IRMI Update

Risk Management & Insurance Commentary, Tips, and Tactics
March 4, 2009 | Issue 201 | ISSN: 1530-7948

In This Issue

Prepare Workers for Daylight Saving Time
Reduce the Risks of Layoffs
New Expert Commentary

Colleague,

We have been hearing rumors of a hardening market since late December, but there seems to be little concrete evidence that it is actually occurring. Regardless of whether the market has already started to firm, you would be wise to prepare for it. Here are a few actions you might consider taking as part of your renewal process:

Be certain your underwriting submissions are complete, accurate, and organized in a way to make it easy for underwriters to find the information they need.
Make sure that forecasted exposure data, such as payrolls or sales, accurately reflect management's predictions of the effects of the economic downturn on your organization.
Review your loss picks to determine if they need modification in light of operational changes made in response to the economic downturn.
Update your claims history data base to verify it is correct and current.
Analyze your organization's ability to retain risk, and be prepared to increase deductibles or self-insured retentions if necessary.
Assure that any risk control measures recommended by your insurers have been implemented or somehow dealt with in a proactive manner.

Are you seeing evidence that the market is tightening? Do you think we are headed into a hard market? What additional steps do you recommend to minimize the effects of a hardening market when a commercial lines program renews? Please share your experience, suggestions, and comments.

All the best,

Jack

Jack P. Gibson, CPCU, CRIS, ARM
President
International Risk Management Institute, Inc.

Risk Tip

Prepare Workers for Daylight Saving Time

The Monday after Daylight Saving Time begins (this year it's March 9) is statistically one of the worst days for accidents all year long. In my years as a risk manager, there was quite a bit of evidence to support this. Just last year, workers for one of my clients had two accidents due to inattention.

There is clearly an increase in auto accidents on this day. (Check out AAA and other Web sites for stats on auto accidents.) Various reports go as high as showing a 15 percent increase in accidents as opposed to any other weekday. Why? This is blamed on the changes in the "biological" clock and just plain being tired from losing an hour.

But you can prepare. For your fleet, remind your drivers on Friday to be alert. Provide vouchers for coffee. On the job site, post signs that simply say "Awake and Aware." Have your toolbox or employee talk for that week on that Monday. Have extra coffee on site at various locations. Keep your eye out for inattention. Send a companywide e-mail for Sunday night/early Monday morning reminding employees of the time change. Make sure that the lighting at your workplace is working and provides more than minimal illumination. Consider the effect on overtime/second shift.

Going on Daylight Saving Time has a greater impact on employees and safety than you might think. Your effort to prepare for and deal with it to avoid workplace and work-related accidents will be worthwhile.

By: Frank Keres
President
Construction Risk Associates, Inc.
Lake Bluff, IL

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What's New in Your IRMI Library

Reduce the Risks of Layoffs

These are trying times for corporate America, and many companies have begun major workforce reductions to cut costs. Layoffs are a high-risk area for several reasons. Specifically, they always come at a time when a company is already under financial strain, and they are also a fertile ground for producing employment and workers compensation claims. Adding to this predicament is the fact that many employment practices liability (EPL) policies exclude coverage for, or contain various restrictions on coverage for, claims associated with mass layoffs. So be sure to check the actual language in your policy form! The winter edition of Employment Practices Liability Consultant (EPLiC) provides a checklist of tactics to reduce the risks associated with layoffs that you or your clients should consider before implementing a reduction in workforce. [SilverPlume Sage; IRMI Online]

For summaries of other new and updated information in your IRMI library, go to What's New on IRMI Online or What's New in SilverPlume Sage.

New Expert Commentary

There are over 1,100 risk management and insurance articles on IRMI.com. Below you'll find summaries of some recent additions with links to the articles.

Health Insurance Advice for the Newly Laid Off—With many facing unemployment and loss of personal insurance, Jack Hungelmann offers survival tips.
Do Insurance Antifraud Laws Tip the Scales against Insureds?—Tim Ryles explains that the rise in antifraud laws raises questions about the impact on the insurer-insured relationship and the regulatory process itself.
Structured Insurance Programs—Don Riggin provides a glimpse into the world of structured programs using the cell captive approach.
Workers Compensation Reserves—Dollars and Sense—William Quinn explains how improper loss reserving can affect an insurer's profitability and even its very survival.

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