Please join us to learn from two of Amerisure’s risk management experts about protecting your workplace from the unique risks posed by COVID-19. We’ll discuss:
- Your company’s role in responding to the pandemic
- Initial steps for safely bringing back employees once your facility is open
- Daily access procedures
- General employee work practices and controls
- Protocols for employees while they are traveling
Thursday, May 21 at 2:00 p.m. EDT
Click to register
The National Council on Compensation Insurance (NCCI) is acknowledging the circumstances around COVID-19 and expediting a rule change that will address the question of payroll for furloughed employees as it relates to the basis of premium. Currently, payroll is included in calculating the employer’s workers’ compensation premium. A workers’ compensation premium is based on payroll.
“The rule change is going to take the payroll for that period of time where the worker is furloughed and remove it from the calculation. This will be distinct from “idle time” under our current Basic Manual rules (Rule 2-F-1), and a corresponding statistical code 0012 will be created for reporting this payroll” said Jeff Eddinger, senior division executive, Regulatory Business Management, for NCCI.
If approved, this rule change will be retroactive, most likely to March 1st. How long the code will remain available will depend on how long shutdowns are in effect.
In another change, NCCI will also begin tracking COVID-19 related claims.
NCCI has a COVID-19 Resource Center on its website that includes answers to frequently asked questions and a new analysis of the economic impact of coronavirus on the workers’ compensation industry. Gulfshore Insurance will keep you updated on this matter as more information is released.
Tim Spear, is a Client Advisor and Partner at Gulfshore Insurance specializing in the construction, oil/petroleum, and landscape industries. Through his consultative and diagnostic approach, he helps clients develop customized programs to meet their risk management needs. Comments and questions are welcome at firstname.lastname@example.org
As a business owner and employer, COVID-19 has likely caused major changes in the way you are operating your business. As we now look to reopening the economy and other segments of business, you should be prepared for when an employee falls ill or tests positive for COVID-19.
OSHA has provided Guidance on Preparing Workplaces for COVID-19. In addition, you should consider how Workers’ Compensation may apply and if there is any necessary OSHA reporting if you have an employee test positive.
Workers’ Compensation Benefits:
Historically, it has been difficult for an employee who is not working “on the front lines” (i.e. healthcare industry, emergency response, fire, law enforcement) to receive Workers’ Compensation benefits due to a communicable disease or an “ordinary disease of life” as it is often referred. An ill employee not working in the job descriptions listed above has a heightened burden of proof to show that the illness arose out of or was caused by conditions peculiar to the work, and that he/she had a greater risk of contracting the disease in a different manner than the general public. That being said, as more employees fall ill, there is sure to be many workers who will try to prove that case.
OSHA 300 Reporting:
OSHA has released a memorandum specifically addressing COVID-19 reporting. For occupations other than healthcare, emergency response (fire and law enforcement) and correctional institutions, COVID-19 must be reported on the OSHA 300 if the following is true:
- It is a confirmed case of COVID-19, as defined by the CDC
- The case is believed to be work-related (i.e. several cases developing among workers)
- The evidence being work-related was reasonably available to the employer (i.e. information given to the employer by employees, or information an employer learns regarding employees’ health and safety in the ordinary course of managing its business and employees).
Needless to say, if you have knowledge that an employee has been exposed to COVID-19, keep them away from the rest of your workforce, at home, and look to pay them their normal wages during that time.
For more information regarding COVID-19 OSHA requirements and employers’ responsibilities, visit the OSHA COVID-19 Information Page.
Jeffrey Sanders, TRIP is Client Advisor at Gulfshore Insurance. Jeff works with a wide range of business clients to deliver strategic risk analysis, guidance, and insurance. Comments and questions are welcome at email@example.com
Several factors make vacant and idle facilities particularly vulnerable to loss. The most common property perils facing a vacant and idle facility include fire, vandalism, and inclement weather. While these perils are also present for operating facilities, they are magnified when a facility is vacant, operating on a skeleton crew, or idled.
During this period of uncertainty and reduced staffing due to COVID-19, it is especially important to prepare and mitigate the risks that are unique to vacant or idle facilities. The following strategies can help mitigate the risks with vacant and idle buildings:
- Ensure that fire protection systems are maintained and fully functional. Verify that sprinkler control valves are secured in the open position and that fire pumps are in the automatic setting. The typical service and maintenance activities for fire protection systems should be continued where possible.
- Central station alarm companies and local fire departments should be notified when a facility is vacated or idled. The emergency response procedures and alarm protocols should be discussed and adjusted to address the lack of on-site personnel.
- Fuel and power should be verified and maintained for any fire pumps and special extinguishing systems.
- Housekeeping conditions should be addressed to eliminate or reduce any unnecessary combustibles in the building. Combustible storage outside the building, such as idle pallets, should be eliminated. Waste receptacles should be emptied and secured.
- Operations involving flammable or combustible liquids should be discontinued, and flammable liquids should be removed or relocated to properly protected areas.
- Steps should be taken to ensure that critical machinery is shut down and idled in a safe manner. Equipment manufacturers should be consulted for guidance on long-term shutdown of sensitive machines.
- The perimeter building areas and exterior doors should be secured. Personnel with keys and key cards should be reviewed to ensure that only designated approved individuals have access to the building.
- CCTV cameras should be verified and/or installed to cover sensitive areas. Remote monitoring should be established by designated facility personnel or central station alarm companies.
- Building roof areas should be inspected to ensure unnecessary storage is removed from the roof. Building drains and scuppers should be cleaned to ensure effective drainage.
If you have any questions, please do not hesitate reach out to your Gulfshore Insurance Client Advisor who can offer assistance. We are here to help.
Gregory Havemeier, CIC, AAI, CIRMS is a Client Advisor and Partner at Gulfshore Insurance specializing in community and condominium associations. Gregory works with a wide range of business clients to deliver strategic risk analysis and guidance. Comments and questions are welcome at firstname.lastname@example.org
Although the health and safety of our community is our number one priority during the COVID-19 outbreak, there are many concerns surrounding the degree and duration of disruptions to business activity and daily life. Mandatory and voluntary quarantines, social distancing to groups of 10 or less, restricted travel, and business closures are increasing measures being taken around the United States. These disruptions primarily affect businesses as they begin to lose inventory, revenue, and profit. From mom and pop shops, to tourism hot spots, concert venues, and restaurants the impact will be felt by all. Not to mention that this rippling affect will then be felt by suppliers, contractors, vendors, and service providers.
For insureds and insurers, once-hypothetical questions surrounding COVID-19 are quickly turning to familiar and regular insurance coverage questions such as the availability, scope and limitations of coverage, number of occurrences, exclusions, along with limits, sub-limits, deductibles and retentions. The claims that come out of COVID-19 will also provoke unique question and present their own set of challenges.
First-Party Business Interruption Coverage
First-party policies covering commercial property insurance provide coverage for business income loss by adding an endorsement to the insured’s property policy. This endorsement is designed to protect the insured for losses of business income it sustains as a result of direct loss, damage, or destruction to insured property by a covered peril. Although many such clauses are in use today, a typical business income insurance clause reads as follows:
“We will pay for the actual loss of business income you sustain due to the necessary suspension of your ‘operations’ during the period of ‘restoration.’ The suspension must be caused by the direct physical loss, damage, or destruction to property. The loss or damage must be caused by or result from a covered cause of loss.”
Physical Loss or Damage Requirement
BI coverage is often part of the commercial property policy a business holds. This form adds coverage, in certain instances, for lost business income, contingent business interruption losses, and losses due to certain action taken by civil authorities.
To obtain coverage resulting from the current COVID-19 crisis, the existence of the virus would need to constitute a Covered Cause of Loss, which results in physical loss of or damage to the covered property. This is unlike a fire, hurricane, or flood, which are common causes of losses that cause visible damage to property. As mentioned earlier, businesses are closing, even though there may be no apparent damage at all. But, if the coronavirus is found within the confines of a workplace or business, this arguably constitutes damage to the property, albeit at a microscopic level that cannot be seen.
Duration of Lost Income Claim
Each policy is unique with different definitions and measurements relevant to the period of restoration. Complications can also arise where an insured opts not to resume business operations. However, business interruption typically includes coverage for repair or replacement of property impacted, in addition to loss of business income through the date the damaged property is repaired or replaced.
Calculation and Adjustment of Accepted Claims
Unfortunately, insureds bear the burden of substantiating claimed BI losses. When a claim is being reported, it’s important for the insured to detail and retain documentation for all business activity, direct or indirect cause of any disruptions, and mitigation efforts. It’s also important to note that insureds should be able to value and substantiate losses by referencing business history, benchmarks, and forecasts.
If you have BI coverage on your policy and find yourself needing to temporarily close your doors, we recommend you file the claim with your insurance company. If you are usure if you have this coverage, I am more than happy to review your policy. At Gulfshore Insurance, we specialize in insurance and risk management for the restaurant industry and can answer any questions you may have.
Olivia Ferencsik, is a Client Advisor at Gulfshore Insurance. Olivia works with a wide range of business clients to deliver strategic risk analysis, guidance, and insurance. Comments and questions are welcome at email@example.com