Risk Factors

A Template for Disaster Planning…

Planning to keep your business not only afloat, but thriving immediately after a disaster- is more important that you might think. Most of us believe that disasters will happen to someone else. From industry experience, most business owners and key management staff believe the same thing by evidence of their inaction on this matter. Research on the topic is sobering. According to a study performed for Gillis Ellis & Baker, “50 percent of businesses suffering a serious loss never reopen, and of those that do- more than 25 percent will close within three years" ^(1). The National Archives and Records Administration notes that “93% of businesses that lost their Data Center for 10 days went bankrupt within one year.". ⁽²⁾

 

Think about the possible uninsured consequences of a major loss/disaster. Most businesses are significantly under-Insured (if they indeed are insured) for business interruption coverage. Loss of income does not always include the loss of a customer whom seeks assistance from competitors should they be unable to obtain the product/service from your company (we refer to this as “customer retention”). What about employees that require income while your business is down? Time and planning are crucial before a major disaster hits.

 

 

Disaster planning is a very comprehensive topic (and it is impossible to tackle everything that is involved in a blog article), but here is one template/outline with the major elements of a plan….

 

 

I. Corporate Risk Exposure Assessment

Basically, what are the most likely exposures and who should be involved in leading/managing the plan?

 

Actions to take should include the following:

 

1. Risk Exposure Assessment “matrix” or chart that includes:

v      List risk exposures

v      Determine probability of event

v      Determine impact of the event

v      Make recommendations

           

2. Prepare the plan

v      Assign responsibilities

v      Define purpose of the plan

v      Set timetable for completion of the plan

 

 

II. Readiness Assessment

An honest and thorough assessment of readiness in every department/ area of operations is the first step of control.

 

Questionnaires are helpful tools to assess readiness and may include:

v      Preparedness

v      Emergency Response Plan

v      Business Continuity Plan

 

 

III. Preparedness Planning

The plan may include the following:    

v      Windstorm

v      Hurricanes

v      Tornados

v      Winter Storm

v      Freezing Weather

v      Earthquake

v      Vital Records Storage

v      Flood - Surface Water

v      Civil Disturbance

v      Fire

 

 

IV. Emergency Response Plan

v      Evacuation Plan

v      Emergency Response Teams

v      Emergency Response Procedures

v      Fire

v      Bomb Threat

v      Power Outage

v      Phone Lists

v      Public/vendor/customer notifications

 

 

V. Business Continuity Plan

Once you’ve made it through the event(s of the disaster itself), this step covers implementing the resumption of business

 

v      Business Impact Analysis

v      Vulnerability Analysis

v      Strategic Planning

v      Business Continuity Plan

v      BCP Organization

v      Emergency Response

v      Disaster Declaration

v      Plan Testing

 

 

VI. Restoration Plan

What about the months and years afterward? Think “long-term” and strategically.

 

v      Restore or Rebuild?

v      Identify alternate site

v      Prep alternate site

v      Develop Plan

v      The Human Side of a Disaster

 

 

Design/Development, Implementation, Testing & Monitoring, and Maintenance are all important stages of a plan. Many businesses develop and even implement plans, only to fall short on the later two stages- particularly the maintenance stage as staff and responsibilities shift over time. Simulations are very telling and will reveal the shortcomings of your plan.

 

 

Westfield Group Risk Services is ready to assist your business in developing a plan to prepare and sustain your business. More information can be found at http://www.westfieldinsurance.com/business/business_losscontrol.jsp, or simply contact your agent and ask about us.

 

 

(1)  © Gillis, Ellis & Baker, Inc.

(2) National Archives and Records Administration

OSHA's Spring Agenda

OSHA's Spring Agenda is being discussed in many safety and health-related websites and blogs.  So, you might be hearing more about "I2P2", OSHA's potential rule to require all employers to implement an Illness and Injury Prevention Program (I2P2).  The program essentially would require employers to find and fix hazards in the workplace.  See more on the Office of Information and Regulatory Affairs website. 

Per the OSHA website, the agency believes that an I2P2 rule would include the following elements:

1.)  Management duties (including items such as establishing a policy, setting goals, planning and allocating and allocating resources, and assigning and communicating roles and responsibilities);

2.)  Employee participation (including items such as involving employees in establishing, maintaining and evaluating the program, employee access to safety and health information, and employee role in incident investigations);

3.) Hazard identification and assessment (including items such as what hazards must be identified, information gathering, workplace inspections, incident investigations, hazards associated with changes in the workplace, emergency hazards, hazard assessment and prioritization, and hazard identification tools);

4.)  Hazard prevention and control (including items such as what hazards must be controlled, hazard control priorities, and the effectiveness of the controls);

5.)  Education and training (including items such as content of training, relationship to other OSHA training requirements, and periodic training); and

6.)  Program evaluation and improvement (including items such as monitoring performance, correcting program deficiencies, and improving program performance).

If these look familiar, they should.  OSHA's website has included these program guidelines for years.  The difference is they may be required in the future.

OSHA seeks to partner with local building inspectors

The Occupational Safety and Health Administration (OSHA) is increasing their emphasis on construction site safety.  OSHA is increasing their construction site inspections by using the following programs. 

• Adding 110 new compliance officers in 2010.
• Launching a pilot program to partner with local building inspectors.

The pilot program will initially partner with building inspectors from 11 cities across the Continental US. The purpose of this partnership is to assist OSHA to identify construction site safety violations in order to reduce workers injuries and fatalities. OSHA will provide these building inspectors the necessary training to identify the four leading causes of construction sites injuries and fatalities.

1. Falls
2. Electrocution
3. Being crushed or caught between objects
4. Being struck by moving machinery or objects

Under the Occupational Safety and Health Act of 1970, it is the responsibility of the employer to provide a safe and healthful workplace for their employees. OSHA is setting and enforcing the minimum safety standards to provide all employees with a safe and healthful working environment.  OSHA will also provide training, education and assistance in order to comply with these minimum safety standards.  

The following link will provide you with additional information regarding OSHA and their pilot partnership program.

http://www.osha.gov

Sharing Knowledge & Building Trust with the National Restaurant Association

Westfield Insurance will be exhibiting at next week's National Restaurant Association Restaurant, Hotel-Motel Show (NRA Show), May 22 - 25, 2010, at McCormick's Place in Chicago, IL.  You may be wondering why would an insurance company be attending a Restaurant show...

Westfield's reason for attending the show is two-fold:

1. Did you know that Westfield Insurance operates our own country club, golf courses, restaurants, and an Inn?  Being involved in the hospitality business on a daily basis, Westfield understands the issues restaurant owners and operators face and the questions that are most important to address before the unexpected occurs. 

The company wants to take our dedication to the hospitality industry one step further by providing business owners and operators with effective risk management solutions and knowledge that will help protect their operations from unnecessary risks and possible financial losses.  Westfield will be sharing valuable resources and safety information with the NRA show attendees, such as our Risk Control Assessment.  Our goal will be to provide information to determine whether your business is properly protected against the various unique risks facing the hospitality industry. You may access the Risk Control Assessment online at www.westfieldinsurance.com/nrashow or you may also access our Risk Control Assessment on our risk control website at http://www.westfieldinsurance.com/risk_quiz/risk_quiz_Intro.jsp

2. To present leading industry members with the official launch of Westfield's Signature Series hospitality programs, a specialized line of commercial insurance products designed to protect the unique risk exposures of a restaurant, hotel, or golf course.  The Westfield Signature Series is unique to the marketplace because it provides hospitality business owners with a comprehensive solution, as well as a peer and resource in the industry.  You can learn more about our Signature Series programs by visiting our website http://www.westfieldinsurance.com/business/hospitality.jsp

If you are attending the NRA show, be sure to stop by our booth, #1092, located next to the Culinary Event Area.  We will be happy to answer any questions you may have and share our knowledge with you. Also connect with us on Twitter @WestfieldIns where we will be giving live updates from the NRA show.

Please let us know if there are any questions our bloggers may answer for you regarding the restaurant industry and its unique safety exposures. 

Let's Talk Food Safety

Whether you are preparing foods for a company cookout, a family picnic, or your general meal at home, food safety should be considered to keep you, your employees and your family safe.  Visit the U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS) website for food safety information. 

Fact sheets on topics such as food handling and preparation, use food-related appliances, food labeling terms and requirements, and foodborne illness and disease are available on the FSIS website. You can also listen to various podcasts on food safety, how to properly handle specific foods, and keep your family safe!

Be on the lookout for the USDA Food Safety Discovery Zone Mobile.  The 40-foot long interactive, hands-on food safety learning center is an mobile educational center designed to improve public food safety awareness and behavior.  Find the schedule of where the Food Safety Discovery Zone Mobile to see if it will be in your area!  (Hint:  It is in Washington DC right now!!)  Play the Food Safety Mobile Game with your kids,and see more interactive information on their website!

CSA 2010

Recently, a question was posted asking, "What is this CSA 2010 I keep hearing about?".  This post will try to serve as a brief reminder of the new CSA 2010 program, as well as provide some helpful links for more detailed information for those who are either unfamiliar with it, or are seeking more information on the subject.  Whichever category you fall into, CSA 2010 is just around the corner, and if you have a commercial motor vehicle fleet, will effect you.

CSA 2010 (Comprehensive Safety Analysis) is a program of the Federal Motor Carrier Administration (FMCSA) designed to gather information about carriers and drivers to help the agency improve the effectiveness of its compliance and enforcement programs and efforts.  Ultimately, the stated goal of CSA 2010 is to reduce crashes, thus reducing injuries and fatalities on America's roadways.

There are four major components; 1.) Data Collection, 2.) Safety Measurement, 3.) Safety Evaluation, and 4.) Interventions

Let's look at these in a little more detail, although there is much more extensive information available at the web site dedicated to CSA 2010 -> http://csa2010.fmcsa.dot.gov/

1.) Data Collection - Data is collected by the FMCSA, typically after a roadside inspection violations, DOT recordable crashes, and violations found during "interventions".  Data (i.e., inspection results) is recorded and used to create a "score" based on number and severity of violations, etc.

2.) Safety Measurement - This area offers one of the more notable changes when compared to the current "SAFESTAT" measurement system.  Currently, only Out of Service Violations are taken into consideration when measuring a carriers performance.  There are 3 main areas of measurement currently, being Driver, Vehicle, and Hazardous Materials violations.  Under the newer CSA 2010, there are 7 "BASICS" that are used, and include the following measurement areas:  Unsafe Driving, Fatigued Driving, Driver Fitness, Controlled Substance / Alcohol, Vehicle Maintenance, Cargo, Crash Indicator.  An important note too, is that no longer will only the carrier (company) be measured.  There will be a driver measurement system in place as well (one of the most notable changes under this program).

3.)  Safety Evaluation - As data is continuously gathered, and measurements are considered, the evaluation process then begins.  This is essentially the process of determining what, if any action is needed (potential intervention by FMCSA) based on violation history, accident experience, etc.  The interesting change, again, is that this process takes into consideration the drivers' performance.

4.) Interventions - Interventions can very in terms of severity.  The interventions can range from "no intervention", to warning letters, to focused on-site investigations.  In serious violation situations, the intervention can result in a Notice of Claim, Penalty, and Settlement Agreement (i.e., severe fines)

Ultimately, the best way to "succeed" under the coming CSA 2010 is to ensure that your drivers are well trained, have good driving records, and have "clean" roadside inspections.  Remember, the good (clean) inspections count toward your scores, and are important to your overall score.  This applies to both drivers and the company.  The FMCSA has been compiling data for a 3 year history, so past inspections and violations will be populated into the existing database (see the "Data Collection" section above).

There is a lot of good information already published on the Federal Motor Carrier Web Site (see link above) that will help give a better understanding of the CSA 2010 process, and how it will affect motor carriers.  There are several "listening sessions" available at the site too.  Also, many private vendors have provided some very good management and training information that is available for purchase.

As far as the implementation time-line goes, the initial test period in several states has been underway for quite some time.  The national implementation was initially set to occur in mid 2010, but due to the size and scope of CSA 2010, has been moved back to late 2010 / early 2011.  Although this is still several months off in the future, remember, data is being collected now, so it is never too soon to reevaluate your safety program, driver controls, and violation trend reviews, to put a fresh emphasis on the safety of your fleet and drivers.