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Most employers in Pennsylvania are required to carry Workers' Compensation (WC) Insurance to pay medical expenses and lost wages if an employee is injured or develops an illness on the job.

The majority of WC claims are legitimate; however, Workers' Comp fraud is costing businesses billions of dollars every year. WC fraud occurs when employees fake an injury, exaggerate an injury, claim an injury occurred at work when it did not, etc.

If an employer doesn't want to pay more than they have to for WC Insurance, they need to be on the lookout for questionable claims. Here are 4 valuable tips:

Report All Injury Claims

Even if you suspect a claim is not legit, you must report all injury claims to your Workers' Compensation Insurance carrier. Failing to do so could result in hefty penalties.

To do this, complete an injury/illness report. Some employers have their own reporting forms, and others use forms from their WC carrier or state WC agency. You should have every type of workplace accident report form available to avoid legal issues. Fill out the form with the injured employee if possible or deliver the form to the doctor who attended the employee first.

Typical information requested on these forms include (but is not limited to) the following:

• Date of injury
• Where the injury occurred
• A description of the injury or illness
• When the employee became aware of the injury or illness
• The date the injured employee received AND returned the form

Inspect and Document

You can help any WC investigation by gathering information as soon as an injury occurs while the information is fresh in everyone's minds.  That includes surveying the scene of the accident, collecting information (such as talking to witnesses and writing down the details of the accident), and completing an incident report.

Try to determine the leading cause or causes of the accident and answer (in writing) the following questions:

• Were company rules and regulations followed?
• Were there any witnesses?
• Did something unique happen that caused the accident?
• Could the accident have been prevented?
• If it could have been prevented, why wasn't it?
• Is the risk still there?

As soon as possible, take photographs where the accident happened and any potential causes of the accident. Ask the doctor to document the state of the employee's injuries.

If there are witnesses, get the following information from them:

• Their name
• Their address
• Contact information
• A summary of what they saw

Let Your Claim Handler Know if You Believe a Claim is Questionable

The claim handler has experience and training in investigating WC claims – both legitimate and false claims, and they have the authority to deny a claim. However, you know more about your employees, your work environment, and the circumstances of an employee's claim than the claim handler.

If you feel a claim is questionable, you must let your claim handler know so that they can conduct a proper investigation.

Continue Communication

Once a claim is filed, the employer must continue to communicate with the carrier. Immediately forward any relevant information, such as medical documentation. Your claim handler may ask for additional information, such as the number of lost workdays, the RTW status, etc. If you want the claim resolved quickly, respond to claim handlers promptly.

How to Immediately Lower Workers' Compensation Insurance Costs:

If you want to lower your WC costs, work with an independent insurance agent like the pros at American Insuring Group. We can offer you lots of choices in WC insurance carriers. We'll make sure you get the right coverage at the right price. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

The construction industry is notorious for being filled with potential hazards that cost construction companies billions of dollars in higher Contractor Insurance premiums.  Common hazards include falling from heights, electric shock, scaffolding collapse, etc., but have you ever considered the hazards of working outside.

On a beautiful spring or fall day, working outside seems like a real blessing – definitely better than being stuck inside an office or manufacturing facility. But working outside does pose additional health risks that can cause everything from mild discomfort to severe injuries and even death.

Understanding these dangers and how to prevent them, are essential if you want to keep your workers safe and your expenses down. Here is a list of outdoor hazards that you should be aware of and train your employees to avoid.

Lyme Disease

Hazard:

According to the Centers for Disease Control and Prevention, Pennsylvania has had the highest number of Lyme disease cases in the U.S. since 2011.

"Untreated, Lyme disease can spread to other parts of your body for several months to years after infection, causing arthritis and nervous system problems,” according to the Mayo Clinic.  Plus, ticks can transmit other illnesses, such as babesiosis and Colorado tick fever.

Prevention:

Ticks are most active between April and September. During those months, try to avoid wooded and bushy areas, use repellents that contain 20 to 30% DEET, and use products that contain permethrin on clothing.

Sun Exposure

Hazard:

One of the best things about regularly working outside is a killer tan. Unfortunately, the same thing that creates that tan can also cause skin cancer.

According to the Skin Cancer Foundation, “about 86 percent of melanomas can be attributed to exposure to ultraviolet (UV) radiation from the sun,” and “about 90 percent of nonmelanoma skin cancers are associated with exposure to ultraviolet (UV) radiation from the sun.”

Prevention:

Use a broad-spectrum sunscreen with at least a 15 SPF before going outside, even on cloudy or cool days, and reapply regularly, especially if you are sweating. Check the SPF’s expiration date. Wear clothing that covers as much skin as possible as it acts as a barrier against UV rays.

Insect Stings and Bites

Hazard: 

In Pennsylvania, people working outside need to watch out for stings from insects such as bees, wasps, and hornets, and bites from both venomous and non-venomous spiders. While most insect stings and bites only cause mild discomfort, some can result in a severe allergic reaction that requires immediate medical attention and can even cause death.

Prevention:

Try to avoid attracting insects by staying away from strong-smelling products, such as colognes and some soaps, shampoos, and deodorants. Wear clothing that covers as much of the body as possible. Try to ignore and not swat at a single flying insect, but if attacked by several stinging insects, run away from them.

Any workers who know they are prone to severe allergic reactions from insect bites or stings should wear medical ID jewelry and carry an epinephrine pen.

Poisonous Plants

Hazard:

If you come in contact with plants, such as poison ivy, poison oak, and poison sumac, the urushiol oil from those plants can cause an itchy rash, bumps, or blisters. For some, the rash can be relatively minor, but for others, it can cause severe swelling or trouble breathing or swallowing.

Prevention:

Wear clothing that covers as much of the body as possible, learn to identify poisonous plants, clean tools and clothing that may have been exposed to the oil, and immediately wash skin exposed to the oil with soap and water.

Extreme Temperatures

Hazard:

Both heat and cold stress can cause health issues that range from slight discomfort to death. Heat stress disorders include heat exhaustion, heatstroke, heat cramps, heat rash, and fainting.

Several factors contribute to the dangers of cold stress: temperature, wind, dampness, and cold water. Cold stress can occur in mild temperatures that are coupled with rain and/or wind. Cold-related illnesses include hypothermia, frostbite, and trench foot.

Prevention:

Reduce heat exposure by ventilating areas of high heat and use cooling fans and personal cooling devices (cooling vests, heat reflective clothing, etc.). Wear loose-fitting, lightweight clothing, drink plenty of liquids, and try to schedule heavy work during cooler parts of the day.

When working in frigid climates, prevent cold stress by wearing at least three layers of clothing. Wear a hat, insulated boots, and insulated gloves.

Lower Contractors Insurance Costs the Easy Way!

Preventing these outdoor dangers can help lower your Contractors Insurance costs. Another way to lower your insurance premiums is to work with one of the independent agents at the American Insuring Group.

We will compare costs and coverages among many insurance providers, and find the best combination of protection and price to meet your needs.  So call today at (800) 947-1270 or (610) 775-3848 or connect with us online to start saving!

The rules and restrictions put in place by Gov. Tom Wolf, during the COVID-19 pandemic, forced many restaurants to get a little creative. At first, only take-out and curbside pickup were allowed, and then in early June, restaurants were given the okay for outdoor seating.

Many restaurants that hadn't offered outside seating before the pandemic, quickly adapted. And even as we moved into the green phase and some of the restrictions on indoor dining were lifted, many diners continued to feel safer eating outside.

Even without the fear of COVID-19, many people enjoy outdoor dining. Still, restaurants need to remember that outdoor dining presents a few challenges, including risks that could affect the cost of Restaurant Insurance.

Here are tips to ensure the safety of your customers and staff:

Food Safety

Food safety should always be a priority for restaurants, but as the temperatures rise, it becomes even more crucial. According to the US Department of Agriculture Food Safety and Inspection Service (USDA FSIS), there is a "Danger Zone" – temperatures 40 to 140 degrees F - where bacteria can grow more rapidly. 

If you are in the "danger zone" (which will often occur with outdoor dining in the summer), don't leave food out of the refrigerator for more than two hours, and if temperatures are above 90 degrees, that time goes down to one hour. Cold foods should be kept at 40 degrees F, or colder and hot foods should be kept at an internal temp of 40 degrees F or higher.

Weather

Bad weather can be just a nuisance or an actual danger to outdoor diners and restaurant staff.

Restaurant managers can keep an eye on the weather and be more prepared for bad weather by uploading a weather app to their phone.

A roof, partial enclosure, or even table umbrellas can help keep diners dry and protected from the hot sun.  Other ways to keep diners cool are fans or mist sprayers. Also, make sure your staff provides cold water to customers on particularly hot days.

As the weather begins to cool, you can extend your outdoor dining time with patio heaters to keep diners warm on chilly fall evenings.

Bugs

Bugs are just a part of summer living, but that doesn't make them any more tolerable when your customers are trying to enjoy their meals al fresco! Consider adding mosquito-repelling plants (such as lemongrass or scented geraniums) or a commercial bug zapper or bug light. Do NOT spray insect repellent around food or customers.

Smoking

According to the PA Department of Health, smoking is not banned for "structures such as a deck or patio that is not enclosed by walls and a ceiling." You should still have a policy in place, especially if you decide to extend the ban to outdoor spaces at your restaurant.

Pets

Americans are obsessed with their pets, and many would love to bring their dogs along with them when they eat outside. While many states (17, according to Michigan State University's Animal Legal and Historical Center) are beginning to allow pets into outdoor areas of restaurants, Pennsylvania is currently not one of them – unless it is a service animal protected under the American with Disabilities Act. The reasons for this restriction given by many experts are health (diseases and parasites), safety (biting), and aesthetics (barking).

Lower Your Restaurant Insurance Costs

Keeping diners and staff safe helps keep the costs of Restaurant Insurance in check. Another way to keep those costs down is to work with an independent agent (like those at American Insuring Group) who can compare the cost of your insurance with several carriers to ensure you get the best price. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

If you want to lower Restaurant Insurance costs, a comprehensive safety plan is essential. A well-designed and enforced safety program helps minimize the number of injuries. This results in fewer insurance claims, which lowers your insurance costs and provides numerous other benefits, such as improved employee morale and productivity.

But where should you begin with a safety program?

According to the Bureau of Labor Statistics, slips, trips, and falls are the third most common type of work-related injury in the US and the second most common fatal work-related injury. While falling from a higher level resulted in more work-related fatalities, injuries caused by falls on the same level occur more often in restaurants and can cause injury. In fact, the BLS reports that half of all falls from the same level ended in more than ten days away from work.

The most common injuries in same-level falls include sprains, strains, dislocations, and tears to the lower extremities, which are the most expensive category of injuries, costing almost $13 million in Workers’ Compensation costs every year.

So, there’s your answer as to where to begin! Start your safety program by minimizing the risk of falls. Here’s information about one simple step – providing slip-resistant shoes - that can help significantly decrease slip, trip, and fall injuries in your restaurant.

The Study

According to the Centers for Disease Control and Prevention (CDC), “Laboratory studies of slip-resistant footwear to reduce slips, trips, and falls have shown promise in reducing slips, but limited field research made it difficult to demonstrate if slip-resistant footwear actually reduced injuries.”

So, researchers at the National Institute for Occupational Safety and Health (NIOSH) evaluated 17,000 food-service workers in 226 school districts across the US to determine the effectiveness of a program that provided highly-rated slip-resistant shoes at no cost to the workers. The researchers wanted to see if this type of program would reduce WC injury claims related to slipping on greasy or wet floors.

Workers in some of the school districts in the study wore 5-star rated slip-resistant shoes that were given to them at no cost, and workers in other districts wore their own slip-resistant shoes. The shoes provided were designed specifically to prevent slips on greasy or wet floors.

The Results

The districts where workers were provided slip-resistant shoes experienced a 67% reduction in claims for slip injuries. The baseline measure was 3.54 slipping injuries per 10,000 months worked, which was reduced to 1.18 slipping injuries per 10,000 months worked during the time when workers wore slip-resistant shoes that were provided at no cost.

The other districts where workers were not given slip-resistant shoes did not experience any decline in slip injuries.

The study also found that – prior to the study - workers over the age of 55 had a higher probability of a slip-related WC claim (4.2 injuries per 10,000 worker months) than workers under the age of 55 (2.3 injuries per 10,000 worker months). Therefore, as the number of workers over the age of 55 remain active in the US workforce, preventing slipping injuries becomes even more vital if businesses want to keep Workers’ Compensation costs down.

The CDC concluded, “The findings from this study provide evidence of the effectiveness of slip-resistant footwear and may assist employers, managers, and workers in their decision on whether to invest time and resources in a slip-resistant footwear program.”

Additional Tips to Lower Your Restaurant Insurance Costs

American Insuring Group specializes in Restaurant Insurance and is focused on providing the best insurance coverage at the best price. Discover more safety tips on our blog and give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online to discover how we can help you save even more on your Restaurant Insurance costs!

We often focus on minimizing Workers’ Compensation Insurance costs in potentially dangerous workplaces such as restaurants and construction sites: however, office spaces are not immune to workplace injuries.

One of the most significant work-related injuries in an office are musculoskeletal disorders (MSDs). According to OSHA, “Work-related musculoskeletal disorders are the most widespread occupational health hazard facing our Nation today.” Every year, almost two million workers suffer from work-related MSDs, and approximately 600,000 of those workers lose time from work due to the MSD.

OSHA estimates the direct cost of MSDs to be between $15 and $20 billion every year, with total yearly costs in the $45 to $54 billion range. Plus, $1 out of every $3 spent on WC is a result of insufficient ergonomic protection, which can help avoid MSDs.

What Are Musculoskeletal Disorders?

The Bureau of Labor Statistics (BLS) of the Department of Labor describes MSDs as “musculoskeletal system and connective tissue diseases and disorders when the event or exposure leading to the case is bodily reaction (e.g., bending, climbing, crawling, reaching, twisting), overexertion, or repetitive motion.” MSDs affect joints, bones, muscles, the spine, etc. Examples of MSDs include carpal tunnel syndrome, tendonitis, degenerative disc disease, and tension neck syndrome.

The Centers for Disease Control and Prevention describes work-related MSDs as conditions in which “the work environment and performance of work contribute significantly to the condition; and/or the condition is made worse or persists longer due to work conditions.”

What is Workplace Ergonomics?

Workplace ergonomics - the science of fitting a job to a person so that they can work safely, without injury or pain - can help prevent MSDs, thereby reducing workplace injury and reducing Workers’ Comp and other expenses. A bonus is that it can actually improve a worker’s productivity.

Often, a few simple adjustments can make a huge difference, and it doesn’t have to cost a lot.

Ergonomics in the Office

Occupational Health & Safety reports that workers spend an average of 1,700 hours per year in front of a computer screen. That’s more than 70 days every year sitting at a desk. Sitting in the same position for long periods of time can cause pain and injury and lead to MSDs. Many office workers don’t even realize that they are sitting in awkward postures that can affect their health and safety.

Here are some of the most common ergonomic problems in an office:

• Monitors are too low, which forces flexion of the cervical spine.
• Armrests are not used properly or not at all, which can cause tensions in the neck, shoulders, and trapezius muscles.
• The mouse is not aligned with the shoulder, which can cause pain in the neck, wrist, and upper limbs.
• Workers use phones without a headset, which can cause pain in the shoulder and spine.

Here are some tips to improve office ergonomics:

• An office chair should allow for height adjustment so that the worker can sit with his or her knees at a 90-degree angle. It should also have adequate lumbar support and armrests, so elbows are at a 90-degree angle.
• The desk and chair should allow enough space for the user to cross their legs. Users should be able to rest their feet flat on the floor, so use a footrest if needed.
• Pad the edges of the desk if there are hard edges.
• A monitor should be placed, so the top is at or just below eye level and is an arm’s length away. The brightest light source should be to the side to avoid glare.
• The mouse should be directly in line with the shoulder, so the wrist remains straight.
• The height of the keyboard should allow the user to keep their wrists straight while typing.
• A phone should be held in one hand, or the user should use a headset.

MyAbilities offers a tool called Rapid Office Strain Assessment (ROSA), which is a self-guided self-assessment that shows workers how to adjust their workstation to prevent discomfort and injury.

Want to Save Even More on Workers’ Compensation?

Creating safe workplaces to avoid injuries is the best way to reduce WC costs. Another way to save on all commercial insurance costs is to work with one of the independent agents at American Insuring Group who specialize in Workers’ Compensation Insurance. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online to see how we can help you save on your Workers’ Compensation and other insurance costs.

More than four years after Governor Tom Wolf signed the Pennsylvania Medical Marijuana Act into law, the implications of the law on construction site safety and Contractors Insurance is still unclear. Pennsylvania was the 24^th state to legalize medical marijuana, and today, nearly thirty states have similar laws.

The challenge for construction companies is balancing safety with compliance with a variety of conflicting state and federal laws regarding the use of both recreational and medical marijuana.

According to the National Safety Council (NSC), “While medical marijuana-using employees have mounted legal challenges, state statutes usually side with employers who reject potential employees or reprimand workers that test positive for cannabis, even if they have a medical marijuana card. Some states protect employee rights and safeguard against disciplinary action for medical marijuana use, however. Marijuana is still illegal according to federal law, which classifies it as a Schedule I drug with no accepted medical use and a high potential for abuse. Federal law supersedes state law.”

NSC also states that the Americans with Disabilities Acts sides with employers, most states will not pay worker compensation benefits to an employee who is under the influence at the time of the accident, and most state health insurance programs won’t pay for medical marijuana.

Putting legal and ethical issues aside, the bottom line is that marijuana use can impact job safety, and in an industry already fraught with its share of hazards, safety should be a priority for any construction site. Workplace injuries not only increase Workers’ Compensation Insurance costs they also decrease employee productivity and morale.

Marijuana and Job-Site Safety

Marijuana contains tetrahydrocannabinol (THC), a psychoactive compound, which has shown to have adverse effects. It can change a person’s sensory perception, create short-term memory problems, and impair thinking. Physically, marijuana use has been shown to impair motor skills, cause a loss of balance and coordination, and impair depth perception. These effects can prove deadly to someone driving a forklift or working on a roof.

According to the National Institute on Drug Abuse, “employees who tested positive for marijuana on a pre-employment urine drug test had 55% more industrial accidents, 85% more injuries, and 75% greater absenteeism compared with those who tested negative for marijuana use.”

What Can Construction Companies Do?

While much of the Pennsylvania Medical Marijuana Act is unclear – or even conflicting - some sections support employers and workplace safety. For example, if an employee has more than ten nanograms of THC in their blood, they cannot operate or be in physical control of strong chemicals or high voltage electricity and that an employee who is “under the influence of medical marijuana” cannot perform duties in confined spaces or at heights.” It also states that an employer can prohibit an employee from “performing any task which the employer deems life-threatening, to either the employee or any of the employees of the employer.”

If you are working on a federal project, you have no choice but to maintain a drug-free job site, and the use of marijuana on the job should always be prohibited on any job site.

The NSC recommends that construction companies have a drug-testing program and a solid drug policy in place that include the following:

• A definition of the terms “marijuana,” “cannabis,” or any other derivation
• Proper management and supervisor training
• Access to support for employees with drug addictions
• Clearly defined use and possession parameters
• Drug testing policies and procedures – Tests should be conducted uniformly for all employees to avoid liability for discrimination claims.
• Education for employees on clinical issues relating to marijuana, such as how long it remains in the system, the effects it can have, including the potential impact on workplace safety.
• Established rules for post-accident testing
• Rules on how to handle employee convictions or arrests
• A reminder that on-the-job impairment will not be tolerated, including medical marijuana

Include your drug policy in all recruiting and new-hire on-boarding materials. Review your drug policy with a lawyer and update it as laws change.

Here's How to Save on Contractors Insurance!

Creating a safe worksite is just one way to lower Contractors Insurance rates. Working with one of the American Insuring Group independent agents who specialize in Contractors Insurance will ensure that you get the right coverage at the best price. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Every business in Pennsylvania with one or more employees is required to provide Workers’ Compensation Insurance to its employees – with very few exceptions. It’s the law. It doesn’t matter if those employees are full-time or part-time or even family members. Not having workers’ compensation insurance is a criminal offense. In Pennsylvania, you could face fines up to $2,500 and/or prison time.

Workers’ Compensation Insurance is designed to protect both the employee and the employer. There are two essential parts to WC insurance. The first part is coverage for medical expenses, rehabilitation costs, disability compensation, and lost wages when an employee is injured or becomes ill “in the course and scope” of their job, regardless of fault. It also pays death penalties to the family of an employee who is killed on the job.

According to the National Safety Council, the average cost of a WC claim in 2016-2017 was $40,051, with WC claims caused by injuries resulting from motor-vehicle crashes averaging $78,293. For many businesses, paying that amount of money out of pocket could put them out of business.

The second part of WC Insurance is coverage for employer liability. The first part of WC pays medical costs for work-related injuries and illnesses regardless of fault. However, if an employee feels the employer was negligent, they can file a lawsuit for additional damages in some instances. This is where the second part of WC – employer’s liability – kicks in. It helps employers pay for legal expenses, such as attorney’s fees, court fees, and settlements or judgments.

Types of Claims Employer’s Liability Insurance Covers

Third-Party Action

An employee who is injured on the job and receives workers’ comp benefits can’t sue their employer directly; however, they can sue a third party, such as the manufacturer of a piece of equipment that caused the injury. The manufacturer can then file a lawsuit against your company, creating a third-party action lawsuit.

Consequential Damage

An example of consequential damage would be a spouse who is injured as a result of caring for the injured employee.

Loss of Consortium

If an employee is severely injured or killed on the job, their spouse can file a lawsuit when the injury or death results in the loss of a family relationship.  

Dual-Capacity Suit

A dual-capacity lawsuit can occur if the employer and injured employee have more than one relationship. For example, if you manufactured a product that could have caused the injury, the employee can hold you liable.

What About Commercial General Liability (CGL) Insurance?

CGL covers bodily injury, personal injury, and property damage caused during business operations, as a result of one of your products, or on your business premises. Here are a few examples of when CGL will cover you.

• A customer falls and hurts themselves while in your restaurant.
• One of your employees accidentally causes a fire while working on the electrical panel in a customer’s home that causes damage.
• Someone files a libel or slander claim as a result of an ad that you placed.

One of the most important things to remember about Commercial General Liability Insurance is that it does NOT cover bodily injury to an employee. That is what Workers’ Compensation is for.

Protect Your Business While Saving Money

American Insuring Group offers both Workers’ Comp Insurance and Commercial General Liability Insurance, along with any other type of insurance you may need to protect your business. Plus, as independent agents, we compare the cost of coverage among many insurance companies to ensure that you get the lowest price on quality insurance protection. Give our experts a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

In the US, opioids are costing businesses an estimated $42 billion every year due to absenteeism, increased healthcare expenses, lost productivity, and increased Workers’ Compensation Insurance costs. Opioid addiction is the country’s biggest health crisis, and research shows that more than 50% of individuals who die from an opioid overdose had at least one job-related injury.

The opioid crisis is hitting construction workers harder than most. This comes as no surprise since construction workers are more likely to be injured on the job than many other occupations, and 25.3% of those injured workers were prescribed opioids to treat the pain caused by those injuries.

The result is that 15% of construction workers have a substance use disorder, while the national average is nearly half that at 8.6%, according to the National Safety Council.

What are Opioids?

Opioids – a type of painkiller prescribed for short-term relief of acute pain and cancer patients – include Hydrocodone (Vicodin®), Oxycodone (OxyContin®), Oxymorphone (Opana®), Morphine, Codeine, and Fentanyl.

What are the Risks of Opioids?

Here are a few risks with Prescription Opioid use, according to the National Association of Home Builders:

• Tolerance – People who take opioids quickly build up a tolerance to the drug and need to take a higher dosage to relieve the pain.
• Dependence – Even when opioids are taken as directed, people quickly become dependent on opioids, and withdrawal is horrible.
• Misuse – Some people build a tolerance and develop a dependence on opioids, which often causes them to take more than directed.
• Overdose – Being prescribed opioids is the most significant risk factor for accidental overdose and death.
• Addition – Individuals who have been prescribed opioids for long-term or chronic pain are 25% more likely to become addicted.
• Using it as a diversion – In 2017, at least 14% of high school students took prescription opioids “just for fun.
• Drug interactions – Mixing any prescription drug with alcohol or other drugs can be dangerous, and opioid is no different.

And it isn’t just the people addicted to opioids that are affected. The National Safety Council reports, “Substance use disorders affected 20.8 million Americans, almost 8% of the adult & adolescent population, when you include family members of those affected, nearly 1/3 of the US population is impacted by addiction. While 75% of these people are part of the workforce, most employers are unaware of the hidden costs associated with these problems.”

According to a Center for Construction Research and Training report released earlier this year, “65 unintentional overdose fatalities occurred on the job site in the construction industry in 2018 – a more than nine-fold increase from the seven recorded in 2011. The figure also represents a 35.4% climb from the 48 overdose deaths recorded in 2017.”

Save on Workers’ Compensation Insurance

The National Safety Council reports, “Companies and organizations of all sizes have an important role in promoting the health and safety of employees and managing risks in the workplace.” That includes opioid abuse. Create a safer workplace with a strong safety program that includes opioid education, and you create a workplace where employees thrive, and you enjoy lower Workers’ Compensation Insurance costs.

Want to save more on insurance costs? Give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online.

Third-party food delivery got a serious boost when Pennsylvania Governor Tom Wolf ordered all restaurants and bars to close their dine-in facilities to help stop the spread of COVID-19, while still permitting carry-out, delivery, and drive-through food and beverage service. Many restaurants began offering food delivery through apps such as Grubhub and UberEats. 

It's crucial that restaurants understand potential liability and how Restaurant Insurance can help.

At the end of January 2020 - before the ordered shutdown - Upserve reported that 31% of people in a survey said they use a third-party delivery service at least twice a week. Imagine how that number has skyrocketed in just a few months!

The use of third-party delivery services has allowed many restaurants to continue serving food without investing in a driver or other infrastructure while their dining rooms remain closed. On the other hand, it has also opened restaurants up to potential new liability and legal ramifications.

Here are four questions to ask about potential liability when using a third-party food delivery app.

Who is Liable if a Customer Gets Sick After Eating Your Food That is Delivered by a Third-Party?

It may be impossible to discover where things went wrong. The illness could have been caused by cross-contamination in your kitchen, or it could have been caused by the food sitting in a hot car too long.

Food delivery services do not fall under the Food and Drug Administration’s jurisdiction, so you may find your restaurant being held liable regardless. Before deciding to partner with a third-party delivery app, ask them if their drivers are required to follow any food safety standards - such as hygiene or temperature control – and who will be held liable if there is an illness.

Who is Liable for Issuing Refunds or Other Compensation if There is a Problem With the Food?

Beyond food contamination and illness, many smaller things can go wrong when you hand over your carefully prepared food to a complete stranger. Food can go cold. A pizza could get flipped over in the box, leaving all the cheese stuck to the lid.

You have no control over what happens to the food once it leaves your restaurant; however, it’s still your restaurant’s reputation on the line if your customers are disappointed with the quality of the food. Make sure that you provide the right packaging for the food on your menu and perhaps limit the delivery distance.

Who is Liable if the Delivery Person is in an Automobile Accident While Delivering Your Food?

The food delivery app probably requires that its drivers all have automobile insurance, but don’t assume they do. Ask what insurance policies they require their drivers to have and how they enforce and monitor the requirement.

A driver can present proof of insurance one day and lose it the next day for nonpayment. It may not be a bad idea for you to require proof of insurance from every driver each time they make a pickup at your restaurant.

Who is Liable if the Delivery Service is Not Sanctioned by Your Restaurant and Something Goes Wrong?

Some food delivery brands deliver food from restaurants without permission from the restaurant owners. So it’s crucial that you clearly advertise which third-party delivery services you have partnered with and include a disclaimer about potential liability from unsanctioned services.

How Can I Protect My Restaurant From Liability Issues?

The best way to protect your restaurant from any liability issues is with the right insurance. Talk to an independent insurance agent who specializes in restaurant insurance – like the agents at American Insuring Group – to make sure you get the lowest price for that coverage. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

As specialists in Restaurant Insurance, we typically focus on safety and other ways to lower insurance costs. This blog is a little different but has the same goal - to help restaurants succeed.  

Few industries have escaped the negative impact of the COVID-19 public health crisis, including the restaurant industry. Toast reports that restaurant sales are down 80% since the restrictions on restaurant operations and the shelter in place mandates went into effect.

As a restaurant owner, you may feel powerless, but it’s important to know that there are steps you can take to help ensure the health and safety of your employees, your customers, and your business.

The CARES Act

On March 27, the US government passed a stimulus bill called the “Coronavirus Aid, Relief, and Economic Security Act” – or CARES Act – in response to the COVID-19 health crisis. Here are some of the provisions of the Act that could be relevant to restaurant owners and employees.

The Paycheck Protection Program provides $349 billion in federally-guaranteed loans to small businesses. The loan can be used to help pay for employee salary or wages, cash tips, group health care benefits, etc.

The Emergency Relief and Taxpayer Protection provides loans, loan guarantees, and other investments for direct lending that meet specific criteria, such as a lack of alternative financing and a business that is a US-domiciled business with most employees located in the US.

The Employee Retention Tax Credit (ERTC) provides a refundable payroll tax credit for half of the wages paid by employers to employees during the crisis. To be eligible, the employer had to fully or partially suspended operations due to the shut-down order and experience a decline of more than 50% in gross receipts.

Businesses can now carry a Net Operating Loss (NOL) from 2018, 2019, or 2020 back five years. Plus, the taxable income limitation is temporarily removed, allowing an NOL to offset income fully.

The federal excise tax is waived on distilled spirits used for or contained in hand sanitizer produced and distributed under FDA guidance throughout 2020.

The tax filing deadline has been extended to July 15, and estimated tax payments can be postponed.

Temporary Policies

Understanding that the COVID-19 pandemic has changed the way restaurants are doing business, the FDA has implemented a few temporary policies that are in effect during the COVID-19 public health emergency.

The FDA is temporarily allowing restaurants to sell certain packaged food that is not labeled for retail sale during the COVID-19 pandemic. An example would be ingredients you purchased that can no longer be used to prepare restaurant food.

Restaurants are permitted to sell packaged food that lacks a nutrition facts label as long as it does not make any nutritional claims but does contain other required information, such as an ingredient statement, net quality of contents, etc.

Because many restaurants have switched to takeout only and may be experiencing disruptions in food supply chains, the FDA is also allowing some flexibility to chain restaurants and similar food establishments that are typically required to provide nutritional information on menus.

Employee and Customer Safety

To ensure the safety of your employees, continue to follow established food-safety protocols and CDC and FDA COVID-19 recommendations, including the following:

• Regularly disinfect and clean all workspaces and equipment with a disinfectant spray or disposable wipes, focusing on surfaces that are frequently touched.
• Prescreen employees (take their temperature and assess any symptoms before they start work).
• Provide appropriate PPE, such as gloves, face masks, etc.
• Ensure that employees follow proper hand hygiene by frequently washing their hands with soap and water for at least 20 seconds – before, during, and after food prep, after using the bathroom, after blowing their nose, coughing, or sneezing, etc.
• Practice social distancing.

Tell employees who are sick to stay home. If an ill employee does come to work, immediately send them home, clean and disinfect their workspace, and consider any employees with close contact to that employee as exposed.

Tell employees that if they know they have been exposed to COVID-19 to tell their supervisor and follow CDC-recommended precautions.

How to Save on Insurance During the COVID-19 Pandemic

Every dollar counts right now, so here are a few tips that could help lower your Restaurant Insurance costs during the COVID-19 pandemic. Check with an experienced insurance agent to determine which of these tips apply to your situation.

• Lower your estimated payroll on your Workers’ Compensation Insurance.
• Drop Workers’ Compensation insurance altogether. Purchase again when employees are rehired.
• Lower the estimated sales on your General Liability Insurance.
• Change your vehicle usage to pleasure use on your Commercial Vehicle Insurance.
• If you currently have Liquor Liability Insurance and are not serving liquor, remove the insurance from your policy. Purchase again when you begin serving alcohol.
• Remove Employment Practices (sexual harassment, discrimination, etc.) coverage if your business is closed, and everyone is laid off.
• Remove all “non-essential” insurances.
• Ask your insurance company for maximum discounting due to the pandemic.
• Ask an independent agent to make some price comparisons on your coverage. With insurance sales down everywhere, you may be able to find a lower rate for the same coverage.

Start Saving on Restaurant Insurance Today!

These are just some of the ways to save on Business Insurance during this pandemic. If you're ready to start saving then give one of the independent agents at American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online. We would love to help you save money on your Business Insurance during these uncertain times!