The Billion-Dollar Cost of Working at Height: The Critical Questions to Ask Before Climbing a Ladder

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

Every year, OSHA publishes a “top 10 most frequently cited standards” list. Without question, ladders and fall protection consistently make the list. A Liberty Mutual 2023 workplace survey found that $6.26 billion was spent on falls as a result of working at height. Working at height is inherently dangerous but becomes more so when the incorrect ladders are used or improper setup for a job. Sending your employees to a jobsite without conducting a proper analysis to guarantee you have the proper equipment is setting yourself up to have preventable claims.

Before choosing a ladder at for a job, ask yourself:

• Will the ladders on site reach your desired height safely?

• Do the pads need to be replaced on the feet of the ladder?

• Do I have a faulty ladder?

• Should I be using fiberglass or metal?

• Is the ground level or should I have a ladder with adjustable outriggers?

• Do I need a guardrail system on my ladder?

• Am I able to get the proper angel needed for an extension ladder?

• Do my employees have the proper footwear?

All potential claims from ladders are theoretically preventable if we take the time to prepare properly. Your employees can be working at height for long periods of time, sometimes on very hot or cold days and need to be alert both while at height and especially when getting down. A vast majority of claims we see from ladder falls come from slipping or missing the last rung on a ladder. Looking further into these accident investigations, we see that many employees are not getting enough breaks so they can stay mentally and physically alert.

Most contractors are equipped with step stools, step ladders and extension ladders but these might not be all that is needed to get the job done properly. Each of these serve a purpose and are the most common on job sites for a reason which is why most work can be completed using just these three types of ladders. However, just because we are able to reach our desired height does not mean that it is the most efficient way to get there. Having more intricate ladders available for certain projects has become increasingly more valuable.

According to the Bureau of Labor Statistics, fatal injuries from movable ladders has decreased by nearly 17% from 2019 to 2020 while non-fatal ladder injuries remained consistent (this is the newest data available published in April of 2022).  Things appear to be trending in the right direction with more information and safer ladders available. That said, ladder safety needs to be at the forefront of your safety program as those contractors working at height are always one slip away from a claim that can drastically change the live of an employee along with your insurance program.

If you have any questions on how to improve your ladder safety program or any other insurance questions, do not hesitate to reach out. You can contact me at ccraig@ranchomesa.com or call at (619) 438-6900.

Need a License, Permit, or Court Bond? Rancho Mesa Can Help

Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.

During our recent budget discussions for the 2024 fiscal year, the Rancho Mesa Surety Department looked at a breakdown of the bonds we wrote in 2023.  As expected, 90% of our bond revenue was represented by the typical performance and payment bonds, subdivision bonds, bid bonds, bond riders, and consents of surety for our construction clients.

One area that surprised us was the volume of bonds classified as “non-contract” that we provide for both our construction and human resource clients.  While these type of bonds are small in size (bond amounts are usually $25,000 or below) they make up a large volume of bonds since many of our accounts require at least one or two of these.  Below I have identified four categories of non-contract bonds and several examples:

1. Court and Fiduciary: Plaintiff bonds include attachment, replevin, mechanic’s lien, and garnishment. While defendant bonds include appeal, supersedes, release of lien, and temporary restraining order bonds. We also placed various probate bonds to cover executors, administrators, guardians, and conservators.

2. License and Permit: Businesses and professionals may need mortgage brokers bonds, CA contractor license bonds, sales and use tax bonds, alcohol bonds, and compliance bonds.

3. Federal Official and U.S. Government: There are several types of bonds including public official bonds, U.S. customs bonds, and notary public bonds for those doing business with or for government entities.

4. Miscellaneous: Additional miscellaneous bonds could include financial guarantee bonds, utility deposit bonds, insurance program bonds, and lost securities bonds.

With over 1,000 types of bonds classified as “non-contract,” it can be overwhelming to determine which category of bond might fit a certain circumstance. That is where a Rancho Mesa bond agent brings value to provide direction and assist in placing the correct form of coverage.   

If you would like more information on various miscellaneous bonds that you might encounter, please contact me at 619-937-0165 or mgaynor@ranchomesa.com.

The Final Chapter: Addressing Training, Access and Recordkeeping in the IIPP

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

In this third installment of exploring an Injury and Illness Prevention Program (IIPP), we will be taking a closer look at: Providing employee training and instruction, procedures to allow employee access to the program, and recordkeeping and documentation.

Providing Employee Training and Instruction

Providing clear and effective training for both employees and supervisors is essential for the success of an IIPP. All employees are required to be fully aware of the workplace hazards they may face. Comprehensive and well-conducted trainings can help reduce the likelihood of work-related injuries and illnesses. An article from The State Fund suggests “If you are unable to conduct your own required trainings, you should reach out to an outside consultant, Cal/OSHA consultation, vendors, your insurance carrier, and/or broker for assistance.” The more knowledgeable and prepared employees are, the safer the work environment becomes.

Take a look at the training resources that are available to your organization. Rancho Mesa clients can access the online safety training courses in the SafetyOne™ platform.

Procedures to Access the IIPP

All employees are required to have access to the written IIPP. This will ensure that all employees are fully aware of the safety protocols and hazard prevention strategies used to minimize workplace accidents and illnesses and thus, maintain a safe workplace.

According to Cal/OSHA, employers can meet this requirement by:

1. Unobstructed access through a company server or website, which allows employees to review, print, or email a copy of the IIPP

2. When requested, provide a printed copy of the IIPP (unless the employee agrees to receive an electronic copy)

The IIPP can be made accessible to users of the SafetyOne mobile app. It allows organizations to upload digital files into a file cabinet that is available only to their users.  For employees who aren’t SafetyOne app users, they could scan a QR code or complete a webform to request the IIPP from their administrator.  However your organization decides to distribute the IIPP, it should be easy for employees to access or request.  

Recordkeeping and Documentation

Recordkeeping and proper documentation are crucial components of the IIPP. By maintaining accurate records, employers can learn from past incidents and identify injury and illness trends. This knowledge allows for necessary corrections and improvements in future operations, which will improve overall workplace safety. There are 5 steps required by the OSHA for a compliant recordkeeping system:

1. Each employer (unless exempt by size or industry) must record each fatality, injury, or illness that is work-related, is a new case, or meets one or more of the general recording criteria specified in Title 8, Section 14300.

2. Record each injury or illness on the Cal/OSHA Log of Occupational Work Related Injuries and Illnesses (Form 300) according to its instructions.

3. Prepare an Injury and Illness Incident Report (Form 301), or equivalent.

4. Annually review and certify the Cal/OSHA Form 300 and post the Summary of Work-Related Injuries and Illnesses (Form 300A) no later than February 1 and keep it posted where employees can see it until April 30.

5. Maintain the last five years of these records in your files.

A simple way to collect the incident information required for the OSHA logs (Form 300, 300A and 301) can be obtained by utilizing SafetyOne’s mobile forms. Either through the mobile app or via a QR Code or web link, employees can complete accident investigation forms and witness statements digitally.  Then, the person responsible for documenting and maintaining the OSHA logs, can review the reports that came in through the mobile app and document the OSHA logs in the RM365 HRAdvantage Portal.

Rancho Mesa will host several webinars in the coming months to assist clients with understanding the best practices for completing their OSHA logs using SafetyOne™ and the RM365 HRAdvantage Portal.

Cal/OSHA has a Guide to Developing Your Workplace Injury and Illness Prevention Program that is helpful for organizations that need some assistance with getting started.

Rancho Mesa also has a 6-page Sample Injury and Illness Prevention Overview for California Employers available through our RM365 HRAdvantage Portal.

Following these steps is a proactive approach to building a safer working environment for all employees. The bottom line, it’s all about mitigating accidents before they happen and building a safe work environment.

Please contact me with any questions regarding the IIPP at (619)-486-6569 or via email at jmarrs@ranchomesa.com.

Developing A Strong Subcontract Agreement with Tree Care Partners

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

Having strong service partners that support your customers outside of your core operations is an important part of business. Many commercial landscape businesses have regional relationships with professional tree care companies to support the needs of their customers.

Here are some of the key components when setting up your overall subcontract program, specific to the tree care industry.

Written Subcontract Agreement

Work with your attorney to draft a master subcontract agreement or project/job specific subcontract agreement since the type of indemnity agreements can change from state to state.

Among other things this agreement should clearly define indemnity and provide insurance requirements.

Insurance Requirements

Limits
Collaborate with your insurance advisor to specify the types of coverages and policy limits you will require in the subcontract agreement. 

Arborist Errors & Omissions Coverage
The tree care company should carry some type of Arborist E&O endorsement or have a separate policy providing coverage for Arborist E&O.

Depending on the scope of work, if the tree care company is providing written arborist reports or providing professional consulting services, require them to carry professional liability coverage.

Additional Insured
Ask the tree care company to name you as an additional insured for both ongoing and completed operations coverage, including primary/non-contributory and waiver of subrogation on their general liability policy in your favor.

Certificates of Insurance
Collect certificates of insurance and automate the process of requesting an updated certificate as the policy period nears expiration.

Transferring risk where possible is critical for landscape contractors. Using these initial steps as you build out a best practice subcontract agreement can insulate your company from the ever growing exposures that exist as you engage with partner trades.

To discuss your company’s management of risk, contact me, Drew Garcia, at (619) 937-0200 or drewgarcia@ranchomesa.com.

WCIRB Proposes 2024 Construction Dual Wage Threshold Increase

The Workers' Compensation Insurance Rating Bureau (WCIRB) has proposed an increase in hourly wage thresholds for all 16 construction dual-wage classifications.

The increases range from $1 to $4 depending on the classification and if approved will go into effect for policyholders renewing September 1, 2024 and thereafter. The chart below outlines the proposed increases for each classification.

Dual Wage Classifications	Existing Threshold	Proposed Increase	Proposed Threshold
5027/5028 Masonry	$32	$3	$35
5190/5140 Electrical Wiring	$34	$2	$36
5183/5187 Plumbing	$31	$1	$32
5185/5186 Automatic Sprinkler	$32	$1	$33
5201/5205 Concrete Work	$32	$1	$33
5403/5432 Carpentry	$39	$2	$41
5446/5447 Wallboard Installation	$38	$3	$41
5467/5470 Glaziers	$36	$3	$39
5474/5482 Painting Waterproofing	$31	$1	$32
5484/5485 Plastering or Stucco	$36	$2	$38
5538/5542 Sheet Metal Work	$29	$4	$33
5552/5553 Roofing	$29	$2	$31
5632/5633 Steel Framing	$39	$2	$41
6218/6220 Grading/Land Leveling	$38	$2	$40
6307/6308 Sewer Construction	$38	$2	$40
6315/6316 Water/Gas Mains	$38	$2	$40

In light of the ongoing labor shortage within the construction industry, employers have been making a concerted effort to retain their workforce. This includes providing more comprehensive benefits packages, including higher wages, and offering merit-based bonuses when appropriate. As a result, these proposed wage classification increases may prompt employers to consider extending further salary increases to their employees, with the aim of reducing workers' compensation premiums.

Rancho Mesa predicts that this information will become a major factor in payroll decisions based on overhead cost management and recommend this as a topic for discussion early, so that our clients and prospects can prepare.

California Expands Regulations for Employee Criminal History

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Recently, California updated regulations regarding how employers can use criminal history to make employment decisions.

The new standards come as an update to the California Fair Employment and Housing Act (FEHA) and apply to businesses with five or more employees.

The updates have expanded the definition of “applicant” to include any employees who pursue or intend to pursue a new position in the company, as well as those being reviewed due to a change in company management or ownership.

Employers are prohibited from stating in job postings that they will not hire applicants with criminal backgrounds.

“Employers are prohibited from including statements in job advertisements, postings, applications, or other materials that no persons with criminal history will be considered for hire, such as ‘No Felons’ or ‘Must Have Clean Record,’” subsection (a)(2) of the law states.

Furthermore, if an applicant shares their criminal history voluntarily, and is otherwise qualified for the job, the employer cannot take their criminal history into consideration until a conditional job offer has been made to the individual.

The update also adds that if a “a licensing, regulatory, or government agency or board” grants the right to perform the job duty, such as in the form of a certification, the employer should not consider their criminal history a disqualifying factor for the prospective job.

The California Civil Rights Department provides sample notices employers can use to communicate how their criminal history will affect the company’s decision making.

Rancho Mesa aims to provide the resources clients need to make informed employment decisions. For any questions regarding these updates, contact your client technology coordinator.

Mitigating Risks in the Solar Industry with Professional Liability Insurance

Author, Kevin Howard, Account Executive, Rancho Mesa Insurance Services, Inc.

Since the outset of the 21st century, the solar installation industry has been bustling with the demand to create clean sustainable energy. Based on growing political and ecofriendly needs, the solar industry is ever changing and trying to keep up with constant fluctuations when it comes to energy storage, federal and state regulations, and supply chain demands. Hand in hand with this growth is the risk created for solar installation contractors who are busy creating drawings, proposals and contracts. It is common for a solar contractor to purchase general liability insurance. It is commonly mistaken as the only needed coverage besides workers’ compensation and commercial auto insurance. However, general liability coverage needs to be triggered by either property damage or bodily injury. But, what about all of the potential lawsuits outside of property damage and bodily injury? This is where professional liability becomes an essential element to any solar installation contractor’s insurance program. To dive deeper, I have provided some claim examples that should resonate with any solar contractor performing residential or commercial installation.

Design Errors

Once a rendering is made that calculates the potential savings a solar system can generate, a contract is typically signed with the proposed energy savings. A solar contractor may face a claim if there is a design error. For example, a shaded area may have been missed that does not generate enough energy or the system might have been incorrectly positioned. A professional liability insurance product would be the best risk transfer vehicle for protection against this type of claim.

Failure to Comply with Building Codes

If a customer’s home cannot pass inspection because the work does not meet building codes, there could be a lawsuit and a claim which could trigger a professional liability policy.

Failure to Obtain Permits

If there are any nominal losses created from the lack of permits or timing of permits, a customer could file a lawsuit seeking damages. Since there is no bodily or property damage, a general liability policy would deny this type of claim. A professional liability policy would offer advice through third-party council to help mitigate losses fast in a time sensitive claim scenario.

Battery Storage

The State of California has high hopes to be petroleum free by 2050. This would mean that home battery systems would become essential for energy storage. Now imagine a family is counting on this system to make sure their vehicles are charged. This creates a lot of demand and if this battery was installed incorrectly, there could be claims having to do with losses sustained by that family. The scenarios are endless when you really think about it.

Maintenance Contracts

For some large-scaled solar installations, the energy created can be critical to business or for emergency lighting. If these systems fail to produce the proposed energy, in could cause a domino effect of a loss and/or costly lawsuits. Imagine a manufacturing plant relying on solar panels and battery storage that cannot create their product due to a faulty system. A professional liability policy could help mitigate the loss by adding in defense and counsel.

As the solar industry adapts and grows, the need for appropriate risk protection grows with it. Building an effective insurance program that includes professional liability is critical for all solar contractors considering the exposures referenced in this article. With a strong niche in this space, Rancho Mesa brings expertise and market knowledge that can help solar contractors transfer the appropriate risk, where necessary.

To discuss your risk management, please contact me at khoward@ranchomesa.com or (619) 438-6874.

California Increases Paid Sick Leave for 2024

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The state of California will officially change the paid sick leave (PSL) law for businesses in 2024. Effective January 1, 2024, the amount of PSL employees can take will increase from 24 hours to 40 hours per year.

The decision to make these increases was approved by Governor Newsom this month and includes two methods of allotting paid sick leave to employees, the accrual method of gaining leave hours over a period of time, and the lump sum method which allots a sum of PSL hours to employees each year.

Employers who provide leave via an accrual system must allow employees to accrue at least 24 hours of PSL by their 120th day of employment, and the entire 40 hours by their 200th day of employment. The accrual method normally follows a rate of 1 hour PSL per every 30 hours worked, however, employers can choose how time is earned as long as it meets the new standards.

If companies provide PSL in a lump sum, they must grant the sum of 24 hours of PSL to employees by no later than their 120th day of employment and they must allot them the rest of the leave (and additional 16 hours) by the 200th day of employment.

If a company breaks up the leave allotment into these 120 and 200-day incriminates, they must allow carryover of any unused leave. Employers can also provide the entire 40 hours at the start of employment, or calendar year, by which they do not need to allow for carryover.

The yearly use cap is now 40 hours or five days instead of 24 hours or three days, and the total accrual cap is now 80 hours, instead of 48 hours.

It is important for employers to evaluate their current PSL policies and make necessary changes to ensure they stay in compliance come January 1st.

The new paid sick leave requirement is one of many employment law changes happening in 2024. Rancho Mesa’s upcoming 2024 Employment Law Update webinar on Wednesday, November 8th will cover these topics in further detail.

Strategies for General Contractors to Minimize Liability

Author, Lauren Stumpf, Marketing & Media Communications Specialist, Rancho Mesa Insurance Services, Inc.

In Episode 355 of Rancho Mesa’s StudioOne™ podcast, host Andy Roberts, an Account Executive in the Surety Group at Rancho Mesa, is joined by Ted Lee, a Contract Bond Underwriter at Liberty Mutual Surety, to discuss strategies for general contractors to limit their liability when working with subcontractors. Ted shares his background and experience in the surety industry before delving into the main topic.

They explore two key strategies that general contractors can use to mitigate liability:

1. Subcontractor Prequalification: Ted emphasizes the importance of how general contractors select their subcontractors. If they choose based solely on the lowest bid, there may be risks associated with subpar quality. To mitigate this risk, it's suggested that general contractors require a prequalification letter from the subcontractor's surety. This helps ensure that the subcontractor is bondable, providing added assurance to the general contractor.

2. Performance and Payment Bonds: Requiring performance and payment bonds from subcontractors offers immediate protection to general contractors. Performance bonds protect against subcontractor default, while payment bonds guard against potential liens from lower-tier subcontractors and suppliers. These bonds could also enhance a general contractor's bonding program, potentially allowing for higher bonding limits and more favorable terms.

The conversation highlights the role of the general contractor's surety in evaluating the prequalification process and bond requirements. Ted explains that this evaluation helps the surety understand and support the general contractor's risk mitigation efforts.

They also mention that some general contractors may have automatic bond requirements for certain project sizes, but for those who don't, bond companies may step in and require subcontractor bonds when needed.

In conclusion, the podcast episode provides valuable insights for general contractors looking to limit their liability and manage risk by implementing subcontractor prequalification processes and requiring performance and payment bonds. Andy and Lee also recommend seeking assistance from insurance agents with expertise in surety bonding to navigate these processes effectively.

Listen to Episode 355 below, or on your favorite podcast listening app.

Safety Evolution: General Contractors Begin Requiring Safety Helmets Over Hard Hats

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The hard hat has long been a staple for construction-site safety. However, a new contender has entered the industry in 2023 as more and more general contractors are requiring safety helmets.

The safety helmet, while similar in form to the normal hard hat, includes added protection such as chin strap, face shield, and ear muffs. These new features allow for the helmet to sit more securely on the head while also protecting the ears from dangerously high noise levels and the eyes from possible debris. 

“Since we made the switch to the new style hard hat, our employees don’t want to go back to the old-style hard hat,” Gilbane Building Company said. “This technology successfully removes the hazard of the hard hat falling off during a task, and wearing the face shield eliminates the possibility of forgetting to wear eye protection.”

While OSHA does not officially require the switch from hard hats to safety helmets, the topic was brought up at the Nation Association of Home Builders (NAHB) Spring Leadership Meeting in June 2023 in which director of OSHA’s Office of the Directorate of Construction, Scott Ketcham, granted insight on OSHA’s plans to improve jobsite safety with elevated standards for Personal Protective Equipment (PPE) in the near future.

“One initiative shared at the meeting is a pilot program for safety helmets meant to eventually replace hardhats as the preferred head protection in construction,” NAHB’s article about the meeting said. “Ketcham noted that 20% of head injuries in construction are the result of slips, trips, and falls and that hardhats do not protect against such injuries while helmets with chinstraps may stay on the head during a fall and offer protection.”

As PPE continues to evolve in the construction industry, it's important for subcontractors to be aware of what might be required of them on their job sites. Although no current laws require safety helmets over hard hats, Rancho Mesa will continue to offer updates as standards change.

How Important is Your EMR in the Pre-Qualification Process?

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

With 2024 right around the corner, general engineering and trade contractors will be required by government agencies and general contractors to enter the annual pre-qualification process in order to bid work. These entities are looking closely at a company’s project history, including project size, bonding capacity, limits of insurance as well as a companies’ Experience Modification Rate (EMR).

An EMR is a numeric representation of a company’s audited payrolls for the three prior years (not including the current year) and your workers’ compensation claims history, compared to businesses in the same industry or standard classification. EMR’s create a baseline for business while allowing for a surcharge or debit when employers claims are worse than expected and a credit when employer’s claims are better than industry average. Companies with and EMR rate below a 1.00 are considered better than average, while greater than 1.00 are consider below average.

Pre-Qualification Process

In the highly competitive environment of construction bidding, it has become common that government agencies and general contractors will preclude contractors from the pre-qualification process if your EMR exceeds 1.00 or 1.25. In my opinion, this represent an oversight as many companies have strong will developed safety programs, yet their EMR is holding them back. Some examples of this include:

1. The EMR is a lagging factor. Only the last three policy periods, not including the current policy period are taken into consideration for the calculation.

2. EMR’s can include claims that may have been unavoidable and don’t represent a lack of safety (i.e. an employee was involved in an auto accident and was not at fault).

3. Large indemnity claims can have a significantly higher impact for a smaller company vs. a larger company with a similar size claim.

Rather than placing such critical importance on the contractors current EMR, government agencies and general contractors designing the pre-qualification process should include frequency indicators like incident and DART Rate (i.e. days away, restricted or transferred) or put more emphasis on a contractors’ 5 or 10-year average EMR. 

Given the importance of the pre-qualification process an and the potential for contractors to be precluded from new opportunities to bid work, we’ve developed a proprietary Key Performance Indicator “KPI” Dashboard as well as our SafetyOne Desktop & Mobile App to assist companies in managing their EMR. These tools will, among many things, help you:

• Benchmark your experience against your peers.

• Weigh the impact of any claim to your EMR.

• Project your future EMR a year in advance.

If you would like a KPI created for your company, or would like to learn more about our SafetyOne App, please email me at sclayton@ranchomesa.com.

SB 553: Governor Signs New Law for Workplace Violence Prevention Requirements

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

On September 30, 2023 Governor Newsom signed into law new standards for California companies regarding workplace violence. Effective July 1, 2024, Senate Bill 553 (SB 553) will expand requirements for recordkeeping, injury and illness prevention programs, and employee training.

What do these new regulations define as “workplace violence?” Workplace violence is any act or threat of violence that occurs in a place of employment. The law applies to both verbal and written threats of violence and incidents involving use of a dangerous weapon regardless of whether an employee sustains an injury.

“The threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether the employee sustains an injury,” Section (4).(a).(6).(B).(i) writes.

Recordkeeping

While companies are already required to report work-related injuries, now employers also must record every workplace violence incident in a violent incident log. The log includes information about each incident such as the date, time, and location, a detailed description, the people involved, the type of violence, and the consequences of the incident. The log must be retained for five years.  

IIPP

Companies must include a written workplace violence prevention plan in addition to their Incident and Injury Prevention Program (IIPP).

The plan must include procedures for the following:

• The employees responsible for creating and implementing the plan

• The procedures the company will follow in the event of a violent incident, depending on its type 

• Enforcing procedure compliance for both employees and supervisors

• Communicating to employees post-incident recordkeeping and investigation results

• Identifying hazards and corrective procedures

• Investigating and responding after the incident occurred

• Annually evaluating the plans effectiveness and make necessary edits

• Methods for implementing the training and procedures outlined in the plan

Training

SB 553 requires employers to provide workplace violence training to their employees. Training should inform employees of their company’s procedure for handling workplace violence and how they can access the written workplace violence prevention plan.

The training topics should also cover how to report workplace violence, how to respond and seek help in the event of an incident, strategies to avoid physical harm, implementing corrective measures, and information about accessing the violent incident log.

Workplace violence training is required for employees annually, and employers but retain training records for at least one year.

“Training records shall be created and maintained for a minimum of one year and include training dates, contents or a summary of the training sessions, names and qualifications of persons conducting the training, and names and job titles of all persons attending the training sessions,” Section 4.(f).(2) states.

Both the SafetyOne™ platform and the HR Portal offers a range of training related to SB 553’s required topics such as preventing workplace violence, security in the workplace, and workplace stress. 

While the Cal/OSHA Standards Board is required to adopt the new standards no later than December 31, 2025, the law becomes enforceable on July 1, 2024. Exemptions to the new requirements are workplaces who are not open to the public and that have less than 10 employees working at one time as well as employees working from a remote location or in healthcare facilities.

SB 553 contains quite a lot of new requirements that might feel overwhelming for employers. Cal/OSHA is expected to release a model program for the standards including a workplace violence prevention plan in addition to the IIPP and training requirements.

Rancho Mesa will continue to keep clients informed as more resources are released. For any questions regarding this topic, contact your client technology coordinator.

The Road to Recovery: Commissioner Lara's Plan to Rescue Property Insurance in California

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

California Governor Gavin Newsom recently declared property insurance a State of Emergency in CA based on a mass exodus of property insurance companies. This has allowed CA Insurance Commissioner Ricardo Lara to strike a deal with insurance companies to encourage new coverage in the State. The changes are slated to go into effect by the end of 2024. However, the hope is that insurers will begin to write homeowner’s policies sooner.

The agreement between Lara and the insurance industry will have insurers return to high-risk zones in the State, in exchange for relief in current regulations. This would allow insurers to get higher rate increases through the state regulator much faster.

Key regulatory elements of Lara’s plan, per his press conference on September 21, 2023, include:

1. Executive action by the Commissioner to transition homeowners and businesses from the FAIR Plan back into the normal insurance market with commitments from insurance companies to cover all parts of California by writing no less than 85% of their statewide market share in high wildfire risk communities. For example, if a company writes 20 out of 100 homes statewide, it must write 17 out of 100 homes in a distressed area.

2. Allowing FAIR Plan policyholders who comply with new safer wildfire regulations the first priority to transition to the normal market.

3. Expediting the Department’s introduction of new rules for the review of climate catastrophe models that recognize the benefits of wildfire safety and mitigation actions at the state, local, and parcel levels.

4. Directing the FAIR Plan to further expand commercial coverage to $20 million per building to close insurance gaps for homeowner’s associations and condo developments to help meet the State’s housing goals and to provide required coverage to other large businesses in the state.

5. Holding public meetings to explore incorporating California-only reinsurance costs into rate filings.

6. Improving rate filing procedures and timelines by enforcing the requirement for insurance companies to submit a complete rate filing, hiring additional Department staff to review rate applications and inform regulatory changes, and enacting intervener reform to increase transparency and public participation in the process.

7. Increasing data reporting by the FAIR Plan to the Department, Legislature, and Governor to monitor progress toward reducing its policyholders.

8. Ordering changes to the FAIR Plan to prevent it from going bankrupt in the case of an extraordinary catastrophic event, including building its reserves and financial safeguards.

Lara’s plan is hopefully going to deter more insurance companies from leaving California by loosening certain elements of insurance regulations. Under the existing system, insurers need to apply with the Department of Insurance to raise their rates and provide supporting documentation to justify the rate hike. The process would allow consumer advocates to intervene along the way, acting as watchdogs in the process.

With property owners desperately searching for affordable comprehensive coverage, Lara’s plan cannot come sooner. While this will take time to implement, it is an important step in restoring the property marketplace in California. If you have any questions relating to this article please feel free to reach out to me at jhoolihan@ranchomesa.com or 619-937-0174.

OSHA Officially Rules for Expanded Recordkeeping Requirements for High-Hazard Industries

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Recently, the Occupational Safety and Health Administration (OSHA) made its final ruling to expand recordkeeping requirements for high-hazard industries, such as construction. The new requirements will take effect January 1, 2024 and will expand on what injury and illness information is needed to be electronically submitted to OSHA.

The requirements state that businesses with 100 or more employees in certain high-hazard industries must now electronically submit information from their Form 300-Log of Work-Related Injuries and Illnesses, as well as Form 301-Injury and Illness Incident Report to OSHA annually. This is in addition to Form 300A-Summary of Work-Related Injuries and Illnesses, which is already required.

Additionally, establishments are required to include their legal company name when making these submissions to OSHA from their injury and illness records.

Companies in high-hazard industries are already required to keep records of their work-related injuries and illnesses; however, this data is now to be submitted to OSHA, and the information gathered will be published on the OSHA website.

“OSHA will use these data to intervene through strategic outreach and enforcement to reduce worker injuries and illnesses in high-hazard industries,” Doug Parker, Assistant Secretary for Occupational Safety and Health, said in OSHA’s press release. “The safety and health community will benefit from the insights this information will provide at the industry level, while workers and employers will be able to make more informed decisions about their workplace's safety and health."

California businesses currently submit their recordkeeping information directly to Federal OSHA. Although the Cal/OSHA board has yet to release information regarding these new requirements, they must choose to uphold the standards set by Fed/OSHA or create stricter requirements. We will keep clients informed as further guidelines are announced.

Implementing Technology and Other Safety Tactics to Protect Your Fleet

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

One of the most important practices for any landscape professional is fleet safety. Whether you have 10 trucks or 100, the exposure and risk remain the same. Explore a prior podcast episode, Episode #251, in which I delve into compelling statistics that shed light on the increasing frequency and severity of auto accidents each year.

Here are a few ways landscape professionals can improve their fleet safety:

1. GPS/Telematics Systems

A written fleet safety program is a must have for every organization, but how can you take that a step further? Some landscape professionals are turning to technology and installing GPS tracking systems in all of their trucks. These systems have the capabilities of tracking speeding, hard breaking, sharp turning, proper seat belt usage and other metrics. Not to mention, if a truck were ever stolen, they have the capabilities to track down and locate the stolen vehicle. 

I was at the National Association of Landscape Professionals’ (NALP) ELEVATE conference a few weeks back in Dallas and spoke with a landscaper who uses GPS on their trucks. I asked how they use the data that is collected. Their response was that each month they sit down and look at the data. They identify any glaring issues and work to get them resolved. For example, if a certain driver has been tracked speeding multiple times, they will sit that driver down and explain the importance of not speeding. They may even have them do a specific driver training course to help that individual become a better driver. Having GPS is a great start to improving fleet safety, but actually using the data collected and being proactive with that data is what the elite landscape company do.

2. Regular routine maintenance checks on vehicles

GPS tracks a vehicle while it’s driven, but what can be done before the vehicle even hits the road to help prevent accidents?  Routinely checking vehicles and performing maintenance on them can really have a impact on fleet safety. For example, regularly checking tire pressure, making sure oil changes are up to date, inspecting the brakes and monitoring tire wear are a few things that every landscape company should do to keep their vehicles running in tip top condition. 

3. Company Roll Out Procedure

Implementing a mandatory company roll-out check can have a significant impact. I have actually seen a few of these performed in person and it’s impressive. As the trucks leave the yard to head out for the day’s work, the driver signals both blinkers, flashes the headlights, cleans the windshield and mirrors, and performs a small brake check, all the while, an inspector is outside making sure all signals are working before the truck heads out. 

Finally, if a trailer is being used, check to make sure the trailer is properly hitched and the equipment in the trailer is tied down or stored securely. Taking time and performing these checks will certainly help prevent auto accidents in the future.

If you would like more information on putting together or updating your Fleet Safety program, reach out to me at ggarcia@ranchomesa.com or (619) 438-6905.

Fire Prevention Month: Revisiting Fire Preparedness

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

October is Fire Prevention Month. The National Fire Protection Association (NFPA) dedicated this month to spreading awareness for fire safety and prevention. The construction industry is particularly vulnerable to fire danger, making this a good time to re-evaluate your company’s fire hazards and training protocol. 

Local fire departments responded to an average of 4,300 fires in structures under construction per year from 2016 to 2020, and 4,750 construction fires occurred in 2020 alone. A few of the most common causes of fires on the jobsite include hot work such as welding and soldering, temporary heaters and electrical lighting, flammable liquids and gasses, and smoking.

In addition to the fire hazards in the construction industry, the month of October poses high risk for wildfires across the state of California, especially Southern California. 

“Most fires happen between the months of April and October, as weather becomes warmer and drier,” an article published by CalMatters said. “In Southern California in particular, the hot and dry Santa Ana winds increase wildfire risk in October and November.”

As fire risk increases throughout this month, it's a good idea for clients to evaluate their fire safety programs and eliminate possible hazards. Rancho Mesa offers training resources in the SafetyOne™ app with several online courses for fire prevention.

Additional dates for our Wildfire Prevention and Wildfire Smoke Regulations webinar have been added to the calendar this month if clients are interested in registering.

Are Bonded Projects Really Better Performers than Non-Bonded Projects?

Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.

The goal of the surety, in any relationship, is to ensure that the bonded job is completed successfully, is profitable for their client, and is without claims.

In their attempt to understand the risk versus reward of a given bonded project, the surety can add some value by reviewing certain aspects of a particular request. 

To that end, the surety considers each request for a bond on its own merits. If the bond is for a routine project (based on the contractor’s history and track record), then it will likely be a pretty routine process for issuing the bond based on the contractor’s past performance, history, etc. However, something out of the wheelhouse for a given contractor might find the surety contemplating certain details about the request. They may ask more about the type of project and past experience on similar jobs and resources needed. The surety may want to know if this project has an adequate schedule, the profit and related costs of the job, information about the owner requesting the bond, bond forms, and the contract. In reviewing the contract, the surety is not just looking at the general form of the contract, but also various provisions like payment and retention terms, liquidated damages, schedules, etc. And, you might find your surety agent asks what you like about the job or what challenges you see in the job if it is outside of your normal scope and size. Every now and then, a client comments that they appreciate these discussions – and the extra set of eyes to make sure key factors in the job, bid, or contract were not missed.

Many sureties can also provide some input relating to contract review, especially if a client is working for a new project owner, or a general contractor who has a reputation for being tough. 

And, if your work is for a private owner, the surety will typically want to confirm that there are construction funds earmarked to make sure the contractor gets paid. That information should be available in generalities in the preliminary notice information, but having the surety asking to confirm specifically that their contractor’s money is available to pay for their line items (and any contingency) can be a real benefit.

Also, keep in mind that the contractor (the business owner) typically has their personal indemnity on the line if things go wrong and the surety has to respond to a claim – one might presume that the contractor is paying extra attention to a bonded job where there is more on the line.       

So, at the end of the day, the services provided by underwriting the bond request can add that extra value in making sure there is no loss. The extra attention may also result in a more successful project.   And, the job should be a good performer.

Don’t just take my word for it. Overall, the industry agrees that unbonded projects have a higher likelihood to default, or have more significant problems. The case can certainly be made that with the partnership and value of the surety team supporting a contractor in their efforts to have a successful job, more attention is paid to those critical components to ensure that this is the case.

An article by Vicki Speed, “A Study in Surety Effectiveness, Reassessing Exposures,” published in the July 10/17, 2023 issue of ENR Magazine confirmed the value of surety bonding. According to a survey of owners and developers cited in the article, “bonded projects are more likely to be completed on time or ahead of schedule.” 

Remember, the surety is not here to tell you how to run your business or your projects. Only to support your success. It should be seen as a valued partnership that is beneficial to the owners who require the bonds.

For more information about bonding jobs, contact me at (619)486-6570 or awright@ranchomesa.com.

Random Acts of Violence: Are They OSHA Recordable?

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Are random acts of violence OSHA recordable? This is a question many companies, particularly those that are required to report to OSHA annually, may ask. Whether the incident involves construction workers building in a high-crime area, or employees encountering hostile customers, determining if violent injuries are work-related is not always a black and white decision.

A letter submitted to OSHA this year requested interpretation for a scenario that fell into this recordkeeping gray-area. An employee was driving a company vehicle on a public road on his way to a client. When he approached an accident on the road, the individual who caused the accident shot the employee and stole the vehicle. OSHA determined that the employee’s injuries were work-related and was thus recordable because he was acting in the interest of the employer.

This scenario is pivotal to further defining a work-related incident. However, OSHA also acknowledged some cases that would be exceptions to these standards.

“Some cases involving violent acts might be included within one of the exceptions listed in section 1904.5(b)(2),” the OSHA board wrote. “For example, if an employee arrives at work early to use a company conference room for a civic club meeting and is injured by some violent act, the case would not be work-related…”

Incidents in workplaces such as construction sites that are among the public could also be OSHA recordable. In the past, clients have expressed concerns for the safety of their workers dealing with hostile individuals possibly entering the jobsite and putting their employees at risk.

It's best to assume a violent incident involving an employee is recordable, rather than omitting it from reporting and risk financial penalties.

Rancho Mesa offers several newly-added online training courses in the SafetyOne™ platform related to handling and preventing workplace violence. For any questions regarding accessing these trainings for your employees, contact your client technology coordinator.

Surviving the Blaze: Developing Asset Relocation Plans in Wildfire-Prone Regions

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

As a tree care company operating in wildfire-prone areas, the safety of your crew, equipment, and vehicles is paramount. Wildfires can be unpredictable and devastating, posing a significant threat to your valuable assets. To mitigate risk of potential losses, it is important to have an effective asset relocation plan in place. This plan ensures that in the event of a wildfire, your vehicles and equipment have a safe place, reducing the risk of damage or total loss. This safe relocation address should be in an urban area, surrounded by buildings – not rural vegetation. It can be a mall parking lot or any urban lot. Let’s explore the reasons why having an asset relocation plan is crucial for tree care companies.

Reduce Insurance Costs

Insurance is a critical aspect of risk management for tree care companies. While insurance can help cover losses from wildfires, having a well-executed asset relocation plan can potentially lead to reduced insurance premiums. Insurance carriers may view your proactive approach to asset protection as a lower risk, leading to more favorable terms and lower premiums. This can result in cost savings for your business.

Protect Your Investments

Tree care contractors often invest in specialized equipment and vehicles, which are essential for their operations. A wildfire can damage these valuable assets, leading to significant financial losses. An asset relocation plan allows you to move your equipment and vehicles to a safer location to protect your investment.

Ensure Business Continuity

The aftermath of a wildfire can be chaotic. Having an asset relocation plan in place ensures that your equipment and vehicles are moved to a secure location well before a wildfire strikes, keeping your assets safe. This allows your business to continue operating after the disaster with minimal disruptions. Maintaining continuity is essential for your income and reputation.

An asset relocation plan is an important component of your risk management program as a tree care company, especially if you’re located in a rural area. If your business is located in California, Cal Fire has a valuable online resource called Fire Hazard Severity Zones Maps. This resource shows the areas in your county that are considered high fire hazard severity zones. It is recommended that you make your relocation address somewhere where the fire hazard severity is considered low or moderate.

Should you have further questions on this topic, reach out to me directly at randerson@ranchomesa.com or call me on my direct line at (310) 753-6804.

Steering Towards Safety: Strategies for Lowering Commercial Auto Insurance Premiums

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

We are going into uncertain times as some commercial auto carriers are electing to no longer write new business in California. This is leading to other carriers, that are still willing, to be overwhelmed with requests for insurance quotes. Carriers are limited in the increases they can take from one policy period to the next and have had increasingly bad losses which have made it impossible to be profitable. This will lead to carriers inevitably charging more over time as the losses have become staggering. Let’s take a look at what you can do as an insured to help your company look like a better risk for these carriers and mitigate premium increases.

Increase Limits

Increase limits for employees that drive their personal vehicles. California’s minimum limits for auto insurance have not been raised in over 50 years. With vehicle costs and medical bills exponentially increasing over that time, it is easy to see how most drivers in California are underinsured if any serious accident occurs.

The Protect California Drivers Act will go into effect January 2025 which will increase the minimum personal auto insurance limits from $15,000/$30,000/$5,000 to $30,000/$60,000/$15,000. This will help Californians, but also consider increasing the limits your company requires for your employees. It will help insulate your company further and lead to more carriers potentially being willing to insure your company’s drivers.

Install GPS

Install GPS and have someone at the office track drivers. Insureds tend to use GPS as a reactive tool, if a vehicle goes missing they can track it and potentially recover. Or, if a driver gets a ticket, they look back to see if the driver was speeding or has an issue of speeding. If used properly, this can help your company find unsafe patterns before they lead to an accident. You can track speeding, hard turns, and excessive breaking. Being able to identify poor drivers before an accident happens can lead to substantial savings on your insurance premiums.

Implement Driver Training

Proactive and reactive driving trainings can go a long way. Rancho Mesa’s SafetyOne™ website offers online driver training. Driver training history is stored and available for review at any time. So, companies can prove to carriers they take driver safety training seriously.

Seeing where the industry is moving, it would be smart to ensure you are staying ahead of trends. Meeting with your insurance broker to make sure you have the proper fleet safety program in place is vital.

If you have any further insurance questions or would like to discuss your fleet safety program, please contact Casey Craig at (619) 438-6900 or ccraig@ranchomesa.com.