Every home-based business should be protected by commercial insurance. But the growth of the internet and other technological advancements –such as social collaboration tools and communication apps -  have changed the way many of us do business today and significantly influenced the number of small businesses  nationwide.  In addition, the low start-up costs; the reduction in the cost of commuting, meals, and other expenses; the flexibility; and the savings realized from not maintaining a “storefront” are creating more home-based businesses. Sometimes home-based business owners forget that their homeowner's policy is unlikely to cover them for liabilities that can occur in their business.

In 2014, there were 28 million small businesses in operation.  Approximately half of the small businesses today are home-based businesses.   The SBA reports that most of these home-based businesses are operating as sole proprietorships; others are s-corporations and partnerships, and the majority of them are service oriented.

But a home-based business is still a business.  Owners need to understand the financial risks and responsibilities associated with this type of business, including how to protect that enterprise with the right business insurance for businesses run out of the home.  It’s important to understand the differences between personal and commercial insurance liabilities and not assume that your personal insurance policies will always cover your home-based business insurance needs. 

Here are five things every home-based business owner needs to consider protecting with the right business insurance.

1. Home and Property Insurance – Most home owners’ or renters’ insurance policies only cover up to $2,500 for business property losses or damages.  They also tend to exclude business-related liability claims and provide no provisions for any downtime associated with a property loss.  Therefore, if you run your business from home, you may want to consider a business owner’s insurance policy, general liability insurance, business property insurance, and business interruption/continuation insurance.  You may qualify for a homeowners' policy endorsement that modifies your standard policy.
    
2. Auto Insurance – If you own or lease a vehicle almost exclusively used for business – whether it’s a small 10-year-old sedan or a large customized van complete with everything needed to groom a giant Greyhound - make sure your business name is listed as the principal insured. If your business involves transporting people, you should consider commercial vehicle insurance for the higher liability limits and special provisions that are available.
    
3. Life Insurance – If your home-based business is a partnership, you may want to consider Key Person life insurance to ensure the organization’s future.  If one partner dies the other partner (s) can use the life insurance payout to buy out the partner’s heirs, pay off outstanding loans, and continue operations. When considering key person life insurance, be sure to think about staff beyond the business owner. This type of coverage typically focuses on any person without whom the business would cease to exist.
    
4. Health Insurance – Without health insurance, one extended stay in the hospital could mean the end of your business.  Today, it’s much easier for small businesses to acquire health insurance – HMOs, PPOs, EPOs and other group plans.  With the new Affordable Care Act, you may even qualify for a tax credit or subsidy if you purchase coverage through the new healthcare marketplace and failure to purchase health insurance could result in a tax penalty. 
    
5. Income Insurance – Worker’s Compensation insurance and disability insurance isn’t reserved for large companies.  If you have just one employee, many states require that you purchase workers’ compensation insurance to protect your business from claims relating to work-related injuries and to protect the employee’s income.  If your family relies on your income to survive, you should also consider Workers’ Compensation and/or disability for yourself, to ensure that you continue to see an income even if you are injured or become ill and can’t work. 

Getting the Right Business Insurance for Your Home Business

There are also insurance “packages” available -known as Business Owners Policies (BOP) - that usually include property, business interruption, and liability insurance. 

The agents at American Insuring Group can help you determine the best commercial insurance for your home business. Contact us or give us a call at (800) 947-1270 or (610) 775-3848. As independent insurance agents, we're free to shop among many competing insurance companies, so we can find you the best deal on quality business insurance protection. Call or email today to learn more!

Workers Compensation Premium Audits - a necessary evil (some would say) for any employer - determines the final cost of your workers compensation insurance premiums. Sometimes the results of these audits can significantly change your premium compared to the estimated insurance premium originally used in the policy – and not always in a positive way. These audits can be stressful, disruptive and time-consuming for you.

Don’t wait until you receive a notice that you are about to be audited to begin collecting data.  Sometimes you only know a few weeks ahead of time, and you don’t want to scramble around for information, which can cause incorrect, missing or inadequate information. 

Here are a few tips to make a workers comp insurance audit as painless as possible:

Before the Workers Comp Audit:

• Review your original workers compensation insurance policy to see how the initial estimated premium was determined – including classification codes, rates, and payrolls.
• Look at your last audit report to see what information was required and what errors were made.  If this is your first workers comp audit, ask the auditor for a list of documents and information that they will be requesting.
• Review all job descriptions and ensure that the correct NCCI class code descriptions are applied to each job.
• Review all of your payroll records and check that employees are on the correct corporate payroll.  Make sure that any outside contract employees are kept separate from corporate employees and have copies of other insurance provisions for these contracted employees, such as hold harmless agreements or insurance certificates that show the employer as also insured on the contracted employees’ insurance policy.
• If there are unusual situations, such as an unexpected project that required additional over-time, make sure that you understand and are able to explain the situation.
• Place documents and physical evidence in chronological order.
• Ensure that information on your website or any other places a workers compensation insurance auditor would have access to is up-to-date, correct and not misleading
• Secure a private and comfortable room for the auditor(s) and ensure that internet is available in that space.

During the Workers Compensation Insurance Audit:

• Be professional and friendly
• Make sure that the workers comp insurance auditor is comfortable and knows where everything is (coffee, restrooms, photocopiers, etc.)
• Assign a primary contact person from senior management who will act as a liaison between the company and the auditor.   This person should be very familiar with all the work done within each department and by each employee, audit procedures, and the materials prepared for the audit.
• Do not lose your temper.  Be cooperative and answer all questions accurately and to the best of your abilitiy.  Keep your answers short, direct, and to the point.
• Do not invite auditors to lunch or dinner or offer any other items that could be interpreted as a bribe.
• You should have the opportunity to meet with the workers compensation insurance auditor(s) before they leave the premises to go over his or her findings and make corrections if needed.   This wrap-up meeting should be held in a private location.

After the Workers Comp Audit:

If you do not reach an agreement on the published report at the wrap up meeting, immediately prepare a written document along with all the necessary documents to support your position and request that any adverse premium changes be held until the challenge is resolved.  Legal assistance may be required.

Premium audits are a part of being an employer.  In order to see the best results, be prepared and cooperative, and be ready to provide any information the auditor requires. 

Get the Right Workers Compensation Insurance

For more information about premium audits or how to get the best deal on workers compensation insurance, contact an American Insuring Group independent agent at (800) 947-1270 or (610) 775-3848. As independent agents, we're free to find you the best insurance at the best price, selecting from among competing insurance carriers. We serve Phildelphia, Lancaster, Harrisburg, Allentown, Reading, Pittsburgh, Erie, PA and beyond. Call today.

You’re about to become an employer.  Maybe you’ve been in business for a while, but now you’re ready to hire your first employee.  You’re excited; this means your business is growing.  Or, maybe you’re just starting a business and you need employees to help run that business. 

Either way, being an employer comes with many responsibilities, including ensuring that you purchase the right business insurance.  You may be asking yourself, “What insurance is required by law and what is optional?  What’s in the best interest of both my business and my employees?” 

There are four primary types of insurance every employer should take a look at – Workers Compensation Insurance, Unemployment Insurance Tax, Disability Insurance, and Health Insurance.

Workers’ Compensation Insurance

Workers Compensation Insurance coverage ensures medical and wage-loss benefits to employees who are injured on the job. Plus, it helps protect employers against lawsuits filed by injured workers. Worker’s Comp insurance requirements vary by state.  In Pennsylvania, if you employ one or more employees - whether they’re part-time or full-time (including family members) workers’ compensation insurance coverage is mandatory.

If you are a sole proprietor, Workers' compensation insurance is not required by law, which can save you money; however, if you’re ever injured on the job, workers’ compensation insurance can help pay medical bills and supplement lost wages until you’re able to go back to work.

Click here for information about workers compensation insurance requirements in other states.

Unemployment Insurance Tax

Unemployment Insurance (UI) is a joint state and federal program financed through federal and state employer payroll taxes. It provides temporary payments to individuals who are unemployed through no fault of their own.  Each state has its own unemployment insurance program, which includes additional eligibility requirements, but they all follow guidelines established by the federal government.

Most employers must pay federal employer payroll taxes if they pay employee wages of $1,500, or more, in a quarter or if they have at least one employee during 20 weeks in a calendar year.  Most employers are also required to pay state unemployment taxes. In Pennsylvania, all employers providing employment to one or more workers must register Form PA-100 with the Office of UC Tax Services.

Employment that is not covered under the UC law includes the following:

• An individual employed by his or her son, daughter or spouse
• A child under the age of 18 who is employed by his or her parent
• A student in the employ of an organized camp that did not operate more than seven months in the preceding calendar year

Disability Insurance

Some states require that employers provide partial wage replacement insurance coverage to their eligible employees for non-work related sickness or injury. Currently, if your employees are located in any of the following states, you are required to purchase disability insurance:

• California
• Hawaii
• New Jersey
• New York
• Puerto Rico
• Rhode Island

In Pennsylvania, there are two types of disability insurance available if you decide to purchase it for your employees: short-term and long-term.

Again, if you are a sole proprietor, Disability Insurance is not required in Pennsylvania; however, if your family relies on your income, you may want to consider disability insurance for yourself to help pay medical bills and supplement lost wages if you become sick or injured.

Health Insurance

If you have more than 50 employees you are required to provide health insurance benefits to your full-time employees.  If you have more than 50 employees and don’t offer health benefits, you may be subject to a penalty call the shared responsibility payment.  96% of employers in Pennsylvania are exempt from the shared responsibility requirement. 

Contact Us for All Your Business Insurance Needs

If you’re an employer, contact American Insuring Group at (800) 947-1270 or (610) 775-3848 for more information about required and recommended business insurance, including health insurance, disability insurance, workers compensation insurance, or any other insurance your business may need. We've been helping businesses like yours acquire affordable, high-quality insurance for over 25 years.

Safety and Lower Workers Compensation Insurance Costs Go Hand in Hand

Creating a safe working environment for your employees is one of the best things you can do to help control the cost of Workers’ Compensation Insurance.  Whether you run an office, a warehouse, or a manufacturing facility, there are certain steps that apply to the main structure of any successful safety program.  Here are a few:

Set the Standard

Create an atmosphere and culture of safety; it will spread to your workers.  This can be as simple as carpeting that is free of rips and holes, clearly marked hazards, clean floors, and machines with real guards in place.  If you set the right standard, everything will follow.  

Create an Emergency Response Team

Your workforce may be the most efficient and responsive team during the course of regular business, and you may assume that they would react the same way in an emergency, but too often that efficiency and responsiveness turns to confusion and chaos during an emergency situation.  Employees need to know ahead of time what their responsibilities are in the event of an emergency, so they can react quickly like a group of well-trained marines rather than the bumbling Stooges. 

First, create a team that is a mix of serious-minded workers, supervisors, and management that understand that – in the event of an emergency -  lives may depend on them.  Make sure every employee knows who those team members are and how to reach them.  Consider creating a special code for emergencies or maybe a special name tag for members of this team.  Then, establish protocol for reporting an injury along with the chain of command.  Everyone on that team needs to understand what his or her responsibility is – whether that’s calling 911, applying CPR, or alerting other staff.

Finally, stage a few “accidents” for practice drills.  Don’t let employees know ahead of time and start easy, working your way up to accidents with increasing severity.

Communicate!

Your goal with Workers’ Compensation is to report zero claims, but if you do find yourself filing a claim, make sure your adjuster and carrier are good at communicating with the injured worker.  Set standards and make sure they are followed.  An injured worker should receive a call from a triage nurse or the adjuster within 24 hours.  The injured worker’s manager should call him or her once a week to check in on them.  Let the employee know that he or she matters and that you care about their welfare.

Lack of communication has been the down-fall of many marriages and statistically, it’s one of the biggest complaints of insurance claimants.  Too often, injured workers don’t know what is going on, what doctor they can and can’t go to, etc.   Effective communication decreases litigation, gets workers back to work more quickly, and keeps the claim moving forward to a resolution.

Get Upper Management Involved

My dad used to say to me, “Do as I say, not as I do.”  How do you think that went?  Not very well.  Good leaders lead by example.  If upper management repeatedly breaks the rules, you’ll lose whatever cooperation you’ve achieved with your employees.  Safety standards need to apply to everyone, even if that means writing up someone in senior management for a safety violation.  Your safety program needs to be enforced 100 percent of the time.

We Can Help You Save on Workers Comp Insurance

To find out more ways to save on workers’ compensation insurance, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.

It’s a bird.  It’s a plane.  No, it’s a drone!

Businesses are discovering many uses for drones – also known as unmanned aircraft systems (UAS).  In fact, total spending for military and commercial drones is expected to reach $89.1 billion over the next ten years.  This translates into approximately 30,000 small commercial drones in use by 2020, according to the Federal Aviation Administration (FAA).

Commercial Application of Drones: Implications for Commercial Insurance

Drones are already being used by real estate brokers to get images of properties from the air, by farmers to monitor crops, by insurance claims adjusters to view damaged property, by the Forest Services to monitor fires, and by movie companies in film production.

Almost any job that currently requires an aircraft is a good candidate for a drone, since drones are considerably less expensive to operate.  Major online retailers are already planning on using drones to deliver packages.  Plus, drones can provide safer options and prevent worker injuries in many cases.  For example, if you own a construction company and you need the top beams of a building inspected, would you rather send a man several hundred feet off the ground or a drone? The bottom line is that if you are operating drones for business purposes then it's critically important to add drone insurance to your business insurance policy. 

Other potential uses for drones include:

• News: aerial reporting
• Insurance: claims and underwriting operations
• Service: table service at restaurants and bars!

Commercial Insurance Implications for Businesses Operating Drones: A Closer Look

This proliferation of drones increases the need to address commercial insurance liability and coverage issues, most notably - personal injury and invasion of privacy.  Drones are excluded in about 99 percent of Commercial General Liability policies available today.  Legal issues include “trespassing” drones; airspace ownership laws; and the question of federal aviation laws vs. state laws. In addition, many drones have high-powered cameras, infrared sensors, facial recognition technology, and license plate readers, which also brings up concerns regarding invasion of privacy, spying, stalking, and harassment.

Insurance Companies Scrambling to Supply Drone Insurance Coverage

In February 2012, congress mandated that the Federal Aviation Administration (FAA) find a way to integrate drones into U.S. airspace by September 2015.  With that deadline looming, the FAA is nowhere close to finalizing its plans.  This lack of regulation and the fact that there is very little loss history available at this point makes it challenging for insurance companies to develop policies. It's therefore likely that drone insurance rates may vary widely among insurance providers. Therefore, it's helpful to acquire drone insurance protection from an indepdent insurance agency who is free to shop around among competing brands of insurance providers in order to help you obtain the proper coverage at a fair price.

Drone Insurance Risk Factors - Similar to Aircraft Insurance Risks

Since drones are regulated by the FAA, many of the same questions that an underwriter looks at with an aircraft will also apply to a drone, such as its function or intent, its takeoff and landing location, whether it will be operating over a populated area, and its flying altitude.  However, a drone is not a manned aircraft.  Underwriters will need to look at liability, personal injury, and invasion of privacy, property and workers’ compensation when creating insurance policies for commercial drones. 

Currently there are about 21 insurance companies that write aircraft product liability policies – up from just nine a few years ago.  Someday requesting insurance for drones and drone-related operations will become routine, but for now we’re faced with the challenge of keeping up with the issues that come along with quickly advancing technology. 

For more information about drone insurance and other commercial insurance needs, contact American Insuring Group at (800)947-1270 or (610)775-3848. As an independent insurance agency, we're postitioned to help you save on insurance by shopping your needs among many competing insurance providers. Call today.

The Largest Minority Group in the U.S: Americans with Disabilities

More than 50 million Americans – 18% of the population – have disabilities, making them the largest minority group in the country.  In addition, approximately 71.5 million baby boomers will be over the age of 65 by the year 2030; many will require special provisions to meet their age-specific physical needs.  

There are many reasons for your business to provide accessibility to disabled individuals.  First, it’s the right thing to do.  Second, each of these individuals is a potential customer and studies have shown that once people with disabilities find a business where they can comfortably and easily shop or get services in, they become repeat customers. And finally, the Americans with Disabilities Act allows individuals and disability rights organizations to bring lawsuits against businesses that do not comply with the Act, knowingly or unknowingly. In such cases having the right commercial insurance can be critical to your financial protection. 

What is ADA?

The ADA, signed into law in 1990, is a federal civil rights law that prohibits the exclusion of people with disabilities from everyday activities such as shopping, eating in a restaurant, or seeing a movie.  Thanks - in great part - to the ADA, people with disabilities are living more independent lives and participating in more activities within their communities. 

The ADA is Confusing, But Your Business Can be Held Liable Regardless of Your Intent

Unfortunately, the ADA laws can be very confusing and often frustrating to small business owners, and although there are some exceptions given to smaller businesses regarding the ADA rules against disability discrimination in employment and the requirement that employers provide reasonable accommodations to disabled employees, the adoption of Title III of the ADA in 2010 applies to every business that serves the public - regardless of the size of the business or the age of the building. How confident are you that your business is in full compliance? Do you have the proper commercial liability insurance protection to help shield you from unknown risks?

Title III applies to businesses that provide goods or services to the public (known as  “public accommodations”).  There are 12 categories of public accommodations, including stores, restaurants, bars, services establishments, theaters, hotels, recreational facilities, private museums and schools, doctors’ offices, shopping malls, and other businesses.  Essentially, any business that regularly serves the public (with the exception of private clubs and religious organizations) is considered a public accommodation.  

Know the Most Common ADA Violations and Prepare Accordingly

These businesses must take steps to ensure that their facilities are accessible to individuals with disabilities.  Here are seven of the most common areas of violations:

• Parking lots
• Exterior ramps
• Paths of travel
• Signage
• Restrooms
• Lobbies and reception areas
• Accessibility to goods and services 

How Can I Protect My Business from ADA Title III Lawsuits?

If your business isn’t compliant, you can lose potential customers and open yourself up to lawsuits, heavy fines, and legal fees.  Although it is impossible for businesses that serve the public to completely avoid the risk of ADA lawsuits, there are a number of steps you can take to minimize your risk:

1. Have your property inspected by an ADA compliance expert.
2. Read through the 2010 ADA Standards for Accessible Design. 
3. Read through the ADA Small Business Primer. 
4. Take the online course, “At Your Service: Welcoming Customers with Disabilities.”
5. Know the difference between ADA requirements and state and local building codes.  “Grandfather” provisions that are often found in local building codes do not exempt businesses from ADA Title III compliance.
6. Don’t ignore letters from plaintiff’s attorneys threatening ADA lawsuits.  Sometimes claims can be resolved with little cost if addressed prior to extensive litigation.
7. Provide training to your employees and staff on how to address questions or concerns about disability access from customers.
8. Discuss your liability insurance with your insurance agent

Knowledge is Key to the Right Business Insurance Protection

For more information about commercial liability insurance, contact American Insuring Group at (800)947-1270 or (610)775-3848. We'll help you get the right business insurance protection at the right price using our pool of competing insurance providers. Contact us today.

Who needs commercial vehicle insurance?

If you own a fleet of vehicles that are used exclusively for your business or you own a freight truck or delivery truck, you probably understand that you need commercial vehicle insurance on those vehicles.  But what if you have one vehicle that you use to deliver pizzas?  What if you use your personal vehicle to drive to job sites or to meetings?

Any vehicle being used for business or commercial purposes is technically a commercial vehicle, which means it needs to be insured by a commercial vehicle insurance policy.  This includes any vehicle used for the pickup or delivery of goods and any vehicle used to transport people for business.

You may also need commercial vehicle insurance if your vehicle is…

• Registered or titled to a:
  • Business
  • Corporation
  • Partnership
  • Rented or leased by others
  • Equipped with:
    • Snowplowing equipment
    • Cooking or catering equipment
    • Bathrooms
    • Altered suspensions
    • Hydraulic lifts
    • Racing equipment

Bottom line: If you own or use any type of vehicle for business purposes, you need a good commercial auto insurance policy to protect yourself, your employees, and your business!

Commercial vs. Personal Car Insurance

It is true that the premiums for commercial vehicle insurance are generally higher than premiums for personal vehicle insurance, but there’s a very good reason for that - the risk of covering any vehicle used for business purposes is higher than the risk of covering cars used for personal purposes. This is the main reason car insurance policies for commercial purposes differ from personal policies.

Types of commercial auto insurance include:

• Business auto insurance
• Truck insurance
• Cargo insurance
• Pickup truck insurance
• Tow truck insurance
• Van insurance
• Dump truck insurance
• Non-owned/hired liability insurance

Many of the common types of personal car insurance coverage also apply to commercial auto insurance, such as:

• Bodily injury liability
• Property damage
• Comprehensive
• Collision
• Medical payments
• Personal injury protection (PIP)
• Uninsured/underinsured motorist

 But, commercial car insurance policies are better suited to cover:

• Your business and its assets
• Your employees or other drivers you hire to drive your company cars
• The higher risk of operating certain commercial vehicles

DON'T RISK IT!

If you carry a personal car insurance policy, and you file a claim for an incident that occurred while driving for business purposes, you may find that your car insurance company will not pay on that claim. A good commercial auto insurance plan can save you from a financial disaster, regardless of whether you're an independent contractor or the CEO of a multi-million dollar company.

How is my commercial vehicle insurance rate determined?

Your commercial auto insurance rate depends on several factors. These factors include, but are not limited to:

• Age and personal driving record of all drivers (driving history is one of the biggest factors in determining your rate)
• License type of all drivers
• Vehicle make and model including its safety rating, age, and history
• Type of cargo the vehicle carries
• Number of passengers the vehicle transports
• Annual mileage

The nature of your business and how your vehicles are used will also affect your rate.  As with personal vehicle insurance, the lower your risk, the higher your savings will be. Other factors include:

• The limits of your coverage
• Any optional coverage you purchased
• Your deductible
• Your credit history

The best way to determine if you need commercial vehicle insurance and what type of coverage is best for your business is to speak with an experienced independent insurance agent.  Call American Insuring Group at (800) 947-1270 or (610) 775-3848 or email us to learn more about commercial vehicle insurance.

3 Construction Insurance Must-Haves

Whether you’re a subcontractor or a general contractor – whether you build small backyard sheds or giant commercial buildings – whether you’re a one-man remodeling business or a multi-million dollar construction company, there are three types of insurance you need to consider.  In other words, the size of your business and the size of the project make little difference.  If you want to protect your investment, your employees, and even your business, there are three types of commercial insurance to consider: Liability Insurance, Builders Risk Insurance, and Flood Insurance. 

Commercial Liability Insurance (A.k.a. Commercial General Business Liability Insurance)

Commercial Liability Insurance is a critical part of any business’s insurance portfolio and particularly pertinent in the construction industry where accidents and injuries are more common. Commercial Liability Insurance 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.  This insurance helps cover medical and legal defense costs and settlements if you are sued.  Extended litigation (including attorney fees and court costs) can quickly deplete your cash reserves - even if the claims are found to be unwarranted.  

The amount of liability insurance is proportionate to the cost of the project.  Generally, you should have coverage that is two to three times the amount of the construction project budget.  In addition, businesses with higher risk for damages, such as roofing contractors, may need higher coverage.

Before you begin to build, repair, or remodel any structure – even as a subcontractor - common business standards require that you provide evidence of liability insurance.  Adequate General Liability Insurance safeguards your business – even in today's litigious environment.

Builder’s Risk Insurance (A.k.a. Course of Construction Coverage)

Builder’s Risk Insurance (construction insurance) is property insurance that covers damage to a building during construction.  It may cover just the structure itself, or it can include materials, fixtures, and/or equipment being used in the construction or renovation of the building.  Lending and municipal authorities will often require this insurance, and it can apply to both new construction and remodeling projects.

Most Builder’s Risk Insurance policies cover damage caused by fire, wind, lightning, hail, theft, vandalism, and damages by aircraft and vehicles. Items that generally are not covered include damage due to earthquake, employee theft, water damage, and mechanical breakdown.  Damage resulting from faulty design, planning, workmanship, or materials is rarely covered, and it’s important to note that Builder’s Risk insurance doesn’t cover tools and equipment or the property of others (that’s why it’s important for sub-contractors to have their own insurance).

Flood Insurance

Flood insurance is typically covered by the National Flood Insurance Program and usually has a 30-day waiting period before entering its coverage period.  This is done so the insurance isn’t purchased only when a flood is expected. 

Flood insurance is required in high-risk areas and strongly recommended in moderate-to-low risk areas.  It normally covers damage caused by tidal waves, overflow of inland water, unusual accumulation of runoff water, and water exceeding normal levels. 

For more customized information about your construction insurance or contractor insurance needs, contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We'll help get you the right coverage for your projects at the right price. That's because we're independent agents offering over 25 competing brands of insurance, so we're free to find you the best deal in quality insurance protection. Contact us today.

Every employer is responsible for insuring a safe working environment for his or her employees. If you’re in construction, workplace safety should move to the top of your priorities because more than 20% of the work-related fatalities in 2013 occurred in the construction industry. 

STEP #1: Identify Construction Safety Hazards

First, you need to identify potential hazards.  OSHA lists the following hazards for individuals in the construction industry:

1. Falls (from heights),
2. Trench collapse,
3. Scaffold collapse,
4. Electric shock and arc flash/arc blast,
5. Failure to use proper personal protective equipment, and
6. Repetitive motion injuries.

STEP #2: Address Construction Hazards

Next, you need to address those hazards.  OSHA has identified the following as some of the most frequently cited hazards:

1. Scaffolding – Approximately 2.3 million construction workers regularly use scaffolds, and it is estimated that 4,500 injuries and 50 fatalities related to the use of scaffolding occur each year.  To help avoid some of these injuries and fatalities, you need to ensure that scaffolding is erected by a competent person using stable supports on solid footing and that it is inspected regularly.  Scaffolding should be sound; located at least 10 feet from electric power lines; equipped with guardrails, midrails, and toeboards; and accessible by ladders or stairways.
    
2. Fall protection – Falls account for the greatest number of fatalities in the construction industry.  They’re caused by unstable work surfaces, failure to use fall protection equipment, and human errors.  Using guardrails, fall arrest systems, safety nets, covers and restraint systems, you can prevent many deaths and injuries caused by falls.
    
3. Ladders – there are approximately 24,882 injuries and 36 fatalities each year due to falls on stairways and ladders used in construction.  To avoid some of those falls, you need to use the right ladder for each task, inspect ladders regularly, ensure that ladders are long enough to safely reach the work area, and never over-load ladders. 
    
4. Head protection – You need to ensure that workers wear hard hats where needed to reduce serious head injuries that can result from blows to the head, from falling objects, or other hazards.
    
5. Hazard communication – In order to avoid chemical burns, respiratory problems, fires and explosions caused by not recognizing the hazards associated with chemicals, you should maintain a Material Safety Data Sheet (MSDS) and make the information accessible to employees.  Plus, you need train employees on how to read those MSDS and provide personal protective equipment, a written spill control plan, and spill clean-up kits.
    
6. Electrical – Electric shock, electrocution, fires, and explosions can be serious workplace hazards in the construction industry.  To avoid these hazards in your workplace, ensure that all electrical tools are properly grounded and extension cords have grounding prongs, locate and identify all overhead electrical power lines and inspect and ensure that equipment and materials never come within ten feet of those lines,  and maintain all electrical tools and equipment.

Ensuring the safety of your employees is important to the health and safety of your employees and the health and safety of your business.  Neglecting the safety of your employees can cause lawsuits, higher health insurance premiums, higher construction insurance premiums, and higher workers compensation premiums and related costs. 

Get the Right Construction Insurance

To learn more about reducing your construction insurance costs while acquiring quality insurance protection, contact an American Insuring Group agent at (800) 947-1270 or (610) 775-3848. We're Independent Insurance Agents, so we're free to shop among many competing insurance carriers to find the right insurance at the best price, including construction insurance, worker's compensation insurance, and every other type of insurance your business may need. Contact us today. 

On average, thirteen Americans are killed on the job every single day of the year and nearly 4 million workers are seriously injured on the job each year.  Under the Occupational Safety and Health (OSH) Act, employers are responsible for providing a safe working environment.  Furthermore, employers “MUST provide their workers with a workplace that doesn’t have serious hazards and must follow all OSHA safety and health standards.”  

Good for Employees and Good for Workers Compensation Insurance Rates

Obviously, this is the right thing to do, but the fact is that providing a safe work environment also helps the employer by providing more healthy, happy, and prosperous employees; lower absenteeism; and lower workers’ compensation costs. 

Safety Training Applies to Every Job

Safety is probably top of mind in industries such as construction where more than 20% of the fatalities in 2013 occurred.  But working in an office also comes with its share of hazards, such as slipping and falling, misusing equipment, stacking and lifting, and poor lighting.  Whether your employees sit behind a desk inputing data all day or climb 100 foot poles to work on electrical wires, all employees should receive workplace safety training appropriate to the type of job they perform. 

Here are 10 Training Guidelines for Safer Employees and Lower WC Costs:

1. Educate new employees about company safety and health policies and emergency procedures.
    
2. All employees should be trained on the specific hazards of their jobs.
    
3. Retrain employees when equipment or processes change and when employees change jobs or return from a long absence.
    
4. Adapt training to your audience.  Different people learn in different ways, so use a variety of teaching methods, such as hands-on, lecture, discussion, videos, etc.
    
5. Consider reaching out to local organizations, such as fire departments or medical facilities to help you with training.
    
6. Educate management about key workers’ compensation concepts and how workers’ compensation expenses impact the business.   
    
7. Arrange small-group employee training events to allow for discussions.
    
8. Include information about who a worker should contact in the event of a work-related injury and what their responsibilities are if they see an injury occur.
    
9. Ensure that workers sign off on an in-service acknowledgement showing they have received training.
    
10. Check out OSHA’s website - https://www.osha.gov/dte/index.html - for training courses, educational programs and training materials.  OSHA offers a wide selection of training courses and educational programs to help broaden worker and employer knowledge on the recognition, avoidance, and prevention of safety and health hazards in the workplace.

Get the Right Workers Compensation Insurance Protection

To further protect your company and your employees, contact Amerian Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about business insurance options, including worker's compensation insurance and more.