IRMI Update
Risk Management
& Insurance Commentary, Tips, and Tactics
March 4, 2009 | Issue 201 | ISSN: 1530-7948
In This Issue
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 websites 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.
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