New Ladder Safety App
Helps Construction
Workers Avoid Falls
- Page 1
Real-Life Product Liability
Cases: Are You Covered?
- Page 2
Keeping Workers Safe
from Tornadoes - Page 3
Dealing With Your Client’s
Insurance Requirements
- Page 4
Whether a person is on
the ladder or standing
under it when it is
knocked over, injuries
are usually severe
and often require
emergency medical
attention.
To locate an office near you,
please visit us online
at www.bxsi.com
or contact us at
info@bxsi.com.
Risk Monitor
JANUARY 2014
A Newsletter for Clients and Friends of Bancorpsouth Insurance SERVICES, INC.
New Ladder Safety App Helps
Construction Workers Avoid Falls
Every year, there are many injuries
resulting from ladders falling on
construction sites. Whether a person is
on the ladder or standing under it when
it is knocked over, injuries are usually
severe and often require emergency
medical attention. Falls are one of
the largest concerns for construction
companies. Many people fall while
they are on an extension ladder if
safety precautions are not followed.
One major risk is misjudging the angle
of the ladder. It may look secure from
one point, but it may actually be far
from a safe angle for climbing. When it
is set too steep, it often falls backward.
However, ladders where the bottoms
are set too shallow may fall out from
below.
The National Institute for Occupational
Safety and Health (NIOSH) recently
promoted a new ladder safety phone
application. The mobile app uses audio
and visual signals to aid workers using
extension ladders. The app checks the
ladder’s angle when it is positioned
and also provides several helpful tips
for proper ladder use. The app helps
employers and safety professionals
select and inspect extension ladders
by providing easy access to interactive
tools, graphic aids, safety guidelines
and checklists. The mobile app is also
508 compliant.
Experts say if construction workers
utilize the new phone app it will likely
keep workers safe and prevent ladder
injuries. They point out the app is
proof of how experts are constantly
looking for easier ways for workers to
protect themselves. This app provides
feedback for setting up ladders at
optimal angles. In addition to this, there
are references users will find helpful
such as guides for inspecting, using,
accessorizing and selecting extension
ladders.
In addition to downloading this app,
it is helpful for construction workers
to brush up on their extension ladder
safety basics frequently.
The following are some useful
points to remember:
l
Never stand above the ladder’s
highest safe standing level, which is
outlined by the manufacturer and is
usually above three rungs.
l
Always keep three or more points of
contact during a project.
l
Avoid extending the center of the
body beyond the sides of the ladder.
l
Do not carry tools while using a
ladder. Instead, wear a window
cleaner’s belt or similar product
designed to meet the purpose.
l
Always face the ladder when
descending or ascending.
l
Do not leave an erected ladder
unattended for any length of time.
l
Always wear non-slip footwear when
climbing a ladder.
The ladder safety app is available
for all smartphone users and is free
to download for Android and iPhone
devices.
Welcome to the BancorpSouth Insurance
Newsletter!
It is with great satisfaction that we bring this newsletter to you. In this issue and in
coming months, we will discuss pertinent risk management topics which may affect
your organization. We sincerely hope that you will find this newsletter informative
and please do not hesitate to contact us should you have any questions or needs.
Real-Life Product Liability Cases: Are You Covered?
As outrageous as some product liability
lawsuits are, they generally help
improve the standards for the quality,
safety and reliability of products.
Such stringent requirements and dire
consequences may be daunting for a
company attempting to break into any
business, but these are the exact same
measures helping protect both the
business sector and consumers.
Below are two cases that will hopefully
serve as a reminder of the importance
of having product liability insurance and
protecting yourself, your business and
your valued customers.
Case #1: Machine Malfunction
Causes Crushing Lawsuit
A female worker was running
a compactor/baler machine
manufactured by Arrow Steel,
Inc. when the machine suddenly
malfunctioned for no apparent reason.
In an attempt to make the machine
work, her right arm was caught in the
machine’s mechanism. The incident
caused multiple injuries to the worker’s
arm, including several crush fractures,
lacerations, abrasions and contusions.
The worker decided to sue the
manufacturer for strict liability, claiming
the machine was defective, unfit and
dangerous for ordinary use. She also
claimed the compactor/baler was
carelessly designed, assembled,
distributed, sold, tested and marketed.
The defendant manufacturer, on the
other hand, contested the unfortunate
incident was, at least partially, the
plaintiff’s fault. The manufacturer
denied the machine was in any way
defective. Furthermore, the company
argued that the compactor/baler was
being misused and was subjected to
alterations by a third party.
On the day of the trial, the plaintiff and
defendant reached a settlement which
amounted to $750,000.
Case #2: Million-Dollar Lethal Beef
A beef supplier was sued for product
liability and negligence when a
70-year-old female customer got sick
and eventually died after consuming its
allegedly tainted ground beef bought at
a local supermarket.
On behalf of the decedent, the plaintiff
brought the case forward against the
beef manufacturer, whose product
was found to be infected with E. coli
bacteria. This reportedly caused
the decedent to experience severe
gastrointestinal and respiratory
conditions leading to her death.
In its defense, the meat
supplier disputed the
direct connection of the
decedent’s death to its
product. Despite the
defendant’s denial of
all allegations, the
plaintiff maintained that
the beef supplier was not
only negligent in putting a dangerously
defective product on the market; it
also failed to issue any warning to
consumers.
In the end, the parties agreed on a
$1,200,000 settlement.
How Much Product Liability
Coverage Do You Need?
The short answer is that $1 million is
often inadequate, as shown by the
second real-life case featured above.
Unfortunately, many business owners
believe otherwise, risking the security
of their business and potentially their
livelihood.
Most general liability policies include
product liability, but some may exclude
this coverage. Some policies only
provide $1 million per incident or $2
million for total losses occurring in a
single year. While this amount may
seem like an adequate protection for
a sizable business, it offers grossly
inadequate protection against a worstcase scenario wherein several multimillion dollar lawsuits are brought
forward at the same time or within the
same year.
One way of reinforcing protection
against such a probability is increasing
your limits of coverage. For many
businesses this will not significantly
raise your premiums. Another is to
purchase either an umbrella or excess
liability policy on top of your general
liability coverage. Doing so may raise
your coverage to as much as $25
million or higher.
Your BancorpSouth Insurance Services
representative can help determine an
adequate amount of product liability
coverage for your business. It is
important to evaluate your coverage
limits and policies on a regular
basis and if necessary, increase the
coverage best fitting your needs.
continued from page 4 ... Dealing
With Your Client’s Insurance
Requirements
revenue from the contract. In
the end, having the required
insurance builds and maintains the
relationship, provides you with legal
costs and settlement amounts up to
your policy limits should a covered
incident occur. Also, the insurance
coverage goes beyond one contract;
you are covered for all work that is
performed by your covered entity,
not just for the client requiring the
coverage.
You may want to consider building
costs for acquiring additional
insurance coverages into your
proposal if you have not already
done so. Your BancorpSouth
Insurance Services representative
is a crucial part of your team when
addressing these issues. They can
work with your client ensuring the
appropriate insurance requirements
are met. If you have the appropriate
coverages in place and include
a certificate of insurance in your
proposal, it will show that you
are well prepared to take on the
contract, perhaps giving you a leg
up over your competition.
Note – Our contract review service
is not intended to replace your
corporate counsel’s advice.
Keeping Workers Safe from Tornadoes
Developing emergency
plans, monitoring
weather watches
or warnings and
identifying the warning
signs of a tornado
are important for
employers to know to
keep themselves and
their workers safe.
Tornadoes often occur with very little
to no warning. During the past decade,
these disastrous storms have been
increasing in severity and frequency.
It is important for everyone to take
precautions against tornadoes, but it
is especially important for employers.
Employers have a certain amount of
responsibility to keep employees safe
in the workplace when a tornado hits.
Developing emergency plans,
monitoring weather watches or
warnings and identifying the warning
signs of a tornado are important for
employers to know to keep themselves
and their workers safe. Employers
should also be familiar with the different
types of hazards that exist after a
tornado has passed.
Preparing For a Tornado
Businesses should form emergency
plans of action in preparation for a
tornado. These plans should designate
shelter locations in the workplace.
Policies should include action steps
ensuring all workers are accounted for
and steps for dealing with hazardous
materials in the workplace. In addition
to this, employers should encourage
employees to develop plans at home
for their families. This will benefit both
the employer and the employee. If
employees do not feel confident in their
family emergency plan, this may only
lower safety in the workplace in the
event of a tornado.
Employers should form checklists
and delegate duties to supervisors
and workers. Every person should
know exactly what he or she should
do when a tornado watch or warning
is issued. Personal preparedness kits
can also be made to make the process
easier and remind everyone of the
emergency plan. Employees should
also have a clear understanding of how
to communicate with their employer
about their whereabouts after a
tornado.
Below are a few tips helping your
business prepare for a tornado:
l
Identifying shelter locations – An
underground basement or a storm
cellar provides the best protection
from a storm. If this is not available,
find a small interior room or hallway
on the lowest floor. Make sure to
keep away from windows and doors.
l
Develop an accountability system
– Create a system for knowing who
is in the workplace in the event of a
tornado. Use an employee checklist
and take a head count.
l
Practice your emergency plan
– Test alarm systems and have
employees practice the steps
detailed in the emergency plan.
By practicing your plan, you can
ensure employees are familiar with
the procedures. It also creates an
opportunity to make any necessary
adjustments.
After The Tornado
Following a tornado, businesses
must take several steps to recover.
Employers should educate their
workers on best practices for
preventing and avoiding hazards.
Portable generators, machinery, flood
waters, sharp objects, debris and
power lines can all be hazardous
especially after a tornado. It is
important to include specific items
in your plan and how they should be
handled safely.
Employers are responsible for the
safety and health of their employees
by providing a safe workplace.
Employers must protect employees
from anticipated hazards and take into
consideration response and recovery
operations after an emergency.
Employers can obtain helpful
information and rules for keeping
workers safe through OSHA’s
Compliance Assistance web page at
https://www.osha.gov/dts/weather/
tornado/. For additional information
on preparing your business and
employees for a tornado, contact your
BancorpSouth Insurance Services
representative.
Dealing With Your Client’s Insurance Requirements
You are about to secure a contract
and now you have to deal with the
insurance requirements. These
contractual insurance requirements
may have initially taken a back seat
to the main provisions of the deal
but without them you can’t move
forward with the agreement. In order
to win the business, you must have
the appropriate insurance policies
in place. Below are a few things to
consider when dealing with your client’s
contractual insurance requirements.
Dealing with Irrelevant Requirements
Many of these contracts load up
on insurance requirements. When
attorneys write these contracts, their
goal is to make sure the company is
covered from every possible angle,
even if it doesn’t make sense for the
situation at hand. For example, the
contract might call for you to carry a
million dollar commercial auto policy,
but you don’t have any commercial
vehicles and driving or using your
vehicle is not part of the duties of the
contract.
There are a number of ways
to handle such requirements.
However, you must first ask
yourself who is in the driver’s
seat of the contract? Do you
have a special skill they
cannot find anywhere in the
market place? Or do they
have a waiting list of people
who can do exactly what
you can do? Bottom line,
the more they need you,
the more likely you may
be able to negotiate these
terms.
There are several ways to negotiate
contractual insurance requirements.
Your BancorpSouth Insurance Services
representative can help review your
organization’s operational contracts
from an insurance perspective. This
review checks for compliance on
additional insured provisions, analyzes
contractual defense and indemnity
provisions and evaluates other
contractual provisions.
Coverage is Key
In many cases, the coverages required
in these contracts are coverages you
probably need and should have in
place. Clients require these coverages
because they want to deal directly with
the insurance company if an incident
happens. Insurance companies have
expertise in handling liability issues
and can do so professionally
without making it personal.
Detaching yourself from these
incidents helps you keep
the contract, continue
working and
receiving
your
Information contained in this newsletter about product offerings, services, or benefits is illustrative and general in description, and is not intended to be relied on as complete
information. While every attempt is made to ensure the accuracy of the information provided, we do not warranty the accuracy of the information. Therefore, information should
be relied upon only when coordinated with professional tax and legal advice.
BancorpSouth Insurance Services is powered by BancorpSouth Bank; a wholly-owned
subsidiary of BancorpSouth Inc., a $13.4 billion-financial holding company based in Tupelo,
Mississippi. BancorpSouth Insurance Services is annually ranked as one of the nation’s
largest brokers by Business Insurance magazine. Equipped to service clients across the globe
through our Worldwide Broker Network relationship, we have over 30 offices with almost
600 insurance and risk management professionals ready to serve.
Risk Monitor