Commercial Risk Advisor - August 2019

Dress Code Policy Considerations

Clothing and fashion choices can be a fun way for your employees to express themselves while also helping them feel comfortable. But, not all types of expression and comfort are appropriate for the workplace.

The reasons for establishing a dress code can vary, whether maintaining professionalism or guaranteeing safety. Regardless of why your company might need one, it’s important to put thought into crafting your dress code.

Think about these five considerations when putting together a fair and appropriate dress code:

  • Safety—Keep the work environment free of any unnecessary hazards. For example, do not allow employees working with machinery to wear loose jewelry. Also, require appropriate footwear when necessary, such as steel-toed boots or non-slip shoes.
  • Equality—Your employees may come from a wide variety of backgrounds. Make sure that your dress code does not discriminate when it comes to race, religious beliefs and employees with disabilities. Apply the same standards for men and women.
  • Culture—When drafting your dress code, be consistent with the culture and image that your company projects. An organization that claims to be casual and relaxed should think twice before implementing a formal dress code.
  • Balance—You want your workplace to be professional, but you also want your employees to be comfortable. It makes sense to ask employees to wear a suit if meeting with a big client, but otherwise, consider letting them dress down.
  • Current social norms—Understanding current social norms are important. For example, in today’s society, many candidates may have tattoos or piercings. Talk about what is acceptable for your company. A dress code that is too strict can have a negative effect on your organization recruiting top talent.

Four of the 10 costliest hurricanes in U.S. history have occurred in the past decade.

Preparing for Hurricane Season

Hurricane season runs from June through November and brings plenty of risks. Threats relating to hurricanes don’t only apply to homeowners and aren’t limited simply to physical damage either.

There are plenty of ways that a storm can blow away your business. According to FEMA, over 40% of small businesses never reopen after a disaster, and 90% close within a year if they aren’t able to reopen within five days.

An organization that claims to be casual and relaxed should think twice before implementing a formal dress code.

Protect your company and your employees by taking these steps to be as prepared as possible:

  • Reinforce your workplace from weather hazards with things like window shutters to block flying debris, and sandbags to absorb floodwater.

  • Have an emergency response plan in place and make sure that your employees are trained to follow it. Emergency response plans can include steps such as establishing warning and evacuation procedures, ensuring reliable means of communication, and having supplies such as food, water, flashlights and batteries on hand.
  • Beyond protecting your employees and your physical workplace, it is also important to ensure that your business can function following a hurricane. Back up your data off-site regularly, and test the recovery process to make sure that everything is working properly.
  • Make sure that you are prepared to contact the correct people to get back on your feet. Try to connect with a contractor or restoration company before a hurricane strikes.
  • Even if your business is prepared for a hurricane, others might not be. Companies that you partner with or rely upon could be damaged and hinder your own ability to function. Talk to other businesses that you work with and make sure that they have contingency plans.

An organization that claims to be casual and relaxed should think twice before implementing a formal dress code.

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Commercial Risk Advisor - June 2019

Benefits of Crime Insurance

While you may think your business would never be the victim of a crime, the harsh reality is that nearly every business can become a victim. In this day and age, criminals (including employees) do not need direct access to cash to steal from you—merchandise, supplies and securities are all fair game. Standard commercial insurance policies may provide some protection from criminal acts, but they often do not cover losses resulting from all types of fraudulent activities. Crime insurance was developed to deal with the limitations of other policies and extend protection to include coverage for a wide variety of wrongdoings:

  • Coverage for the misuse of funds—It is likely that a number of your employees have access to company funds or financial information. In some cases, employees may abuse this access for personal gain. Crime insurance can protect organizations from the misuse or illegal transfer of funds, ensuring your finances are safe from internal criminal acts.
  • Insurance for goods in transit—Goods in transit are particularly vulnerable to employee theft and, in some cases, organizations may not notice anything has been stolen until it is too late. What’s more, if the theft takes place outside of the organization’s premises, it can be difficult to prove, often leading to drawn out and expensive legal battles. Crime insurance policies can provide ample protection for goods in transit and reduce the likelihood of extreme losses whenever you send or receive products.
  • Coverage for forgery and alteration—Your employees may have access to checks that they can easily alter for their own gain. Crime insurance policies provide coverage for losses that result from the forgery or alteration of a check.

The only way to ensure your company has the protection it needs is through crime insurance. To discuss your unique risks and to learn more about crime insurance policies, contact your insurance broker.

Fire Protection Impairment Programs

A fire can be extremely damaging to your organization, and while a fire protection system may be able to protect against many threats, impairments are an inevitable part of a fire protection system’s life cycle. An impairment is any time that a fire detection, alarm or suppression system is out of service or unable to operate to the full extent of its intended design. During an impairment, the chances of a fire developing and causing major damage is greatly increased.

There are two types of impairments: planned (the system is purposely put out of service for maintenance) and unplanned (the system is unintentionally out of service). These are further grouped into two different levels of severity—major and minor:

  1. Major—The impairment lasts more than ten hours and/or affects multiple systems.
  2. Minor—The impairment lasts for fewer than ten hours and is limited to a single system.

Ensuring safety and efficiency during an impairment requires a great deal of work, planning and coordination. To be prepared for an impairment, organizations should develop a written program, assign responsibilities to staff and train employees in the procedures to be followed during an impairment.

The written program should outline exactly what to do before, during and after an impairment based on its type and severity, as well as assign and detail the role and responsibilities. The most important role to consider is that of the impairment supervisor, who will implement and manage the fire protection impairment program, take care of scheduling planned impairments and carry out the plan during unplanned impairments.

Above all, the goal of a fire protection impairment program is to minimize the risk of a fire developing and spreading during an impairment while maintenance, repairs and tests are performed to the system. Before an impairment period, or upon discovering an unplanned impairment, the impairment supervisor should obtain a copy of the organization’s fire protection impairment program form and fill it out. This form must be updated as progress is made to include further details of the impairment and repair process.

To learn more about fire protection impairment programs, contact Hierl Insurance Inc. today.

The Following Parties Should be Notified in the Event of an Impairment as Soon as Possible:

Insurance company or companies

The local fire department

Safety managers, or relevant managers and supervisors

Staff

Building owners or their designated representative

 

Standard commercial insurance policies may provide some protection from criminal acts, but they often do not cover losses resulting from fraudulent activities.

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Commercial Risk Advisor - April 2018

Insurance carriers, courts and regulatory agencies will begin to examine businesses closely to ensure that they take sexual harassment seriously and take steps to protect their employees and customers.

It’s always been important to protect your business and employees from sexual harassment, but recent high-profile cases show the importance of re-examining this topic at your business. Social movements such as the “Me Too” campaign have drawn attention to sexual harassment in the workplace, resulting in a growing number of misconduct allegations. These allegations can result in a wide variety of claims and lead to serious financial and reputational damage.

Insurance carriers, courts and regulatory agencies will begin to examine businesses closely to ensure that they take sexual harassment seriously and act to protect their employees and customers.

3 Questions to Ask When Addressing Sexual Harassment at Your Business:

How do you encourage employees to report inappropriate conduct?

The best way to address sexual harassment allegations is to respond quickly. Employees should be regularly reminded that there won’t be any retaliation for reporting inappropriate behavior. You should also ensure that there are multiple ways for employees to make anonymous reports to management.

Does your employee harassment training address your workplace’s unique traits?

A standard workplace policy is a good starting point for addressing sexual harassment, but you should also think about how your employees interact with co-workers and customers.

Do your insurance policies include exclusions for sexual harassment?

Many commercial general liability policies exclude claims for sexual harassment. Although employment practices liability insurance can provide you with coverage, you also need to ensure that policy periods offer coverage throughout the statute of limitations in your area.

1 in 8 drivers are uninsured and liable for damage and medical bills, according to a new study.

Even if you don't use commercial vehicles, employees who use their personal vehicles for any kind of business-related task can put you at risk:

25% of all vehicles in the United States are used for business in some way.
The average uninsured motorist claim is almost $20,000
Most personal auto policies don't provide coverage for uninsured or underinsured drivers without an endorsement.

Uninsured drivers cause about 1 out of every 8 accidents.

3 Defensive Driving Tips That Could Save Your Life

Many jobs require employees to drive a company vehicle. While most drivers are cautious and attentive, accidents can occur without warning—even if the operator has years of experience.

When accidents happen, it can be incredibly costly for employers. What’s more, just one accident can cost employees their job or lead to serious, debilitating injuries.

One way to stay safe while you’re on the road for a job is through defensive driving. Being a defensive driver means driving to prevent accidents in spite of the actions of others or the presence of adverse driving conditions.

To avoid accidents through the use of defensive driving, do the following:

  • Remain on the lookout for hazards. Think about what may happen as far ahead of you as possible, and never assume that road hazards will resolve themselves before you reach them.
  • Understand the defense. Review potentially hazardous situations in your mind after you see them. This will allow you to formulate a reaction that will prevent an accident.
  • Act quickly. Once you see a hazard and decide upon a defense, you must act immediately. The sooner you act, the more time you will have to avoid a potentially dangerous situation.

Defensive driving requires the knowledge and strict observance of all traffic rules and regulations applicable to the area you are driving in. It also means that you should be alert for illegal actions and driving errors made by others and be willing to make timely adjustments to your own driving to avoid an accident.

Keeping in mind the above tips will not only keep you safe on the job, but in your personal life as well.

Poor indoor air quality can cause chronic headaches, allergies, fatigue and irritation of the lungs, among other symptoms.

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Commercial Risk Advisor-March 2018

Property Insurance Rates Expected to Increase as a Result of 2017 Hurricanes

Over the past few years, most commercial insurance rates have remained flat or decreased because of strong competition between insurance carriers. However, the significant damage caused by Hurricanes Harvey, Irma and Maria in 2017 will likely cause many carriers to raise property insurance rates in 2018 for some policyholders.

Although most businesses aren’t exposed to risks from hurricanes or other catastrophic weather events, experts believe that many property insurance rates will increase as insurance carriers attempt to recover any losses they experienced in 2017. Businesses that are located in coastal areas or have significant flood risks will likely see the highest increases, while businesses with good loss histories and strong risk mitigation procedures may not experience any rate increases.

Here are some other ways that the 2017 hurricanes may affect commercial insurance:

  • Experts don’t expect property rate increases to affect other lines of insurance. However, carriers that experienced significant losses or relied heavily on reinsurance may raise their rates.
  • Business interruption coverage was an important topic as many workplaces closed their doors in the aftermath of the 2017 hurricanes. As a result, underwriters will carefully examine the interruption exposures of both individual businesses and their vendors when determining rates in 2018.
  • Insured losses from the 2017 hurricanes and other catastrophic weather events have been estimated at $100 billion or more. However, experts believe that property insurance remains profitable overall, and rate increases shouldn’t be an indicator of a long-term hardening market.

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