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.

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.

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.

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.

Navigating Halloween Costumes and Celebrations in the Workplace

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

Halloween is right around the corner, and while workplace holiday celebrations offer a chance for creativity and fun, there are a few things to keep in mind to avoid any HR violations.

Companies are not required to have a costume policy in place, but employers should consider instituting one, if they believe costumes could cause an unsafe situation for employees or clients. Examples of items that could lead to safety issues include fake blood, weapons or oversized props. Setting clear guidelines can help employees navigate the dos and don’ts of dressing up, and address the use of items that an employer determines to be a safety hazard.

Employers should also remind team members that professionalism is still a priority, while allowing for festive self-expression. Offensive or inappropriate costumes should not be worn to work. Outfits that show too much skin or depict religious, cultural or gender-related stereotypes are best avoided while working. It’s also best to steer clear from political costumes in the workplace.

It’s always good to take a proactive approach and remind employees of these rules and policies early on, especially if Halloween falls on a workday. Employers should send out a company-wide reminder highlighting workplace policies and guidelines to be sure the holiday festivities don’t make others feel uncomfortable. It’s also important to establish a process for reporting and handling issues, if an incident does occur.

Although plenty of people will enjoy participating in office costume contests and parties, employers should allow these things to be optional. If an employee chooses not to take part in Halloween activities, it may be for cultural or religious reasons, and it’s best not to push them to participate.

Rancho Mesa’s RM365 HRAdvantage™ is a great resource for Rancho Mesa clients who have additional questions about Halloween costume guidelines, how to strike the right balance between festive spirit and appropriate attire, or how to respond to a potential issue.

Preparing Your Company for Winter Weather

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

Winter is on its way, and companies are preparing for the colder months still ahead. Lower temperatures, heavy rain, and illnesses caused by the cold can all take away from the safety and efficiency of a business or job site.

Cold-weather related incidents are preventable if the proper steps are taken to ensure employee safety. That’s why it is important for employers to take necessary precautions, and prepare their employees for the seasonal changes.

To prepare for the winter weather, supervisors should be sure their workers are wearing the proper clothing in order to reduce body-heat loss, and are staying dry as much as possible; wet clothing can chill the body rapidly. It’s also important not to ignore shivering. Even if an employee says they are fine, persistent shivering is a sign it’s time to return indoors.

In addition to the cold weather, heavy rains, dense fog and substantial snowfall can decrease visibility on the job site, and on the road, which increases the likelihood of accidents with equipment or vehicles. If it is raining, the best thing to do is stay off of the roads. If avoiding the roads is not an option, be sure vehicles are equipped with properly inflated tires that are not bald or badly worn. This will improve traction and reduce the likelihood of losing control of the vehicle.

These are just some of the ways companies can mitigate weather-related incidents. If an accident does occur, SafetyOne™ users can complete an incident report mobile form. A tutorial on how to complete a mobile form can be found on the Rancho Mesa website. To help prevent accidents caused by a mechanical failure, SafetyOne users can file an inspection report for vehicles in need of service using the “Motor Vehicle” observation. A tutorial on how to complete an observation report can be found on the Rancho Mesa website.

Rancho Mesa also has a number of toolbox talks available for cold weather, including safety tips when using an industrial space heater and weather awareness for landscape contractors and tree care companies. To enable access to these weather-specific toolbox talks via the mobile app, Rancho Mesa recommends the SafetyOne administrator create a Winter Weather toolbox talk group specifically for these toolbox talks and assign the group to the desired projects or crews. This will make the winter weather-specific toolbox talks available to users in the mobile app.

Rancho Mesa recommends the following toolbox talks through SafetyOne:

• Cold Weather

• Driving in Wet Conditions

• Effects of Weather

• Hypothermia

• LP Gas Salamander Heaters

• Snow Removal

• Temporary Heat Safety

• Weather Awareness for Landscape Contractors

• Weather Awareness for Tree Care Companies

To learn more about preparing for the winter weather or how to enable toolbox talks in SafetyOne, reach out to your client technology coordinator. 

Digitalizing Risk Management: A Step-by-Step Guide for Getting Started

Author, Alyssa Burley, Partner, Media Communications & Client Services Group, Rancho Mesa Insurance Services, Inc.

Imagine you are working in a highly productive organization. Over many years of trial and error, the team has streamlined their operations to the point of a well-oiled machine using good ol’ paper and spreadsheets. Then, your insurance broker offers a digital risk management solution and you are faced with the prospect of transitioning your manual processes to a digital platform. This is the scenario that many Rancho Mesa clients have faced and successfully overcome.

Mobile applications have become an integral part of daily life by streamlining everything from banking to finding a ride in the city. Manual tasks can now be completed easily from a mobile device. So, why haven’t most businesses implemented this mobile technology into their daily operations?

Planning & Support

Transitioning a manual process, like the administration and documentation of toolbox talks, safety trainings, jobsite inspections, and other risk management activities, to a digital platform does not have to be a daunting task, though it may seem that way at first. With proper planning and support from those who have helped others digitalize their manual processes, you can significantly increase the chances for success. Utilize resources like Rancho Mesa’s client services team to provide best practices for each manual process that will be replaced by a digital platform.

Where to Start

Once an organization has decided they are ready to make the move to a digital platform, they often ask how they should begin. It is a best practice to start digitalizing a process that has few barriers to implementation, yet will still have a significant impact on operations. Therefore, utilizing digital toolbox talks (e.g., tailgate talks, safety meetings, and the like) is typically the best process to tackle first.

Next, review your existing toolbox talk process and document the steps. It may be helpful to ask the following questions:

• Who decides which topics will be used each week?

• Where is the content sourced?

• How is the topic content distributed?

• Who administers the toolbox talk (e.g., tailgate talk, safety meeting, etc.)?

• Where are the toolbox talks performed?

• How are employees tracked who participated in the toolbox talk?

• Where is the documentation stored?

The answers to these questions will help you identify who will need access to the toolbox talks in the digital platform, whether through an administrator website or a mobile application.

Then, identify one to three people in the organization who are excited about being an early adopter of the new technology. They should be excited at the prospect of streamlining the manual process of getting the toolbox talk content each week, performing the safety meeting, passing around the sign-in sheet, and making sure the signed paper makes it back to the office and in the correct file cabinet. These early adopters could be an administrator, foreman, supervisor, or safety manger, depending on who is responsible for performing portions of this task.

The early adopters will function as the organization’s initial testers, cheerleaders, and then coaches for the rest of the team. They will test the digital process by accessing toolbox talk content and documenting the meeting attendance with both pictures and signatures from their mobile devices. They will report back to their organization’s leadership on how the new process is working. This gives the organization a chance to work with their insurance broker’s client services team to offer suggestions for minor adjustments to the new digital process. Meanwhile, the early adopters will naturally promote the new technology to their co-workers and get others excited for the launch of the new process.  

Once the new digital toolbox talk process is tested and adjusted as needed, it is ready to be released to the rest of the organization. There will be a learning curve, but the early adopters will be familiar with how the streamlined digital process works and will act as informal coaches for new users of the platform. 

Benefits

Changing a well-established process can cause some people within the organization to question why the change is needed in the first place. So, be prepared to explain the reasoning behind the transition. Explain the benefits that will be felt by both the employee and the organization.

Employees will spend less time on paperwork, so they can get back to their other job responsibilities. No longer will a supervisor have to worry about where the sign-in sheet went from yesterday’s safety meeting. All the documentation is digitally uploaded to the cloud and instantly accessible to those who need it.

The organization can ensure compliance with the Occupational Safety and Health Administration’s (OSHA) safety meeting requirements and eliminate lost paperwork. No longer do organizations need file folders full of sign-in sheets with, unfortunately, illegible signatures. Digital records are easily accessible and filtered by date, project, topic, etc. in order to streamline the process of retrieving data.

All of these things save time, effort, and increases compliance, which ultimately translates to reduced costs.

If your organization is ready to make the transition from paper to digital, contact your Client Technology Coordinator for more information about Rancho Mesa’s proprietary SafetyOne™ mobile app and website.

Avoid Audit Nightmares with Properly Classified Tree Care Industry Equipment and Vehicle Maintenance Operations

Author, Rory Anderson, Account Executive, Rancho Mesa Insurance Services, Inc.

Tree care companies use specialized vehicles and equipment to perform their work. These assets are vital to the success of the company. To maintain their effectiveness, the machines need routine maintenance and upkeep. Issues arise when they break down, so it’s important to repair them immediately to limit business interruptions such as decreased productivity and profitability. The maintenance of the machinery can be a full time job, and some tree care businesses are lucky enough to have an employee, or a team of employees, dedicated to shop maintenance. This type of work is a specialized skill and represents a key role within the organization. The intent of this article is to define how to properly classify these operations, so your company is prepared for any issues that may come up at the audit.

Workers’ Compensation

The Workers’ Compensation Insurance Rating Bureau (WCIRB) has created a specific class code for the maintenance of equipment and vehicles: 8227 Construction or Erection of Permanent Yards of Shops, which ONLY applies to the construction industry. In Appendix I, the WCIRB defines which industries are considered construction. Tree care, is not included on this list. Therefore, the WCIRB says, you must classify these operations in the governing class code, which is 0106 Tree Trimming, Repairing or Trimming. In fact, the WCIRB’s definition for 0106 Tree Pruning, Repairing or Trimming states that shop and yard storage operations are included: “TREE PRUNING, REPAIRING OR TRIMMING — N.O.C. — hand or mechanical power — including ground crews and shop, yard or storage operations.”

General Liability

Unlike workers’ compensation, in the tree care industry there is a general liability (GL) class code dedicated to the employees that are working on the maintenance of their own vehicles and equipment: 91590 Contractors Permanent Yards – Maintenance or Storage of Equipment or Material. It’s important to note that this class code does not consider maintenance or repairs on machinery or equipment other than those owned by the tree care company. The use of this code on your policy can be beneficial because the rate is usually cheaper than the tree care GL rate: 99777 Tree Pruning, Dusting, Spraying, Repairing, Trimming or Fumigating. So, it is safe to split payroll between these two class codes accordingly. Remember to keep proper records segregating the wages earned by your employees.

Overall, maintenance and repair employees are essential for maintaining the operational effectiveness, safety, and profitability of a tree care company. It is important to understand how to properly classify your equipment and vehicle maintenance operations so you can align your insurance policies correctly and avoid costly mistakes at the audit.

If you have questions or would like me to audit your current policies, please reach out to me at (619) 438-6437 or randerson@ranchomesa.com. I’m happy to help!

Don’t Get Skunked: Properly Insuring Large Tree Care Equipment

Author, Rory Anderson, Account Executive, Rancho Mesa Insurance Services, Inc.

These days, everything is more expensive. Between inflation and supply chain issues, the cost of equipment is steadily increasing. As the tree care industry becomes more mechanized, we see new technological advancements in machinery and equipment that are greatly improving the productivity, profitability, and safety of the industry. These big ticket equipment purchases are a major investment for a tree care business. It is important to make sure that your assets are insured correctly so you can rest easy knowing that if something were to happen to them, you are properly covered. This can provide financial protection and affirm business continuity. There are two important factors to remember when scheduling equipment with your insurance broker:

1.       Insurance Valuation: Replacement Cost or Actual Cash Value

In insurance, there are a few ways to value equipment, most commonly replacement cost (RC) and actual cash value (ACV). RC is the cost new today, without factoring in depreciation. ACV is the depreciated value (ACV = RC – depreciation). If you have a total loss on a piece of equipment that was rated on ACV, the insurance company will factor in depreciation when determining the payout amount, so you may not receive enough money to replace your equipment with a new item. With inflation and recurring supply chain issues over the past few years, tree care equipment is hard to get and more expensive.

For example, a 2020 chipper costs more new today than it did in 2020. Replacement cost coverage takes this into account by providing coverage for the current cost of replacing your equipment with a new item at current market rates. We recommend that you have the carrier provide replacement cost coverage on all items, so look for that definition when reviewing with your broker.

2.       Equipment Valuation

Secondly, it is critical that you execute a pre-renewal meeting with your insurance broker. In that meeting, your broker should be asking you to review the equipment values and make adjustments where necessary, appropriate to the true valuation. As discussed, equipment values are steadily increasing. Therefore, it is imperative that you are increasing those values on the upcoming policy term to be certain you will get the most money back in the event of a claim.

Properly insuring your assets is a fundamental aspect of your risk management program. It is crucial for protecting your company’s financial stability, business continuity, and safeguards your reputation and operational stability. If you have questions about properly insuring your equipment, please reach out to me at (310) 753-6804 or randerson@ranchomesa.com.

The Construction Risk Management Guide

Author, Daniel Frazee, Executive Vice President, Rancho Mesa Insurance Services, Inc.

As a business or firm, you are most likely aware of many risks that come with construction projects. Whether it is meeting the terms of a contract, maintaining employee safety on the job site, or dealing with natural disasters, every project has its own set of hazards. If not managed, these risks can compromise your projects and prove fatal to your bottom line. Thus, construction risk management is a must-have for any company, but an effective plan must have easy-to-follow, yet detailed processes to help you control the risks, make decisions on how to deal with them, and turn them around to uplift your company. With the presence of rising material costs, more complex projects and increased safety concerns, having a risk management plan is more crucial than ever.

What is Construction Risk Management?

Risk management is the process of determining the risks present in your business and evaluating the procedures to minimize their impact. In the construction world, the process involves planning, monitoring and controlling instances of risk. At the center of this process is your risk management plan, a formal document that details the risks and your processes for addressing them.

Sources of construction risks may include:

• Safety Risk - any risks or hazards that can lead to worker accidents at a construction site;

• Financial Risk - internal and external factors like sales, problems with the economy, unexpected cost increases and competition from other firms;

• Legal Risk - disputes in the fulfillment of contracts with clients;

• Project Risk - hazards such as poor management of resources, miscalculation of time, lack of proper policies, etc.; and

• Environmental Risk - natural phenomena that damage construction sites like floods and earthquakes.

How to Manage Risks

Before you can manage risk, companies must develop a risk management plan. This process can be broken down into six steps.

1. Identify the Risks
   Risk identification should take place during the preconstruction phase of a project to allow ample time to manage any potential risks before accepting them. One effective way is to hold brainstorming sessions with your project team with an emphasis on identifying all the possible scenarios that could impact the project at hand. Once the brainstorm is complete, hold regular meetings to continually identify new risks that develop.

2. Prioritize Risks in Order of Importance
   High-probability risks should be handled first while low-impact, low probability risks should be addressed last. As an example, an unexpected price increase in the materials for your project can severely hurt your profit margins and might be considered a high priority.

3. Determine your Response Strategy
   Once you have evaluated the priority of risks, your team must decide a response strategy for each hazard. You can avoid the risk altogether, mitigate the risk, transfer the risk if possible via insurance and/or performance bonds, or accept the risk.

4. Execute the Plan
   Much like a sports team on game day, your company now has to execute the plan after you have developed your strategy. Your plan must detail crucial information for each team member and provide specific solutions to mitigate, transfer, or accept risks.

5. Involve Members of the Team
   Great plans are developed with multiple opinions, involving contribution from all team members typically including the ownership group, the financial officers, and the field team. Members are managing cash flows, schedules, inspections, project logs, contracts and regulatory documents.

6. Create Contingencies and Revise
   Strong risk management programs have contingency plans. That is, alternative methods for finishing a project despite accepting the risk. Consistent monitoring and revisions to your plan will help increase resilience against any possible risk and ensure that your “document” evolves and changes over time.

Benefits of Risk Management in Construction

Along with the actual building process, risk management should be seen as one of the most critical steps of a construction project. Identifying, assessing, controlling and monitoring risks strengthen awareness and teamwork among those key members of your organization. Working in step with your insurance broker for resources, templates, and feedback can be key to integrating your plan with the company’s safety initiatives. Request a sample Accident Prevention Template to start your Construction Risk Management plan. And, in turn, communicating an effective and tested plan to the insurance marketplace can position you and your broker to leverage the most competitive terms and pricing within your renewal cycle.

For more information or questions related to this article, please contact me at 619-937-0172 or via email dfrazee@ranchomesa.com.

Download Accident Prevention Template

Accident Prevention Template

Higher Workers' Compensation Premiums Linked to New Employee Injuries

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Based on Rancho Mesa Insurance Services’ clients’ information, we have been able to identify that the majority of work-related injuries occur within the first year of employment. During the first year, the majority of these claims occur in the first six months. Having a system for on-boarding and training new hires is a critical component to dealing with the heightened risk of injury during this time period.                                                                                                                       

New Hires Effect Risk Exposure

During the workers’ compensation underwriting process, companies are commonly asked if their payroll will continue to grow, stabilize, or decline. Underwriters can assume that with growing payrolls, the company will be hiring new employees. New employees will likely increase the probability of work-related injuries. Underwriters must take this information into consideration when justifying a premium that will cover the company’s complete risk exposure.

Mitigating the Increase in Premium  

It is extremely beneficial for the owner and insurance broker to relay the measures that their company has committed to train, manage, and track new hires. If you are looking for a way to improve your safety efforts, consider focusing on proper new employee onboarding and training to minimize the potential impact claims can have on your company.

Please reach out to Rancho Mesa’s Client Services Coordinator Alyssa Burley at (619) 438-6869 to learn more about the Risk Management Center and how you can improve your safety training.

Optimizing Risk Management While Reducing Gaps in Coverage

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Working within the construction unit at Rancho Mesa for over 15 years, I have developed strong long-term business relationships with my clients. As an insurance advisor, I have an obligation to insulate clients from exposures and liabilities. Many of which may remain the same from year to year. However, it is vital that business owners meet with their insurance advisor frequently, especially prior to an insurance renewal, to avoid potential gaps in coverage.  Below are a few key topics that should be reviewed on a regular basis by a company’s insurance advisor. 

Review and Discuss Business Operations

It’s always a good business practice to have the insurance advisor review the business’s operations to see if there have been any changes that could affect its risk profile.  For example, I once had a client in the construction industry that specialized in commercial tenant improvement work. The company wanted to start a residential construction division. By understanding this change before it actually took place it provided us the time to adequately access the differences in the insurance exposures between the commercial and residential marketplace.  As a result, we were able to proactively and affordably place their coverage with an insurance carrier that was comfortable with both exposures.

Review Financial Projections

With the economy fluctuating year to year, it is vital that you meet with your insurance advisor and go over your financial projections for the coming policy term.  These items should include projected; annual sales, payrolls, subcontract costs and any changes in your surety requirements. These factors will help in not only negotiating the most favorable renewal terms for you but help to avoid any unforeseen expenses like a large final audit

Discuss Business Assets

Businesses routinely buy, sell, and upgrade their tools, equipment, and vehicles. While most are conditioned to notify their insurance advisor of any changes, it is always a good business practice to review assets with the insurance advisor at each pre-renewal meeting. It is common that there are items that were either sold (that need to be removed) or new (that need to be added to policies). By reviewing the assets on a regular basis, it minimizes the chance that items are missed and you either are paying premium on an item you no longer have or have an uninsured loss.

Discuss and Revisit Recommended Coverages

Recommended coverages may include an Umbrella, Pollution Liability, Professional Liability, Employment Practices Liability, and Cyber Liability policies. Even if you have discussed these coverages in the past with your insurance advisor and have declined them, they should not assume you will do so again in the future. The business climate is constantly changing; therefore, so are the risks you are facing.  Understanding where you have gaps  in your risk management profile and making informed decisions to either transfer the risk to an insurance carrier (purchase insurance) or retain the risk yourself (don’t purchase insurance) is always a Best Practices standard.

If you would like to discuss and learn more about Rancho Mesa’s proprietary risk management tools and explore our help in developing a Risk Management program based on your specific business needs, you can reach out to me at 619-937-0174.

Mitigating Risk at Height

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

Industry Numbers

Falls from elevated heights are the single most hazardous injury within the construction industry; representing 38% of all construction fatalities (NSC construction & utilities). That is a scary fact if you are a painting contractor that works off the ground. In years past, it was common to see painters working on multi-story scaffolding with few controls in place, or working from ladders on top of trucks to get those extra couple feet needed to finish a project. Workers compensation underwriters have difficulty with risks that work over 30 feet. Why is this 30 foot threshold so critical to insurance companies who write workers compensation?

• Across the entire Construction industry, 16% of all fatal falls happened from above 30 feet (NSC Construction & Utilities). 

• In 2016, there were estimated to have been over 35,000 painters working in California and in total there were only 3 fatal falls (Bureau of Labor Statistics).

• That accounts for less than 5% of falls, slips, or trips leading to fatality in all of California.

Mitigating Exposures: Personal Protective Equipment (PPE) and Ladder/Scaffolding Safety

As with any business that is assessing risk, start by acknowledging the potential exposures of working outside. Besides utilizing appropriate Personal Protective Equipment (PPE) for work at height, the single largest exposure for any contractor is heat exhaustion. Making sure your employees are properly hydrated and shaded is easy to overlook and can have serious consequences. Fainting at height is a serious concern and any measures that can be taken to prevent this are essential. Requiring mandatory water breaks, encouraging employees to wear loose-fitting clothes, and offering shade and protection from the sun represents tangible measures that reduce the chances of an employee suffering from heat exhaustion.

Safety equipment has become more comfortable, lighter, and easier to store and transport. Working in the heat of summer makes it difficult for employees to wear heavy equipment. This can cause them to make numerous adjustments when they are in dangerous situations. Make sure employees have light weight harnesses and are wearing them as instructed. The best PPE in the world is useless if the employees refuse to wear them properly. Similarly, it is very important to test equipment one to two times a day to ensure it is functioning properly.

Proper ladder erection and maintenance is critical for working safely at height. The recommended angle a ladder should be erected is 75 degrees. New applications such as Niosh Ladder Safety or Angel Inclination can be utilized to ensure measurements are accurate. Regular jobsite walkthroughs and inspections are also important for scaffolding. It can be fairly common that other trade contractors move or alter existing scaffolding. From day to day, objects such as connections, planks, and railing can be moved by unknown jobsite visitors and can create new fall exposures. How your safety coordinator and/or superintendents inspect and re-inspect scaffolding can literally save lives.

Turning Safe Practices into Savings

We have shared a few key tips on managing risk at height. As you design (or re-design) your fall protection program, consider how effectively your insurance broker is translating this information to the underwriters involved with your account’s renewal.

• Are they clearly translating how your company mitigates risk at height? 

• Are they sharing key details that might separate you from another competitor?

• Are they using this information to leverage competitive pricing with multiple insurance companies?

• What does their information actually look like when it is sent out to an underwriter?

If these questions and this information are new to your organization, consider Rancho Mesa as an alternative. We can provide resources that can fully develop Fall Protection programs, training that can make your program actionable, and a partnership that ultimately builds the lowest cost of risk possible.

For additional information, please contact Rancho Mesa Insurance Services, Inc. at (619) 937-0164.