The Insurance Advisory Blog

Winter Safety Tips to prevent work injuries

2011-11-07T07:02:00.000-05:00

Each winter we see weather related work injuries that could have been prevented - click "view our blog" to continue. Here are some useful tips that can be implemented in your company or organization:

Ice melt and sand products. We suggest purchasing these products in bulk prior to the first snowfall. Always have adequate supply and the equipment and means to safely apply it (wheelbarrow, spreader, shovel)

Employee parking. Injuries that occur once an employee has arrived at work, or as they are leaving are usually compensable under workers compensation. We suggest that the parking area and sidewalks be kept clear of ice and snow before employees arrive, during the work shifts, up until everyone has left.

Snow shoveling. Often an employee is assigned this task. The biggest concerns are slip-and-fall back strain and heart attack. Don’t wait for the snow to build up. Shovel early and often! Here is how to shovel properly:
• Lift with your legs, not your back. Bend your knees and keep your back as straight as possible so that the lifting comes from your leg muscles, not your back. Never bend at the waist. Step in the direction that you're throwing snow. This will help prevent the lower back from twisting and will help alleviate any back soreness that you might typically experience the day after a hard shoveling job.
• Create some distance between the hands. This will give you more leverage and make it easier to lift snow.
• Pick up smaller loads of snow. It's best to shovel by sections. If you're shoveling deep snow (a foot or more), take it easy and shovel two or three inches off at a time.
• Do push. Don't lift. Save your back and your energy by simply pushing the snow to the side instead of lifting the snow and throwing it off to the side.
Snowblower safety. A good alternative to shoveling, there are also risks with snowblowing. Always have a mature, qualified person perform this task.
Clearing snow and ice from roof. Use only an employee who is experienced and capable of safely performing this task, and has the proper tools and materials. Otherwise, hire a company that performs this work.

Winter driving. If your employees are on the road, its an excellent time to conduct retraining on all safe driving techniques. Emphasize clearing all snow and ice from vehicle, defensive driving in difficult weather and increased stopping distances. Always have winter survival gear on board. Texting is the latest major cause of accidents and the company safety policy should specifically prohibit this while a vehicle is moving.

Wrap Up Insurance Policies Need Special Attention

2011-10-20T11:21:00.000-04:00

Construction companies that work under "wrap up" insurance arrangements (OCIPS and CCIPS) should carefully examine the Wrap Up Insurance Manual before submitting their bid. The coverage, rules, procedures and method of calculating insurance cost are all included in the manual, and often vary from job to job (click to continue reading).

Before the documents are submitted with estimated payroll and insurance costs, they should be reviewed by an insurance professional that is highly experienced in this type of insurance plan. Many contractors and sub-contractors have lost money on wrap up jobs because of incorrect and excessive insurance cost.

Did you know that workers compensation losses on wrap up jobs are included in your company's experience mod? That is true - and they are sometimes misstated causing an unnecessary increase in the mod.

Please contact us at The Insurance Advisory in Needham, MA with any questions you may have about wrap up insurance policies. send e-mail

See our website for more valuable information.

Expereince Rating Corrections

2010-11-15T14:53:00.001-05:00

Do you believe your company's experience rating is unfairly high based on the number and severity of claims? You are not alone. Many employers share your concerns and many calculations are wrong!

The experience rating (sometimes called experience modification factor, mod, x-mod or e-mod) and Massachusetts ARAP* can increase the cost of workers compensation insurance by as much as half again, or even double the normal premium - click "view our blog" to read on.

In more than 65% of the cases we have reviewed, the policyholder has been overcharged on audit for either an incorrect mod or another mistake or miscalculation.

"Trust but verify." The insurance carrier is not trying to cheat policyholders. But they will charge the highest available premium and uncertainties will usually resolve in their favor. The carrier will use whatever mod that was issued by the rating bureau (national (NCCI) or state rating authority). The carrier does not check for its accuracy.

It is always a good idea to have an independent qualified insurance professional review the past few years for mistakes and overcharges.

*ARAP (all risk adjustment program) is a second modifier used for experience rated policies in Massachusetts that are over 1.00. The normal experience rating is multiplied by the ARAP to arrive at the effective premium modification. For example, if the mod is 1.27 and the ARAP is 1.18, the effective modification is 1.50.

Does your snow plow company have wc insurance?

2010-10-31T13:00:00.000-04:00

We encourage our clients to verify that all subcontractors and companies performing work on premises carry the proper business insurance. Click on the following link to check to see if they have a workers comp policy in force.

Click on the DIA website for this useful information.

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!

Workers Compensation Rates Change – Cost Increase for Most Companies

2010-09-09T08:11:00.004-04:00

Massachusetts has highly publicized the average rate decrease of over 2% effective September 1, 2010 - This is misleading for many Bay State employers - Despite this claim, most companies will incur a cost increase upon policy renewal.

One reason for this is that the rate change varies by job classification. For example, the very low rate for clerical employees is reduced from 12 cents to 9 cents per $100 payroll (-25%) while sewer construction increases from $6.28 to $7.61 (+21%). In order to determine the cost impact of the rate change, an employer must review the class codes used on its own workers compensation policy.

Each employer pays a rate per $100 of payroll. The rate depends on the type of employment and the classification codes that are assigned to the employer. There are over 400 class codes in Massachusetts. The new rates apply to the next renewal policy on or after Sept. 1, 2010

Of the 66 construction class codes, 44 will have rate increases. Ten of these increase by over 20%.

But that is only half of the story. Along with the rate changes there is a change in the experience modification formula. This increases the cost for the vast majority of employers with average premium over $5,500 per year. In most cases, this offsets any rate decrease and exacerbates a rate increase. In some cases, the combined cost increase is 30% or more.

Is the rate setting process simply mysterious or more like a street wise shell game? It is noteworthy that the “players” in rate setting are mostly from the insurance industry, claimant’s bar and Massachusetts Rating Bureau, Division of Insurance and Attorney General’s office. There appears to be minimal employer representation.

We recommend that you contact your insurance professional well in advance of policy renewal to review and discuss these important changes. As Insurance Advisors, we are also available to review your company’s situation.

The Insurance Advisory LLC has been an approved program provider of the Workers Compensation Rating Bureau of Massachusetts since 1991. Please contact John Sullivan at 800-922-9161 or e-mail JS@theinsuranceadvisory.com.

Employee Fraud: unreported earnings while on wc disability

2010-06-03T09:23:00.001-04:00

On December 17, 2009, a Framingham, MA man pled guilty to workers compensation fraud and perjury for misreporting his earnings while receiving disability payments from the wc carrier -- As prudent claims management, we recommend that clients check earnings of almost all employees after 45 days of temporary disability – here’s how .

(Massachusetts claims) Ask the claims examiner to send an “Employees Earnings Report” (DIA form # 126) to the injured employee (click view our blog below to continue). They are required to report all earnings from employment or self employment, by week, and list each employer. If they have no earnings, they state this under the penalty of perjury.

If they fail to return this report within 30 days, the carrier may discontinue disability benefits. If they deny any earnings and you believe they have been working (even under the table) notify the claims examiner and request an activity check (surveillance). Be prepared to give as much information as possible including a picture of the employee, vehicle description and license and place of employment (if known).

A fraudulent claim is difficult to prove in workers compensation because it is usually reported as unwitnessed. This is a no fault system and the laws favor the employee. If you have a claim you believe is fraudulent, it should be reported to the Insurance Fraud Bureau of Massachusetts 1800-32FRAUD (800-323-7283). The website is http://www.ifb.org/default_java.htm

Questions? Email or call us at 800-922-9161

Winter Safety Tips to prevent work injuries

2010-01-24T13:16:00.000-05:00

Each winter we see weather related work injuries that could have been prevented -- Here are some useful tips that can be implemented in your company or organization (click "view our blog" below to continue).

Ice melt and sand products. We suggest purchasing these products in bulk prior to the first snowfall. Always have adequate supply and the equipment and means to safely apply it (wheelbarrow, spreader, shovel)

Employee parking. Injuries that occur once an employee has arrived at work, or as they are leaving the building after work are usually compensable under workers compensation. We suggest that the parking area, sidewalks and exterior stairs be kept clear of ice and snow before employees arrive, during the work shifts, up until everyone has left. Proper lighting is also important. Check the timers to see that they are adjusted for winter.

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!

Snow shoveling. Often an employee is assigned this task. The biggest injury concerns are slip-and-fall, back strain and heart attack. Don’t wait for the snow to build up. Shovel early and often! Here is how to shovel properly:
• Lift with your legs, not your back. Bend your knees and keep your back as straight as possible so that the lifting comes from your leg muscles, not your back, Step in the direction that you're throwing snow. This will help prevent the lower back from twisting.
• Create some distance between the hands. This will give you more leverage and make it easier to lift snow.
• Pick up smaller loads of snow. It's best to shovel by sections. If you're shoveling deep snow (a foot or more), take it easy and shovel two or three inches off at a time.
• Do push. Don't lift. Save your back and your energy by simply pushing the snow to the side instead of lifting the snow and throwing it off to the side.
• AARP has a good article on the subject.

Snowblower safety. A good alternative to shoveling, there are also risks with snowblowing. Always have a mature, qualified person perform this task.

Clearing snow and ice from roof. Use only an employee who is experienced and capable of safely performing this task, and has the proper tools and materials. Otherwise, hire a company that performs this work.

Winter driving. If your employees are on the road, its an excellent time to conduct retraining on all safe driving techniques. Emphasize clearing all snow and ice from vehicle, defensive driving in difficult weather and increased stopping distances. Always have winter survival gear on board. Texting is the latest major cause of accidents and the company safety policy should specifically prohibit this while a vehicle is moving.

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!

N1H1 and Workers Compensation - 10 Tips for Businesses

2009-12-08T08:12:00.000-05:00

When we think of workers compensation claims, most employers think of accidents and injuries that occur in the workplace--however, it is also important to remember that work related illnesses and diseases are covered by workers comp (click "view our blog" to continue).

Enter the “swine flu".

If an employee believes they have contracted N1H1 Influenza at work, they can file workers comp claim. The cost of this claim will ultimately filter through to your experience rating.

It behooves all of us to prepare, prevent and react to protect the health of our employees. Here are tips from www.flu.gov

Keeping Healthy: 10 Tips for Businesses
Employees are a crucial resource at any business, and especially small businesses. There are steps you can take now, and during the flu season, to help protect the health of your employees.
1. Develop policies that encourage ill workers to stay at home without fear of any reprisals.
2. Develop other flexible policies to allow workers to telework (if feasible) and create other leave policies to allow workers to stay home to care for sick family members or care for children if schools close.
3. Provide resources and a work environment that promotes personal hygiene. For example, provide tissues, no-touch trash cans, hand soap, hand sanitizer, disinfectants and disposable towels for workers to clean their work surfaces.
4. Provide education and training materials in an easy to understand format and in the appropriate language and literacy level for all employees. See www.cdc.gov/h1n1flu/business.
5. Instruct employees who are well but who have an ill family member at home with the flu that they can go to work as usual. These employees should monitor their health every day, and notify their supervisor and stay home if they become ill. Employees who have a certain underlying medical condition or who are pregnant should promptly call their health care provider for advice if they become ill.
6. Encourage workers to obtain a seasonal influenza vaccine, if it is appropriate for them according to CDC recommendations (http://www.cdc.gov/flu/protect/keyfacts.htm). This helps to prevent illness from seasonal influenza strains that may circulate at the same time as the 2009 H1N1 flu.
7. Encourage employees to get the 2009 H1N1 vaccine when it becomes available if they are in a priority group according to CDC recommendations. For information on groups recommended for seasonal and H1N1 vaccines, please see www.flu.gov. Consider granting employees time off from work to get vaccinated when the vaccine is available in your community.
8. Provide workers with up-to-date information on influenza risk factors, protective behaviors, and instruction on proper behaviors (for example, cough etiquette; avoid touching eyes, nose and mouth; and hand hygiene).
9. Plan to implement practices to minimize face-to-face contact between workers if advised by the local health department. Consider the use of such strategies as extended use of e-mail, websites and teleconferences, encouraging flexible work arrangements (for example, telecommuting or flexible work hours) to reduce the number of workers who must be at the work site at the same time or in one specific location.
10. If an employee does become sick while at work, place the employee in a separate room or area until they can go home, away from other workers. If the employee needs to go into a common area prior to leaving, he or she should cover coughs/sneezes with a tissue or wear a facemask if available and tolerable. Ask the employee to go home as soon as possible.

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!

Food Pantries Struggle in Recession - Survey

2009-11-19T19:20:00.006-05:00

The Greater Boston Food Bank conducted a survey of its member food pantries and soup kitchens to assess the need for emergency food assistance in eastern Massachusetts. The survey reveals disquieting results, showing that the region's hunger-relief organizations are struggling with the burdens of increased client loads and fewer donations

Click "view our blog" to continue reading.

The survey revealed the following results:
1. The need for assistance has increased at over 90% of the food relief organizations since September, 2007
2. Almost half have run out of food in the past year and 25% run out every distribution.
3. The amount of food donated has decreased at over 50% of the organizations.

Join with the Insurance Advisory to help ease this burden. We will donate $100 to your local food bank when you sign as a new client in December, 2009.

Click link below for Greater Boston Food Bank website.

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!

Lawsuit for discharging employee after workers compensation claim

2009-11-11T14:12:00.000-05:00

From the employer’s perspective: even if you win; you may lose! An employee has recently filed a civil lawsuit against a construction company when he was hurt on the job and subsequently let go after a short period of light duty.

The employee allegedly had a back injury and filed a workers compensation claim. He thereafter returned to work on light duty but after about a month was told, “your services are no longer required.” He now claims that he was fired in “retaliation” for filing the workers compensation claim.

If something like this happened at your company, would your workers compensation insurance pay for a judgment or settlement? Would there be coverage under the Commercial Package Policy or Business Owners Policy? Even if you win the case, would any insurance coverage pay the attorneys’ fees for defense?

The answer to these questions is usually – NO!

These are important questions involving the financial security of your business. It is always a good idea to have a qualified insurance professional or your attorney review this in advance. We can be reached at js@theinsuranceadvisory.com or jc@theinsuranceadvisory.com

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!

Experience Rating Corrections

2009-08-13T15:35:00.000-04:00