Whenever the Bureau of Labor Statistics (BLS) releases its list of the deadliest jobs in America, some type of construction work is on that list.

According to the BLS, there were 991 fatal work injuries in construction in 2016. They listed first-line supervisors of construction trades and extraction workers as the ninth deadliest job with 134 fatal injuries and a fatal injury rate of 18 per 100,000 workers.

Roofers were number four (behind only aircraft pilots, fishers, and logging workers) with 101 fatal injuries and a fatal injury rate of 48.6 fatal injuries per 100,000 workers.

It's Wise to be Properly Insured 

No one would argue that construction is a dangerous job, and one of the elements that make it dangerous is the use of heavy equipment. According to the Center for Construction and Research Training (CPWR), vehicles and heavy mobile equipment caused 7,681 deaths from 1992 to 2010 with about 404 deaths annually.

Plus, even when vehicles and equipment are involved in an accident, they are often not listed as the cause of death. Given these facts, it's clear that having the proper contractor insurance is key for those in the construction industry. 

Types of Dangerous Heavy Equipment

Cranes have been the most dangerous heavy equipment machinery used in the construction industry for the past two decades. CPWR found that from 1992 through 2006, 632 of all the construction fatalities reported were caused by cranes. In 2008, crane collapses caused 25 deaths and 59 injuries, contact with overhead power lines resulted in ten fatalities and eight injuries. Contact with crane load caused six deaths and ten injuries.

But cranes aren’t the only dangerous type of heavy equipment. Here is a list of the top five most dangerous construction equipment:

1. Cranes
2. Bulldozers
3. Dump trucks
4. Backhoes
5. Excavators

Heavy Equipment Safety

Yes, experience does go a long way to ensure the safety of heavy equipment operators and those working around them. The danger comes when someone who has been working on the job for a long time is lured into a false sense of security and lets their guard down.

Distractions Can Cause Accidents

Today, one of the most common dangers may be simple distractions – both external and internal - that can affect veteran and novice heavy equipment operators alike, and many of these distractions can be avoided.

Before cell phones became so ubiquitous, many heavy equipment operators listened to radios. This was distracting enough (and could keep the operator from hearing if something is wrong with the machinery or someone is shouting at them), but cell phones have taken that distraction to a whole new level. 

Today’s cell phones allow operators to listen to music, text, watch videos, play games, check social media, search for information online and make phone calls. Some operators use earbuds to block out external noises. All of this can lead to distraction and danger.

The Occupational Safety and Health Administration (OSHA) has addressed the use of cell phones in cranes. OSHA states; “The [crane or derrick] operator must not engage in any practice or activity that diverts his/her attention while actually engaged in operating the equipment, such as the use of cellular phones (other than when used for signal communications).”

While OSHA doesn’t address this with other types of heavy equipment, it’s a smart safety measure to employ across the board to both operators and those working around heavy equipment.

Do You Have a Safety Policy? 

The best way to avoid distractions of any kind and keep your workers safe is to have a safety policy in place that forbids the use of cell phones while operating or working around heavy equipment, educate workers on that policy, and address any issues as soon as they arise.

Protect Your Business with the Right Type of Insurance

Unfortunately, accidents still happen, but the right insurance can help protect you and your employees if an injury does occur. Workers Compensation Insurance, which is often a state mandate, can provide wage replacement and medical benefits to employees injured on the job.

Commercial Liability Insurance can help protect your business from lawsuits. Various types of insurance can be combined to create a custom Contractor Insurance policy as well. 

To learn more about these and other types of commercial insurance, call American Insuring Group at (800) 947-1270 or (610) 775-3848 or contact us online.

Food Trucks may have started as a big-city phenomenon, but their numbers are growing in big and small towns alike. While the restaurant industry continues to grow at a steady rate of approximately 2% each year, food trucks have increased at a rate of 7.9% annually over the past five years, according to FoodTruckr.com. In 2017, food trucks were a $2 million industry.

Much of the appeal may be the relatively low start-up and operating costs. But as with any business, food trucks come with their share of risks. The right type of restaurant insurance can help protect your investment if something happens. Taking proactive steps to avoid that “dreaded something” from happening can save lots of time, money, and headaches, and avoid increased restaurant insurance premiums as well.

Here are three food truck risks you should consider and tips to help you mitigate them:

Damage to Your Vehicle

Your food truck is your livelihood, and if something were to happen to it – like a fire or auto accident – that puts your vehicle out of commission for any length of time, your business could be in jeopardy. Here are some tips to avoid damage to your food truck:

• Vet your employees.
  We know you have a lot of things to consider when hiring someone new, but if they will be driving your truck, it’s essential to check their driving record. If they’ve had multiple accidents or speeding tickets, the chances of them damaging your truck in an accident are probably higher. Plus, employees with bad driving records could cost you more on commercial auto insurance.
  
  
• Drive Safely.
  While your food truck is in motion, there’s always the possibility of an accident. However, there are safety measures that you can take and that you can share with your employees such as being an alert driver, maintaining your truck, Keeping enough space between you and the vehicle in front of you, etc. Mobile-Cuisine offers these food truck driving safety Tips.

Injury to an Employee

There are a lot of dangers in the food industry that also apply to food trucks like falling, burns, cuts, etc. Your employees can be your biggest asset and your biggest liability. Practicing safety in the kitchen can help save you money on Workers’ Compensation and liability costs, and it’s just good business. Here are tips to create a safe kitchen for your food truck:

• Create and enforce a safety plan.
  This is a big one. It can be time-consuming, but it is well worth your time if it can avoid causing injury to employees or customers.
  
  
• Train your employees.
  Creating a safety plan and then simply letting it sit in a drawer gathering dust is a waste of time and money. Make sure your employees understand and follow the safety procedures you’ve put in place. Make it clear that safety is a priority and hat your safety plan isn’t just a formality, but something that every employee is expected to follow.
  
  
• Create a safe environment.
  Try to eliminate potential hazards by keeping floors clean and uncluttered, providing personal protective equipment when appropriate, properly maintaining kitchen equipment, and following manufacturers’ instructions.

Injury or Illness of a Customer

In this litigious society that we live in, every business owner needs to be aware of liability risks. If a customer standing in lines trips, falls, and hurts themselves, they could sue you. If they suffer from a food-related illness after eating your food, they could sue you. Liability insurance is a must, but here are some steps to limit injury and illness to your customers:

• To avoid food-related illnesses, follow food handling and safety measures such as storing food correctly, following proper cooking procedures, preventing cross-contamination, and practicing proper handwashing techniques.
  
  
• Ensure that the area around your truck is clear of hazards such as slippery surfaces, cords, etc., and clearly mark any potential hazards you may not be able to control.

Get the Best Commercial Insurance for Your Restaurant Business 

Being proactive is important, but sometimes no matter how careful you are, accidents still happen. This is where the right insurance can help protect your business.

The independent agents at American Insuring Group specialize in all types of Commercial Insurance. Their independence means they are free to shop the market to get you the best deal on insurance that's right for your business.  

So call us at (800) 947-1270 or (610) 775-3848, or contact us online.

Workers Compensation Insurance for interstate trucking companies can be complicated, but it is required by most states. And, due to the dangerous nature of truck driving, it is essential for the well-being of both truck drivers and trucking companies.

Determining Workers Compensation Insurance Risks

The first challenge comes when insurance underwriters try to determine a trucking company’s risks. Each state has its own workers comp insurance base rates, requirements, and rules. To further complicate matters, sometimes a trucking company is located in one state, the truck driver resides in another, and the WC injury occurs in yet another state. While there are interstate payroll classification codes available from the National Council on Compensation Insurance (NCCI), those codes don’t apply to three highly-traveled states: California, New York, and Texas.

The 7th Deadliest Occupation

Another challenge is the dangerous nature of the occupation. With all the time truck drivers spend on the road, it’s probably no surprise that the Bureau of Labor Statistics lists truck driving as the seventh deadliest occupation. In 2016, there were 918 fatal injuries making the fatal injury rate for truck drivers 24.7 per 100,000 full-time employees.

Health and Injuries 

What may surprise you is that truck drivers also tend to be less healthy than the average worker, which makes them more prone to other types of injuries. Drivers sit for long periods of time and then have brief periods of strenuous labor as they load and unload their trucks. Many truck drivers also have unhealthy lifestyles that include a minimal amount of exercise, being overweight, and having irregular sleep habits. This causes a disproportionate number of musculoskeletal injuries compared to other occupations and poor overall physical health that often impacts employee recovery time when they are injured. 

The most common injuries truck drivers experience are vehicle accidents, slips and falls climbing in and out of the cab or trailer and on loading docks, trains, and back injuries while loading and unloading cargo, carpal tunnel, and crush injuries caused by loads falling on the driver. Many truck drivers also attribute kidney stones and hemorrhoids to their jobs but rarely claim either as an occupational injury or disease. 

Despite its complexities, here are 3 ways trucking companies can save on workers’ compensation insurance:

1. Develop a Safety Program

Take the time to develop a comprehensive safety program specific to your business and give a copy of your safety policies to every truck driver along with safety guidelines specific to eliminating injuries in drivers. Also, create a culture of safety by making it clear that every driver is expected to follow your safety policies or face the consequences and requiring every driver to attend at least one annual safety training to reinforce your safety policies.

2. Perform Drug Testing

Drug testing will not only affect your workers compensation insurance costs but also your liability insurance costs. You should test every new hire and conduct random drug testing and mandatory drug testing after an accident that causes damage to property or injury to the driver or anyone else.

3. Health & Wellness Program

An effective health and wellness program may reduce the cost of both WC and health insurance benefits. These programs can help reduce injuries and help employees recover more quickly from injuries. This may seem like an unnecessary expense, but the WC savings you could experience just by reducing obesity alone will pay for the cost of the health and wellness program.  

CAUTION - Don't Misclassify Drivers!

It’s very tempting to try to reduce your workers comp insurance costs by classifying all of your drivers as independent contractors, but the only drivers who should be classified as independent contractors are those who regularly drive for other companies. If the driver is only driving for your company and you’re designating when and where the loads are picked up and dropped off, the IRS and the state board of workers’ compensation will consider them your employees – not independent contractors.

The penalties and fines that you can face for not having WC for employees could quickly put a small or medium-sized trucking company out of business. Plus, drivers whose WC claims are denied can (and often do) sue your company for medical bills, pain and suffering (which is not paid under WC), and the loss of all wages (as opposed to the typical two-thirds of wages paid by most WC claims).

Get the Right Workers Comp Insurance for Your Business 

While workers compensation insurance for trucking companies can be complicated, the WC experts at American Insuring Group can provide affordable and reliable workers compensation to protect both your employees and your business.

Don't take chances - call us at (800) 947-1270 or (610) 775-3848, or contact us online.

Every year 48 million people get sick from a foodborne illness, 128,000 are hospitalized, and 3,000 die, according to the Center for Disease Control and Prevention, and over half of all reported foodborne illnesses are attributed to foodservice. 

In addition to the human cost (sickness, medical costs, lost work), a foodborne-illness outbreak at your restaurant can cost thousands of dollars and sometimes the loss of your business. It can cause negative media exposure, damage your reputation, decrease sales, affect staff morale, create lawsuits, and increase your restaurant insurance premiums.

Every food product that you serve has gone through several levels of the supply chain, and there are hazards at every level that can cause sickness or injury. Fortunately, these hazards can be reduced, prevented, and even eliminated.

Managing Food Safety via the HACCP System

Smart restaurant owners do what they can to reduce foodborne hazards, and there are many food safety management plans available. The Hazard Analysis Critical Control Point (HACCP) system is one of the most widely used system, and it is endorsed by the National Academy of Sciences, National Advisory Committee for Microbiological Criteria for Foods and the Codex Alimentarius as the best process control system available today. The FDA says, “HACCP is designed for use in all segments of the food industry from growing, harvesting, processing, manufacturing, distributing, and merchandising to preparing food for consumption.”

The History of HACCP and Food Safety

HACCP was introduced in the 1960s to produce the safest and highest quality food possible for astronauts in the space program. The HACCP Alliance defines the HACCP system as “a process control system that identifies where hazards might occur in the food production process and puts into place stringent actions to prevent the hazards from occurring. By strictly monitoring and controlling each step of the process, there is less chance for hazards to occur.”

A Proactive Approach to Food Safety

One of the advantages of HACCP is that it prevents food safety hazards rather than reacting to food safety hazards; it prioritizes and controls potential hazards. And it can be customized to your restaurant’s menu, customers, equipment, processes, and operations.

Compliance May not be Mandatory, but it's Really Smart!

Most restaurants are not required to have an HACCP plan, but it is one of the best systems available to ensure the safety of the food within your restaurant, and, as a big bonus, it is likely to help reduce your restaurant insurance premiums by lowering the number of insurance claims submitted.

Seven Principles of HACCP

HACCP is based on seven principles, according to the National Advisory Committee on Microbiological criteria for foods. Here they are:

Principle 1: Conduct a Hazard Analysis

Identify food safety hazards - any biological, chemical, or physical property that may cause a food to be unsafe for human consumption - and take preventative measures to control these hazards.

Principle 2: Determine Critical Control Points

A critical control point (CCP) is a point, step, or procedure in the manufacturing or preparation of food where a control can be applied to prevent, reduce, or eliminate a food safety hazard.

Principle 3: Establish Critical Limits

A critical limit is a maximum/minimum level to which a biological, chemical, or physical factor must be raised/reduced to in order to prevent, reduce, or eliminate a food safety hazard

Principle 4: Establish Monitoring Procedures

Monitoring is a planned sequence of observations or measurements to assess whether a CCP is under control and to produce an accurate record for future use in verification.

Principle 5: Establish Corrective Actions

Ideal circumstances do not always prevail and deviations from established processes may occur requiring corrective actions.

Principle 6: Verify That the System Works

Once an HACCP is in place, make sure the system is operating according to plan and delivering the desired results.

Principle 7: Keep Accurate Records and Documentation

Restaurant owners should maintain the following records: a summary of the hazard analysis - including the rationale for determining hazards and control measures - and the HACCP Plan - including a brief summary of the position responsible for performing the activity and the procedures and frequency.

Contact Us for Better Restaurant Insurance at a Better Price! 

An HACCP plan is one of the best ways to ensure the safety of the food that you serve and to protect your customers, your employees, and your bottom line.

The right restaurant insurance is a safety net that protects you in the event that all of your precautions aren’t enough.

The experienced agents at American Insuring Group specialize in Restaurant Insurance, and best of all, they're independent. That means we are free to shop the market to get a plan that matches your needs with a great price!

So give us a call at (800) 947-1270 or (610) 775-3848 or contact us online to see how we can help you save on your bar, nightclub, food truck, or any other type of restaurant insurance.

It’s a little early to know for sure how the ELD (Electronic Logging Device) mandate has affected businesses in the trucking industry, but so far, the response seems to be a mixed bag.

Some say they haven’t seen any changes to their business and some have thrown in the towel and closed up shop saying the mandate is too cost prohibitive.

The compliance deadline for the ELD mandate affects three million drivers and went into effect December 18, 2017. It requires commercial motor vehicles (CMVs) involved in Interstate Commerce, to use an ELD.

3 Main Areas of Impact for the Electronic Logging Device Mandate

Based on what we’ve seen so far, it looks as if the three areas that are most likely to see the biggest impact from the new mandate are insurance rates, productivity, and cost.

Insurance Rates

Safety is the driving force behind the mandate imposed by the Federal Motor Carrier Safety Administration’s (FMCSA). The FMCSA has said, “The electronic logging device (ELD) rule – congressionally mandated as a part of MAP-21 – is intended to help create a safer work environment for drivers, and make it easier and faster to accurately track, manage, and share records of duty status (RODS) data.”

The idea is that ELDs (as opposed to the paper and pen method) will capture Hours of Service (HoS) more accurately and ensure that drivers are following safety and compliance standards, which should in turn reduce the number of accidents caused by fatigue. 

According the FreightWaves, driving more than 12 hours since the last main sleep is associated with an 86% increase in crash risk and driving more than five hours without stopping (getting out of the driver’s seat) more than doubles the risk of an accident. The FMCSA estimates that the ELD mandate will prevent about 20 fatalities and 434 injuries caused by driver fatigue every year.

Safer roadways and fewer accidents should produce lower truck insurance premiums. ELDs may also reduce or possibly eliminate lawsuits in which the plaintiff alleges that fatigue due to driving outside the HoS limits is the cause of an accident. Fewer lawsuits should also equal lower insurance premiums.

Plus, some ELDs offer more features and reporting capabilities – such as GPS tracking and engine data reporting – that can be used to improve asset utilization and increase preventative maintenance. Carriers that use these more-advanced devices may be able to use this information to lower their auto insurance premiums. 

Increased Cost Per Truck Annually

Complying with the mandate carries with it some up-front costs. FMCSA estimates that the average annual cost of an ELD is $495 per truck, with a total range of $165 to $832 per truck on an annualized basis. That may not sound like much, but consider a carrier with 10 vehicles that did not have ELDs prior to the mandate. They’re looking at an additional yearly cost of almost $5,000. In an industry with tight margins like the trucking industry, $5,000 every year can have a significant impact.

On the flip side, the FMCSA projects that ELDs will save more than $1.6 billion each year from paperwork savings alone. Add to that expected decreases in maintenance costs, reduced truck downtime, and lower crash rates, and that’s a pretty impressive savings.

Driver Productivity - Up or Down?

This area is the biggest mixed bag. The general mind-set is that automating any process, should save time. ELDs will eliminate the time required to write driver information in a log book. Everything will be done automatically for them.

However, some companies – particularly smaller companies - haven’t been fully complying with HoS restrictions prior to the mandate. With the information now being logged electronically, they’ll have no choice but to follow those restrictions or risk expensive fines. These companies will see a drop in driver productivity.

According to FreightWaves, smaller carriers, which make up 90-97% of trucking companies, will experience a 4-20% decline in productivity.

Another problem some drivers have reported is that many shippers and receivers aren’t ready for the mandate, and long hold times are creating problems for drivers who are spending too much time sitting at the dock.

In a DAT blog asking for feedback from carriers, drivers, freight brokers, and shippers about the new mandate, Marina Andreyreva commented, “ELDs were installed in all my trucks before the ELD mandate. There have been many changes in dispatching. So far, all delivery times have been rescheduled due to long hold times at the shipper. Problems at shippers now heavily reflect on drivers’ hours. This must be addressed in order to operate efficiently for both drivers and company owners. Brokers need to be aware of HOS and understand the law in order to build freight accordingly.”

We Can Help Smooth Your Transition to ELD 

Only time will tell the full impact of this new mandate, but American Insuring Group is here to help smooth the transition for our trucking insurance customers. As a representative of Progressive Insurance, we can offer participation in their SMARTHAUL program.

With the SMARTHAUL program, you have two options:

• The free use of an ELD
  This includes the monthly subscription/service fees as long as you share your driving data with Progressive. The device would need to be returned if you decide to opt-out or cancel your coverage with Progressive.
  
  
• The compensation program
  If you purchase your own Rand McNally ELD 50 or DC200 and agree to share your driving data with Progressive, you’ll receive $100 for plugging it in and an additional $100 for each quarter that the device stays plugged in – up to $500. You will be responsible for the monthly service fees, but the $500 compensation should cover those costs.
  
  

Save Big on Trucking Insurance with American Insuring Group

To learn more about the SMARTHAUL program, or to start saving BIG on trucking insurance, give American Insuring Group a call at (800) 947-1270 or (610) 775-3848, or contact us online.  

But don’t wait; the program is only available for a limited time.

Having the protection offered by contractor’s Insurance just makes good business sense. Without it, one nasty lawsuit could put you out of business and your employees out of work. And don’t forget: some state and federal laws require certain types of insurance.

But finding the right contractor’s insurance is a balancing act. You don’t want to pay for more coverage than you need to reasonably protect yourself, your employees, and your business. But then again, you don’t want to find yourself underinsured if something does happen. Remember Goldilocks? You want it "just right".

Using an insurance broker who is familiar with contractors’ needs and risks is the best way to ensure that you have the right amount of coverage at the best possible price.

Here are five tips to help minimize your contractor insurance premiums without giving up the protection you need

#1) Review Your Policies Regularly

Things change. You may have purchased a new piece of equipment, hired your first employee, or sold a vehicle. You want to make sure that all of your current assets are adequately protected. When you do a review, you should consider the different types of insurance available to contractors and determine if any of them need to be added or deleted from your current policy.

Here are the five insurances you should be familiar with as a contractor:

• Commercial General Liability (CGL) – Construction is one of the most dangerous industries, making CGL Insurance an essential part of your insurance portfolio. It protects you and your company if someone gets hurt on your property or if you or an employee causes property damage or injury on a job site.
  
  
• Commercial Auto – If you have started using your personal vehicle to drive back and forth to project sites or to transport tools or equipment or if you’ve begun allowing employees to drive your car or truck, personal auto insurance does not provide enough coverage. You may need to add Commercial Auto Insurance.
  
  
• Workers’ Compensation (WC) – If you have employees, you may be required by law to have Workers’ Compensation Insurance. WC is meant to ensure that your employees who are disabled due to a work-related injury are compensated for lost wages and receive the necessary medical treatment. To learn more about WC requirements in Pennsylvania, go to the Pennsylvania Department of Labor & Industry.
  
  
• Inland Marine Insurance (Aka Tools and Equipment Insurance) – What’s more important than your tools of the trade? Inland Marine Insurance is designed to protect your property when it is in transit.
  
  
• Builder’s Risk Insurance - Builders risk insurance is designed to protect your equipment in the event of losses caused by theft and other perils that can occur.

#2) Check your deductibles

Increasing your insurance deductible (the amount you need to pay when you file a claim) is one way to decrease your premiums (what you pay for your insurance coverage). If you have enough money in savings to comfortably cover a higher deductible, this may be a good choice for you. 

But be careful. The purpose of insurance is to protect you financially if something happens – an accident, theft, lawsuit, etc. If you don’t have the financial resources to cover the costs of your deductible, then your insurance policy isn’t providing the financial protection you need and could expose you to risks that affect your business – in the worst case, shutting it down.

#3) Bundle your insurance policies

Bundling is kind of like economies of scale. Sometimes if you purchase more than one insurance policy with the same provider, it can be less expensive per policy. Ask your insurance agent if bundling your policies would save you money.

#4) Know when to make a claim (and when not to)

The fact is that the number of claims you submit can affect your insurance premiums, so sometimes it makes sense to pay for certain losses out of pocket. If making a small claim will increase your insurance premiums, it may be less expensive in the long run to pay the minor loss out of pocket.

#5) Risk Management

If you can determine potential hazards and how to avoid them and implement a risk management plan, you will probably have fewer losses and injuries, which means you’ll have fewer claims. Fewer claims usually mean lower premiums. Plus, there are many intangible benefits in keeping your employees and your equipment safe – higher employee morale, higher productivity, less downtime, etc.

Don't Overpay for Contractor Insurance!

As an insurance broker, American Insuring Group specializes in contractors insurance. We can ensure that you have insurance required by law, help you determine risks specific to your industry, and create the best insurance bundle to protect your business, all at a great price. Even Goldilocks would find our insurance to be "just right"!

To learn how we can help save you money on any type of commercial insurance coverage, call us at (800) 947-1270 or (610) 775-3848, or contact us online. 

Are you interested in lowering your workers compensation insurance and related costs? Would you like to improve employee morale, increase production, and reduce absenteeism? Implementing a workplace safety program can do all that and so much more.

It is true that developing a safety program takes time and effort, and it can be difficult to measure the return on investment, but research has shown that it is definitely worthwhile.

$170,000,000,000.00 Per Year!

According to OSHA, “Businesses spend $170 billion a year on costs associated with occupational injuries and illnesses -- expenditures that come straight out of company profits. But workplaces that establish safety and health management systems can reduce their injury and illness costs by 20 to 40 percent. In today's business environment, these costs can be the difference between operating in the black and running in the red.”

And about that ROI… it’s been estimated that for every dollar invested in injury prevention, businesses will see a $2 to $6 return, according to Safety and Health Magazine. That's an ROI of 100% to 500%!

Here are four ways your business can benefit from implementing a safety program

#1. Lower Workers’ Compensation Costs

Often, workers compensation (WC) costs are one of the highest insurance costs in a business. It has been estimated that employers pay almost $1 billion per week for direct workers' compensation costs alone.

Three factors go into determining your workers comp insurance premiums: Classification Code, Payroll, and Experience Modification Rate. Classification codes are based on the type of business you’re in and the tasks your employees perform. There is a corresponding WC rate (which varies by state) for each classification code. The more hazards an employee is exposed to, the higher the rate. The amount of payroll a business runs annually also affects your WC premiums. There isn’t much you can do about these first two; they are what they are

But the third factor – your experienced modification rate – is something you have some control over. Every business is given MOD, which is a number that represents its insurance claim history. The average MOD is set at 1.00. If you have few or no history of claims, your MOD can go lower, which means lower premiums. The more claims you have, the higher your MOD goes, and the higher your WC premiums.

So, the best way to reduce your WC insurance premiums is to avoid workplace accidents, and the best way to do that is with an effective safety program.

In Pennsylvania, you can also receive a five percent discount on WC premiums if you have a safety committee that meets the requirements for state certification.

#2. Avoid OSHA Penalties

The Occupational Safety and Health Administration (OSHA) has stringent workplace safety guidelines that every business is expected to follow. Failing to abide by these rules and regulations can result in expensive fines.

Here is a list of OSHA’s penalties:

• $12,934 per violation for serious, other than serious, and posting requirements violations
• $12,934 per day beyond the abatement date for failure to abate
• $129,336 per violation for willful or repeated violations

In the fiscal year 2017, OSHA reported the most-citied violations were 6,887 violations regarding fall protection, 4,652 violations regarding hazard communication, 3,697 violations regarding scaffolding, and 3,381 violations regarding respiratory protection 

Implementing a safety program specific to your industry and your business that follows OSHA’s guidelines can help you avoid costly fines. OSHA offers many publications on everything from roof tarping safety to preventing workplace violence to help you create a safer work environment and avoid OSHA’s penalties.

#3. Avoid Costly Accidents

Accidents can be costly. You may find yourself paying for an accident investigation, property damage repairs, insurance deductibles, administrative expenses, and recruiting, training and compensating replacement workers.

You may also face the hefty costs involved in a lawsuit. Accidents and lawsuits can also affect your reputation, which can affect sales and your ability to attract skilled employees. Avoiding accidents also can lower your worker's comp insurance premiums. 

#4. Keep Employees Safe

Ensuring a safe work environment for your employees is the right thing to do and just makes good business sense. It should be your number one priority.

Safe work environments improve employee morale and make your place of business an attractive place to work. This usually means more productive employees, better service, a better quality product, and more skilled employees. OSHA estimates that lost productivity from injuries and illnesses cost businesses $60 billion every year.

If you want to see the financial rewards of a safety program, it’s essential to have a written policy in place and make it clear that safety is a priority and that the policies and procedures will be enforced. And you should continually provide safety training and look for ways to improve your safety program.

So, now that you have the facts in front of you, will you be taking the time to develop a workplace safety program?

Start Saving on All Your Commercial Insurance Needs

To learn more ways to save on workers compensation insurance and all your commercial insurance policies, call American Insuring Group at (800) 947-1270 or (610) 775-3848, or contact us online.

Our independent agents will compare rates and policies among lots of competing insurance providers to get you the right policy at an unbeatable price.

Click or call today!

Alcohol impairs judgment, and impaired judgment can lead to damage, injuries and even death. In Pennsylvania, if you serve alcohol to a person who causes damage, injury, or death, you may be held liable. And in addition to the costs related to damage and injuries, you may also find yourself on the wrong end of a lawsuit.

Are You Protected in a Potential Lawsuit Against Your Restaurant Business?

One nasty lawsuit can significantly affect your bottom line or even put you out of business. While you may not be able to control all of your customers’ actions, there are steps you can take to protect your business such as knowing the laws in your state, knowing how to identify when someone is drunk, and having Liquor Liability Insurance as part of your restaurant insurance policy.

Learn more about restaurant insurance

Pennsylvania’s Dram Shop Law

Pennsylvania is one of 43 states that has a Dram Shop Law, which means that a business or individual who serves alcohol to a visibly intoxicated person is legally responsible for any injury or damage that person might cause. 

Restaurants, bars, clubs, taverns, or any other business that serves alcohol – whether it’s beer, wine, or spirits could end up paying the bill for damages done by an intoxicated customer.

That means that if you serve alcohol to someone who is “visibly intoxicated” and they get into a fight at your bar, one or both parties can sue you. If you serve someone who is “visibly intoxicated” and they fall and hurt themselves on the way to their car, they can hold you responsible for their injuries. If you serve alcohol to someone who is “visibly intoxicated,” and they cause an accident driving home, you may be held responsible for damage and injury to all parties involved.

The Law Applies to Private Events as Well

Dram Shop law applies not only to businesses that serve alcohol, like bars and restaurants but also to private events and can apply to someone committing other liquor violations, such as serving alcohol after hours or to minors.

An Ounce of Prevention is Worth a Pound of Cure

Of course, your best bet is just not to serve “visibly intoxicated” customers and avoid the damage or injury before it happens. But sometimes that’s easier said than done.

In Pennsylvania, driving with a Blood Alcohol Concentration (BAC) of .08 or higher is illegal, but according to the NHTSA, “… even a small amount of alcohol can affect driving ability. In 2016, there were 2,017 people killed in alcohol-related crashes where drivers had lower alcohol levels (BACs of .01 to .07 g/dL).” 

AlcoMeters Breathalyzer offers this chart to help estimate how many drinks will impair a person’s judgment. But remember, everyone absorbs and metabolizes alcohol at different rates. Things like weight, sex, medication and even what a person eats can affect their BAC, so the chart is just an estimate. Sometimes you need to use your best judgment.

Here are seven signs that a person may be intoxicated:

1. Slurred speech
2. Glassy or bloodshot eyes
3. Change in behavior
4. Difficulty finishing a thought or sentence
5. Stumbling or falling
6. Impaired fine-motor skills (such as trouble opening their wallet and paying for a drink)
7. Slow reaction time

Even if you identify someone who is drunk, it isn’t always easy to cut them off. Here are some tips:

• Tell someone else like a manager or another bartender if you’re cutting someone off.
• Enlist help from the customers’ friends.
• Calmly explain your policies and don’t be confrontational.
• Trust your judgment and stick to your decision.
• Offer to call them a taxi.
• If they become belligerent, call security or the police.

But, as you know, all best-laid plans can go awry, and that’s where Liquor Liability can become a safety net.

What is Liquor Liability Insurance?

Liquor Liability Insurance helps protect companies that manufacture, sell, or serve alcohol. It covers damages caused as the result of selling, serving, or furnishing alcoholic beverages and the cost of defending against any lawsuits filed by the intoxicated customer and/or their victim.

It’s important to note that your Commercial General Liability (CGL) insurance may not cover when alcohol is involved. Plus, some banks require Liquor Liability Insurance and many states insist on it if you have a liquor license. In Pennsylvania, the Liquor Control Board requires current liquor liability coverage for $1 million per occurrence and $2 million aggregate.

Don't Risk It 

Without Liquor Liability Coverage, you could find yourself responsible for damage and injury costs, legal fees, and civil damages that can ruin your reputation, will most certainly hurt your bottom line, and could potentially put you out of business.

Take No Chances - Get the Right Coverage at a Great Price 

The experienced agents at American Insuring Group specialize in Restaurant Insurance. We can help you get the right insurance to protect your business.

Our independent agents are free to shop the entire insurance market among many competing insurance providers. That means savings for you! Give us a call at (800) 947-1270 or (610) 775-3848 or contact us online to start saving.

The construction industry is booming – both new construction and remodeling - and it looks as if that trend will continue. Construction has a 4.5% projected growth rate over the next five years.

In fact, construction is expected to be one of the fastest growing industries into 2020, according to the Bureau of Labor Statistics. Real output in the construction industry is expected to reach $1.2 trillion by 2020.

This is excellent news if you’re in the business of building or remodeling houses. It translates into big opportunities for builders. Unfortunately, it can also bring higher risk, making now the perfect time to let the experienced independent agents at American Insuring Group review your Builders Risk Insurance to make sure you have the right coverage to adequately protect your business.

What is Builders Risk Insurance?

Builders Risk Insurance is a type of property insurance unique to the construction industry. It covers structures or building materials during construction. It provides coverage for damage from events such as fire, wind, theft, hail, explosion, lightning, and vandalism. Builders Risk Insurance is typically written for three, six, or twelve month periods, and can be extended (although usually only once) if the project takes longer than anticipated.

This insurance pays for damages up to the coverage limit, which should be based on the total completed value of the structure including not only materials but also labor costs. The best way to determine that value is to look at the construction budget.

Standard Exclusions

Standard exclusions on builders risk insurance include earthquake, employee theft, water damage, weather damage to property in the open, war, government action, contract penalties, voluntary parting, and mechanical breakdown. Another typical exclusion results from faulty design, planning, workmanship, and materials, which can be covered by Professional Liability Insurance.

Here are a few more things that you should know about Builders Risk Insurance:

• It doesn’t cover the property of others
• Subcontractors must have their own insurance
• Tools and equipment are not included
• Accidents on the job site are not covered
• Once the building is completed or occupied, the coverage usually ends
• It doesn’t cover professional liability

Does the Booming Industry Mean Higher Builders Risk Insurance Premiums?

Historically, Builders Risk Insurance has been safe from dramatic increases. Increases tend to be small and incremental. And experts don’t foresee that changing even with the increase in construction projects. However, 2017 was the costliest year ever for weather and climate disasters in the U.S. totaling $306 billion. The U.S. was hit by 16 weather events that caused more than a billion dollars in damage. Previously, 2005 held the record at $215 billion.

Most experts agree that the cost of this damage will only slightly increase builders risk insurance premiums particularly with frame construction and construction in areas that are prone to catastrophes.

How to make Builders Risk Insurance Work for you in this lucrative market

• Cover Your Entire Project - Many builders purchase builders risk insurance because their lending institution requires it, so they only cover the bare minimum: labor and materials. These are the parts of the project the banks have an interest in, but you need to protect your interests as well, which include overhead and profit.
  
  
• Spell it out with a detailed contract – Make it very clear in the contract who (contractor, owner, designer) is responsible for what if something goes wrong. The American Institute of Architects offers comprehensive contract templates.
  
  
• Don’t be Naïve – Whether your company is big or small, you do face risk, and if you don’t have a lot of cash flow even a small amount of damage can be catastrophic.
  
  
• Hire good subcontractors – Verify that all of your subcontractors have certificates of insurance with adequate limits. You may also want to secure a waiver of subrogation and list subcontractors as additional insured for both operations and completed operations for the project. This way, if there is a lawsuit, the subcontractor’s insurance will defend the contractor.

Contact Us to Review Your Business Insurance Policies 

Now – while business is booming – is the perfect time to review your business insurance policies!

The agents at American Insuring Group specialize in Contractors Insurance and finding ways to lower your risk while reducing your costs.

Give us a call at (800) 947-1270 or (610) 775-3848 or contact us online. We’ll be happy to review your policy to ensure that you have adequate coverage to protect your business.

Often when the topic of reducing workers compensation (WC) insurance costs comes up, pharmaceutical costs are the focus. That’s no surprise when you consider that the “total workers’ comp annual pharmacy spend is approximately $3.6 to $4.1 billion,” according to a CompPharma Survey.

Looking at pharmaceutical costs is a great place to start if you want to control WC spending without sacrificing the quality of medical care your injured workers are receiving.

Here are 5 Steps to Help You Save

#1. Educate yourself, providers, and patients about pharmaceutical options

For example:

• Lidocaine gel or cream - an anesthetic that is used to treat irritation, soreness, and itching from certain skin conditions - is about half the cost of Lidoderm – a lidocaine patch.
  
  

• The average cost of Evzio - a prescription medicine used for the treatment of an opioid emergency such as an overdose - is $3,380.69 higher than the combined price of Narcan, Naltrexone, and Naloxone (alternatives to Evzio), according to Express Scripts.
  
  
• Before approving an ADF (Abuse-Deterrent Formulations), which are not typically included in WC formularies, determine if the patient is at risk of abuse and if a more traditional (and often less expensive) opioid may be safe for them.

#2. Use generic instead of brand-name medication whenever possible

On average, the cost of a generic drug is 80 to 85 percent less than its brand name equivalent. According to the Federal Drug Administration (FDA), “FDA requires generic drugs to have the same active ingredient, strength, dosage form, and route of administration as the brand-name drug. The generic manufacturer must prove its drug is the same (bioequivalent) as the brand-name drug.” According to Express Scripts, prescribers often turn to brand-name medications out of “habit, lack of awareness of available alternatives, or patient requests.”

#3. Avoid physician-dispensed drugs

First, there is the concern that – due to incomplete drug histories and lack of safety checks – physician-dispensed drugs may not be safe for injured workers. Some states have rules in place for pricing and dispensing of physician-dispensed drugs, and, according to Express Scripts, “Physician-dispensed drugs cost $109.19 more than drugs dispensed by pharmacies.”

#4. Stay with in-network pharmacies

Prescriptions that are filled through third-party billers or out of network pharmacies are more expensive because they incur additional costs and do not add any value, according to Express Scripts

#5. Closely review prescriptions for specialty medications

The cost of specialty drugs is less than 1 percent of drugs used by injured workers, but accounted for 5.9% of total spending in 2016, according to Express Scripts.

Opioid Prescriptions: the Most Expensive and Most Utilized Class of Drugs in WC

Express Scripts reports that more than 50 percent of injured workers had an opioid prescription last year and 25 percent used opioids for 30 days or more in 2016. Opioids accounted for 26.6 percent of per-user-per-year (PUPY) spend and 24.3 percent of PUPY utilization among Express Scripts clients.

And it isn’t just the financial cost of opioids that make it a critical topic; it’s also the human cost of the opioid epidemic. The number of overdose deaths involving opioids (both prescription opioids and heroin) quadrupled since 1999, and today ninety-one Americans die every day from an opioid overdose, according to the Center for Disease Control and Prevention.

Some injured workers are taking a dangerous combination of opioids and other drugs. Opioids should be used based on evidence-based guidelines in acute phases of pain, not for chronic pain. It’s essential that injured workers understand the risks and benefits of opioids.

For more information on the opioid epidemic and the impact on insurance costs, see our infographic.

Approved Drugs for Workers Compensation Insurance

Several states have adopted legislation mandating a drug formulary - a list of prescription drugs created by a committee of physicians, nurse practitioners, and pharmacists used by practitioners to identify drugs that offer the greatest overall value – for workers’ compensation. In Pennsylvania, there is a bill in the House requiring drug formulary for WC as of this writing.

Call Us for More Information, and to Save on WC Insurance! 

A little bit of knowledge goes a long way to saving money on your WC Pharmacy spend without risking the health of your injured employees, and since American Insuring Group specializes in workers compensation insurance, we’re a fountain of knowledge.

Give us a call at (800) 947-1270 or (610) 775-3848, or contact us online. Pick our brains and let us show you how we can help you lower your workers comp insurance costs!