The Barkley Buzz Newsletter September 2009 Issue

Risk Management News and Tips brought to you by Barkley Insurance & Risk Management

In this issue:

• This Just In
• Survey Says!
• Risk Note
• Use Your EAP to Reduce Workers’ Compensation Costs
• An Analysis of Cal/OSHA Citations in Agriculture
• Driving the Road to Safety
• Health Care Reform: What You Need to Know
• 2009-2010 Influenza Season Planning and Response
• H1N1 Virus Highlights Need for Communicable Disease Policy

~ This Just In

IT professionals say smart phones are more likely to cause security breaches than laptops, according to a survey by Credant Technonogies. As cell phones get “smarter,” they appeal to more knowledge workers, who like their portability. However, that portability also makes a smart phone easier to lose than a laptop. If your employees use PDAs for work, caution them to use their password -protection features to protect valuable data.

Companies can reap significant benefits by identifying and effectively treating depressed workers, according to a recent study published in the Journal of the American Medical Association. The study, funded by the National Institute of Mental Health, found that such programs yield advantages in hiring, training, productivity and salary costs that far outweigh the cost of outreach and treatment. The researchers estimated the cost of the program at $100 to $400 per worker, while the productivity boost from more hours worked yielded $1,800 per employee.

~Survey Says!

While consumer-driven health plans continue to be of interest to employers, overall health plan design is a critical piece in the puzzle. How are employers positioning their plan design offerings? Contact Barkley Insurance for this year’s survey results to determine how you fare.

Risk Management

~ Risk Note

Employers’ first aid requirements differ from sector to sector and from workplace to workplace. You can use the OSHA 300 log, OSHA 301 forms and your workers’ compensation carriers reports to help identify first aid needs. The Bureau of Labor Statistics can also provide insight into the risks particular to your industry (www.bls.gov/iif).

To set up your program, you can use the guidelines in OSHA’s Best Practices Guide:
View Fundamentals of a Workplace First-Aid Program in PDF format,” at
www.osha.gov/Publications/OSHA3317first-aid.pdf

The guide details the four primary components of a workplace first aid program:

• Identifying and assessing workplace risk
• Designing a program that is specific to the worksite and that complies with OSHA requirements
• Developing written policies and teaching workers about the program
• Evaluating and modifying the program to keep it current, including regular assessment of the first-aid training course

~ Use Your EAP to Reduce Workers’ Compensation Costs

Today, nearly two-thirds (65 percent) of employers have an employee assistance program, or EAP. Generally considered part of an employee benefits program, your EAP might also be a hidden resource to help you control workers’ compensation costs. Consider the following facts:

• Employees under stress are more likely to become ill or injured. Counseling can help employees deal with stress.
• Drug and alcohol abuse contribute to many work-related accidents. By providing confidential access to drug and alcohol treatment programs, your EAP makes access to treatment programs easier.
• EAP can provide referrals to licensed psychologists or psychiatrists who can examine workers’ comp claimants suspected of fraud or malingering.
• EAPs can offer behavioral health treatments to those undergoing treatment for workplace illness or injury, possibly helping speed the return-to-work process by alleviating depression and stress related to the physical condition.

An EAP offers employees confidential short-term counseling with a counselor specially trained to identify the underlying problem. When appropriate, the EAP counselor will make referrals to specialists or other providers. Some EAPs have their own network of specialists — such as addiction specialists, mental health specialists, family counseling specialists, legal advisors and more. Others work on a referral basis, referring employees to outside providers and programs when necessary. The employee has the responsibility of following through with any referral appointments and making financial arrangements for any services that fall outside the scope of the benefit program.

EAPs can also help employers deal with personnel problems in a sensitive manner, without violating an employee’s right to privacy. For example, a supervisor who sees an employee’s work suffering due to a personal problem or possible drug or alcohol abuse can refer that employee to the EAP without having to inquire on the nature of the problem.

An EAP can help you get the most out of your benefit plan. A good EAP will promote its services with communications to your employees. When an employee turns to the EAP for assistance, the EAP counselor can help your employee identify resources covered by your benefit program. For example, an employee facing addiction might be referred to a program covered by your health benefits. An employee with mental health problems might be referred to a provider in your group health insurance plan’s network. EAPs may also inform employees of their rights under government-mandated benefit programs, such as workers’ compensation, the Family and Medical Leave Act, the Americans with Disabilities Act and federal and state mental health parity mandates.

The Northeast Georgia Employee Assistance Program, an EAP provider, says, “The median annual EAP cost per employee, which varied by region of the country, was $21.83 for internal programs and $18.09 for external programs in a select sample study.” An EAP may be structured with a flat per-employee fee, or on a pay-as-you-go basis.

As employees in downsized workforces deal with increased workloads and increased demands at home, you may find an EAP is a worthwhile investment. For more information on EAPs, please call us.

~ An Analysis of Cal/OSHA Citations in Agriculture

Cal/OSHA has been busy inspecting since January 01, 2009 and we expect that they will continue to be very active inspecting farms and finding violations. Barkley Insurance took a look at information provided by Cal/OSHA’s for the period between January 01, 2009 and July 28, 2009.

OSHA made over 100 inspections in Berry, Citrus, Vegetable, Nursery and Flower operations. There were 100 violations found with fines of approximately $115,000 requested by or paid to Cal/OSHA. Most inspections were only partial inspections, not complete inspections. Less than half of the inspections were initiated do to an injury or complaint. Berry Farms averaged $406 per violation; Vegetable Farms/Truck Farms and Processors averaged $1,512 per violation; and Nursery/Flower Growers average $1,324 per violation.

The most frequent violation, 32 of the 100 violations, were failure to comply with the Heat Illness Prevention guidelines. The most recurrent violation in this area was a failure to provide a written plan at inspection. Other violations related to Heat Injury Prevention, were lack of shade, failure to provide water, cups for water and/or notices to distinguish potable from non-potable water.

The second most consistent violation was inadequate or an unavailable written Injury and Illness Prevention Program (IIPP).

The largest fine we uncovered was a work performed on powered equipment without lockout/tag out procedures in place. The remaining violations were as follows: 1. No guardrails on elevated work or walk areas; 2. No illumination in cold storage room; 3. Access to permanent elevated area must be by fixed ladder, stairway, ramp; 4. Must remove or warn of overhead hazard under 6’6”; 5. Failure to cover hot surface/pipes; 6. No First Aid Kit or inadequate supply or availability; 7. Failure to inspect Trucks prior to shift or documentation of inspection; 8. No Guard on belt, pulley, or chain of conveyer; 9. No guard or inadequate guarding on belts/movable parts; 10. Unguarded gears and/or sprockets; 11. No or inadequate fire extinguisher training; 12. No fire extinguisher; 13. No fire extinguisher maintenance and documentation; 14. Documentation/Certification confirming and/or actual training of truck drivers; 15. PTO guard removed; 16. Failure to affix fixed machinery or equipment; 17. Failure to attach safety cover/cap on compressed gas cylinders; 18. Failure to secure and store gas cylinder to avoid trip hazard and tip hazard; and 19. Sanitation issues which include no towels, soap or water and unsanitary toilets (cleaning)

Cal/OSHA is focusing on Heat Illness Prevention and, when doing so, they leave no stone unturned. It is very important in today’s environment to have your Heat Illness Prevention program and IIPP available whenever an inspection occurs. A happy inspector, who sees you have your ducks in a row, is one less likely to continue to look around.

If you would like an Audit of your IIPP or Heat Injury Prevention Program or have any specific questions please contact Rene Centeno or Sean Morris at Barkley Insurance & Risk Management at (805) 483-1995.

~ Driving the Road to Safety

A 2003 study by the National Highway and Transport Safety Administration found that the average car crash costs an employer $16,500. When a worker has an on-the-job crash that results in an injury, it costs the employer an average of $74,000. Costs can exceed $500,000 when a fatality occurs. And unfortunately, occupational vehicle accidents account for one of every four worker fatalities nationwide, according to the National Bureau of Labor Statistics.

Every company is exposed to the dangers of unsafe driving – even if only in the commuter trips its employees make. However, numerous strategies and programs can significantly from the harried delivery driver to the casual commuter. According to recent survey, driver safety programs provide a return on investment of at least 3 to 1. One of the most widely used programs is run by an alliance of OSHA (the U.S. Occupational Safety and Health Administration), the NHTSA (National Highway Traffic Safety Administration) and NETS, the Network of Employers for Traffic Safety. The program’s participants include transport giants such as UPS and Amerifleet, as well as GM and Anheuser- Busch. “Our affiliations with NETS is invaluable. At UPS, we put nearly 87,000 drivers on the road every day. NETS helps us to stay current on important traffic safety issues,” says Charles Halfen, corporate fleet safety manager, UPS.

The NETS Ten Step Program

1 Senior Management Commitment and Employee Involvement – The involvement of top-level managers and employee representatives underscores the importance of traffic safety.
2 Written Policies and Procedures – A clear and enforceable set of traffic safety policies is the cornerstone of the education effort. They should be disseminated widely and encouraged with incentives.
3 Driver Agreements – Adherence contracts should be signed by all employees who drive for work purposes, whether in company cars or their own vehicles.
4 Motor Vehicle Record (MVR) Checks – Companies must screen out poor drivers before they cause accidents. Check driving records prior to assigning driving duties and periodically thereafter.
5 Crash Reporting and Investigation – All crashes – even minor ones – must be reported. Establish guidelines of how to behave in the aftermath of a crash and thoroughly investigate the cause of each accident with the goal of eliminating future occurrences.
6 Vehicle Selection, Maintenance and Inspection – Make the passive and active safety features of vehicles key criteria when purchasing company vehicles. Whenever possible, choose best in class vehicles. Schedule regular maintenance and safety checks. If private vehicles are used for company business, encourage employees to adopt the same policies.
7 Disciplinary Action System – The company should have a clear policy to punish and deter dangerous drivers by assigning points after a moving violation or preventable crash. The system should adopt a progressive discipline approach if a driver begins to develop a pattern of incidents. Define the number of violations an employee/ driver can have before losing the privilege of driving for work.
8 Reward/Incentive Program – Safe driving contributes directly to your bottom line. Recognize it with prizes, awards and incentives.
9 Driver Training/Communication – Teach and remind drivers continuously about the importance of safety. Courses should cover such issues as securing materials for transport, using seat belts, limiting use of cell phones, the danger of alcohol and drug-impaired driving, driving while fatigued, aggressive driving, driving while under stress and the increased dangers facing young drivers.
10 Regulatory Compliance – Ensure compliance with highway safety regulations and clearly establish which, if any, local, state, and/or federal regulations govern your vehicles and/or drivers. For more information on driver safety programs, please contact Griffin Barkley, Director of Risk Management of Barkley Insurance & Risk Management) (gbarkley@barkleyins.com).

Group Employee Benefits

~ Health Care Reform: What You Need to Know

Employers have a major stake in the efforts to reform health care. As the proposals evolve, and a final bill emerges, stay abreast of current information relative to the debate. The following resources will get you up to speed:

Comparing health care proposals: The New York Times created this one-stop resource comparing the current health care proposals. (One-time, free registration required to access nytimes.com).

CNN.com created an article with 10 things Americans should know about health care reform.

Segal National Health Compliance Practice Leader, Kathryn Bakich, was recently interviewed regarding the impact that health care reform could have on employers.

Also see Segal’s weekly newsletter – Stat! Health Reform Weekly – to help keep you informed.

~ 2009-2010 Influenza Season Planning and Response

Local flu conditions will influence the decisions that local public health officials will make regarding community-level strategies to lessen the spread of the common flu and the H1N1 flu. Be prepared to use multiple measures to protect workers and ensure continuity of business operations.

Recommended Action Steps under Current Flu Conditions

1) Sick employees should stay home.
2) Sick employees at work should be advised to go home.
3) Encourage your employees to wash their hands often.
4) Encourage your employees to cover their coughs and sneezes.
5) Clean surfaces and items that are more likely to have frequent hand contact.
6) Encourage employees to get vaccinated.
7) Protect employees who are at higher risk for complications of the flu.
8) Prepare for increased numbers of employee absences due to illness in employees and their family members, and plan ways for essential business functions to continue.
9) Advise employees to check for signs of the flu before traveling and to stay home if necessary. Make sure employees understand how to get medical care if they should become sick while traveling.
10) Prepare for the possibility of school dismissals or temporary closure of child care programs.

Additional Action Steps to Consider under Conditions of Increased Severity

1) Consider active screening of employees who report to work.
2) Consider alternative work environments for employees at higher risk for complications of the flu during periods of increased flu activity in the community. Increase social distancing in the workplace.
3) Advise employees about possible disruptions and special considerations while traveling overseas.
Source: flu.gov

~ H1N1 Virus Highlights Need for Communicable Disease Policy

On June 11, 2009, the World Health Organization (WHO) raised the worldwide pandemic alert level to Phase 6 in response to the ongoing global spread of the novel influenza A (H1N1) virus. A Phase 6 designation indicates that a global pandemic is underway.

The spread of the H1N1 virus in your workplace is a real threat. Are you prepared? As an employer, you are responsible for providing and ensuring a healthy working environment for your employees.

At the very least, you need a workplace communicable disease policy requiring employees to notify the company of any possible exposure to certain diseases. This will allow you to take proactive preventive measures against the spread of the disease. Since medical disclosures are governed by the Americans with Disabilities Act (ADA), you must ensure that the policy meets the requirements of the ADA. Employers should also ensure that employee health information is kept confidential as required by HIPAA. As part of your communicable disease policy, employees may have reduced working hours, work from a remote location and/or be removed from nonessential job duties until they are no longer contagious.

Other Considerations:

Travel and Quarantine Policies

Employee travel must comply with all advisories from the CDC and U.S. Department of State. As a result, those who are traveling to areas with current communicable disease outbreaks must obtain all recommended vaccinations and follow all health recommendations.

If an employee travels to a region of the world for which he/she must be quarantined upon arrival back to the U.S., he/she should notify the employer immediately to arrange for telecommuting or paid leave.

Leave Policies

Social distancing may be of the highest importance when trying to prevent the spread of a communicable disease in the workplace. Employees may be subject to quarantine, could be ill and need to stay home, or may be home caring for sick relatives. As a result, these individuals should remain away from the workplace to reduce the likelihood of infecting others.

Beyond this, other employees may fear that they will come in contact with a disease while being in the workplace, and consequently refuse to come to work. In response, companies may wish to devise policies to address these concerns and leave issues.

Contact your Barkley Insurance broker for a free H1N1 Employer Kit, more information on communicable disease policies, or a sample policy.