect Personally Identifiable Information

The Department of Labor’s Occupational Safety and Health Administration (OSHA) has issued a notice of proposed rulemaking to better protect personally identifiable information or data that could be re-identified with a particular individual by removing provisions of the “Improve Tracking of Workplace Injuries and Illnesses” rule. OSHA believes this proposal maintains safety and health protections for workers, protects privacy and reduces the burdens of complying with the current rule.

The proposed rule eliminates the requirement to electronically submit information from OSHA Form 30 (log of work-related injuries and illnesses), and OSHA form 301 (injury and illness incident report) for establishment with 250 or more employees that are currently required to maintain injury and illness records. These establishments would be required to electronically submit information only from OSHA Form 300A (summary of work-related injuries and illnesses).

Under the current recordkeeping rule, the deadline for electronic submissions of Calendar Year (CY) 2017 information from OSHA Forms 300 and 301 was July 1st, 2018. In subsequent years, the deadline is March 2nd. OSHA is not currently accepting the Form 300 and 301 data and will not enforce the deadlines for these two forms without further notice while this rulemaking is underway. The electronic portal collection Form 300A data is accepting CY 2017 data, although submissions after July 1st will be marked late.

For more information on this rule, please visit here.

The Importance of Prompt Claim Reporting

Prompt claims reporting is integral to the overall claims management process for you business:

  • With prompt reporting, an injured worker’s concerns and unfamiliarity with workers’ compensation can be quickly addressed (within 24 hours) by a phone cal from the claims representative. This reduces the likelihood of the injured worker seeking attorney representation.
  • Prompt reporting allows the claim rep to contact the injured worker in a timely manner, typically making a positive first impression. This goes a long way in establishing a trusting relationship between the claim rep and the injured worker throughout the claims process.
  • Prompt reporting allows the claim rep to immediately communicate with the injured worker, employer, and physician in an attempt to promote a return to light-duty work. Doing so reduces the number of days of lost time paid.
  • Prompt reporting allows the claim rep to immediately investigate the facts of the incident. He or she can obtain statements from injured workers, employers, and witnesses while the facts are fresh and before stories change or legal representation is sought.
  • Prompt reporting allows the claim rep to appropriately document the facts around claims involving third parties so appropriate third-party recoveries can be made.
  • Since so many states require that claims be denied within a certain number of days from the date the employer is notified of an injury, prompt reporting allows us to investigate claims in a timely manner and make compensability decisions within the time parameters mandated by the states.

Prompt reporting positively impacts the overall outcome of the claim. We encourage everyone to report all claims within 24-hours of a work-related accident.

OSHA’s Here – Now What?

Why OSHA may select a company for inspection, in order of priority:

  • Imminent danger, when there is a good chance that a hazard could result in death or serious harm.
  • Fatal or catastrophic accidents, an accident resulting in the hospitalization of 3 or more employees, these incidents must be reported to OSHA within 24 hours.
  • Employee complaints of unsafe working conditions or alleged safety violations.
  • Program inspections in industries that have a higher than normal accident rate.
  • Special emphasis programs that are currently being targeted by OSHA, like excavation for example.
  • Follow-up inspections to verify that cited violations have been corrected (abated).

Because OSHA visits are unannounced, ensure that the work site is complaint at all times.

When an OSHA compliance officer arrives on site, here is what all employees and managers should know about ahead of time.

  1. Notify the person responsible for the site, such as the supervisor, manager, project superintendent or owner.
  2. Request identification, write down the Compliance Officer’s name and ID number, and ask which area office they represent.
  3. The purpose of the inspection should be stated by the Compliance Officer before or during an opening conference at the beginning of the visit.
  4. A manager should escort the Compliance Officer at all times.
  5. During the walk-around inspection, the Compliance Officer is permitted to take notes and photographs and shall comply with the safety and health rules required at the job site.
  6. Employees may be interviewed or written statements may be requested.
  7. A company representative should take notes and photos of all inspection activities.
  8. A closing conference will be arranged to allow the Compliance Officer to review any violations observed and refer to applicable OSHA standards.
  9. Instructions on follow-up procedures will be provided at the end of the inspection.

During the inspection, everyone on site should follow these guidelines:

  • Be cooperative.
  • Do not evade questions or try to hide anything.
  • Answer questions truthfully, but do not speculate.
  • Do not be sarcastic or argumentative.
  • Do not volunteer information, answer only the questions asked.
  • Do not volunteer an admission of guilt.
  • Take notes, measurements and photos.
  • If possible, fix any violation immediately.

Common Questions:

Can the foreman of the job site refuse to let the Compliance Officer on site? Yes, but it is not recommended. It is always best to cooperate with any OSHA compliance officer.

Does the Compliance Officer need to show a warrant? No, but entry can be refused until a warrant is provided. However, cooperation with OSHA is always recommended and granting immediate entry will get the inspection off to a good start.

Can an employee refuse to be interviewed? Yes, but cooperation by all employees is advisable. An employee can ask that they have another person with them during the interview.

If hardhats or PPE are required in the work area, can the Compliance Officer refuse to comply with the PPE requirements since they work for OSHA? No, the Compliance Officer must wear any PPE required in the work area they are inspecting.

What can happen if the company receives a citation? If a violation is recorded, OSHA will require a corrective and preventive action plan, the violation will be on the company’s public record and there may be a financial penalty assessed.

Top 10 OSHA Violations for 2017

The Occupational Safety and Health Administration (OSHA) has announced the 10 most frequently cited workplace safety violations for fiscal year 2017. The results are preliminary, but the agency doesn’t expect much to change.

Fall protection is such a big category because a lot of fatalities are due to falls – particularly in construction but also in general industry. Employers are required to notify OSHA within eight hours of a fatality, which prompts a workplace inspection.

Here are the top 10 cited violations as announced by OSHA at the National Safety Council’s 2017 Congress and Expo in Indianapolis in September:

1. Fall protection – there were 6,072 fall protection violations in the construction industry. This number is down from 8,906 in fiscal year 2016. These violations include failing to guard edges and open sides to prevent worker from falling.

2. Hazard communication – there were 4,176 citations in 2017, which is down from 5,665 in 2016. Employers that use hazardous chemicals must have a written hazard communication program. They are also required to label all containers and provide safety data sheets and training to employees.

3. Scaffolding – there were fewer scaffolding violations in the construction industry in 2017 (3,288) than in 2016 (3,900). Safety violations include issues with scaffold construction, employee access to scaffolding surfaces and lack of guardrails.

4. Respiratory protection – violations fell by 476 to 3,097 in 2017. Violations include failing to have a written respiratory-protection program and failing to conduct required medical examinations for workers who use respirators.

5. Lockout/tagout – violations have dropped to 2,877. Lockout/tagout procedures are meant to safeguard employees when machinery starts up unexpectedly or when hazardous energy is released during maintenance activities. Failing to train workers or conduct periodic inspections account for many violations.

6. Ladders – improper use of adders resulted in 2,241 citations in 2017 compared to 2,625 in 2016.

7. Powered industrial trucks – forklift drivers must be trained, certified and reevaluated every three years. Improper fork lift use and training account for many violations. There were 2,162 violations in 2017.

8. Machine guarding – there were 1,933 total violations in 2017 – down from 2,448 in 2016. Machine guarding is meant to protect workers from point-of-operation hazards and dangers caused by ingoing nip points, rotating parts, flying chips and sparks. Point-of-operation hazards account for most violations.

9. Fall protection training requirements – there were 1,523 fall protection training violations in 2017. This category wasn’t on the top ten list in 2016.

10. Electrical wiring methods – faulty electrical wiring methods accounted for 1,405 violations – down from 1,937 in 2016. Frequent violations include improper use of extension cords.

Since a lot of the frequent violations on this list relate to training, employers should also periodically audit their training records to make sure all employees have received appropriate training for the hazards they encounter in their daily jobs.

Compliance is tough, but businesses of any size can do the following to help remain compliant:

  1. Hold weekly safety talks- employers should review all the applicable OSHA standards and talk to employees about one topic each week.
  2. Post a list of safety rules and enforce them – employers should make sure workers are familiar with the policies and understand that violations of the rules won’t be tolerated.
  3. Look at OSHA 300 logs and conduct an incident analysis for each entry to figure out the root cause of the incidents and ways to eliminate future risks.
  4. Perform an accident investigation and root cause analysis for near misses as well. These are incidents that could have easily resulted in a serious injury but did not.

What to do a the Scene of an Auto Accident

Most of us are fortunate that we’ve rarely, if ever, been involved in an accident. However, even the most careful drivers can be involved in an auto accident. So here are some tips to share on what you should do – and not do – to handle this traumatic situation and ensure a smooth claims process if they do have an accident.

Do:

  • Find out if there are injuries. A person’s medical situation is far more important than vehicle damage or who’s responsible for the accident.
  • Remain calm. Getting upset can make a bad situation worse. Keep your composure and remain polite even if the other driver does not.
  • Call 911 even if it’s a minor accident. Notify authorities of any injuries so they can dispatch medical assistance an so the police can respond and write a report.
  • Exchange contact information with the other driver. This also includes exchanging insurance information.
  • Obtain contact information for any witnesses. They can be crucial in the insurance company’s investigation.
  • Take pictures. Just about every phone has a camera. Use it! Take pictures of the other vehicle involved, including the license plate.
  • Call your insurance agent. Report the accident as soon as possible to your insurance agent so a claim can be initiated.

Do Not:

  • Move someone who is injured. This could result in further injury. Only move a person who may be in imminent danger.
  • Place yourself in danger. If the accident occurred on a busy highway or interstate, stay in your vehicle and out of the traffic lanes.
  • Move your vehicle unless it impedes traffic or presents a hazard. Preserving the evidence of the accident scene can be crucial. If you have emergency triangles or flares, use them.
  • Leave the scene, even if it’s a minor accident and the other driver(s) says they’re not injured. If you leave the scene, you might be accused of committing a hit and run. Wait for the police to arrive.
  • Accept blame for the accident. Even if you think the accident may be your fault, don’t say this to anyone. You may not know what the other driver did to case or contribute to the accident. Only give a full description of the accident to the police.

Being involved in an auto accident is an upsetting and traumatic experience. By following these tips, you can reduce the stress involved and handle the situation in the right way.

Mitigating Active Shooter Risks

The number of incidents involving active shooters has steadily increased over the last 15 years. In 2000, there was one active shooter incident, and in 2015 there were 20. According to the FBI, the largest number of active shooter incidents occur in a business setting, following by schools, open spaces and non-military government property.

The FBI defines an active shooter as an individual actively engaged in killing or attempting to kill people in a populated area such as parks, schools, houses of worship, medical facilities, transportation centers, workplaces and other public gathering sites.

Escape

There are three options when faced with an active shooter situation: run, hide or fight, and survival depends on having a plan for each of these options.

If you can get out, do it. Always try to escape and evacuate, and don’t let others sow you down with their indecision. Those fleeing should leave everything behind – purses, personal belongings and the like. The priority is to get out of harm’s way. It is also important to not allow others to walk into the danger zone and call 911 once evacuated to a safe area.

Looking for places to hide or ways to get out of a venue should become second nature in public spaces. The uncertainty of where to go or how to escape can mean the difference between life or death.

Hide

For guests, shoppers or workers who can’t get out to safety, the next best option may be to hide somewhere in the building. At the concert in Las Vegas, people hid behind cars and tables, and several people even hid in a beer truck to escape the shooter’s bullets.

Inside a shopping center or office building, it is important to silence cell phones to minimize the chances of being discovered. If possible, lock the doors to locations like an office or classroom. Hiding behind large objects can also help to provide some measure of protection from any gunfire. Try to remain quiet and calm.

Confronting the Shooter

Fighting is a last resort. For the shooting in Las Vegas, this was not an option for anyone other than responding law enforcement officers. It is important to consider and plan ahead for a variety of dangers. It is advised that the public always be aware of their surroundings and devise some sort of an exit plan in public spaces.

In an airport, for example, the most vulnerable places involve the shops, restaurants and other areas located before the TSA security checkpoint. The safest place will usually be the gate areas because travelers and their luggage have been searched and all individuals on that side have passed through the security checkpoints.

Training & Exercises

Preparing for an active shooter scenario involves the development of a workplace violence policy and plan, emergency response plans, training and exercises, as well as providing physical security onsite such as cameras, badged entry or even security guards.

As part of the workplace violence policy, the employer sets the standard for acceptable workplace behavior, affirms the company’s commitment to take action and provide a safe workplace for employees, and addresses not just physical violence, but also factors like threats, bullying, harassment and the possession of weapons.

Risk Management Strategies

An emergency response plan should be created for all hazards – fire, flooding, emergency evacuation, and active shooters to name just a few. A team involving staff from HR, training, security, the facility owner or operator, property managers and others should included in the design.

The plan should address:

  • Methods for reporting different types of emergencies
  • Evacuation policy & procedure
  • Escape procedures and route assignments
  • Contact information for mandatory point of contact information on local hospitals
  • Emergency notification system – e.g., announcements, cellular systems, emails

Security Assessments

Companies should also conduct a detailed physical security assessment. The goal of physical security is to deny unauthorized access and protect property, personnel and operations.

Employees can be a company’s best source of training because they can help identify vulnerabilities and solutions.

Questions to consider as part of the assessment include:

  • How easy is it for people to access key personnel in your business?
  • Who gets access in the company or to what buildings?
  • What landscaping around the business prevents a clear line of sight of who’s around or entering the building?
  • How do you control access after-hours?
  • Are cameras available around the property?

A vital aspect of a holistic security strategy focuses on deterrence, prevention, mitigation and recovery. Physical security measures can include access and control systems, surveillance, an emergency notification system, first aid, and physical impediment tools which are designed to impede/prevent an active shooter from gaining access into office spaces.

The key to develop a plan that will prevent a shooter from gaining access and provide employees with the training to respond if a shooting event arises.

Additional resources on active shooter preparations are available from the Department of Homeland Security, the Federal Bureau of Investigation, and the Federal Emergency Management Agency.

 

 

 

Home-Based Businesses: Are You Properly Insured?

In 2013, Forbes reported that 52% of small businesses were home-based. In March 2016, the United States Census released the 2012 Survey of Business Owners, which showed that there are over 27.5 million home-based businesses being run throughout the country, a nearly 500,000 increase from the 2007 report.

As a general rule of thumb, if you’re engaged in a business where you earn more than $2,000 per year, you should consider obtaining a commercial general liability policy or a business owners policy (which will provide property coverage for your business property in addition to covering your business liability exposures) but the actual nature of your business may dictate otherwise so be sure to discuss with your local independent insurance agent (us!).

The exclusion for business activities is something you will find in all homeowners policies, so it’s very important for anyone who operates a home-based business – no matter where the business is actually conducted – to obtain the appropriate liability insurance coverage.

Keep in mind that property coverage provided by your homeowner policy could also be in jeopardy if you are operating a business out of your home (this includes selling Mary Kay, Lularoe, etc.). For example, homeowner policies contain specific “other structures” exclusions pertaining to business operations, so if you’re conducting a business activity out of a detached garage, shed, or barn, you might find yourself with no insurance coverage if that “other structure” is damaged or destroyed.

When in doubt, speak with us to learn more about how you can properly protect any property and/or liability exposure associated with a business you operate. Contact our office at (309) 266-7300 and ask for our small business executive to discuss your home-based business today!  Because earning a little money on the side is great… until you realize you have no insurance coverage for it.

National Safety Month 2017

National Safety Month 2017 has begun. The National Safety Council and its member companies mark June each year and the month has several themes each year.

National Safety Month is focused on reducing the leading causes of injuries and deaths at work, on the road, and in Americans’ homes and communities.

The National Safety Council offers downloadable resources highlighting the month’s lineup of safety topics:

  • Week 1: Stand Up for Falls
  • Week 2: Recharge to Be in Charge (Focusing on Fatigue)
  • Week 3: Prepare for Active Shooters
  • Week 4: Don’t just Sit There (Focusing on Ergonomics)

For more information and access to downloadable materials to use, click here.

Employee or Independent Contractor?

Classifying an individual as either an employee or independent contractor isn’t a simple task. Unfortunately, no standard test has emerged to determine the true character of an independent contractor relationship under the Fair Labor Standards Act. Employers have various considerations to determine how issues of employment benefits, workers’ compensation, unemployment compensation, wage and hour laws, taxes or protection under Title VII of the Civil Rights Act, the American with Disabilities Act and the Family and Medical Leave Act affect their working relationship with their workforce.

What’s the difference? According to the IRS, the general rule requires an employer to have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result. On the other hand, the IRS classifies employees as an individual in which he employer can control how and when he/she performs tasks. Essentially, the facts that provide evidence of the degree of control and independence determine whether someone is an employee or independent contractor.

There are 4 common tests to determine an employment relationship. Employers should be aware that state and local variations of these tests also apply to any given situation. The recurring theme in all these tests is control, and in different ways, they all seek to determine the amount of control that an employer exerts over its workers.

  1. The Common Law Agency Test
    This test requires consideration of 13 different factors, also known as the Reid factors, which individually may not determine the character of the relationship, but as a whole allow for an understanding of how much control an employer exerts over a particular individual.
  2. The Economic Realities Test
    This test evaluates the level of financial dependence that the worker has on an employer.  Generally, under the economic realities test, the more an individual depends on an employer, the more likely it is that the individual should be categorized as an employee.
  3. The Hybrid Test
    As the name suggests, this test combines elements from the common law agency and the economic realities tests.  The factors under this test consider special details in the relationship between an employer and a worker.
  4. The IRS 20-Point Test
    Developed to determine the tax liability of employers and individuals, this test expands and classifies factors from the common law test into three categories: a sphere of behavioral control, a sphere of financial control, and the factors that determine the type of relationship that exists between parties.

Independent contractors and employees aren’t the same and it’s important for companies to understand the difference. Misclassifying these individuals has become an increasing issue of concern to governments, courts and regulatory agencies. Knowing this distinction will help a company avoid potential fines and costly legal consequences. To prevent any unwanted surprises, it’s essential that employers make a conscientious effort to define the true business relationship with their workers.

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