When a company experiences significant increases in workers’ compensation costs, it usually triggers internal activities aimed at reducing insurance costs and spending. The key to spending fewer dollars is more than just stopping a few accidents; it is having a sound safety program designed to continuously improve. This is where a safety program that, at a minimum, is compliant with the Occupational Safety and Health Administration (OSHA) standards can yield significant savings for by reducing injuries and illnesses, reducing workers’ compensation costs.
Reducing Workers’ Compensation Costs by Building a Solid OSHA Program
There are five elementary steps can take to have a well-rounded safety program that produces a safe work environment, achieves OSHA compliance, reduces accidents and ultimately reducing workers’ compensation costs.
Develop the various programs required by the OSHA standards.
Integrate those programs into the daily operations.
Investigate all injuries and illnesses.
Provide training to develop safety competence in all employees.
Audit your programs and your work areas on a regular basis to stimulate continuous improvement.
Develop Programs Required by OSHA Standards
Aside from being a requirement for general industry, the OSHA standards provide a good pathway to incident reductions. A good number of accidents stem from poorly developed or poorly implemented OSHA programs: failure to keep walking and working surfaces clear may result in slips or trips, not using personal protective equipment may result in excessive lacerations, and poor lifting techniques can result in strains.
Many of the OSHA standards require some type of written program be developed and then communicated to employees. Experience shows that companies with thoroughly developed OSHA-compliant programs have fewer accidents, more productive employees and lower workers’ compensation costs.
Integrate Programs into Daily Operations
Policies alone won’t get results; the program must move from paper to practice in order to succeed. Putting a policy into practice requires a strategic plan clearly communicated to key participants, good execution of that plan based on developed competencies and a culture that inspires and rewards people to do their best.
When developing any business initiative, there must be an emphasis on frontline supervisors and helping them succeed. Every good business person knows that any new program—safety, quality or anything else—lives and dies with the frontline supervisor. If the frontline supervisor knows the program and wants to make it happen, the program succeeds; if not, the program is a source of constant struggle and an endless drain on resources and energies. Providing supervisors with knowledge and skills through training is critical to the success of any program.
A solid OSHA program integrated into the daily operation and led by competent supervisors is just the beginning. Successful safety programs focus on being proactive instead of always reacting to issues. Accident investigations provide an excellent source of information on real or potential issues present in the workplace.
Investigate All Injuries and Illnesses
Workers’ compensation is designed to recompense employees for injuries or illnesses they suffer in the course of their employment. This should not come as a surprise, but increasing numbers of claims drive up workers’ compensation costs. To reduce those costs, you must simply reduce your accidents, and the ability to reduce accidents is significantly enhanced when those accidents are fully investigated instead of simply being reported.
Accident reports are historical records only citing facts, while accident investigations go deeper to find the root cause and make improvements. Businesses that stop rising workers’ compensation costs have an effective accident investigation process that discovers the root cause of the problem. Unless the root cause is discovered, recommendations for improvement will remain fruitless. Again, training proves beneficial because a supervisor skilled in incident analysis is a better problem solver for all types of production-related issues, not just safety.
All accidents should be investigated to find out what went wrong and why. Some may suggest investigating every accident is a bit over the top and only those that incur significant costs are worthy of scrutiny. But ask yourself this question: If you only investigated serious quality concerns instead of every little deviation, would your quality program still be effective? Companies with solid quality programs investigate and resolve every deviation from quality standards.
If your emphasis is only on those incidents that have to be recorded on the OSHA 300 log, you close your eyes to the biggest accident category: first aid-only incidents. Many companies get upset about recordables or lost time accidents because of the significant costs involved, but they don’t realize that the small costs and high numbers of first aid-only incidents really add up.
Statistics show that for every 100 accidents, 10 will be recordable and one a lost-time incident. If you investigate only recordables or lost time accidents, 89 go unnoticed. Would you consider a quality program that allows an 89% failure rate successful? Reducing serious accidents means you must reduce your overall rate of all accidents – including first aid-only incidents. That only happens when every incident is fully investigated to find the root cause, and remedial actions are identified and integrated into the daily operation.
Training and Auditing for Continuous Improvement
The final steps focus on training and auditing your program for continuous improvement. Training plays a significant role in safety and in reducing workers’ compensation costs. The goal of training is to develop competent people who have the knowledge, skill and understanding to perform assigned job responsibilities. Competence, more than anything else, will improve all aspects of your business and drive down costs. Supervisors must have the knowledge and ability to integrate every safety program into their specific areas of responsibility. Every employee must know what is expected of them when it comes to implementing safe work procedures. Once the programs are developed and implemented, they must be reviewed on a regular basis to make sure they are still relevant and effective.
This might require a significant change in how you manage your safety program, but if your workers’ compensation rates are high, it may be time to make this leap.
Tangible Benefits
Studies indicate there is a return on investment and that companies see direct bottom-line benefits with a properly designed, implemented and integrated safety program.
A competency-based safety program is compliant with OSHA requirements and therefore reduces the threat of OSHA fines.
A competency-based safety program lowers accidents, and fewer accidents lower workers’ compensation costs. When incidents do occur, a competency-based safety program fully evaluates the issue and finds the root cause to prevent reoccurrence and provides a workplace that is free from recognized hazards.
A safer workplace creates better morale and improves employee retention. Auditing keeps your programs fresh and effective and drives continuous improvement.
A competency-based program produces people who are fully engaged in every aspect of their job and are satisfied and fulfilled producing high-quality goods and services.
How Can We Assist You?
At GDI Insurance Agency, Inc., we are committed to helping you establish a strong safety program that minimizes your workers’ compensation exposures. Contact us today at 209-634-2929 to learn more about our OSHA compliance, safety program, and accident investigation tools and resources.
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. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California 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 workers’ compensation insurance quote! We can help with reducing workers’ compensation costs!
As workplace technology continues to evolve and telecommuting becomes a common practice, it’s crucial for employees like you to play your part in keeping our organization cyber-secure. After all, a cyber incident could lead to serious ramifications for our business—allowing hackers or cybercriminals to access employees’ personal information and other classified company data. Our Cyber Security Best Practices will help keep your business safe online.
By prioritizing proper cybersecurity measures, you can help protect our workplace from cyber incidents and ensure your own information stays safe as well.
Implement These Cyber Security Best Practices:
Pay attention—First and foremost, be sure to actively participate in all workplace cybersecurity training sessions and familiarize yourself with our applicable policies and procedures. This includes (but is not limited to) setting smart passwords, detecting common signs of phishing attacks and knowing how to safely store workplace devices.
Keep your home cyber-secure—While working remotely, it’s important to implement cybersecurity measures comparable to that of the workplace. This includes connecting to a secure Wi-Fi network, conducting regular software updates, enabling firewalls and installing antivirus protection.
Browse with caution—When browsing online, be mindful of cyber threats and scams. Never click on suspicious pop-ups, ads or links, and only use verified, well-known websites. If the website address is labeled as “not secure” or uses an unrecognizable domain, close your browser immediately.
Stay organized—A cluttered workspace and poorly organized digital files can make it difficult to keep track of important information and increase your vulnerability to cyber incidents. Try to clear your workstation of excess papers or garbage, and store important documents in secure locations. Further, save any critical digital files in their appropriate folders or online databases—don’t leave your desktop in disarray.
Know how to respond—Despite your best efforts, a cyber incident may still take place. That’s why it’s vital to be prepared and know how to respond in the event of an incident. Make sure you review our organization’s cyber incident response plan regularly and ask questions if you don’t understand something.
An Examination of Our Cyber Breach
Our office suffered a 3rd party cyber breach on July 10, 2019. We’ve put together a case study that explains what we experienced, the costs we incurred, what we learned, and what we would change .
If you have any further questions regarding workplace cybersecurity, talk to your supervisor and reach out to the IT department, if needed.
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. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California 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.
Guidance on Tracking Hours of Work for Remote Employees
On Aug. 24, 2020, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin No. 2020-5 to remind employers of their obligation to accurately account for the number of hours their employees work away from the employer’s facilities. While the bulletin was issued in response to the high number of employees working remotely because of the COVID-19 pandemic, the DOL is also reminding employers that the underlying principles apply to other telework or remote work arrangements. What you need to know if you have remote employees!
Remote EmployeeCompensable Time
The federal Fair Labor Standards Act (FLSA), requires employers to compensate their employees for all hours of work. Compensable time includes any hours an employee is requested or allowed to work, including telework or remote work.
For remote work situations, the bulletin clarifies that compensable time includes any time during which the employer knows or has reason to believe work is being performed, regardless of whether the work was authorized or requested.
Employer Obligations for Remote Employees
As a result, under the FLSA employers have an obligation to track the number of hours their employees work. For this reason, employers must provide reasonable procedures for employees to report any scheduled and unscheduled hours of work. However, the DOL is of the opinion that “if an employee fails to report unscheduled hours of work through a reasonable process, the employer is not required to undergo impractical efforts to uncover unreported hours of work.” Finally, the bulletin emphasizes that employers bear the burden of preventing an employee from completing unauthorized or unwanted work.
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. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California 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 insurance quote!
Planning is critical in business and can make all the difference when it comes to generating revenue, building a reputation, reducing insurance exposures and satisfying customers. However, while proper planning can help your clients grow their business, the fact is that—even if they take every reasonable precaution—a crisis can occur without warning and lead to significant disruptions and business impacts. Simply put, a crisis is any situation that falls outside normal business and emergency response plans. A crisis may be an event your clients could’ve avoided if the proper protocols were in place (e.g., a social media crisis, or organizational errors and omissions) or a situation that’s completely out of your clients’ control (e.g., a natural disaster or a pandemic). Does your business have a crisis management plan?
When a Crisis Occurs, It May Significantly
Threaten the safety or well-being of a company’s people
Impair a company’s ability to operate effectively
Harm a company’s public reputation or image
Impact a company’s bottom line
Increase a company’s insurance exposures
The truth is that every business, regardless of the industry it operates in or the products or services it offers, will likely face a crisis at some point during its existence. These crises can threaten an organization’s reputation and even affect customers, donors and other third parties.
When such an event occurs, it’s critical that your clients are prepared to respond effectively with a crisis management plan. That’s where our new guide—A Guide to Creating a Crisis Management Plan—can help. This guide provides a general overview of crisis management plans and how your clients can create one of their own, enhancing any business continuity and loss control procedures their organization already has in place. It even includes a sample plan businesses can reference when establishing their crisis management strategies. Check it out today.
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. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California 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 insurance quote!
CDC Updates Guidance for Quarantine After an Exposure to COVID-19
As the coronavirus (COVID-19) pandemic continues, employers are discerning appropriate actions to prioritize health and safety within their workplace. Organizations are responsible for protecting the health of their employees, which can include recommending quarantine after an exposure to COVID-19. An exposure to COVID-19 may take place within the workplace, or an employee may report an exposure outside of the workplace.
This HR Insights article provides an overview of guidance from the Centers for Disease and Prevention (CDC) for quarantine after exposure to COVID-19. This guidance addresses who should quarantine, as well as how long quarantine should last dependent on the scenario.
Employers should continue to monitor current guidance from the CDC and follow recommendations from local health providers.
Quarantine After an Exposure to COVID-19
Quarantine is used to keep someone who might have been exposed to COVID-19 away from others. Quarantine helps prevent spread of disease that can occur before a person knows they are sick or if they are infected with the disease without feeling symptoms. People in quarantine should stay home, separate themselves from others, monitor their health and follow directions from their state or local health department.
Quarantine Timeline
The CDC recommends a quarantine period of 14 days after exposure to COVID-19. The quarantine should start and end at the same time of the day. For example, if starting quarantine at noon on one day, quarantine should end at noon on the 14th day. However, in scenarios where a person has an additional exposure to COVID-19, quarantine may require an extension, as outlined in the scenarios presented in this article.
In an exposure situation, it is possible that a person with a known case of COVID-19 could leave isolation after 10 days, rather than 14, which is earlier than a person who has been quarantined due to the possibility they are infected from an exposure.
Who Should Quarantine After An Exposure
Quarantine is recommended for people who have been in close contact with someone who has COVID-19—excluding people who have had COVID-19 within the past three months.
People who have tested positive for COVID-19 do not need to quarantine or get tested again for up to three months as long as they do not develop symptoms again. People who develop symptoms again within three months of their first bout of COVID-19 may need to be tested again if there is no other cause identified for their symptoms.
What Counts as Close Contact?
A person is considered to have been in close contact in the following situations:
Has been within 6 feet of someone who has COVID-19 for a total of 15 minutes or more
Has provided care at home to someone who is sick with COVID-19
Has had direct physical contact with a person who has COVID-19 (hugged or kissed them)
Has shared eating or drinking utensils with a person who has COVID-19
Has been sneezed or coughed on, or received respiratory droplets from a person who has COVID-19
Quarantine Scenarios
The CDC outlines four scenarios, and when quarantine can end:
Scenario 1: Close Contact With Someone Who Has COVID-19—Will Not Have Further Close Contact
This scenario applies to persons who have had close contact with someone who has COVID-19 and will not have further contact or interactions with the person while they are sick (e.g., co-worker, neighbor or friend).
The last day of quarantine is 14 days from the date of close contact.
Scenario 2: Close Contact With Someone Who Has COVID-19—Live With the Person But Can Avoid Further Close Contact
This scenario applies to persons who live with someone who has COVID-19 (e.g., roommate, partner or family member), and that person has isolated by staying in a separate bedroom. In this situation, this person has had no close contact with the person with COVID-19 since they began isolation.
The last day of quarantine is 14 days from when the person with COVID-19 began home isolation.
Scenario 3: Under Quarantine and Had Additional Close Contact With Someone Who Has COVID-19
This scenario applies to persons who live with someone who has COVID-19 and have started their 14-day quarantine period because of close contact. What if this person ends up having additional close contact with the person who has COVID-19 during quarantine? What if another household member gets sick with COVID-19? Does this person need to restart quarantine?
Yes. This person will have to restart quarantine from the last day they had close contact with anyone in their house who has COVID-19. Anytime a new household member gets sick with COVID-19 and this person has close contact, they will need to restart quarantine.
The last day of quarantine is 14 days after additional close contact.
Scenario 4: Lives With Someone Who Has COVID-19 and Cannot Avoid Continued Close Contact
This scenario applies to persons who live in a household where they cannot avoid close contact with a person who has COVID-19. These situations would include someone who is providing direct care to the person who is sick, doesn’t have a separate bedroom to isolate the person who is sick or lives in close quarters where they are unable to keep a physical distance of 6 feet.
This person should avoid contact with others outside the home while the person is sick, and quarantine for 14 days after the person who has COVID-19 meets the criteria to end home isolation.
Fourteen days can be added to the date the person with COVID-19 ends home isolation. After the additional 14 days conclude, quarantine can be discontinued.
For More Information
The recommendations provided in this article should not be considered legal advice. Employers should consult with local legal counsel for legal advice. Employers should continue to monitor current guidance from the CDC and follow recommendations from local health care providers. Contact GDI Insurance Agency, Inc. for additional COVID-19 resources.
Source: Centers for Disease Control and Prevention
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. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California 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.
Managing a fleet and drivers can be a challenge, particularly given the potential for accidents, employee injuries, liability concerns and increased costs associated with vehicle upkeep. Nevertheless, your fleet—whether it be a handful of cars or dozens of commercial vehicles—plays a major role in the success of your organization. There are many benefits of Telematics for Commercial Fleets.
As such, it’s crucial to take a proactive approach to fleet management. To help accomplish this, many businesses have started to equip vehicles with devices known as telematics. These devices can help reduce numerous fleet risks, improve efficiency and promote safe driving behaviors. This Risk Insights provides an overview of telematics and the benefits that this technology can provide for your organization. For detailed information on the telematics solutions available to your fleet, contact us today.
The Basics of Telematicsfor Commercial Fleets
Telematics is a form of vehicle software that combines the features of telecommunications and informatics to help employers effectively manage and monitor their fleet. This software operates by connecting to telematics devices installed in a vehicle, including GPS technology, sensors, mobile applications, dashcams and vehicle engine diagnostics solutions. Common data collected by vehicle telematics software includes:
Vehicle speeds
Vehicle locations
Diagnostics data related to fuel efficiency and vehicle performance
Driving behaviors (e.g., braking intensity or acceleration frequency)
Telematics can be used in a variety of different commercial vehicles, including cars, cargo vans, tractor-trailers, buses and heavy equipment. Many employers use this technology to monitor vehicle deliveries, determine routes, communicate with drivers, review employee driving practices and detect vehicle maintenance concerns.
Why You Need Telematicsfor Commercial Fleets
Utilizing telematics software can benefit your fleet by:
Reducing operational costs—Telematics software can help keep drivers updated on upcoming traffic concerns or road hazards, offer rerouting options and locate preferred gas stations—all of which can contribute to maximum fuel efficiency and lowered operational costs.
Encouraging safe driving—Because telematics software detects driving behavior, employees will be even more motivated to follow safe driving practices and meet organizational standards. In addition, this technology allows employees to better monitor their individual driving habits and detect flaws that they might not have realized otherwise. In some cases, employers can send immediate in-cab alerts to correct dangerous behaviors in real time. What’s more, fleet managers can use the data that telematics collects to personalize driver coaching, helping employees actively address potentially dangerous driving behavior.
Fostering employee engagement—Drivers spend the majority of their workday confined to a vehicle with minimal communication opportunities, which can be harmful to both their physical and mental health. By implementing telematics software in your fleet, drivers will have an increased ability to digitally communicate and interact with others (e.g. their supervisor, co-workers and dispatchers) regarding travel progress, road conditions, delivery requests or vehicle concerns.
Bolstering fleet security—Due to advanced tracking and communication features, telematics software can also help keep your fleet safe and secure in an emergency. For example, you can utilize telematics tracking to detect the location and route of any stolen vehicles—thus simplifying the vehicle recovery process. What’s more, many forms of telematics software allow you to implement advanced security features in each vehicle, such as requiring the driver to enter a passcode before driving to reduce the risk of theft altogether. Apart from preventing theft, telematics software can also help drivers quickly alert the proper authorities and share their exact location in the event of an accident on the road.
Ensuring vehicle maintenance—Telematics software is able to detect a wide range of vehicle breakdown or maintenance problems, such as engine issues or diagnostic concerns. From there, this technology is able to inform the driver of the problem and locate the nearest repair center or garage. Also, telematics software can be programmed to inform drivers of routine maintenance requirements, such as an oil change or tire pressure check. Many employers pair telematics with a preventive maintenance program to streamline the upkeep of the fleet.
Reducing administrative costs—Telematics allows employers to digitize records that would otherwise have to be maintained manually, which can be a time-consuming process. Specifically, through telematics, employers can generate reports regarding expenses, driver performance, maintenance and fuel expenses, thus simplifying a business’s recordkeeping practices overall.
For additional insurance and loss control guidance, contact GDI Insurance Agency, Inc. today.
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. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California 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 insurance quote!
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