WORKERS COMP: HANG TOUGH IN A TOUGH ECONOMY

With the stock market tanking, layoffs skyrocketing, and businesses cutting back, here are seven recommendations to help keep your Workers Compensation premiums under control until the tide turns:

1. Because layoffs and less work might mean you have vehicles that are out of service, see if you can adjust the premium or get a credit.
2. If your actual payroll and revenue are less than the “expected premium” on your Comp policy, try to get your audit as soon as possible. Schedule it now to take place right after policy expiration.

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3. Remember that lower industry payrolls will impact modifier calculations for your state and class codes. And don’t forget that lower worked hours can affect your OSHA Incident rates. Because it might take a year or so for things to equal out in the “numbers” at the NCCI and Department of Labor, plan for changes.
4. Bear in mind that less work will mean fewer total Comp claims. This is already occurring in medical-only claims. As their caseload has decreased, attorneys for injured employees are getting more aggressive and working harder on smaller claims. Also, less work could lead to be an eventual increase in fraudulent claims.
5. Make sure your insurance carrier understands that there’s less work for you to put injured employees back to work or on light duty.
6. Be on the lookout for changes in the policies of your independent contractors, subcontractors, and other business partners. They might change insurers and coverages to lower their own costs. Be sure to secure insurance certificates and additional insured endorsements from them. Find out what changes, if any, need your attention and action.
7. Watch for cutbacks on safety. Already in tight times, safety and risk management personnel may be some of the first to go.

As risk management professionals, we’d be happy to provide a complimentary review of your Workers Comp program — as well as your other coverages. Feel free to get in touch with us at any time.

DON’T LET DOMESTIC VIOLENCE COME TO WORK

Thousands of workers are being abused at home — and all too often, this abuse spills over into the workplace. According to the American Bar Association Commission on Domestic Violence, there are 30,000 to 40,000 incidents of on-the-job violence in which the victims knew their attackers intimately. More than seven in ten (71%) of human resources and security personnel surveyed have seen an incident of domestic violence on company property.

A violent episode at work can easily endanger co-workers, as well as the victim. What’s more, female workers who are abused at home have higher rates of absenteeism, drug abuse, and depression that increase Health insurance costs and lower productivity — costing businesses more than $4.5 billion a year.

Federal and state law requires employers to provide a safe workplace for all employees. Failure to act on the knowledge that an incident of domestic violence could threaten workers on the job places a huge potential liability on your company.

In deciding whether an employee might be a victim might be a victim of domestic violence, beware if the worker:

• Has unexplained bruises that don’t seem to fit their injuries
• Wears inappropriate clothing that might be covering up injuries
• Seems distracted at work
• Has a high rate of absenteeism
• Appears anxious, upset, or depressed
• Receives repeated, upsetting telephone calls during the work shift

If you notice any of these signs, talk to your employee privately, telling them what signs you noticed and expressing concern about possible abuse. Be supportive and keep this information confidential, except for individuals who need to know, such as security personnel. Offer company and community support and be flexible with the employee’s working arrangements.

According to the Family Violence Prevention Fund, supervisors are usually the first people to become aware of an employee who might be a domestic violence victim. The fund recommends that supervisors refer potential victims to your company’s Employee Assistance Program (EAP) or a community domestic violence program. The National Domestic Violence Hotline number is (800) 799-SAFE (7233).

HOW SECURE ARE YOUR PEDS?

Thousands of businesses are storing terabytes of confidential business and personal information on personal electronic devices (PEDs), such as laptops, PDAs, removable disk drives, flash memory cards, etc. — leading to a spate of highly publicized security breaches involving the loss or theft of equipment containing customer records, Social Security numbers, drivers license numbers, and more. Could your organization be next?

Both federal legislation (such as the ADA, FMLA, and HIPAA) and a variety of state laws require companies to keep customer and client information confidential and to report the disclosure or theft of this data. To protect themselves against liability for such leaks and to manage the risk, more and more businesses are tailoring security policies for their personal electronic devices (PEDs).

Such a policy should:

• Require encryption of all data on PEDs that carry confidential records.
• Implement pass phrases containing letters, numbers, and symbols — and change them frequently.
• Secure wireless networks with firewalls and passwords.
• Create a two-step authentication process when using a PED for remote access.
• Use a cable lock for laptops and place them and other PEDs in locked storage when not in use.
• Have a “time-out” function for mobile devices that requires user re-authentication after 10 minutes of inactivity.
• When feasible, require that the PED be marked as company property.
• Have your IT department record the model number and serial number of all PEDs and store digital photographs of each device.
• Create an automatic login to access to the PED and its confidential data.
• Allow copying or extracting access only with two-factor authentication.

Our risk management professionals stand ready to offer you advice on creating a PED security policy. Just e-mail or call us.