Healthy Lifestyles

Commercial Risk Service is proud to announce …

To say that we have a problem with Healthcare in this country is a ridiculous understatement! Every aspect of our healthcare system is faltering:

---Heathcare costs are continuing to rise every year (although this last year was the first one in a long time where the rate of growth actually was less!)

---Health insurance carriers are in a state of pandimonium, not knowing where to turn next. We are seeing consistent increases in monthly premiums, both for Group Benefits and individual family health insurance.

---Our Government has gotten more and more involved. Enough said- that’s enough to screw everything up just by itself!

Our politicians and everyone else wants to lay the blame on everyone else, but nobody is doing anything about it, other than driving up costs. The truth is that all of the problems listed above are merely symptoms of the real problem. I believe that our true problem is the deteriorating health of the peole in this country!!! We at CRS want to attack the problem, not the symptoms. We are introducing our “CRS Healthy Lifestyles” to do just that- improve the health of our clients and improve their knowledge of how to live a healthier, happier life.

What is the Program about:

CRS will work with you and your employees to create awareness of critical health issues that affect all of us in today’s environment. Some of the major health factors we will address will include:

• A better understanding and awareness for your employees of how to combat obesity and the horrible side effects it creates, which are consistently increasing your health insurance premiums.

• More awareness of the horrible effects of tobacco use, as well as overuse of alcohol, and the effect it has on your employee benefits.

• Increased opportunities for your employees to have 1-on-1 conversations with healthcare providers concerning their individual health issues.

• Opportunities for your employees to see how much you care about them as a person.

Tangible Goals of the HL Program:

• Reducing obesity and owerweight lifestyles for your employees

• Reducing demand for medical services over time

• Reducing absenteeism

• Reducing on-the-job injuries and Worker’s Comp costs

• Reducing disability management costs

• Ultimately, reducing premiums for Group Health and Worker’s Comp Insurance



Intangible Goals of the HL Program:

• Increased productivity

• Helps to recurit and retain the most effective and productive employees

• Improved Morale

• Project a message of good will to your employees and foster the message of self-responsibility



HL POINT OF ATTACK- OBESITY!!!

We want to go after all areas of health improvement. However, make no mistake about it- we believe that by focusing a lot of our time and effort on reducing obesity in our clients and their employees, we will show the most success. We have an epidemic on our hands as it relates to obesity in this country, and the healthcare issues that obesity and being overweight create are literally strangling our healthcare system.

The  HL Program is only getting started right now, but we believe that this program is the right way to attack our Healthcare issues. As our workforce becomes more and more unhealthy each year, we as employers lose more and more control over our benefits program.

Look for more information on this tremendous program in the near future!

How to Protect Yourself against Yourself

Many times we as business owners can be our own worst enemy. It is sometimes easier (and less expensive in the short run) to buy our teenage children a vehicle in the company name and let them drive it as much as they need (or just let them drive our expensive company-owned vehicle). This sounds like a good idea at first, but upon further examination, not so much!

We have had a couple examples of this lately- one specific incident especially comes to mind. One of our commercial clients has a son that turned 14 and got his learner’s permit. Instead of buying an old beat-up car to allow his son to learn the nuances of driving in this fast-paced world (which I highly recommend for every family), he let his son drive his company-owned vehicle (Dad was in the car with him, thank goodness!). As they were driving, his Dad told him to pull up to the building where the business was located (they don’t own the building, just leasing it). As the 14 year-old pulled up to the building, he pushed on the accelerator instead of the brake, and ran through the outside wall of the building, damaging the building and the vehicle. Ouch!!!

There are lots of issues here:

---Fixing the company vehicle will be paid for by his commercial auto policy- no problem. Except- having a 14 year-old driving your company vehicle will more than likely get the company non-renewed (or worse- cancelled) by thecarrier. At that point, it becomes more difficult and more expensive to find commercial auto coverage the next time around.

---Since the business owner is leasing the building and has care, custody and control of the building and he ran into his own building, his auto policy would not cover the damage to the building. That part of the claim was denied.

---In addition, since he has possession of the building, his General Liability policy denied coverage as well. As a matter of fact, none of his policies will cover the cost of the damage to the building (approximately $15,000-$20,000).

---The business owner has a Personal Auto Policy and a Personal Umbrella policy as well. However, neither policy will cover the claim either.

As a matter of fact, no coverage is available for fixing the damage to the building. This all stemmed from allowing a teenage driver to drive a company vehicle, remember. The business owner will probably have a lawsuit on his hands from the building owner, whose insurance will have to pay for the claim.

This could have been worse. What if the 14 year-old had been involved in an at-fault accident in the company vehicle and someone had died? This business owner could have been putting his entire business at risk just to let a 14 year-old drive for a little bit. It’s just not worth the risk. There are other, more reasonable alternatives.

The best practice is to call you insurance agent for solutions BEFORE you make these decisions rather than AFTER!!!

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

The 7 traits of effective risk reduction leadership in your organization

I read an article the other day titled “The 7 traits of effective leaders”. I totally agree with the article, but started thinking about how these traits relate to effectively reducing risk within a business. Here are some thoughts on this topic:

1) Make others feel important about their role in risk reduction

If all the directives and ideas about risk reduction come from you, how effective will they really be? The best ideas always come from the people that are closest to the action.

2) Promote a vision about risk reduction

Followers need a clear idea of where you’re leading them and they need to understand why that goal of risk reduction is valuable to them. Your job as a leader is to provide that vision.

3) Follow the Golden Rule

Treat your followers the way you enjoy being treated. An abusive leader attracts few loyal followers. If you are going to get people excited about risk reduction, they need to believe in you as a leader.

4) Admit mistakes, whether related to risk reduction or not

If you have made an error that leads to higher risk or losses for your company, ‘fess up! If people suspect that you’re covering up your own errors, they’ll hide their mistakes, too, and you’ll lack valuable information that can help you reduce more risk in your organization.

5) Criticize others about losses or potential losses only in private

Public praise encourages others to excel. If someone prevents a claim or reduces a claim, praise them to everyone! However, public criticism only embarrasses and alienates everyone, and discourages others from reducing risks within their area.

6) Stay close to the action

You need to be visible to the members of your organization, and they need to know you care about reducing risk within your business. Talk to people, visit other offices and work sites, ask questions, and observe how business is being handled, and what potential losses are prevalent. Often you will gain new insights into your work and find new opportunities for motivating your followers.

7) Make a game of competition with risk reduction

The competitive drive can be a valuable tool if you use it correctly. Set team goals, and reward members who actually perform at reducing risk within the business. Examine your failures, and celebrate your group’s successes.

Risk and the Meaning of Risk:

When most people think of “risk” they associate a negative connotation with the word, and assume that risk is inherently bad. However, lets take a closer look at the definition of risk, and the possible impacts it has on a business project. A risk is defined as "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives." While most focus on the negatives of risk, they fail to take into consideration the positives associated with the term. As experienced “Risk Managers”, Commercial Risk Service is able to not only protect your business from the potential negatives, but we see the positives in a risk management plan that allows for more business profitability. Like the phrase states “the higher the risk the higher the reward”, it is our job to find that balance in risk vs. reward, protecting your business first (risk) and increasing your profitability second (reward).

Within a risk management plan there is usually a “risk strategy” and finding this “strategy” that fits your business is vital to the outcome of different business projects or your company as a whole. There are four different strategies when it comes to risk management and they are; accept, avoid, mitigate, and transfer. Each project your company undertakes needs careful consideration as to how the project will manage that risk. If the strategy that is in place currently is not correct it could be costing you thousands of dollars, and possibly putting your entire company in jeopardy. Commercial Risk Service knows risk management and we are experts in risk strategies. Maybe it is time you had an expert examine just how your company handles risk-both the positives and negatives.

Commercial Risk Service
Risk Specialist
Clay George

Harassment Remains Major Workplace Problem

You would think that in the “enlightened society” we live in today, we should be past having any problems with harassment issues in the work place. Oh yea- ever heard of Herman Cain? He is just another in a long line of employers- those that are well-known and those that are relatively obscure- that have created issues in the workplace with sexual harassment.

Let’s think about it- what issues do we have to deal with now that may add to our harassment risk in the workplace?

---Greater informality in today’s workplace
---Widespread use of social media
---Knowledge by the working class of exactly what harassment is

Experts say employers should use a strong policy, training and an accessible complaint program to discourage and address sexual harassment. While the number of sexual harassment complaints filed with the U.S. Equal Employment Opportunity Commission fell 7.7% in 2010, sexual harassment remains a significant problem. According to the EEOC, there were 11,717 sexual harassment charges filed in 2010. What is worse, 64% of organizations received at least one sexual harassment claim in the previous two years.

However, the types of sexual harassment have changed over the past 20 or 30 years. Where previously it was more common to see where women were asked for “sexual favors in exchange for some employment benefit, now the vast majority are hostile environment theories. While the means may be different, with today’s use of text messages, emails, Face book posts and tweets, as long as we have males and females in the workplace, this sort of activity will probably continue.

The proliferation of texts and emails has also increased the risk of issues concerning sexual harassment. People are becoming more comfortable sending inappropriate material via an email or text message than they would in person. Now you can harass someone without seeing them or touching them! You can create a sexually hostile work environment via email from the floor below or the office next door. There are also instances where people may not intend for something to be harassment, but it may very well be perceived that way; and sometimes people just don’t think.

What is the best practice for confronting sexual harassment?

• A strong training policy

Employers should be sure they have updated, sophisticated social media policies that address the role social media may play in sexual harassment. Anti-sexual harassment policies should be updated to reflect today’s social media, and social media policies should address its potential role in this area.

One thing that training supervisors need to be aware of is that they can be held personally liable for sexual harassment.

Even if the company has insurance or provides a defense, the company cannot provide them with coverage for punitive damages.

• A readily accessible complaint procedure

You have to develop a culture where people feel they don’t need to put up with sexual harassment, where employees can let someone know and something actually will be done about it. There should be frequent and regular communications with the employees, and I don’t mean standing up in front of a room and lecturing employees about it. It requires being truly “out on the floor” communicating with everyone.

• Responsive investigations

An easily accessible complaint and investigation procedure also should be in place. Employees should also be able to make the complaints anonymously if they feel they need to do so.

• A corporate culture that discourages sexual harassment

Sexual harassment simply put can’t be tolerated at any level. If that culture is created throughout the organization, you have much less chance of having a problem.

Sexual harassment is still a major issue, but one that can be dealt with relatively successfully if handled up-front and consistently.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Is it "at-work" or "working-out"?

The American Heart Association says that walking 10,000 steps per day can help reduce the risk of stroke by 70%, and initial heart attack rates by 90%. The American Diabetes Association says that walking 10,000 steps per day can help reduce Type II diabetes by 50%.

Companies investing in the walk-at-work movement machines are the newest craze. Several manufacturers are producing desks that will accommodate treadmills so the employees can exercise WHILE THEY WORK! Many companies, such as AOL, AAMD, BestBuy, Bristol Myers-Squibb, Coca Cola Bottling, Consona, Eli Lilly, Microsoft, Pixar and Toyota are trying out this model.

Even in our office, Beth Bowman, whom many of you know, came to me with a proposition. She wanted to STAND at her desk all day instead of sitting. She was having back problems, and she believed it was partly because of sitting all day. We

accommodated her, and raised her desk enough that she can stand all day. She doesn’t have a treadmill under her desk, but I am happy to report that all of her previous back ailments are gone! She believes a large part of these results are because of standing all day instead of sitting. It also burns more than 700 additional calories daily as well!

However, companies investing in the walk-at-work movement could expose themselves to employees filing cumulative trauma claims, said worker’s compensation expert Paul Braun, with AON Global Risk Consulting. “The very simple issue around this type of exposure is that if somebody gets hurt at work and the company has this kind of arrangement, the claim will be accepted; there’s no way around it.” Braun said.

There is a conditional trade-off here- on the one hand, you are helping employees to exercise more and maintain a healthier lifestyle, which in the long run could save you on your group health plan. In addition, you have created a happier, healthier employee that is probably more productive in the long run. On the other hand, the simple fact that you are helping employees to walk while working could open you up to more exposure from a Worker’s Comp standpoint. (Even if a person was running every night after work and they were diagnosed with an ailment from too much stress of running, the injured employee could still maintain that the injury was sustained at work, and it would be paid.)

Don’t get me wrong- I think it is a great idea. However, you need to know what you are getting into when your employee wants to “walk at work”!

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

ID Theft is up 34%- What can we do?

The number of U.S. households and businesses that fell victim to some kind of identity theft rose to 8.6 Million in 2010, costing the victims about $13.3 Billion, the U.S. Bureau of Justice Statistics said Wednesday.

Each person or business who reported a dollar or more in identity theft lost an average of $8,200 in 2010. About 7% of all households were victimized and 11% of businesses were victims as well, which is up from 5.5% in 2005. From 2005 to 2010, the misuse of an existing credit card account was the fastest-growing type of identity theft. Reports of credit card information stolen from businesses and people’s trash, and from legitimate card readers by devices attached to machines such as ATMs that record the information for use later also made up a large portion of the losses. Many of these cases involve relatives, roommates, or in the case of businesses, an employee stealing information from people close to them. Also, Internet shopping can put more people at risk.

We recently had one of our business customers that fell prey to identity theft. The business’ credit card was stolen from their mailbox before the owner could retrieve the mail. By the time they found out about it, this theft had fraudulently bought over $22,000 worth of merchandise. As business owners, what can you do about this growing problem? What safeguards are available to you? Here are a few:

1) Make sure when you order something with your business credit card that it is on a secure data line. There are ways to check this before ordering.

2) Be aware of charges to the credit card, and have a limit set where the card company will automatically contact you when a purchase is made over that limit.

3) Many credit cards are stolen through the mail, with thieves taking the cards as they are sitting in the business’ mail box. Make sure you have a P.O. Box for all that type of mail to be sent to. NEVER put your actual physical address on the return addresses part of the envelope- only your P.O. Box number.

4) Use common sense- be involved in the use of your company credit card, and limit access to the card to a bare minimum.

5) Make sure you have purchased crime coverage for your business. If should include Blanket Employee Dishonesty and theft of property.

As business owner’s, we must all be aware of the consequences of identity theft. If can be devastating.

Bobby Bland PWCA, CIC
Vice President

Commercial Risk Service