U.S. Department of Labor Occupational Safety and Health Administration (OSHA) has officially suspended the Obama administration rule requiring companies to electronically file injury and illness reports.

The controversial rule was supposed to be in effect as of January 1, 2017, as we reported earlier in our Sur Advice Blog: “OSHA’s Big Change: What Does It Mean For You?” posted on February 2, 2017. However, OSHA did not launch the website that would have served as the portal for reporting.

The rule was vehemently opposed by multiple business groups. The Associated Builders & Contractors, the National Association of Home Builders and the Associated General Contractors of America all challenged the rule declaring it potentially damaging to the reputations of their members. Many companies expressed concern that information that is publicly disclosed could potentially be exaggerated and manipulated to possibly smear and damage reputations. Noting that accidents and injuries are a part of almost every workplace and that an accident or injury does not necessarily make the company an unsafe or dangerous place to work.

On the flip side, David Michaels, Head of OSHA from 2009 to 2017 says, “We know by making injury rates public some employers will work to prevent injuries because they want to be seen as safe employers and they want to be seen as good employers.” In addition an as we reported earlier, Michaels also says, “Access to injury data will also help OSHA better target compliance assistance and enforcement resources, and enable ‘big data’ researchers to apply their skills to making workplaces safer”.

OSHA intends to propose extending the date for reporting to July 1, 2017. According to OSHA spokeswoman Mandy Kraft, the agency has delayed the rule in order to address employers’ concerns about the rule. Approximately 441,000 workplaces are covered under the required reporting ruling making it a potentially massive measure. Again, click here  http://bit.ly/2ePzE4y for more information about all potentially effected industries.

Keeping our Clients informed and educated is a cornerstone of our Professional Client Care® program. As always, feel free to call us to discuss this issue.

Phase Two: The Road to Recovery Plan

The second part of any effective Disaster Plan is a Recovery Plan. A Recovery Plan details the steps it will take to put your business back on its feet as quickly as possible.

Following a loss, companies must deal with all the issues of the loss while simultaneously dealing with issues of re-building, work and revenue recovery.

Starting over means legal issues, planning for cash flow needs, temporary facilities, retaining key employees, satisfying creditors and demolition of damaged facilities. Next there’s rebuilding when replacing equipment, rebuilding inventory, securing building permits and hiring contractors all come in to play.

Work Recovery means getting work levels back to pre-loss levels, rehiring employees if needed, and rebuilding work-in-progress.

Revenue Recovery can obviously take longer as it is about recapturing the market and restoring sales to the level they would have been if no loss had occurred.

Having a roadmap for recovery gives you a tremendous advantage and allows you to get executional quickly and hit the ground running. 

Where to Begin

Obviously, the first step in disaster planning is avoiding the potential of being “under insured” in the event of a serious loss. The second and more critical step is map- ping out an approach that will ultimately give the control and confidence that you’ve “planned for the unplanned.” This is probably the single most consistent area where we feel our clients need to plan and prepare more. While it may seem uncomfortable to contemplate the “unthinkable,” planning for the perpetuation of your business in the event of a serious loss is a critical management consideration.

At Air Sur, we work with our clients to develop comprehensive risk management plans, and strongly encourage a detailed disaster plan. In response to the growing complexity of our client’s organizations and their risk management needs, our Professional Client Care® program delivers cutting edge solutions that provide you with maximum organization and accessibility to EVERY part of your corporate insurance program.

Continued from Part I

Understanding Your Legal Requirements

Historically, the IRS has used a 20-factor analysis to deter- mine worker status. Congress has also enacted what’s called Section 530 Safe Harbor based on consistency of treatment and reporting. Under the ruling, businesses are required to demonstrate that workers designated as independent contractors are consistently treated as such and that workers who perform similar functions are also treated as independent contractors and not employees. This is where aviation misses the flight. Independent contractor pilots and maintenance technicians typically perform similar functions as full-time employees. Operations hoping to find protection under the Safe Harbor ruling should consult with a labor attorney.

Workman’s Comp: The Reality

Workers’ compensation is another gray area overshadowing the independent contractor issue. If the independent pilot injures himself on assignment, guess whom he comes after? Your business. It’s a well-known fact that most independents don’t carry their own workers’ compensation insurance. It’s also a well-known fact that courts have ruled in favor of the injured independent in lawsuits. Once again, you could find yourself paying a backlog of premiums and interest to your workers’ compensation insurance company when the judge decides you should compensate the independent for his on-the-job injury.

Making an Informed Decision

It’s critically important that you understand all the ramifications with regard to staffing with independent contractors. We would be happy to help you explore all your options with a thoughtful risk-benefit analysis, so you can get your head around this complex business decision.

Air-Sur Expertise

At Air-Sur, our knowledgeable and highly experienced team are experts at analyzing your unique situation, and helping you make informed decisions that are best for you and your business. Please contact us today and let’s get started.

Thomas K. Coughlin, AAI, is president and CEO of Air–Sur, Inc. a business risk management and insurance services corporation headquartered in Ormond Beach, FL. He has specialized in developing, implementing, and managing comprehensive risk management programs for aviation and aerospace companies since 1976.

Cyber insurance is simply a must in today’s world where security breaches are commonplace, even among the most well protected companies. The ugly reality is that cyber-attacks result in the loss of hundreds of thousands and even millions of dollars, not to mention the immeasurable loss of a company’s reputation. The magnitude and reality of the problem is detailed in the startling statistics below.

Statistics/Risk Factors

• Average internal investigation costs associated with 5,000 compromised files: $831,360.
• Cyber-attacks are increasing in sophistication and frequency every single year.
• 50% of attacks were on companies with 2,500 or fewer employees.
• 31% were on companies with fewer than 250 employees.
• Average of $188 per compromised customer record.
• The average company confronts more than 5,000 security threats from malware every month.

Managing Risks

So how can businesses better manage the risks related to a data breach and reduce the significant cost that can result from them?

Multiple and more sophisticated safeguards are being put in place every day. However, cyber insurance is a must. In the vast majority of states, federal or state laws may mandate that your company take (and bear the expense of) certain measures in the event of a security breach. So let’s look at some ways to evaluate policies.

Measuring Your Policy

Who is covered?

Your policy should include the:

• company
• directors
• employees

What is covered?

Your policy should cover:

• Cyber Liability
• Privacy Notification and Crisis Management Expenses
• Reward Expenses
• E-Threat Expenses
• E-Vandalism Expenses

What expenses are covered?

The cost of repair can be enormous. Make sure you are adequately insured.

• Privacy notification expenses.
• Cost of monitoring and restoration services for affected customers.
• Crisis management and privacy notification expenses.
• Cost of legal counsel and information security forensics investigators.

Keeping our clients informed and educated is a cornerstone of our Professional Client Care® program. As always, feel free to call us to discuss this issue.