by Grant Davis | Business Insurance, Construction, Insurance
Managing Green Construction Contract Risks
As energy costs continue to rise and California building standards become more environmentally rigorous, it’s not uncommon for construction projects to specify sustainable building practices, or “green” building principles. But capitalizing on the trend to build green can quickly turn your profit margin from black to red if you don’t have a clear understanding of your additional contract exposures. Contact GDI Insurance Agency, Inc. for more information on construction risk management 209-634-2929.
What is Green Construction?
According to the Environmental Protection Agency, green building is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life cycle; from siting to design, construction, operation, maintenance, renovation and deconstruction.
These structures meet specific objectives that protect the occupant’s health, are more energy-efficient, use resources more effectively and provide business tax incentives.
How is Green Certification Achieved?
To uphold green building standards, the U.S. Green Building Council created the LEED (Leadership in Energy and Environmental Design) program, which outlines standards for building using natural resources, recycled or healthy materials. You can find the updated 2018 California LEED Requirements here!
The LEED system evaluates projects based on design, construction and operation, serving as the voluntary national standard for sustainable buildings. It uses a checklist and point system of recommended practices, achieving various point levels can certify the building as having achieved certified, silver, gold or platinum status. These practices involve such issues as efficient water and energy use, the reuse of waste materials, and the use of renewable and regionally produced products.
The California LEED certification standards are rigorous, and a simple misstep, such as not following a project’s material recycling or erosion plan, can put a project’s certification in jeopardy.
How Can I Manage My Contract Exposures?
From managing delays to guaranteeing certification, the following are some common contract considerations and ways to minimize liability risks:
- Limit Contract Warranties
It’s true that green building leads to operational cost savings, healthier work and living spaces, and increased tax incentives, but it’s important to limit warranties to those expressly provided in the contract. If you oversell the benefits that you can deliver, you could face alleged fraud or false advertising charges.
Additionally, no single party is responsible for meeting a construction project’s certification goals, and certification is typically regulated by a third party over which you have no control. Therefore, never guarantee the level of certification on a project. Instead, warrant that the work will meet project specifications and accepted industry standards.
Anticipate unexpected delays, such as a shortage of green materials or lack of skilled workers, by updating the contract’s force majeure clause to shift the risk allocation for these types of delays to the owner.
Also specifically define in the contract what is meant by substantial completion, and don’t tie it to a project’s certification status. Obtaining certification may take up to a year after substantial completion of a project is reached. Therefore, it is also advisable to revise the contract if it restricts payments to you based on certification status.
- Define Consequential Damages
While many traditional construction contracts include mutual waivers of consequential damages, it is unclear if the courts consider lost tax incentives, decreased energy savings, decreased water bill savings, etc. as consequential damages. To ensure that these types of sustainable construction damages are waived, include them in the clause waiving consequential damages.
Green building projects often use new, unproven materials and technologies, which may lead to future maintenance and performance issues. Spell out in the contract who is responsible for a component’s maintenance or malfunction, or what happens if a manufacturer goes out of business. Additionally, incorporate a clause which states that you retain the right to cure any alleged defective work, materials or equipment prior to the owner hiring another contractor to repair the work.
Avoidable Estimation Mistakes in Construction
In the past three years, only 31 percent of construction projects came within 10 percent of their budgets, according to RSMeans, a provider of construction cost information. Completing projects within budget is a constant challenge for many contractors. Here are five estimating mistakes to be aware of, along with best practices to combat them.
- Unrealistic expectations—Don’t rely on ideal or worst-case scenarios, which can lead to impractical estimates. Find the middle ground to avoid setting expectations too high and blowing timelines.
- Flying solo—Don’t be afraid to use outside data sources from a credible third party. Create a realistic estimate by including a combination of your own historical data and their custom data.
- Lack of or wrong permits—If you lack permits or have the wrong type, work can come to a standstill. Factor proper permits into your estimate, as well as their corresponding costs.
- Unclear parameters—Parameters must be established clearly at the onset of each project. Make sure you clearly understand your clients’ limitations and restrictions before creating an estimate to avoid unnecessary change orders.
- Missing details—A lack of knowledge, missing items or generalized task descriptions can lead to estimates that are too low. Take the time to account for all necessary materials, labor and equipment by referencing similar work done in the past or detailed cost data from a third party.
Count on Our Construction Expertise
The process of taking a green building project from conception to use is complex. You can count on our firm’s well-informed risk managers to help you pinpoint exposures unique to your construction business and the potential ways to manage or transfer those risks. We also have a specialty insurance program for our solar installers!
Contact GDI Insurance Agency, Inc. at 209-634-2929 today to learn more about our insurance and construction loss control solutions.
by Grant Davis | Insurance, OSHA, Risk Management, Workers Compensation
What Are California Employer OSHA Responsibilities?
Navigating California Employer OSHA responsibilities and workplace safety laws and regulations can be overwhelming. You can download our California Employer OSHA Workplace Safety Regulation Manual here! You can use this guide to become familiar with the basics. It will help you build a foundation of knowledge on state expectations for mitigating on-the-job hazards.
By knowing California employer OSHA laws, you can effectively reduce your risk of liability. Though this manual covers many areas, it is not meant to be exhaustive or construed as legal advice. It also may not address all compliance issues with federal, state and local laws. Use the California Workplace Safety Regulations Guide as a reference, but contact GDI Insurance Agency, Inc. at 209-634-2929 or legal counsel to discuss compliance requirements or to ask questions about material covered here.
What Do I Need To Report Under OSHA Regulations?
Occupational illness (any abnormal condition or disorder caused by exposure to environmental factors associated with employment, including acute and chronic illnesses or diseases caused by inhalation, absorption, ingestion or direct contact) and occupational injury (serious injury, illness or death of an employee occurring in his or her place of employment or in direct connection with employment) must be reported under California Employer OSHA regulations.
California Employer OSHA defines “serious injury or illness” as any injury or illness occurring in a place of employment or in connection with any employment that results in:
- Inpatient hospitalization for more than 24 hours (for other than medical observation);
- An employee suffering a loss of any member of the body;
- An employee suffering any serious degree of permanent disfigurement;
- Death;
- Days away from work;
- Restricted work or transfer to another job;
- Medical treatment beyond first aid; or
- Loss of consciousness.
You must also consider a case to meet the general recording criteria if it involves a significant injury or illness diagnosed by a physician or other licensed health care professional even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond first aid or loss of consciousness.
Who must file the report?
According to California statute, both employers and attending physicians must report occupational illnesses or injuries to Cal/OSHA. By regulation, reporting duties fall on the employer.
Where should the report be sent?
By statute, reports go to the Division of Labor Statistics and Research section of the Department of Industrial Relations for uninsured employers, and directly to the insurer where applicable for those that are insured. However, by regulation, reports go to the closest Division of Occupational Safety and Health office.
What is the reporting timeframe?
For a significant injury, physicians must file a report with the employer, and the employer must report recordable incidents to the Department of Industrial Relations within five days of receipt of physician’s report.
Employers must immediately report to the nearest District Office of the Division of Occupational Safety and Health any serious injury/illness or death of an employee occurring in a place of employment or in connection with any employment. “Immediately” means as soon as practically possible but not longer than eight hours after the employer knows or with diligent inquiry would have known of the death or serious injury/illness. If the employer can demonstrate that exigent circumstances exist, the time frame for the report may be extended to 24 hours after the incident.
Every workers’ compensation insurer must conduct a review, including a written report as specified below, of the workplace injury and illness prevention program (IIPP)of each of its insureds with an experience modification of 2.0 or greater within six months of the beginning of the initial insurance policy term.
The review must determine whether the insured has implemented all of the required components of the IIPP and evaluate their effectiveness. The training component of the IIPP must be evaluated to determine whether training is provided to line employees, supervisors and upper level management, and effectively imparts the information and skills each of these groups needs to ensure that all of the insured’s specific health and safety issues are fully addressed. The reviewer must also prepare a detailed written report specifying the findings of the review and all recommended changes deemed necessary to make the IIPP effective. The reviewer must be, or work under the direction of, a licensed California professional engineer, certified safety professional or a certified industrial hygienist.
Are there other notable reporting requirements unique to California?
California statute states that physicians attending to injured or ill employees must file a report with the employer or, if insured, with the insurer.
What Are California Employer OSHA Recordkeeping Requirements
Are employers required to keep record of all incidents resulting in occupational injury and/or illness? Yes
OSHA 300 Form required where applicable?
*Cal/OSHA Form 300 may be used instead of federal form? Yes*
OSHA 300A Form required where applicable?
*Cal/OSHA Form 300A may be used instead of federal form? Yes*
What are the Cal/OSHA requirements for determining whether an injury is recordable
Requirements are the same as the federal standards.
How long do employers have to keep these records?
Length of recordkeeping standards are the same as the federal standards.
Are there other notable recordkeeping requirements unique to California?
If employees, employee representatives or former employees want current or filed copies of any Cal/OSHA records, the employer must provide them by the next business day. If records for multi-establishment firms are stored in a central location, the employer must provide the phone number and address of the location where the documents are stored. There must be a staff member available during normal business hours to provide copies of the documents stored in the central location.
California OSHA Notice Posting Requirements
What workplace posters must employers in California post?
In addition to federal posting requirements and industry-specific requirements from the Industrial Welfare Commission, California employers must display the following workplace posters:
- Industrial Welfare Commission (IWC) Wage Orders
- State Minimum Wage
- Payday Notice
- Safety and Health Protection on the Job
- Emergency Phone Numbers
- Notice to Employees – Injuries Caused by Work
- Notice of Workers’ Compensation Carrier and Coverage
- Whistleblower Protections
- No Smoking
- Farm Labor Contractor Statement of Pay Rates (farm labor contractors only)
- Prevailing Wage Rate Determinations (public works awarding bodies and contractors only)
- Access to Medical and Exposure Records (employers using hazardous or toxic substances only)
- Operating Rules for Industrial Trucks (only employers operating forklifts and other industrial trucks or tow tractors)
What signage is required in areas where smoking is prohibited by law?
Entrances of smoke-free buildings must have a sign reading “No Smoking” or “Smoking is prohibited except in designated areas.”
Do employers have to post their citations illustrating violation of Cal/OSHA or other state labor laws?
California employers are required to post Cal/OSHA orders to take action, and they also must post citations and notices indicating an inspection occurred and resulted in no violations. These postings must remain for three days or until violations are corrected, whichever is longer.
Are there any other notable posting requirements unique to California?
Employers must post a sign at the location where any asbestos-related work is to take place stating “Danger – Asbestos. Cancer and Lung Hazard. Keep Out.” Employers in certain additional industries may have special posting requirements.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
by Grant Davis | Cyber Liability, GDI Insurance, Insurance, Risk Management
Protect Yourself From Phishing Scams
With every cyber attack, it becomes increasingly clear that no one is safe from data breaches or cyber extortion. Whether you are an employer that stores proprietary data or an individual with financial and personal information at risk, hackers won’t rest until they have what’s yours. And their tactics continue to evolve. Phishing scams are one way criminals have evolved. Contact GDI Insurance Agency, Inc. to get your cyber liability insurance quote 1-209-634-2929.
Cyber criminals have a variety of tools and techniques at their disposal, including malware, ransomware and disrupted denial-of-service attacks. One of the most common and difficult-to-spot strategies hackers use is phishing scams, which require minimal technical know-how and can be deployed from anywhere in the world via a simple email.
In broad terms, phishing is a method cyber criminals use to gather personal information. In these scams, phishers send an email or direct users to fraudulent websites, asking victims to provide sensitive information. These emails and websites are designed to look legitimate and trick individuals into providing credit card numbers, account numbers, passwords, usernames or other sensitive information.
76% of Organizations Reported Being Victim of a Phishing Scam in 2017
With every opened email, users risk becoming the victim of monetary loss, credit card fraud and identity theft. What’s more, successful phishing attacks oftentimes go unnoticed, which increases the risk of large and continued losses, particularly for businesses.
Even in the face of highly funded cyber security measures, phishing scams can be financially devastating. In 2017, tech giants Facebook and Google were phished for over $100 million each, proving that protection from online scammers doesn’t come easy—even for Fortune 500 companies.
Phishing is becoming more sophisticated by the day, and it’s more important than ever to understand the different types of attacks, how to identify them and preventive measures you can implement to keep yourself safe.
Download Our “Phishing Attacks: A Cyber Security Guide for Employers and Individuals”
You’ll learn:
- The difference between phishing and spear phishing
- How cyber criminals target individuals and employers
- Attack strategies
- How to spot an attack
- Avoid becoming a victim
- Stay Protected
GDI Insurance Agency, Inc Your Trusted Insurance Brokers
As reliance on technology continues to increase, new exposures continue to emerge. As your business grows, make sure your cyber liability insurance coverage grows with it. GDI Insurance Agency, Inc. is here to help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk.
Contact us today 1-209-634-2929.
by Grant Davis | Construction, GDI Insurance, Insurance, Risk Management
The Top Hazards In Construction
At GDI Insurance Agency, Inc, we know you’re good at your job and you love what you do. However, every time you come to work, you risk suffering an injury. The construction industry is one of the most hazardous in the United States, and many of the injuries that occur on construction sites are caused by these top four hazards: falls, struck-by, caught-in-between and electrocutions. Avoid these hazards in construction with these helpful tips.
When you have sufficient knowledge, preventing accidents caused by these hazards in construction is easier than you might think. Here are some basic safety tips to keep you injury-free.
Preventing Falls On Construction Site
- Wear and use fall arrest equipment.
- Install and maintain perimeter protection.
- Cover and secure all floor openings and label floor opening covers.
- Use ladders and scaffolds safely.
Preventing Struck-bys
- Never position yourself between moving and fixed objects.
- Wear high-visibility clothing near equipment and vehicles so that others can see you clearly.
Preventing Caught-in-between Hazards
- Never enter an unprotected trench or excavation that is five feet or deeper without an adequate protective system in place. Some trenches that are less than five feet may need a similar system as well.
- Make sure that a trench or excavation is protected either by sloping, shoring, benching or a trench shield system.
Preventing Electrocutions
- Locate and identify utilities before starting work for the day.
- Look for overhead power lines when operating any equipment.
- Maintain a safe distance away from power lines and learn your area’s distance requirements.
- Do not operate portable electric tools unless they are grounded or double insulated.
- Use ground-fault circuit interrupters for protection.
- Be alert to electrical hazards when working with ladders, scaffolds or other platforms.
GDI Insurance Agency, Inc Your Trusted Contractors Insurance Expert
If you are a Housing Developer, General Contractor, Solar Installation Contractor, Sub Contractor then you’ve come to the right place!
GDI Insurance Agency, Inc. provides California Contractors Insurance solutions specifically-tailored for construction businesses exactly like yours!
We Offer More Than Just Contractors Insurance
- We offer our clients a construction-specific employee safety manual that includes sections on common hazards in construction, such as silica exposure, heavy equipment operation and hazard communication.
- You also get access to our library of customizable workplace policies to keep your employees mindful of important construction safety practices. These policies cover topics such as permit-required confined spaces, respiratory protection and lockout/tagout procedures.
Download Our Free Guide “Construction Hazards and How To Avoid Them”
This quick guide will go over some solutions to the top hazards in the construction industry today.
- Fall protection (scope, application and definitions as well as training requirements)
- Hazard communication
- Scaffolding
- Respiratory protection
- Electrical (wiring methods, design and protection)
- Powered industrial trucks
- Ladders
- Lockout/Tagout
- Electrical (general requirements)
- Machine guarding
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive contractors insurance quote!
by Grant Davis | Insurance
What is California Directors and Officers Liability Insurance?
Directors and officers liability insurance (D&O) is a critical component of almost every organization’s risk management program. In today’s business climate, Directors & Officers liability insurance is no longer a necessity for just large, publicly traded companies. All organizations—regardless of their size, mission or structure—have some form of D&O exposure. Yet, despite the fact that D&O insurance has been around for decades, it remains one of the most complex and misunderstood insurance policies.
At GDI Insurance Agency, Inc., we feel it’s essential to bring as much clarity as possible to the subject of Directors & Officers liability insurance. Doing so allows our clients to make informed buying decisions and structure well-rounded risk management programs. As such, we have developed this guide to educate organizations on the risks facing their directors and officers and how D&O insurance can help.
Responsibilities of Directors and Officers
In order to understand the benefits of Directors and Officers Liability insurance, we must first examine the responsibilities of directors and officers.
When it comes to basic corporate functions, directors and officers of both private and public companies have a number of specific duties. Directors and officers are expected to fulfill these duties and they have an obligation to act in a company’s best interests.
- Duty of Diligence
- Duty of Loyalty
- Duty of Obidence
9 Reasons To Acquire Directors and Officers Liability Insurance
- Personal Assets Are At Risk – If directors are accused of breaching one of their duties, they might be personally liable to defend the claim. Without adequate D&O insurance, their personal assets could be threatened.
- Attracting Talent– Individuals may be reluctant to take on a role as a director without the protection of a D&O insurance policy. Without D&O coverage, organizations can struggle to find the right people to serve in key corporate positions.
- Security in Bankruptcy– Businesses facing financial difficulty sometimes go bankrupt. In bankruptcy, creditors can pursue legal action against directors and officers if they feel that they have not acted in the organization’s best interests.
- Protection from Regulators – Each day, regulatory bodies carry out investigations for potential corporate wrongdoings. As a result, regulatory bodies often impose costly fines against businesses.
- Small and Medium- Sized Enterprises (SMEs) are at Risk– SME’s are not exempt from D&O claims. In fact, they face many of the same risks and regulations as their larger peers, but often do no benefit from in-house HR or legal teams.
- Competitor Lawsuits- If an organization’s competitors believe that they have been unfairly disadvantaged by dishonest or illegal actions, they may seek recourse through legal action. Competitors may sue directors and officers for a wide range of perceived wrongdoings.
- Employee Practices Claims are on the Rise- In an increasingly litigious society, employment practices claims, such as sexual harassment or wrongful dismissal can force directors to defend themselves against legal action. These claims can result in costly settlements for plaintiffs and put directors at risks.
- Protection from Shareholder Actions– Due to their financial investment, shareholders have an incentive to monitor an organization’s ongoing performance. Disgruntled investors may file suit against directors and officers if they are unpleased with an organization’s direction.
- Buyer’s Market – As more insurance companies have entered the market, competition has created broader coverage and reduced premium rates for policyholders. This combination makes Directors & Officers Insurance an affordable Risk Management Solution for most businesses.
GDI Insurance Agency, Inc.
California’s leader in Insurance and Risk Management
As one of the fastest growing insurance agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
