New AI Regulations for California Employers

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

On October 1, 2025 California employers with five or more employees will be required to follow new Artificial Intelligence (AI) regulations.

The amended regulations address the use of automated-decision systems (ADSs) in employee or prospective-hire evaluations, applying existing antidiscrimination laws to new AI technologies.

 Automated-Decision Systems

Employers will be required to comply with the state’s existing antidiscrimination laws when using an ADS. For work-related purposes, an ADS is defined as any computational process that makes or supports employment decision-making, including hiring, promotion, or termination. An ADS may use artificial intelligence, algorithms, or other types of data processing to: 

• Screen, evaluate, or make predictive assessments about applicants or employees, including their skills, abilities, personality or cultural fit.

• Share job advertisements or recruiting materials to certain groups.

• Screen resumes for key terms.

• Analyze observable traits from online interviews, including facial expressions, word choice, or tone of voice.

• Analyze third party data.

Accommodations

Improper use of ADS can lead to discrimination based on disability or religious creed. Individuals with disabilities could be placed at an unfair disadvantage if an ADS evaluates physical abilities or cognitive traits. An applicant’s or employee’s religious beliefs or practice could also conflict with the screening process used by an ADS. Employers should consider whether reasonable accommodations are required in either case before making a decision based on an ADS.

Recordkeeping

Data collected from an automated-decision system must be retained by employers for four years from the date the record was created or the date of the action taken as a result of the ADS, whichever is later.

To ensure your business is compliant with the new regulations, there are a few steps you can take.

1. Retain ADS data for at least four years.

2. Ensure HR and managers are aware of what accommodations for a disability or religious beliefs might be required, when using an ADS in employment decisions.

Resources for staying up-to-date with state and federal laws can be accessed through Rancho Mesa’s RM365 HRAdvantage™ portal. Rancho Mesa’s HR experts are also available for clients to answer specific questions about the new regulations and how they could impact your business through the HR portal.

Dealing with Employees Who Post Slanderous Videos Online

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

With today’s widespread use of social media, false or damaging claims from a current or former employee can pose serious risks to a company’s reputation. Slanderous online content can include text, videos, or images posted to social media platforms or blog sites that falsely accuse an employer of actions that can damage an individual’s reputation or the reputation of a company.

If a current or former employee is posting slanderous content online about you or your business, there are steps that you can take to prevent damages to your company’s reputation, including documenting evidence, reporting the posts, and seeking legal advice if necessary.

Company Policies

A good way to prevent a current employee from posting content online that could harm your business is to make sure your company has well-established social media use policies. This policy can provide guidance on conduct and define what content is acceptable for employees to share online. A sample social media policy is available through Rancho Mesa’s RM365 HRAdvantage™ portal.

Collect Evidence

If a current or former employee does post content online that you believe to be defamatory, screenshot or screen-record the posts or videos. Take note of the dates and times when they were shared. Having your own record of the slanderous content is important, because if the person making the posts decides to delete them, it will be difficult to recover evidence of the defamation.

You will also need to prove both that the statements made about you or your business were defamatory, and that you or your business suffered real damages as a result of the posts—in the form of financial loss or reputational damages.

Report Defamatory Content to the Host Platform

While social media companies and their sites cannot be held responsible for what users share on their platforms, most social media sites have policies prohibiting harassment and defamation, as well as a reporting process you can use to remove defamatory content. Report the posts directly to the platform where they were published using the platform’s reporting feature.

Seek Legal Advice

Consulting an attorney who specializes in defamation or employment law can help you build a case and prove damages.

If you are unsure about possible next-steps, you can also reach out to an HR expert through Rancho Mesa’s RM365 HRAdvantage™ portal.

Consult Your Insurance Advisor

If you suspect your business has suffered harm as a result of a current or former posting slanderous content online, it may be covered under your general liability policy for personal and advertising injury coverage. Reach out to your insurance advisor to confirm whether or not it is covered.

Success Soars with SafetyOne™: Improve Workplace Safety and Lower Costs

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

In today’s complex insurance environment, workplace safety is not just a regulatory requirement, it’s a necessary strategy to keep employees safe and costs low.

Rancho Mesa’s SafetyOne™ platform is transforming how businesses train their employees, providing access to proactive risk management tools that can improve compliance, reduce incidents, and lower expenses.

In a recent analysis of client data, Rancho Mesa found that clients who are frequent SafetyOne users see, on average, significant decreases in their X-MOD, incident frequency rate, and indemnity rate.

For clients who were shown to be active users of Toolbox Talks over a three-year period:

• Average X-MOD has decreased by 14%

• Average Frequency Rate Percent has decreased by 27%

• Average Indemnity Rate Percent has decreased by 4%

These impressive results can be attributed in-part to a consistent emphasis on workplace safety, strengthened by the tools that Rancho Mesa provides to our clients.

Toolbox talks are an excellent resource to ensure your team is equipped to handle all jobsite responsibilities safely and respond to unsafe situations. They can be used as weekly safety trainings or to correct unsafe actions observed on a jobsite.

Rancho Mesa’s vast library of toolbox talks includes general industry trainings as well as industry-specific content for landscapers, tree care companies, and company drivers.

Subscribe to receive Rancho Mesa’s weekly toolbox talk emails for your industry.

Using Rancho Mesa Resources for Return-to-Work Programs

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Avoiding injuries on the job should be every employers goal but despite their best efforts, injuries can still happen. If an employee’s ability to work is limited for an extended amount of time, that employee could be at risk of leaving their job or dropping out of the labor force entirely. Return-to-work programs are essential in managing the impact of work-related injuries or illnesses, and to help your employees successfully reintegrate to the workplace.

In addition to reducing the number of weeks an employee is not performing their normal job duties, developing a return-to-work program can be a cost-saving tool for employers by lowering workers’ compensation costs and eliminating the need for a new or temporary hire. An effective return-to-work program will allow an injured employee to recover, while supporting continued productivity through modified duties.

Timely Reporting of On-the-Job Injuries

The first step of ensuring an employee can safely return to work after an injury is making certain the employee receives proper and timely medical treatment. When an injury or illness occurs on the job, having clear and up-to-date policies is a necessity.

A sample Injury and Accident Response and Reporting Policy is available on Rancho Mesa’s RM365 HRAdvantage™ portal.

You may also be required to log the injury or illness in your OSHA 300 and 301 logs. Recording of OSHA logs are also available within the RM365 HRAdvantage portal. Additional information regarding OSHA log requirements can be found on the Rancho Mesa website.

Returning to Work Safely

When an employee is ready to return to work, a Release and Return to Work Acknowledgement letter should be provided to the returning employee that outlines their modified duties and accommodations. A template is available through the RM365 HRAdvantage portal.

An employee may be required to perform modified or reduced duties while preparing to return to their normal job. It is up to the employer to decide what tasks to assign an employee. Temporarily working for a non-profit organization, or completing online safety training can be used as a task or transitional step towards getting the employee back to their normal job duties.

Rancho Mesa provides two extensive libraries of safety and professional development trainings that can be useful in a return-to-work program. These safety trainings can be accessed through the SafetyOne platform, while the professional development trainings are located in the RM365 HRAdvantage portal.

For questions regarding Rancho Mesa’s resources for return-to-work programs, contact your Client Technology team member.

Training Your Team for Safer Driving This Fall

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Summer break is coming to a close and as students return to the classroom, drivers can expect an influx of cars on the road.

Whether you’re dropping the kids off at school or operating a commercial vehicle, busier commutes mean more risk. Safe driving should always be a priority, but with more people rushing to their destinations, this is a time to be extra vigilant behind the wheel. Drivers will likely encounter more school busses, cyclists, pedestrians, and teenage drivers still getting the hang of operating a vehicle than in the summer months, which can pose additional hazards.

Unsafe driving practices can lead to property damage, injury, or even death. The National Highway Traffic Safety Administration (NHTSA) reports the rate of fatal crashes and crashes which resulted in injury in 2023 peaked in the months of September and October. Plus, with auto rates on the rise, on-the-job accidents can cause premiums to skyrocket. And for employees, a history of auto accidents on your personal driving record can hinder your chances of being hired for roles that include driving as part of the job.

To keep drivers safe and insurance premiums low, employers should take time to train employees on safe driving practices and highlight potential hazards they might encounter on the road.

Rancho Mesa’s SafetyOne™ platform offers a variety of safety resources including online training courses and a library of 52 driver-specific toolbox talks, in both English and Spanish. These trainings can be used as weekly safety refreshers, or to help correct specific unsafe actions. If you want to address the increase in traffic during the fall months, Rancho Mesa recommends these toolbox talks:

• Awareness of Pedestrian and Vehicle Traffic for Company Drivers

• Avoiding Distracted Driving for Company Drivers

• Handling Aggressive Drivers for Company Drivers

• Managing Following Distance for Company Drivers

• Right-of-Way Rules for Company Drivers

• School Zone Awareness for Company Drivers

• Sharing the Road with Cyclists & Pedestrians for Company Drivers

• Understanding Blind Spots for Company Drivers

To receive weekly driver-specific toolbox talks directly to your inbox, subscribe to Rancho Mesa’s free weekly Driver Safety newsletter.

Staying Compliant: Updating Your Human Resources Policies

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

In today’s rapidly changing legal landscape, it is more important than ever to ensure your company’s policies and procedures are kept up-to-date.

Updating your employee handbook is a vital step in ensuring employees are aware of new policies and understand what is expected of them.

A yearly review of your company handbook is recommended, in order to prevent a lapse in compliance. In order to streamline this process, Rancho Mesa’s RM365 HRAdvantage™ portal provides important law updates at both the state and federal level. Additionally, if you choose to build your company handbook through the HR Portal, updates to your policies will be automatically be suggested to reflect any new laws or requirements.

If you are actively reviewing your company policies or simply want to get a head start on next year’s policy changes, login to the HR portal to get your state-specific requirements. Below are a few notable California law updates:

1. California Minimum Wage Increases for 2026

On January 1, 2026 the standard state minimum wage will increase to $16.90 per hour. The minimum salary threshold for exempt employees will also increase to $70,304 per year.

Employers who fall under local or industry-specific minimum wages that are higher must comply with those rates.

2. California Publishes Required Victim Leave Notice

A new notice requirement took effect July 1, 2025 as part of California’s expanded victim protection leave law. The California Civil Rights Department (CRD) released a model notice which employers need to provide:

• To new employees upon hire

• To all employees annually

• At any time upon request

• Any time an employee informs the employer that they or their family member is a victim

Employers can also choose to create their own notice provided it meets the requirements of the law.

3. Updated California Regulations Addressing Automated Decision Systems

The California Civil Rights Department (CRD) has updated the Fair Employment and Housing Act (FEHA) regulations on FEHA to employers’ use of an automated decision system (ADS) such as an AI applicant screening tool.

The updated regulations prohibit any discrimination that results from an employer’s use of an ADS or selection criteria—even when performed by a third party system.

The amended regulations apply to employers with five or more employees and will take effect on October 1, 2025.

For questions about how to update your employee handbook in the HR portal, contact your Client Services representative.

Updates to OSHA Penalty Guidelines and Reductions for Small Businesses

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Small businesses are set to be the beneficiaries of new Occupational Safety and Health Administration (OSHA) penalty adjustments.

The U.S. Department of Labor has updated its penalty and debt collection procedures in OSHA’s Field Operations Manual, expanding the number of businesses that fall under small business guidelines.

Under new guidance, businesses across all 50 states who employ up to 25 employees will now be eligible for up to a 70% fine reduction. Previously, that level of penalty reduction was only available for business with 10 or fewer employees.

A penalty reduction of 20% has also been expanded for employers who do not have a history of violations. Businesses who have never undergone inspection by OSHA at a federal or state level, as well as those who have undergone inspection in the last five years but had no “serious, willful, or failure-to-abate violations” are eligible for this reduction.

Additionally, employers who take immediate steps to eliminate a hazard will now be eligible for a 15% penalty reduction.

These policy changes take effect July 14, 2025. Any penalties issued before that date will be held to the previous penalty structure. If your business is part of an open investigation where a penalty has not yet been issued, you will be covered by the new guidance.

Contact your local OSHA office to find our if you company is eligible for these new fine reductions.

Preparing for the Summer Heat: Heat Illness Prevention Resources from Rancho Mesa

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

As temperatures continue to rise through the summer months, heat illness prevention is essential to protect employees from the dangers of extreme weather.

Rancho Mesa has a variety of safety resources available for employee training and incident reporting.

Heat Illness Prevention Workshop/Webinar

Rancho Mesa’s Heat Illness Prevention workshop provides an in-depth overview of California’s Heat Illness Prevention regulations for outdoor and indoor workplaces. This workshop is also available as a recording (webinar) that covers the key elements required to protect employees from heat-related illnesses and ensure company compliance. It can be access through the SafetyOne™ Learning Management System.

Completing this training counts towards earning the RM365 Advantage Safety Star™ Program certificate of completion.

Heat Stress Online Training Course

Two Heat Stress online training courses are available through the SafetyOne Learning Management System. Employees assigned to the Heat Stress training will watch a training video and take a quiz to complete the course.

Toolbox Talks

A number of Toolbox Talks are available in SafetyOne in both English and Spanish, and can be used for weekly safety trainings:

• Heat Exhaustion/Sunstroke

• Heat Illnesses

• Heat Stress Prevention for Landscape Contractors

• Heat Stress Prevention for Tree Care Companies

• Protecting Yourself Against the Heat

• Warning - Extreme Heat is Coming

Observation Reports and Mobile Forms

SafetyOne app users can utilize Observations to document when heat Illness prevention programs are followed on the job site and identify when there is an issue.

Mobile Forms can be used to collect and report safety data relating to heat illness using templates such as accident reports, incident reports, and daily reports.

Heat Advisories

SafetyOne administrators can utilize the Company News function to send heat advisories to employees who may be working in high temperatures, and remind those employees of ways to stay safe in the heat.

Documentation through the HR Portal

If an incident does occur on the job, employers can document the incident in their OSHA 300 logs through the RM365 HRAdvantage™ Portal.

For more information about heat illness prevention resources available through Rancho Mesa, contact your Client Technology Specialist.

Construction Safety Week 2025

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

From May 5th – 9th, 2025 businesses across the country have the opportunity to participate in the annual Construction Safety Week. Since 2014, Construction Safety Week has been providing companies with free resources to help promote a culture of safety in the industry. For employers, this is a chance to focus on jobsite safety and make a continued commitment to keeping your employees free from harm.

Daily Safety Trainings

Alongside the number of free resources available through the initiative, Construction Safety Week provides daily safety training in English, Spanish, and French. The Daily Topics are built around this year’s theme All in Together, meant to emphasize the entire industry’s dedication to safety.

Monday, May 5th – Plan with Precision

Monday’s Daily Topic focuses on planning and preparation, placing a strong emphasis on identifying high-risk activities, implementing control measures, and ensuring collaboration in safety planning.

Tuesday, May 6th – Identifying High Energy Hazards

Tuesday’s Daily Topic is centered on identifying, controlling, and eliminating hazards that could result in fatal accidents before any work begins.

Wednesday, May 7th – Own Your Part

On Wednesday, the Daily Topic emphasizes each team member’s responsibility when developing a safe work environment. Accountability, communication, and leadership are key objectives in this Daily Topic.

Thursday, May 8th – Engage and Empower Team Members

Thursday redirects attention to team members, providing them with the tools and resources they need to foster a culture of safety. The Daily Topic centers on how training, communication, and trust can empower employees to make safe choices.

Friday, May 9th – Commit to Excellence

Friday’s Daily Topic asks team members to commit to building a safe work environment through planning, preparation, and support of one another.

For companies taking part in Construction Safety Week, Rancho Mesa offers a number of toolbox talks and trainings through the SafetyOne™ platform that can be used alongside the Daily Topics.

Along with the daily trainings, companies and employees can register to commit to a daily safety statement, and enter for a chance to win $1,000.

Keeping Drivers Safe with Proper Training and Vehicle Inspections

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

April is Distracted Driver Awareness Month, marking a perfect time to revisit your company’s driver training policies. Motor vehicle safety in the workplace is essential to protect employees from injury while limiting costs for the company. The Occupational Safety and Health Administration (OSHA) reports 39% of all fatal workplace injuries are caused by transportation incidents. Additionally, the Network of Employers for Traffic Safety (NETS) found that an on-the-job highway crash costs employers an average of $26,000, and an injury costs the employer nearly $80,000 on average. With these statistics in mind, it should be a top priority of all employers to implement a driver and fleet safety program.

Driver safety training should be administered regularly to all employees who are expected to drive as part of their job. Consistent retraining during the year can help keep safe driving tactics top-of-mind and prevent complacency.

OSHA recommends driver training to include:

• Vehicle characteristics, capabilities, and limitations

• Vehicle instruments, controls, and safety components

• Vehicle preventative maintenance checks and services

• Company driving policies and procedures - seat belts, distractions (including drowsy and impaired driving), aggressive driving and speeding

• Defensive Driving

• Vehicle Backing

Rancho Mesa offers a number of driver training courses through the SafetyOne™ platform, including Driving Safety, Distracted Driving, and Driving Defensively.

In addition to driver safety, vehicle maintenance is also an important step in protecting your employees and other drivers. Regular maintenance and inspections play a vital role in employee safety. Drivers should always conduct pre- and post-trip vehicle inspections and document any deficiencies. Defective vehicles should be removed from service until the issue is repaired. OSHA lists the areas of the vehicle that should be inspected before and after each drive, they include:

• Brakes/brake systems

• Tires – including air pressure

• Wheels, fasteners, and hubs

• Lights and signals

• Steering functions

• Fuel and exhaust system

• Fluid levels

• Windows and mirrors – clear view

• Emergency equipment and safety devices

• Cargo securement – if applicable

• Flatbed trailer fall protection systems – if applicable

Rancho Mesa’s Fleet Safety training, available through SafetyOne™, can improve a driver’s understanding of what is required of them before, during, and after their drive.

For additional information on how Rancho Mesa can help your company develop a fleet safety program, register for the Building A Fleet Safety Program with Rancho Mesa's Tools & Resources webinar on Friday, April 18, 2025.

Step Up Your Safety: Essential Ladder Topics for National Ladder Safety Month

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

March is national ladder safety month. While worker safety should be a priority all year long, this month is a reminder of the dangers associated with ladders in the workplace. The Occupational Safety and Health Administration (OSHA) reports falls are a leading cause of death in the construction industry. A fall prevention plan and thorough ladder safety training can help protect workers from injury and prevent fatalities.

Following a few basic ladder safety rules can also ensure a safer work environment.

1. Choose the right ladder for the job

Make sure you are using the appropriate ladder for the task at hand. The ladder will need to be able to support the weight of anyone using it, plus the added weight of tools and materials. The ladder must also be tall enough so that a person can work from it without climbing onto the top three feet.

2. Thoroughly inspect the ladder before use

Before using the ladder, ensure there is no damage or missing parts. All bolts, screws, and hinges should be secure and there should be no broken or damaged rungs. The rungs or steps of a ladder should be clean of any oil, grease, or paint to prevent slips while climbing. If there is any damage to the ladder, it should not be used for work.

3. Set up the ladder in a safe area

It’s important to place your ladder on a level surface and away from any electrical wiring. If working in an area where people might be walking by, create a barrier around the base of the ladder to redirect traffic. If the ladder is placed in front of or near a door, block off the door. Be sure to keep ladders at least 10 feet away from power lines.

4. Exercise caution when using a ladder

Be sure to maintain three-point contact when using a ladder; you should never have more than one hand or foot off the ladder at any time. When using the ladder, do not lean over the side railings or move or extend the ladder while a person is on it. Use a tool belt to carry equipment so that your hands are free at all times when ascending and descending.

Regular training for employees and frequent ladder inspections can help reduce the risk of any falls or injuries and ensure workers are prepared for ladder use on a jobsite. Rancho Mesa clients can utilize SafetyOne’s Ladder Safety online training, and the mobile app’s built-in ladder observation to document inspections, any issues that are found and corrective actions.

 Toolbox talks for ladder safety, proper usage, types of ladders, and more are available through the SafetyOne™ platform and can be used to train workers on safe ladder use.

For more information, register today for Rancho Mesa’s ladder safety workshop at our Mission Valley office in San Diego, CA on March 21st, 2025

SB 428: Expanding California’s Workplace Violence Restraining Order Law to Protect Against Harassment

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

A new California law expands the state’s protections around workplace violence restraining orders.

Beginning January 1, 2025, employers were given the right to seek a temporary restraining order on behalf of an employee who has suffered harassment in the workplace. California State Senate Bill 428 (SB 428) was authored by Senator Catherine Blakespear and signed into law by Governor Gavin Newsom.

Existing state law allows employers to seek a temporary restraining order against a person who has perpetrated acts of violence in the workplace or has made credible threats of workplace violence. SB 428 expands those protections to allow employers to seek a temporary restraining order against a person who has harassed their employee(s), before harassment escalates to violence or threats of violence.

Individuals can also seek a restraining order against harassment for themselves.

The text of the bill defines harassment as, “a series of acts over a period of time, however short, evidencing a continuity of purpose, including following or stalking an employee to or from the place of work; entering the workplace; following an employee during hours of employment; making telephone calls to an employee; or sending correspondence to an employee by any means, including, but not limited to, the use of the public or private mails, interoffice mail, facsimile, or computer email.”

If an employer does request a temporary restraining order, and that order is granted by a judge, SB 428 states that the order will remain in effect for up to 21 days.

If the perpetrator of the harassment—otherwise known as the “respondent”—is also an employee of the same company that is requesting the temporary restraining order, a hearing will be held, “concerning the employers’ decision to retain, terminate, or otherwise discipline the respondent.”

If the respondent is determined to have been engaged in unlawful harassment, a restraining order may be issued with a duration of up to three years and the employer can request a renewal, “any time within the three months before the expiration of the order.”

However, the law does not allow employers to seek temporary restraining orders for any behavior or speech that is “constitutionally protected, or otherwise protected by Section 527.3 or any other provision of law.”

Rancho Mesa has a number of resources that can help protect your company and employees from workplace violence. Harassment prevention training, workplace violence training, and workplace violence policies can be found on the RM365 HRAdvantage™ portal.

Risk Management and Contract Strategies to Protect Your Landscape Business

In this second episode of a special two-part series, Landscape Group Vice President Drew Garcia, is joined by Josh Ferguson, attorney with Freeman Mathis & Gary, to discuss contract strategies and risk mitigation for slip and fall incidents.

Drew Garcia: Welcome back everybody. I'm Drew Garcia, Vice President and Landscape Group Leader here at Rancho Mesa. Today we have a great opportunity to connect with Josh Ferguson from Freeman, Mathis and Gary. Josh and I had a chance to get to know each other over the last couple of years through different trade associations. Josh has a big focus on the landscape and snow contracting community. Josh, welcome to the show.

Josh Ferguson: Yeah, thanks for having I appreciate it.

DG: All right, Josh. So we're going to jump into some things that are kind of current and news and noteworthy right now for primarily landscape operators. So primary, you know, customer is going to be community associations, commercial properties that could be hotels, could be shopping centers, municipalities doing city work. I know each customer might have different needs in terms of how those contracts might need to be set up. But some things that we're seeing on the slip and fall, trip and fall side, want to talk a little bit about if you're seeing that same kind of activity and what are some things that the contractors could be doing to help, not only just prevent them from happening, but if something comes in, what's that supporting documentation that might help your insurance carrier or you when you're going through an incident like that?

And then also talking about this commercial auto market, you know, a lot of the insurance carriers, this has been an issue for a really long time and they're trying to raise rates fast enough to be able to cover the losses that are in the past and they're looking out into the future and it's causing some significant increases and in some cases some non-renewals or some change in appetite and that can really hit landscape hard because these businesses are built with a lot of vehicles in mind and they got service areas that they've got to get to. So I want to talk a little bit about the commercial auto side and some things that maybe the landscape business should be considering. There's certainly technology out there that might be able to support them in some of those efforts, but let's jump first into the slip, trip, and fall type of scenarios that can happen on properties and maybe talk a little bit about trying to defer or shed some of that liability through the contract and you know calling out scope and everything like that that might help build a better case for the landscape company in the event something like that occurs.

JF: Sure, and what you said to start with I think is right on we are also seeing an uptick in volume of claims relative to trip or slip and falls involving landscape contractors getting brought or dragged into those lawsuits. And part of the reason we think they're getting dragged in based on the claims we're seeing and the conversations I'm having is from really broad contract language that is things like monitor and inspecting provisions or maybe unclear terms as to what the landscape or hardscape services are actually to be. The broader or more ambiguous those terms are, the more a property owner or property manager when they get sued can have their attorney go through the rolodex of vendors they have on site, look through every vendor that has a really broad contract and bring in those contractors. So, in the same trip and fall on gravel, they may end up bringing one hardscape company, one landscape company, whoever dug up the piping or drainage on the property to get everybody involved, to make sure that they have the best chance of being protected. So, how we would combat that is again, make sure that the scope of services are really well defined to what you're actually going to do at the site, when you're going to do it, the timeframe you're going to do it, and then have some liability limiting language saying once you're done it, you have no duty to monitor inspector after and they deem that it's satisfactory work, again, to help protect you there.

DG: And if you're the landscape contractor and you already have maybe contracts in play and it's not a practice for you to revisit, you're listening to this now saying, “Shoot, I've already renewed a lot of my business or I'm working for people that I haven't looked at the contract in a couple of years, we just kind to continue to renew it.” What would be the cadence again on looking at those contracts and making sure they're up to speed and how would you go about getting that done so you feel confident that you're in a position where you're there to support the issue if the issue is a result of your work and you're not picking up more than you are anticipating?

JF: Sure. I think there's a two-part answer to that question. I think first and foremost, even if you've signed an agreement and you're in the middle of that period of time in which the agreement's valid, but you think something just isn't accurate or correct or it was when you signed it but they're not letting you do that, there is no reason you can't go to your client and say “This is actually not within our scope or you're no longer allowing us to do this, we should sign an addendum to this agreement confirming the actual obligations of the party.”

As an attorney, again, I want a 10 out of 10, and a 10 out of 10 would be those terms define what you're not supposed to be responsible for and everyone signs it. But even if it's just something where they acknowledge it by email, if then a claim arises relative to that issue, we've got something. We want—and by the global “we”, I mean you as a contractor, me as an attorney and your insurance company—we as a group want anything we can do to help protect you. And some things are better than others, but something is better than nothing. So first and foremost, I want to say that if you're listening to this and then know you signed a contract that's unfair, inaccurate, it doesn't mean you can't have those conversations. We can't guarantee the results, but I think it's worth that conversation.

And then if you did sign it and then you feel like there's nothing you can do about it, I would strongly suggest you revisit contract language on a yearly basis. Whether that's your base contract, you have folks sign or when you re-up with clients that you should look at on a routine basis. As an attorney who's done it for 20 years—and I review hundreds of contracts, especially in the late summer, early fall for snow and ice and then for maybe late winter, very early spring for landscapers—things come up that we had never talked about before. Things change in the industry or you as a contractor may change the type of services you perform. You may be a residential person and you're moving over to HOA or commercial, whatever it is. And then as a result, the language in your base agreement may need to be different. So I would strongly recommend doing it on a yearly basis.

DG: I'm nodding my head the whole time. I know this is just audio, but I'm just thinking of the past conversations with so many businesses and those are the things that come up. You know, everybody's an entrepreneur at heart when you own a business and that could create change No matter if that's with your customer base or a new service that you're offering and making sure that you're just covering your checks and balances in terms of how you're setting this up is important because at the end of the day you just want to make sure that you're supporting the business in the event there's an issue that, you know, comes against you and providing people like you the right information you need to defend.

And I would say the other key issue right now within the landscaping industry, primarily on the maintenance side; so when we've got fleet-driven businesses, commercial auto is at an all-time high in terms of so much scrutiny by the insurance carriers. And for a good reason, they've put out plenty of supporting information to show that they cannot collect enough premium to cover what seems to be the amount of claim cost that comes in. And in my experience with this, when I'm going through a renewal or if I'm talking to a landscape contractor about their business, and then ultimately get to that underwriting conversation. There's a lot of hesitancy right now with this class of business because of the amount of vehicles that they have. And they're really taking a deep dive into driver training, the ability to use things like GPS and dash cams, just as a way for driver behavior and training to that information. So it'll kind of open up that next category where I think originally maybe GPS was being used for routing purposes and then idling and fuel cost, but if you're seeing somebody kind of consistently speed or harsh breaking, harsh turning and you're not coaching to that information, am I right where you could be opening yourself up to some more opportunity where you had the information available and maybe you should have made some corrective action?

JF: Yeah, so there's multiple layers to what we're seeing and they all end kind of with the same end result, unfortunately. So there's certainly social inflation across the board for all personal injury claims The numbers are up across the board whether it's an auto claim, a slip-and-fall claim, a construction defect; whatever it is the numbers are just higher for settlement and for verdict, we track verdict analysis pretty consistently, and the numbers are up whether it's in South Dakota, California or Pennsylvania. So there's that aspect and that as a result then drives up the cost that the carriers are paying on those settlements and verdicts.

And then I think you're right, the plaintiffs' attorneys have figured out a way in this orbit of the landscape world to, if it's an auto claim, focus on the fact that if there's an inadequate training on these things, they can try to put the jury in the same person, in the same stance as the person that was injured, and try to get the jury to then punish these companies. And that's certainly the kind of claims that insurance carriers are worried about, which then cause earlier settlements and impact premiums or their even willingness to write the auto side.

The landscape industry, I think, certainly does a great job on across the board training for their employees because they're worried about workers comp and their employees’ safety. And they're thinking about slip and falls and tripping falls, but at the end of the day, as you mentioned already, all of these folks are in fairly heavy pieces of equipment and sometimes we kind of gets caught by the wayside that these are the things that could really cause the catastrophic losses and that bears out then in huge numbers and so the carriers are worried about it. So they want to see some internal training they want to see what kind of background information you're doing and training for these drivers because they want to make sure that even if they're going to have to pay out for a loss for your driver negligent running into somebody they at least want to be able to show that it was a one-off, it was truly negligence, and it was an accident, and that there wasn't any kind of history that should show that this was bound to happen.

DG: It makes a ton of sense, you know, when you back it in that way. And I think as most business owners, nobody's set out to go about business without any strategy or without any training. And I think that with the amount of technology that's now available, it's easier for them to gather information whether it's leading or lagging information to kind of appropriately assign and create trainings to make sure that they're putting their drivers in the best position to be successful and not to be in these accidents. And at the end of the day maybe having more evidence to provide to you and the insurance carrier to ultimately defend if there is an issue. Talk to us a little bit about—I'm going to flip right back to the contract side on slip and fall documentation—when it comes to doing that type of work or doing when you're primarily engaged in landscape maintenance for these commercial properties. What are some things that the landscape company can do to show that the proof of work or the scope of work was complete? And do you have any examples that you've seen in the past where people are using this so that it does help just with the proof of work being completed?

JF: Yeas, so, on the landscape side, sometimes we don't always get the records exactly when things were serviced, especially if it's a contract that says, you know, say twice a month mowing or weed whacking or fertilizer placement or whatever, gravel, whatever it is. There aren't always great documents to show when it was actually done. And then as a result of it, we have to go back through timesheets, sometimes years later when a claim arises. So, you know, we're really looking for increased documentation and I think technology does make it a lot easier, it takes away some of the friction for this to really show when where and how exactly the work was performed so that we can show that it was done as we see.

Again, one of the claims that does tend to come up a lot is when somebody trips and falls in a hole and the landscaper gets dragged in because they say it was covered up because it wasn't properly then mowed and our contract says twice a month and then we're having to dig through time sheets but if we actually know exactly who was out there when they were out there; if you have any records with communications with your client, if you're not going to be out there for a certain time because say it hadn't rained in a while or it's extra dry weather that August or September, help things explain itself a little better. Again, it puts you in a better position. Otherwise, we're at the mercy of again, relying on credibility and the insurance companies, especially in these days of social inflation with bigger settlement and verdicts, they don't want to rely on that. They'd rather settle out on the case and protect themselves from those high exposures.

DG: I appreciate it, Josh. I want to thank you again for coming in and helping us out and talking a little bit about snow, talking a little bit about landscaping. I think this is the beginning to just getting more information out to the industry. The goal here is just to educate people and raise the level of professionalism, raise the level of oversight and expertise when it comes to executing on the work that's being done in this industry. So I appreciate you taking that stance and kind of leading the way with the history of your involvement with both snow and with landscape. If somebody wanted to reach out to you or connect with you, it would be a good way for someone to do that?

JF: Yeah. You can find me on our firm's website, Freeman, Mathis and Gary; Joshua Ferguson, and I'd be happy to reach out and respond and I very much appreciate the time today.

DG: Josh, thanks again. Appreciate it.

JF: Thanks.

Navigating Snow and Ice Contracts: Best Practices for Landscape Contractors

In this first episode of a special two-part series, Landscape Group Vice President Drew Garcia, is joined by Josh Ferguson, attorney with Freeman Mathis & Gary, to discuss risk management for snow and ice operations and what landscape contractors should know.

Drew Garcia: Welcome back everybody. I'm Drew Garcia, Vice President and Landscape Group Leader here at Rancho Mesa. Today we have a great opportunity to connect with Josh Ferguson from Freeman, Mathis and Gary. Josh and I had a chance to get to know each other over the last couple of years through different trade associations. Josh has a big focus on the landscape and snow contracting community. Josh, welcome to the show. If you could share a little bit of your background with the listening group.

Josh Ferguson: Yeah, thanks for having me. I appreciate it. So as you said, I'm Josh Ferguson. I'm an attorney with the law firm of Freeman Mathis and Gary. I'm based in our Philadelphia office, admitted to practice in several states up and down the Mid-Atlantic. And I've been a litigator for 20 years now. I've litigated hundreds of slip and fall and trip and fall claims, developed the specialty over the last dozen years or so in the landscapes, snow and ice management, power sweeping industries, and have relationships with some of the trade associations in those industries like Snow and Ice Management Association, Accredited Snow Contractors Association, Planet and some of the state and regional landscape and snow contractor associations.

DG: Josh, your background's perfect timing for us because I can't tell you how many conversations with our clients lead to contracts and the contracts that they're signing with their customers, whether they're signing the customer's contract or are they putting their contract in front of the customer to sign; opportunities to review that and make sure things are up to speed before they start to get the work done. So I'm really excited for you to be able to comment a little bit on, you know, one, in the snow and ice management world, obviously the contract is super important. What are some things that these landscape contractors should be focused on pre-work, and before the contract gets signed, what are some things that they need to focus on to make sure that things are in order in the event something happens later on down the line?

JF: In the snow and ice management world especially, they're risk managers first and foremost. It starts and ends with documentation. So that's from the very beginning when they're starting to develop an RFP to if they get a contract and they need to do a preseason site inspection through in-event performance, post-event performance and invoicing all that needs to be documented. Because if it's not documented when these claims arise whether it's your client on the site telling you, you damaged something or two years later somebody said they slipped and fell you're going to need to prove through a document ideally what you did six months or two years before otherwise again it comes down to credibility and you don't want those claims to turn into intersectional car accidents where everybody claims they have the green light.

DG: That lines up so well with insurance right now because, you know, before we started recording this I was talking about just the carrier underwriting capacity for this type of work. It's really dwindling. There's a lot of questions that surround the pre–underwriting process or pre -quoting process for any landscape company that's in any portion of their work doing snow and ice operations. And you know, one of the key pieces that I think is starting to push the industry in the right direction is the ability to document and there's a lot of technology and software that's making that a little bit easier. Have you seen some improvements in the contractors’ ability to document based on the technology that's available to them today?

JF: Yeah, look, at the end of the day, from an attorney perspective, we're asking for the sun, the stars, and the moon from these contractors. And in the middle of an event, things are more challenging. It's why we probably didn't get as much documentation back in the '70s and '80s and '90s, but technology has really changed the ability for them to do things without a ton of extra work, whether it's right on their phone with an app or it's the actual pieces of equipment, recording it, GPS, or application of de-icing material, whatever it is. And we are seeing that more and more in claims when a suit arises and we're asking for documentation that's coming. And it really does make a big difference in our ability to prove that what you say you did, you actually did.

DG: And I mean, so important in today's world to be able to have that proof. And when there's the ability to do it, it's on the contractor to develop those processes so that it becomes routine so that they don't miss that one opportunity and that opportunity becomes the one that comes back to get them in the end. How about when that work’s being subbed out, so not self -performed, maybe by the landscape business, but they're using service partners to form that segment of the business. Is it same concept there? Are you holding your subcontractor to those same standards? Should they be doing anything different with that work?

JF: Yeah, I mean, absolutely the subcontractor should be doing meeting industry standards and what's in the contract. One area I see contractors that are really good and do good work fall down a little bit when they subcontract out work is that they may have one base subcontractor agreement that they hand out to all of their subs. But each and every one of their client contracts might be different. And you want to make sure the terms that you're obligated to are then passed down to your subcontractor so there's not a gap. So we're talking about the actual scope of services, we may even be talking about the insurance policy limits. These claims have gotten larger and larger in size. What used to be a slip and fall that costs $200,000 now costs half a million dollars in some locations. And sometimes that impacts policy. So you want to make sure you are really comparing and contrasting and making sure that your subcontractors are meeting all the burdens that you would have had to meet should you have kept the work.

DG: Absolutely. And do you see, is that something that a contractor should be looking at routinely? So how often should they review their subcontract agreement to make sure, “am I up to speed with today's terms?” Or is that like once a year you should be looking at that? What's a good cadence on just reviewing that and making sure that you're up to speed?

JF: Yeah. I mean, I think both on your client contract and then your subcontractor agreement, I would look at those yearly. As someone who reviews, especially this time of year over the last few months, dozens of contracts sometimes a day from my various direct hire clients that I serve as outside general counsel for, it's a living and breathing document, right? So even this many years into litigating and serving as general counsel, things come up each year where then we're adjusting a base agreement for. And in addition to that, things change over time. So I think it's something, and business models change. You may do less retail shops and more HOA work. And that may change the type of language you want in your agreements. So I think those are things you should revisit on a yearly basis.

DG: And so that the people listening on the other end have an idea is how to get that done is that having somebody like you in their corner where, you know, annually they're sending these over to you for review? So having some sort of partnership with a firm so that they have this ability to manage those contracts throughout the year or when they're annually recreating their subcontract agreement. Is that how you get that done?

JF: Yeah, I think that makes the most sense, you know, if you have a counsel or somebody you're comfortable with that makes a ton of sense. Again, something we do we do a fair amount and we revisit those annually and then, again, we know there's peak season for those contract review negotiations especially if you're getting a client agreement pushed down on you and you have some concerns with the language, that's something we look at routinely. But whether it's us or someone else the thing that I hope folks come away with the most is that you should always try to review that that contract that's put in front of you and mark it up so it's at least fair. The worst thing that's going to happen is it's all rejected, but you still have the benefit of reviewing it, understanding it, and so at least you know your risk management there.

DG: Good point. I think I like that term, just being fair, because I think a lot of the audience listening that is in this space and performing some snow and ice service or some winter services, they understand that at the end of the day, they want to be there to provide coverage if there's an issue that they inadvertently did. If it was an issue that came up as a result of the service that they rendered, then absolutely, you want to be there for that. I think it's where it might be a little bit of a gray area in terms of who's really at fault with this, that's where I think a lot of the businesses today. Are you seeing more where the contractor's able to put their contract in front of the customer or is it shifted now where the customer's more imposing their contract to the contractor? Has there been any change in that recently?

JF: I think it's pretty consistent that the big box stores, the retail establishments, the large property managers are still trying to put their agreement in front of folks in the snow and ice management industry. We are seeing, I think, an overall uptick in the willingness to engage in a back-and-forth process on the language. Again, depending on the size and folks involved on the other side. You may get one thing out of 10 changed, you never know. But again, most of the time it's worth those efforts.

I am seeing more contractors that have at least drafted up their own contract. And so sometimes then we try to add our contract—meaning the snow and ice management contractor—in as an addendum or an exhibit to then the say property managers contract to help balance out some of the risk and liability-limiting language.

DG: Got it, very good. Anything else that you wanted to share in your experience with snow and ice? I know this could go a number of different ways and we're trying to keep the time down to a 12 –minute segment, but anything else that you wanted to share on the snow and ice side for the listeners?

JF: Yeah again, the importance of having a contract that's clear on your obligations and documentation to prove what you did in January 15, 2021 at 2:30 A.M. If you've got a contract that says the time you were supposed to come out, exactly what you're supposed to put down—and you have the documentation to prove it, it allows your insurance company and their attorney, if a claim arises, to put it in the best position to defend those claims instead of paying out. And that will protect you and the industry as a whole over the long run.

DG: That's a great point. Well said. Well said. Well we appreciate it, Josh. Thanks for the comments on snow and ice, and hopefully we can do this again soon.

JF: Thanks for having me.

Natural Disasters and Severe Weather: A Workplace Safety Guide

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Some of the most catastrophic fires in California history are currently burning in Los Angeles, and 2024 saw no shortage of other extreme weather, from flooding in the Northeast to record-breaking heat in the Southwest.

Severe weather and natural disasters are often unpredictable, but having a safety plan in place can help save time and lives.

Oftentimes, natural disasters strike quickly and with little warning. It might not be possible to communicate quickly and thoroughly with employees in the moment. Creating and communicating an emergency plan ahead of time, for use in these moments, can help keep employees safe.

Preparation

A good plan begins with adequate preparation before the risk occurs. Taking steps to protect your property from natural disasters can minimize damage in the long run.

A formalized emergency action plan (EAP) is an excellent resource to share with employees to ensure they are prepared for any emergency. An EAP should include procedures for reporting emergencies, escape procedures, names and contact information of all employees, and procedures to account for all employees after an evacuation. A template to create your own emergency action plan can be found on Rancho Mesa’s RM365 HRAdvantage™ portal.

In the specific case of a wildfire, there are a few steps business owners can take to ensure they are able to manage their fire risk. Compliance with all fire and safety codes in your area is a necessity. Regular landscaping around your building—including lawns, brush, and trees—can also mitigate potential wildfire risk, especially if you are located in a more remote area.

Training

Employees should always be kept up-to-date on current emergency evacuation plans and procedures. Staff should be provided maps of evacuation routes and safe-zones in the area to minimize confusion in the event of a workplace evacuation. Assign emergency-specific roles to key personnel and ensure they are trained to perform critical functions as needed.

Training all employees on emergency response procedures is also advised. There are a number of emergency planning, first aid, fire prevention and other safety toolbox talks and online courses available through Rancho Mesa’s SafetyOne™ platform which can be used to train staff on the proper ways to deal with fire hazards and other emergencies. Emergency and fire preparedness online trainings can also be found on Rancho Mesa’s RM365 HRAdvantage portal.

Communication

Good communication is vital for keeping your business and employees safe during a natural disaster. Sharing safety information ahead of time, either electronically or by posting to a central location, can help prevent confusion during an emergency. An intercom system or software that sends alerts to staff are also good resources for sharing important emergency information with employees.

Rancho Mesa’s SafetyOne platform allows company administrators to send push notifications not only to app users, but also via text and email to the entire organization or to specific groups that may be affected by an emergency.

Closures

There may be times when a natural disaster is severe enough to warrant an office closure. Be sure to check which laws and regulations are in place in your state regarding employee compensation and paid leave.

Develop a plan for maintaining essential business operations during and after a natural disaster. This may include developing remote work capabilities or a modified work schedule.

While natural disasters are unpredictable, a comprehensive emergency plan and regular employee trainings can help ensure your business stays resilient in the face of any disaster. Remember, emergency preparedness is an ongoing process that requires regular reviews and updates to remain effective.

Contact your Client Technology Coordinator with questions about any of Rancho Mesa’s safety resources.

US Bureau of Labor Statistics Updates Fatal Work Injuries Data

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The U.S. Bureau of Labor Statistics has released their Census of Fatal Occupational Injuries Summary for 2023. This data highlights important safety trends across multiple industries and demographics, and can be helpful in determining what areas an employer should look to emphasize in their safety program.

According to the report, a total of 5,283 fatal work injuries were recorded in the United States in 2023; a 3.7% decrease from 2022. The report shared several key findings, which include:

• 1,942 occupational fatalities—or 36.8% of all deaths—were caused by transportation incidents.

• 740 fatalities were caused by violent acts, with the majority resulting from homicides.

• Opioids were found to be the source of 162 fatalities, and a contributor in an additional 144 drug-related fatalities.

Additionally, the report breaks down the annual fatalities by occupation and industry.

Since 2011, the construction industry has recorded the highest annual number of fatalities among all industry sectors and 2023 was no different. 1,075 construction deaths occurred in 2023. Slips, trips and falls were the most common types of fatalities, accounting for 39.2 percent (421) of all construction fatalities, followed by transportation incidents which accounted for 22.3 percent (240) of fatalities.

Source: U.S. Bureau of Labor Statistics

Human services organizations recorded significantly less workplace fatalities than the construction industry. However, the total number of fatalities within these types of human services organizations didn’t change from 2022 to 2023 with a total of 178 fatalities occurring in both years. Transportation incidents accounted for 37.6 percent (67) of fatalities within human services organizations, while violent acts were 16.3 percent (29) and falls, slips and trips were 13.5 percent (24) of fatalities.

Administrative and waste management and remediation services saw a total of 484 fatalities in 2023. Within that sector, the landscaping and grounds keeping occupation had the most fatalities (102), followed by tree trimmers and pruners (80). The report lists trees, logs, and limbs as the primary source of these deaths.

The risk of occupational fatalities can be mitigated through proper safety training and preparation. Rancho Mesa has a variety of training tools available for use across multiple industries which can be accessed through the SafetyOne™ platform, including driver training, slip, trip and fall safety, fall protection and workplace violence prevention training.

For more information about all the safety tools Rancho Mesa has to offer, contact your Client Technology Coordinator.

Putting Your Best Foot Forward: Slip and Fall Preparedness

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

With winter fast approaching, it’s important that employees are prepared to handle potential hazards caused by the change in weather. Slip and fall prevention is essential for any businesses operating in areas where employees will encounter rain, ice, and snow during the workday.

Wet or icy surfaces and snow build-up can increase the likelihood of slip and fall accidents. Unfortunately, it is not always easy to spot ice that has formed on walkways, stairs and building entrances. Workers may unknowingly step on dangerously slick spots, and snow build-up on pathways can obscure tripping hazards like curbs or cracks in the sidewalk.

One way to raise employee awareness all winter long is through a safety campaign. Regular safety reminders and updates can help keep slip and fall prevention on an employee’s radar, until temperatures warm up again.

Employers can communicate potential hazards to their team through physical signage, email alerts, and proper safety training. Signage can be posted in employee common areas, as well as in places where snow or ice may accumulate, alerting workers to the potential hazards around them. Safety trainings should be assigned to team members who will be working in these winter conditions. Regular email reminders should also be sent to team members to caution against dangerous behaviors.

There are a number of safety tips that employers can provide to their staff members either in a training or through email reminders. Here are a few examples:

Proper Footwear: Boots with enough tread or ice cleats should be worn when working outside in winter conditions.

Walk Carefully: Adjust your gate when walking on a slippery area. Take slow, small steps and pay attention to the ground in front of you.

Precipitation: Stay informed about current weather expectations. Be aware of the potential for rain or snow before heading to work each day.

Choose a Safe Route: Follow marked routes to building entrances. Obey signage and don’t take short cuts because they could be dangerous.

Keep Your Hands Free: Make sure your hands and arms are free to help keep you stable while walking. Use bags or backpacks to free up your arms and avoid carrying heavy loads long distances.

Know How to Fall: Knowing how to brace yourself after a fall can reduce the risk of injury. Stay informed on how to protect your body in case things go wrong.

Employers should always make sure their staff are educated about the specific risks of winter weather. Proper training should be provided on adequate footwear, how to walk safely on icy surfaces, and how to lessen or avoid injury if a fall does occur.

Preventing slips and falls requires a proactive approach from both employers and employees. Building awareness in the workplace can reduce the risk of serious injuries and foster a culture of safety in the workplace.

Rancho Mesa has a variety of toolbox talks available through the SafetyOne™ platform that can be utilized in order to prepare them for winter-related hazards. If you have questions about the available safety trainings, contact your Client Technology Coordinator.

Market Update: Sexual Misconduct Liability in Healthcare Organizations

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Rancho Mesa’s insurance brokers specializing in healthcare, education and non-profit organizations continue to navigate the hardening insurance marketplace, characterized by tighter underwriting guidelines, reduced limits of liability, increased deductibles, and higher policy premiums.

One of the sectors most impacted by the hardening market is healthcare and its ability to attain adequate insurance protection, specifically sexual misconduct liability insurance. Continued claim activity, social inflation, third-party litigation financing, and the increased cost of litigation all contribute to the hardening market conditions.

Consider the following data points in order to understand why the market is hardening. Several states have recently removed barriers to reporting abuse. Only five states maintain a criminal statute of limitations on claims of abuse. Nineteen states have eliminated statutes of limitations on civil claims. And, 30 states have enacted laws allowing victims more flexibility to revive claims of sexual abuse.

Additionally, according to the Institute for Legal Reform, from 2016 to 2020 the tort system’s direct economic costs grew 6% every year, exceeding both the inflation rate and GDP. That means more and more cases are litigated each year.

Not only are the number of cases increasing, but a 2023 report titled “Medical Malpractice Claims-Made Social Inflation and Loss Development Report” indicates that claims exceeding $1,000,000 continue to grow in frequency. So, the number of claims are increasing as the cost of claims are increasing.

An increase in third-party litigation financing, the practice of investors funding lawsuits in exchange for a portion of the settlement and return on the investment, can discourage prompt and reasonable settlements. This practice also reduces an attorney’s accountability to good faith standards and produces more lawsuits.

Impact to Sexual Misconduct Coverage and Healthcare Providers

Insurance companies are now reducing their financial risk for abuse exposures. This means medical professional liability underwriters may need additional underwriting information to quote limits in excess of $100,000. Additional underwriting measures may include issuing non-renewals, considering jurisdictional challenges, careful consideration of policies covering young patients, excluding all trafficking allegations, and adding a per victim or perpetrator deductible.

Risk Management Strategies for Healthcare Providers

Healthcare organizations can help mitigate some of the risk by:

• Using chaperones to reassure patients of a procedure’s professional nature. The chaperone provides a witness to support the practitioner’s actions.

• Performing examinations for a minor in the presence of a parent, guardian, or chaperone.

• Educating the patient about the exam and its necessity prior to the patient’s appointment.

• Documenting the exam’s medical necessity, the education provided to the patient, and the chaperone’s identity.

• Maintaining boundaries by establishing proper practitioner-patient relationships.

• Educating staff on proper patient interactions, professional boundaries and reporting of misconduct.

• Ensuring familiarity with your state’s reporting obligations related to sexual misconduct and include the requirements in your policies and procedures.

The legal environment and claim trends add financial exposure for both healthcare providers and insurance companies. Rancho Mesa will continue to monitor these trends to better educate and advocate for clients. Please contact me at (619) 937-0175 or sbrown@ranchomesa.com to discuss possible insurance solutions.

OSHA Tips to Protect Workers During the Holiday Season

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

As the holiday season approaches, many businesses will experience an increase in demand that can put an extra strain on a workplace and its employees. The surge in work often means more safety challenges for an employer.

To deal with the additional strain, employers may be hiring new or seasonal employees, bringing in additional volunteers, and/or expanding their hours. Despite these changes, safety should still remain a top priority. Employers must work to train and prepare their employees and volunteers to recognize and prevent job hazards and enact safe work practices.

The Occupational Safety and Health Administration (OSHA) has shared a list of nine safety tips that employers should implement for the holiday season. Here’s what they recommend:

1. Train workers on safe practices in a language they speak and understand
It’s important that all workers are aware of necessary safety practices, rules and regulations. This can include basic safety policies or industry-specific safety trainings. Communicating these policies clearly and effectively is equally as important. Employers should regularly remind employees of safe practices in meetings and give trainings when needed.

2. Provide hands-on training for young and new workers on properly using equipment
New or seasonal workers should be given thorough explanations on all tasks they will perform. This is especially important if a worker will be operating equipment in a warehouse or will be sent out on deliveries. Encourage workers to look out for one another and assist newer hires if needed.

3. Delivery services and warehouse workers should wear bright, visible clothing
Longer hours could mean more workers will work late nights or early mornings. For some workers, that could mean part or all of their shifts are done in the dark. Be sure all workers are wearing the proper clothing and safety gear in order to be sure they are visible in all conditions.

4. Prevent injuries by properly stacking materials and making sure workers stand clear when doors are opened for unloading
Stocking inventory or loading and unloading delivery trucks can be dangerous if workers are unaware of proper lifting and handling techniques. Workers should be trained on these proper techniques before handling heavy items. Remind workers to stand clear of opening doors when unloading delivery trucks, to prevent any materials that may have shifted around in transit from falling on and injuring a person.

5. Create a detailed and flexible staffing plan to help reduce workplace stress
Accommodating everyone’s time-off requests during the holidays can be difficult. And workers may experience heightened stress due to the increased workloads and tight deadlines. Be mindful of each person’s wellbeing, and avoid overworking them during the holidays. Encourage taking regular breaks, and provide access to mental health resources. Keeping a detailed schedule will also help avoid any confusion on busy or unusual days.

6. When large crowds are expected, prepare an emergency plan
The holiday season means many businesses—especially in the retail or community services industry—may experience an increase in visitors. Whether you are a landscaper at a shopping mall or providing meals and health services to the community, larger crowds bring unique safety hazards, from crowd control to fire or medical emergencies. It is important to have a clear and well-communicated emergency plan in place to deal with these situations.

7. Make sure entrance and exit location signs are visible
Employers should ensure that all workers are familiar with emergency exits and evacuation routes. An evacuation plan should also account for disabled individuals, so that everyone can leave safely if necessary. Use clear signage to mark first aid stations, entrances, and exits. A communication system—like an intercom—should also be put in place to quickly convey information in place of emergency.

8. Encourage workers to report any safety and health concerns
Foster a workplace culture that is open to the reporting of any workplace accidents or health concerns. Create a clear and accessible reporting process, and be sure all workers are made aware of that process at the start of their employment. Make it clear to workers that they will not suffer retaliation if they do report an issue. If an issue is reported, act on it promptly and effectively. Staying aware of and prepared for any potential hazards or health problems can be a huge benefit to you and your team in the long run.

9. Remember: Seasonal workers have the same rights as full-time workers
During this time, many businesses may hire seasonal employees to meet increased demand. But it is important to remember that seasonal workers are entitled to the same rights and protections as permanent employees. Seasonal workers should not be excluded from safety trainings or benefits, and should be treated the same as full-time workers.

By following OSHA’s nine tips for holiday worker safety, businesses can help keep employees safe, healthy, and organized through the holiday season. Proper safety training, emergency preparedness and fostering a climate of safety can help keep a business running smoothly through the holidays. More safety resources and trainings can be found on Rancho Mesa’s SafetyOne™ Platform.

Cal/OSHA Releases Top Safety Citations for 2024

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Occupational Safety and Health Administration (OSHA) recently released its Top 10 List of Most Frequently Cited Standards for fiscal year 2024.

Each year, OSHA compiles a list of the most common workplace safety hazards. Understanding these new numbers can provide insight for employers on potential safety issues within their organizations. While OSHA’s list includes the top ten citations, we will focus on the top five critical violations.

1. Fall Protection

Fall Protection (1926.501) was once again the leading cause of OSHA workplace violations. The administration reported over 6,000 violations this year; significantly more than any other reason for citation. There are a number of ways one can incur a fall protection violation including a lack of fall protection such as safety harnesses, hand rails or toe-boards. Regular training on fall hazards and how to properly use fall protection equipment is essential to keeping employees safe while at work.

2. Hazard Communication

Hazard Communication (1910.1200) violations were the second most common reasons for citation. OSHA guidelines require the hazards of the chemicals that a company produces or imports must be, “available and understandable to workers.” In order to avoid citations, employers must train employees on how to handle hazardous chemicals correctly, and must have safety labels displayed in the workplace.

3. Ladders

The number three violation for the year was Ladders (1926.1053). There are numerous requirements for the use of ladders on a job site, which can be found on the OSHA website. Those requirements range from the condition and spacing of ladder rungs, placement and weight limits, and manufacture date. Employers should ensure that all ladders are regularly inspected and maintained, and should make sure employees are trained on how to safely use a ladder on the job.

4. Respiratory Protection

Respiratory Protection (1910.134) was the fourth most-common type of violation. Oftentimes, contaminants in the air of a jobsite require respiratory protection. Some common contaminants that would require specific protection include harmful dusts, vapors, gases or sprays. OSHA also, “requires the employer to develop and implement a written respiratory protection program with required worksite-specific procedures and elements for required respirator use.” That program must then be administered by a trained program administrator.

5. Lockout/Tagout

Lockout/Tagout (1910.147) violations were fifth on the list of the most common safety violations for the year. These violations occur when the proper procedures for controlling hazardous energy releases are not followed when servicing machines or equipment. Proper lockout/tagout procedures are a must when performing machine maintenance, and employers should be sure to train their employees on how to protect themselves.

OSHA tracked safety violations beginning on October 1, 2023 and ending on September 5, 2024. The full list of violations include:

1. Fall Protection—General Requirements (1926.501): 6,307 violations

2. Hazard Communication (1910.1200): 2,888 violations

3. Ladders (1926.1053): 2,573 violations

4. Respiratory Protection (1910.134): 2,470 violations

5. Lockout/Tagout (1910.147): 2,443 violations

6. Powered Industrial Trucks (1910.178): 2,248 violations

7. Fall Protection – Training Requirements (1926.503): 2,050 violations

8. Scaffolding (1926.451): 1,873 violations

9. Personal Protective and Lifesaving Equipment – Eye and Face Protection (1926.102): 1,814 violations

10. Machine Guarding (1910.212): 1,541 violations

Violations of any of these OSHA guidelines can put employees in dangerous situations, and can lead to significant consequences for an employer. If the proper safety precautions are not put in place, serious injury and even death can occur on a worksite. Failing to comply with the administration’s regulations can also be incredible costly for an employer. The maximum financial penalty for an OSHA violation  is currently $16,131 per violation, and the maximum penalty for willful or repeated violations is $161,323 per violation.

Rancho Mesa’s RM365 Advantage Safety Star™ program and the SafetyOne™ platform are both great resources to train employees on the top OSHA safety violations.

If you have questions about how best to prepare your team and implement necessary safety plans, contact your Client Technology Coordinator.