by GDI Insurance | Business Insurance, Insurance, Small Business
Status of the DOL’s Independent Contractor Rule
On March 11, 2021, the U.S. Department of Labor (DOL) announced a proposal to rescind the independent contractor final rule. The DOL’s Independent Contractor rule was published on Jan. 7, 2021 and is scheduled to become effective on May 7, 2021. The DOL’s position is that adopting the rule would significantly weaken worker protections under the Fair Labor Standards Act (FLSA).
Although the final rule’s effective date has technically not yet been canceled, this proposal signals the DOL’s intention to roll back the worker classification test established by the rule at the end of President Donald Trump’s administration.
As a result, employers should continue to monitor DOL communications on this topic for updates regarding worker classification obligations.
Importance of Worker Classification
Whether a worker is covered by a particular law or is entitled to receive a particular benefit often depends on whether the worker is an employee or an independent contractor. In general, employment laws, labor laws and related tax laws do not apply to independent contractors.
Misclassifying employees has become an increasing concern for governments, courts and regulatory agencies. Employers that misclassify employees can be liable for expensive fines and litigation if a worker should have been classified as an employee and did not receive a benefit or protection he or she was entitled to receive by law.
However, classifying workers as either employees or independent contractors is not always a simple or straightforward task. There is no single standard or test that applies to every situation where an employer will need to determine whether a worker is an employee who is protected by a particular law. As a result, courts and enforcement agencies have to rely on a variety of case law and regulatory guidance that change depending on the issue that brings the worker classification issue into question.
Commonly used tests for worker classification include:
- The Common Law Agency Test: The common law agency test assumes that, unless there is a definition for “employee,” “employer” and “scope of employment,” these terms are best understood in the context of the common law principles of agency. These principles, addressed by courts over time, focus on whether the employer has the right to control the work and how it is done. This test is generally used for purposes of worker classification under the Copyright Act, Employee Retirement Income Security Act (ERISA) and National Labor Relations Act (NLRA).
- The Economic Realities Test: The economic realities test requires a thorough analysis of the relationship between the parties, and evaluates the level of financial dependency 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. The courts have favored this test when the term “employee” is used in a very broad sense—for example, in issues related to the Fair Labor Standards Act (FLSA) and the FMLA.
- The Hybrid Test: As the name suggests, the hybrid test combines elements of the common law agency and the economic realities tests. Though some lower courts have used this test to deal with issues related to Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA) and the ADA, the Supreme Court has criticized this approach and is leaning more toward using the common law test for similar issues.
- The IRS Test: The IRS has also developed its own test regarding whether an employment relationship exists between a worker and an employer, for purposes of determining tax liability of employers and individuals. The IRS test is sometimes referred to as the control test, and it expands and classifies factors from the common law test into three categories—a sphere of behavioral control, a sphere of financial control and factors that determine the type of relationship that exists between parties.
Regardless of which test is used and the context of the particular situation, employers should remember that employment relationships are dynamic. Changes that occur over time in the relationship between the company and a worker may impact how workers should be classified. For this reason, employers should evaluate whether their independent contractors are adequately classified on a regular basis.
The DOL’s Independent Contractor Rule
The 2021 Final Rule
The DOL’s independent contractor classification final rule on Jan. 7, 2021. As published, the final rule was scheduled to become effective March 8, 2021.
This rule reaffirmed the use of the economic realities test for FLSA compliance. In issuing the rule, the DOL intended to provide a clear articulation of the economic realities test and its component factors, which it expected to lead to increased precision and predictability in the economic reality test’s application.
The factors used in the economic reality test are:
- The nature and degree of control over the work;
- The worker’s opportunity for profit or loss based on initiative and/or investment;
- The amount of skill required for the work;
- The degree of permanence of the working relationship between the worker and the potential employer; and
- Whether the work is part of an integrated unit of production.
While the traditional approach of this test gives similar importance to all five factors, the DOL rule favored the use of the first two factors—also called the “core factors”—as determinative or controlling in the outcome. The rule also considered the remaining three factors as additional guidance. However, the final rule also stated that actual practice, rather than contractual or theoretical agreements, is more relevant during the worker classification process.
Commentators on this rule have suggested that giving greater weight to the core factors would likely result in more workers being classified as independent contractors rather than employees. Of particular importance is the impact some expect this rule will have on the gig economy and their access to employee benefits and protections.
The Regulatory Freeze
Shortly after his inauguration, President Joe Biden issued a regulatory freeze on this and other regulations adopted during the last few weeks of the Trump administration.
This freeze imposed a delay for the enforcement or effective date of agency rules and guidance to allow government officials sufficient time to determine whether these rules and guidance align with the policies of the Biden administration. This type of regulatory freeze is not uncommon when there is a change of political party affiliation at the highest levels of government.
The Delay and Proposal to Rescind
As a result of the regulatory freeze, on March 4, 2021, the DOL delayed the final rule’s effective date from March 8 to May 7, 2021.
A week later, on March 11, 2021, the DOL announced a proposal to rescind the DOL’s independent contractor rule. With the proposal, the DOL stated its opinion that implementing the rule would significantly weaken worker protections under the FLSA. Specifically, the DOL found that using this modified version of the economic reality test would narrow or minimize the importance of factors historically relevant in a comprehensive approach to evaluating whether an employment relationship exists.
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 business insurance quote!
by GDI Insurance | Business Insurance, Cyber Liability, Risk Management, Safety Tips, Small Business
CNA Financial’s “Sophisticated Cyber-Attack“
Commercial insurance carrier CNA was hit by a “sophisticated cyber-attack” that caused major havoc for certain systems, including email. Out of an abundance of caution, they contained the attack by proactively disconnecting their systems leveraging a methodical and carefully organized process. CNA is one of the biggest insurance companies in the U.S., with over 6,000 employees.
GDI Insurance Agency had a $250k+ premium account that most likely would have gone to them, but due to the system outage/failure they couldn’t get final pricing to us and lost the opportunity. Having happened leading into 4/1 (the start of a new quarter was the WORST timing for an insurance company). It’s murphy’s law, what can go wrong will (and when it does it’ll be at the worst possible time). If this happened with our agency, think of the losses they experience with other agencies as well.
CNA Insurance has been working around the clock for a week on the incident, and have just restored their enterprise email system, which is now safe. Adding additional security measures in place to protect their systems.
“The security of our data and that of our insureds’ and other stakeholders is of the utmost importance to us. Should we determine that this incident impacted our insureds’ or policyholders’ data, we’ll notify those parties directly,” the company said.
How CNA Dealt With A Sophisticated Cyber-Attack
“Out of an abundance of caution, we contained the attack we sustained by proactively disconnecting our systems from our network. We are now in the restoration stage and are bringing back our systems leveraging a methodical and carefully organized process. As highlighted here and as an example of this ongoing process, we have restored email access and you can communicate with CNA employees safely and in the normal course of business.”
10 Cyber Security Resolutions to Reduce Your Data Exposures
Sophisticated cyber-attack, threats and trends can change year over year as technology continues to advance at alarming speeds. As such, it’s critical for organizations to reassess their data protection practices at the start of each new year and make achievable cybersecurity resolutions to help protect themselves from costly breaches. The following are resolutions your company can implement to ensure you don’t become the victim of a sophisticated cyber-attack:
- Provide security training—Employees are your first line of defense when it comes to cyber threats. Even the most robust and expensive data protection solutions can be compromised should an employee click a malicious link or download fraudulent software. As such, it’s critical for organizations to thoroughly train personnel on common cyber threats and how to respond.
Employees should understand the dangers of visiting harmful websites, leaving their devices unattended and oversharing personal information on social media. Your employees should also know your cybersecurity policies and know how to report suspicious activity.
- Install strong antivirus software and keep it updated—Outside of training your employees on the dangers of poor cybersecurity practices, strong antivirus software is one of the best ways to protect your data.
Organizations should conduct thorough research to choose software that’s best for their needs. Once installed, antivirus programs should be kept up to date.
- Instill safe web browsing practices—Deceptive and malicious websites can easily infect your network, often leading to more serious cyber attacks. To protect your organization, employees should be trained on proper web usage and instructed to only interact with secured websites.
For further protection, companies should consider blocking known threats and potentially malicious webpages outright.
- Create strong password policies—Ongoing password management can help prevent unauthorized attackers from compromising your organization’s password-protected information. Effective password management protects the integrity, availability and confidentiality of an organization’s passwords.
Above all, you’ll want to create a password policy that specifies all of the organization’s requirements related to password management. This policy should require employees to change their password on a regular basis, avoid using the same password for multiple accounts and use special characters in their password.
- Use multi-factor authentication—While complex passwords can help deter cybercriminals, they can still be cracked. To further prevent cybercriminals from gaining access to employee accounts, multi-factor authentication is key. Multi-factor authentication adds a layer of security that allows companies to protect against compromised credentials.
Through this method, users must confirm their identity by providing extra information (e.g., a phone number, unique security code) when attempting to access corporate applications, networks and servers.
- Get vulnerability assessments—The best way to evaluate your company’s data exposures is through a vulnerability assessment. Using a system of simulated attacks and stress tests, vulnerability assessments can help you uncover entry points into your system.
Following these tests, security experts compile their findings and provide recommendations for improving network and data safety.
- Patch systems regularly and keep them updated—A common way cybercriminals gain entry into your system is by exploiting software vulnerabilities. To prevent this, it’s critical that you update applications, operating systems, security software and firmware on a regular basis.
- Back up your data—In the event that your system is compromised, it’s important to keep backup files. Failing to do so can result in the loss of critical business or proprietary data.
- Understand phishing threats and how to respond—In broad terms, phishing is a method cybercriminals 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.
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 your organization safe.
As such, it’s critical to train employees on common phishing scams and other cybersecurity concerns. Provide real-world examples during training to help them better understand what to look for.
- Create an incident response plan—Most organizations have some form of data protection in place. While these protections are critical for minimizing the damages caused by a breach, they don’t provide clear action steps following an attack.
That’s where cyber incident response plans can help. While cybersecurity programs help secure an organization’s digital assets, cyber incident response plans provide clear steps for companies to follow when a cyber event occurs. Response plans allow organizations to notify impacted customers and partners quickly and efficiently, limiting financial and reputational damages.
For additional cyber risk management guidance and insurance solutions, contact us 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 cyber liability insurance quote!
by GDI Insurance | Business Insurance, Human Resources, Small Business
Attraction and Retention Challenges Amid COVID-19
Attracting and retaining talent is often a top priority for HR departments. Given the effect the COVID-19 pandemic has had on the job market, one might imagine this task is easier than ever. Unfortunately, that’s far from the truth. There are many attraction and retention challenges amid COVID-19.
While there may be more candidates than usual, attracting quality talent and retaining top performers still remains a struggle, worsened by COVID-19 and its effects on the workplace.
This article shares some tips for attracting and retaining workers amid the COVID-19 pandemic.
Expand Hiring Pools
The COVID-19 pandemic has demonstrated how quickly teams can adapt, with some workplaces shifting entirely to telework. After months of remote-working success, many workplaces have said they will allow telework permanently even after the pandemic subsides. That’s because of the numerous advantages of remote work.
For one, these individuals won’t take up office space, saving room for others who need it. Additionally, this flexibility allows recruiters to expand hiring pools to anywhere with an internet connection. This can be a great benefit for employers that haven’t had luck finding quality talent near them.
Adapt the Workplace Layout
Amid the COVID-19 pandemic, many workers are concerned about their health and well-being while at work. By addressing these concerns, employers can bring peace of mind to employees and, in turn, attract workers who may have held reservations about their safety.
Employers can do this by adapting their workplaces to focus on worker health. This includes mandating social distancing, moving desks around, holding virtual meetings exclusively, allowing flex scheduling and offering telecommuting. At the end of the day, workplaces that demonstrate concern for employees will be the ones where individuals actually want to work. Conversely, if employees are forced to choose between their safety and their jobs, employers shouldn’t expect good retention.
Provide Meaningful Benefits
The pandemic has affected everyone in significant, yet unique, ways. While all employees may be struggling in some way, their situations aren’t the same. Employers can help lift up their workers by offering meaningful employee benefits.
Robust health care offerings may seem like an obvious one-size-fits-all solution, but sometimes voluntary benefits are actually what employees need. These include caregiving assistance, financial counseling, increased paid time off and other nontraditional perks. There are many low-cost options available and, better yet, employees can choose their benefits a la carte to meet their individual needs.
Support Well-being
Employees are going through a lot right now, and many are suffering from poor mental health. This includes feeling depressed, lonely, anxious or any other negative emotion—feelings that may be compounded if employees are working in isolation. And the fact that employees are holding onto negative feelings isn’t terribly surprising, given the devastating impacts of COVID-19.
Now is the time for employers to show employees and potential recruits that they’re willing to invest in their well-being. Potential options include comprehensive employee assistance programs, one-on-one counseling, therapy sessions and stress-reducing activities. Solutions don’t need to break the bank, either. Something as small as a weekly outdoor activity, virtual chitchat meeting or group excursion could be enough to lift employees out of their funk.
Look Internally for Talent
If an employer is struggling to fill an important role with an outside candidate, it could be that they’re looking in the wrong place. Many organizations are now focusing on upskilling current employees and retraining them for more important positions. This can be significant for a few reasons.
Firstly, outside candidates would need to be trained anyway, so upskilling a current employee wouldn’t be any more burdensome. Since they’re already familiar with the workplace and its operations, it may even be easier.
Secondly, many recruiting teams are expecting big slashes to their budgets in the wake of the COVID-19 pandemic. As such, shuffling around current employees could help save the bottom line.
Thirdly, promoting employees from within the organization shows that an employer is willing to invest in their career growth. This sentiment can go a long way in retaining top talent.
Attraction and Retention Challenges Conclusion
There are many creative ways employers can attract and retain quality workers. Amid the COVID-19 pandemic, even small gestures can go a long way to distinguish an organization from others in its industry.
Reach out today to learn more about these and other workplace strategies.
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 business insurance quote!
by GDI Insurance | Business Insurance, Insurance, Risk Management, Small Business
Shoplifting Prevention
Shoplifting can become a costly problem for any retailer. According to the National Association for Shoplifting Prevention, over $35 million worth of merchandise gets stolen from retailers each day. Furthermore, the latest data from the National Retail Federation provides that shoplifting is the leading cause of inventory shrinkage among retail businesses—contributing to 39% of shrinkage concerns. With these numbers in mind, your business can’t afford to ignore the risk of shoplifting. Fortunately, many shoplifting incidents can be deterred by implementing a shoplifting prevention program. Review this guide for an outline of key elements to include in your program. Contact GDI Insurance Agency, Inc. today for your retail insurance quote 209-634-2929.
Start With a Smart Store Layout for Shoplifting Prevention
First, it’s important to ensure that the physical layout of your store dissuades potential shoplifters. That being said, follow these layout best practices:
- Limit the number of entrances and exits at the store. However, make sure this setup remains compliant with building safety codes. Never allow customers to use fire exits unless it’s an actual emergency.
- Attach a bell or sensor to all store entrances to help keep track of customers as they arrive at the premises.
- Avoid placing merchandise by store entrances and exits. Doing so could attract shoplifters, giving them the opportunity to swiftly steal the merchandise and leave the premises before getting caught.
- Keep high-priced merchandise either out of the direct reach of customers (e.g., in locked display cases) or near the checkout counter.
- Place the checkout counter in a way that requires all customers to pass it before leaving the store.
- Utilize shorter store shelving and displays to maintain visibility of customers while they shop.
- Install proper lighting and convex mirrors throughout the store to avoid potential blind spots that shoplifters could take advantage of.
- If applicable, keep dressing rooms locked while they are not being used to ensure customers have to consult an employee before entering them.
In addition to these layout methods, be sure to keep the store clean and organized at all times. Cluttered aisles and jumbled merchandise can make your store more attractive to shoplifters and lower your ability to quickly detect missing items.
Ensure Adequate Security Measures
Utilizing robust security measures at your store can help discourage potential shoplifters, as well as catch such criminals in the act before it’s too late. Consider equipping your store with these top security features:
- Security cameras—Installing security cameras across the store (with the exception of bathrooms and dressing rooms) will allow you and your staff to have eyes throughout the property and capture high-quality footage of shoplifting incidents.
- Electronic article surveillance (EAS) systems—An EAS system has two components. First, individual tags that can only be removed with a special device after a secure purchase are placed on store merchandise. Second, sensors consisting of a transmitter and a receiver are installed at store exits. These sensors establish an electronic field that becomes unbalanced if a tagged item passes through them. If someone attempts to steal tagged merchandise, the sensors will trigger an alarm as soon as the shoplifter tries to exit the premises. EAS systems are a critical aspect of any shoplifting prevention program. In fact, several studies have found that EAS systems can help minimize shoplifting losses by as much as 75%.
- Inventory management technology—Apart from EAS systems, various forms of inventory management technology can also help you better keep track of store merchandise and prevent shoplifting losses. For instance, point-of-sale systems are computerized software that you can utilize during the checkout process to help monitor store inventory, detect false returns or exchanges, and confirm customers’ identities. A wide range of mobile applications have also been created to help store owners conduct physical inventory counts more efficiently via digital barcode scanning.
Further, make sure to implement signage throughout the store to inform customers of the security measures you have in place. Place this signage at the entrances and exits of your store, as well as above any display areas. However, ensure this signage properly reflects your store’s brand and considers your customer base. After all, the goal of these signs is to dissuade shoplifters—not intimidate legitimate customers.
Utilize Your Employees
It’s also important to include staff in your shoplifting prevention program. As such, there should be enough employees scheduled during each shift to monitor every section of the store. Designated employees should be responsible for greeting customers as they enter the store, following up with customers while they shop and assisting them when they want to use the dressing rooms (if applicable). If a customer starts carrying around a significant amount of store merchandise, employees should offer to hold items behind the counter for them until they check out. All employees should also be trained on how to detect potential shoplifting behaviors, such as:
- Shopping in a large group of people
- Not making direct eye contact with staff
- Carefully watching employees’ movements but avoiding interaction with them
- Acting nervous and appearing disinterested in store merchandise
- Trying to use a dressing room without staff permission or taking a large number of items into the dressing room
- Frequently glancing at store exits
- Carrying numerous other shopping bags, purses or backpacks to easily place stolen merchandise into
- Spending a significant amount of time in one particular area of the store
- Fidgeting with items’ price markings or EAS tags
During the checkout process, employees should be instructed to carefully remove EAS tags from store merchandise, ensure smaller items aren’t being hidden within larger items and inspect each items’ price markings to make sure they are correct. Employees should be required to provide customers with a copy of their receipt for every purchase.
In the event of a confirmed shoplifting incident, staff should know how to safely respond. This may include contacting the police for assistance. If you are particularly concerned about the risk of shoplifting or your store has been frequently targeted by shoplifters in the past, you may want to consider hiring specialized security personnel in addition to your regular staff.
Implement Effective Shoplifting Prevention Store Policies
Lastly, it’s critical to develop and enforce various store policies aimed at preventing and responding to shoplifting incidents. Policy topics may include:
- How merchandise should be organized and displayed within the store
- How prices are marked on merchandise and what measures are in place to prevent price tampering (e.g., securely attaching price tags with string or staples to minimize tag switching)
- What the protocols are for managing store inventory
- Whether customers are permitted to bring shopping bags, purses, strollers or backpacks into dressing rooms (if applicable)
- How many items customers can have in a dressing room at one time (if applicable)
- How employees should respond to suspected shoplifters
- How store evidence (e.g., security camera footage, the triggering of the EAS system and store receipts) will be used to implicate a shoplifter
- What the process is for prosecuting confirmed shoplifters
For more industry-specific risk management guidance, contact us 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 small business insurance quote!
by GDI Insurance | Dental Labs, GDI Insurance, Risk Management, Safety Tips, Small Business
Health Care Facility and Air Quality
According to the Environmental Protection Agency (EPA), indoor air has higher levels of pollutants than outdoor air, and consequently can pose environmentally related health problems. Health care facilities must take particular care of indoor air quality; many of those in the hospital are especially susceptible to air quality problems, such as immunosuppressed, elderly or chemotherapy patients, and those being treated in bone marrow, neonatal or burn units. Your Health Care Facility needs to take particular notice of air quality. Hospitals also face unique risks regarding air quality:
- The risk of spread of infectious diseases and other biological hazards
- Chemical hazards
- Ventilation requirements
Sick Building Syndrome (SBS)
When a substantial number of a facility’s occupants experience health and comfort troubles related to working indoors, the outbreak is referred to as sick building syndrome. The reported symptoms do not follow the patterns of any particular illnesses, are often difficult to trace to any specific source and relief from the symptoms tends to occur when leaving the facility. Employees may experience headaches, eye, nose and throat irritation, dry or itchy skin, fatigue, dizziness, nausea and loss of concentration.
Building-Related Illnesses (BRI)
A facility is characterized with BRI when a relatively small number of occupants experience health problems. The symptoms associated with BRIs are similar to those of SBS and are often accompanied by physical signs identified by a physician or laboratory test. Sufferers of BRI may also experience upper respiratory irritation, skin irritations, chills, fever, cough, chest tightness, congestion, sneezing, runny nose, muscle aches and pneumonia. These symptoms may be caused by the following conditions brought on my indoor air pollutants: asthma, hypersensitivity pneumonitis, multiple chemical sensitivity and Legionnaires’ disease.
Contributing Factors
There are numerous concerns regarding health care facility air quality. The following are some that can be controlled by the facility.
Use of Mercury
Mercury is a bioaccumulative, persistent, toxic substance that threatens the health of humans. It is found in many health care settings, including pathology labs, patient areas, and clinical procedure and medicines. It is found in blood pressure monitors, dental amalgam, thermometers or thermostats, esophageal dilators, Cantor tubes and Miller Abott tubes, and histology fixatives and stains.
Mercury evaporates, and can be inhaled. Even a few drops of metallic mercury, when released into an enclosed space, can raise air concentrations of mercury to levels that are harmful to health. If mercury is not handled and disposed of properly, mercury can pose a serious health threat to staff and patients. There are mercury-free alternatives for almost all of these items. Your efforts can make a big difference.
Polyvinyl Chloride (PVC)
PVC is used in common plastic products like IV bags, surgical tubing and other medical supplies. If products containing PVC are incinerated on site, they produce a potent carcinogen called dioxin, which interferes with normal reproduction and development even at low doses.
Latex
Latex protein molecules can bind with cornstarch powder on the outside and inside of gloves and be inhaled by staff and patients in a large area. Many health care workers and patients have a latex allergy, and inhaling the substance puts them at risk of an allergic reaction, which can range from skin irritations to breathing problems.
Health Care Facility and Ventilation Systems
Biological contaminants including bacteria, mold and viruses can breed in stagnant water that can accumulate in ducts, humidifiers and drain pans of ventilation systems, increasing the risk of infection in all areas of the facility.
Proper maintenance of these systems and use of HEPA filters is fundamental to preventing the spread of disease. Without maintenance, filters become overloaded, allowing irritants and microbes to circulate in the air. A thorough inspection of your ventilation system should verify the following.
- Outdoor air supply dampers are opened as they were originally designed and remain unobstructed.
- Fan belts are properly operating, in good condition and replaced when necessary.
- Equipment parts are lubricated.
- Motors are properly functioning and in good operating condition.
- Diffusers are open and unobstructed for adequate air mixing.
- The system is properly balanced.
- Filters are properly installed and replaced at specific intervals.
- Damaged components are replaced or repaired.
- Condensate pans are properly drained and are in good condition.
- Carbon dioxide levels are under 1000 ppm, which is the maximum recommended level by the American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.
Ways to Reduce Your Health Care Facility Risk
- Reduce or eliminate the presence of dangerous chemicals in your facility by purchasing products that do not contain them or handling them in the proper manner.
- Use mercury-free instruments and supplies
- Avoid PVC and do not incinerate PVC-containing materials
- Use latex-free or powder-free gloves
- Focus on your ventilation systems. Ensure that the fresh air supply and air pressure are sufficient for each part of the facility. Make proper maintenance of these systems a priority.
- Develop a training and communication program aimed at increasing the general awareness of the impacts of these irritants, and a protocol for use and disposal.
- Avoid overcrowding staff and patients in one area, and make sure the amount of fresh air in the room is appropriate for the average number of occupants.
- Clean and disinfect all surfaces regularly where irritants and moisture can collect.
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 GDI Insurance Agency, Inc. for more information about risk management and loss prevention strategies for health care facilities, including a complete Dental Labs Insurance program.
by GDI Insurance | COVID, Health Care, Risk Management, Small Business
Physical Therapy Going High-Tech
Traditional physical therapy is being challenged by an aging population, an aging working population, on-demand expectations of consumers, and patient accessibility issues. The good news is technology is making PT much easier to deliver and tailor to the changing preferences of patients. But with that technology comes different risks that you’ll need to consider as you accommodate your clientele. What you need to know about physical therapy going high-tech during the pandemic.
Heightened awareness of the dangers of pain medications, especially opioids, and the expansion of many health insurance programs to include physical therapy as a covered treatment for chronic pain could increase business at your PT practice. As welcome as a growing clientele is, it comes with new demands for nontraditional treatment methods, including telemedicine, virtual reality therapies and in-home care. Some practices are using a combination of all three!
Depending on the technology you choose, you may need to reassess your professional liability, workers’ compensation insurance and commercial auto insurance policies as well as your overall employee training and safety measures. Let’s look at a few of the tech-enabled therapy options and their associated risks.
Telemedicine and Physical Therapy
Telehealth — medical service provided by telephone — isn’t generally reimbursable for physical therapists under Medicare and Medicaid, so providers must be very careful about furnishing telemedicine to patients covered under those programs.
For patients in group health plans or other commercial insurance, payment varies as do permissible treatments and locations of treatment, so check with the payer before initiating services, according to the American Physical Therapy Association.
That said, school districts have, since the shutdown due to COVID-19, been looking for ways to provide special education students with occupational and physical therapy remotely. Other institutions have sought similar remote access to services.
In April 2020, the Centers for Medicare and Medicaid Services (CMS) temporarily changed rules governing home health agencies’ use of telehealth, allowing for expanded use of and reimbursement for telephonic physical therapy. But you must verify that these regulatory waivers are still in place and that your particular services and patients qualify.
Those physical therapists working via telephone should do a full assessment of the professional services liability exposures they may have, such as misdiagnosis, accessibility issues for those with hearing or speech problems, and verification of a patient’s comprehension of the therapist’s instructions.
Your practice should also work with your insurance professional to ensure your professional liability insurance covers telehealth. Additionally, it’s possible your practice will need to develop liability and informed consent clauses or forms for your clients to sign.
Virtual Reality Therapies
Physical therapists often spend a substantial amount of time coaching patients past mental and emotional barriers that block initiation of or progress in recovery. Virtual reality tools can help them overcome those obstacles by immediately engaging them in a gamified world that eliminates the distractions and fears of interpersonal relationship building and trust.
For example, patients who enter therapy believing they can’t perform certain daily tasks, like making a bed or buying groceries, are frequently willing to try these activities in virtual reality (VR) mode much sooner than in the real world. Through VR, they find — in the privacy of their home or therapist’s office — that they can accomplish movement or endeavors they thought were not possible.
Important to note are the risks that can be involved in VR and gaming. A neurological assessment and coordination with other caregivers can provide crucial contraindications or impediments that should be considered.
Online Consultations
More online physical therapists are cropping up each week. They use videoconferencing, online coaching, apps that track recovery, and emailed exercises. The typical program begins with a clinical assessment (some done online), followed by a classification or diagnosis, a treatment plan, and some sort of monitoring and follow-through to gauge progress or completion of the regimen.
If equipment is needed, the therapist provides the prescription and resources, most of which can be ordered online. It’s important to check with the patient’s insurer to ascertain requirements for payment, because many mandate some in-person contact between the patient and the clinician, even if treatment will be delivered online. And, as always, the therapist’s insurance contract must be reviewed to assure that the firm’s professional liability coverage applies to online services.
A cyber risk insurance policy that includes business income loss will also be important for therapists working online. Breach of patient data and a shutdown of provider computer networks can generate expensive claims.
In-home Care for Physical Therapy Going High-tech
While CMS rules limit payment for in-home physical therapy to patients meeting very specific criteria, many insurers are more liberal. It may even be possible to conduct therapy in a person’s office or other institutional setting. And, of course, many senior-living residences and nursing homes routinely contract with physical therapists for on-site visits.
Whenever your employees conduct out-of-office treatment, you must be aware of the potential risks that differ from those for in-office care. Injury to and illness of your therapists caused by animals, obstacles and other humans are a specific safety concern that should be discussed with your workers’ compensation insurance professional. Special training may be required to avoid harm. If any employees begin crossing state lines to serve a patient, that will require an adjustment to your workers comp policy.
You’ll also bear greater responsibility for employee travel, even if they use their own vehicle. A commercial auto policy can be written to cover both company cars and the use of private automobiles, so be sure your insurance doesn’t have gaps for what are termed “non-owned vehicles.”
And since therapists will likely carry company equipment with them when visiting patients, you should consider an inland marine insurance policy so gear that is stolen, damaged or lost in transit has coverage.
Other Tech Aids for Physical Therapy Going High-tech
Remember that technology in your office supports your mobility and accessibility. That includes computer systems that store and crunch data as well as communications networks, video recorders, and virtual reality goggles and implements.
Your business continuity and disaster response plans should reflect your technological capabilities and loss exposures. With all systems and protections in place, your therapists should be able to reach an ever-wider clientele — safely for all.
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 physical therapy insurance quote!
