The Insurance Advisor June 2008
A problem scent
Every
workplace it seems has an employee who smells like they have bathed in perfume
or cologne before coming into the office. And while most co-workers and bosses
have long been content to roll their eyes and grab a chair farthest away from
the perfumed-one at meetings, many workplaces are starting to take office
scents seriously.
In
the last several years, as the issue of scent-sensitivities has gotten more and
more attention, employees are beginning to complain to bosses and some
companies are instituting partial or total bans on scents in the workplace. The
reason for the newfound attention is both an attempt to encourage workplace
harmony and avoid liability. Fragrances like perfumes and colognes have been
linked to a wide range of health problems in some people. Though it remains a
controversial diagnosis, some people suffering with “occupational asthma” have
linked their coughing and other respiratory problems to chemicals in the
workplace, including perfumes.
The
Americans with Disabilities Act requires companies to make reasonable
accommodations for those with a recognized disability. Whether a sensitivity to
fragrances counts as a disability hasn’t been completely resolved, but that
doesn’t mean employees aren’t filing lawsuits. One case getting a lot of
attention is that of an employee of the city of Detroit. Susan McBride
complained about perfumes used by her co-workers, saying they caused her health
problems. Her employer refused to ban perfumes in the workplace, so she sued
last year.
As
this becomes more of an issue, employers should try to be proactive with
scent-related issues in their workplace. The most sweeping step an employer can
take is to ban perfumes, cologne and air fresheners all together. But this
might be going too far and could alienate some employees. A more reasonable
solution might be to make employees aware that not everyone likes overpowering
scents and to please be cautious. Then you can handle any specific problems on
a case-by-case basis. And always be sure to take any complaints from your
employees seriously; it’s always easier, and cheaper, to deal with it before it
reaches the status of a lawsuit. Taking steps before it becomes a problem not
only is a way to avoid legal and health problems down the road, but it also can
improve office morale by creating clear rules and potentially eliminating an
office annoyance.
Fewer cars being stolen
There
is some good news on the effort to stop car thieves. Preliminary data from the
National Insurance Crime Bureau’s annual report on auto theft in the United
States shows a drop of 7.4 percent in 2007. If that preliminary figure holds,
it would be the largest single-year drop in the national auto theft rate since
1999. It also would contribute to an 11 percent drop nationally since 2000.
But
NICB President Robert M. Bryant urged drivers and police not to become
complacent, saying that gains in preventing auto theft can be fleeting. Indeed,
the rate of auto thefts increased for several years earlier this decade.
Once
again in 2007, the western United States suffered the most car thefts. The top
ten metropolitan areas for car theft were all west of the Mississippi River and
four of the top five were in California. The worst-hit area was Modesto,
Calif., followed by last year’s car theft capital, Las Vegas.
The
NICB recommends what they refer to as a “layered approach” to preventing auto
theft:
* The first is to just use a
little common sense. Don’t leave the keys in the car, lock your doors and roll
up the windows and park in a well-lit area.
* You should also consider a
layer of defense that includes physical items that help prevent or deter a
thief or make it easier for the car or its parts to be recovered. Things such
as alarms, steering wheel locks, vehicle identification etchings or micro dot
markings all help deter and catch car thieves.
* A third layer of defense
are electronic devices. These include smart keys, kill switches, ignition disablers and vehicle tracking
devices.
Installing
these devices sometimes has the added benefit of lowering your car insurance
premiums. Some states and companies will provide a break on insurance if you
install anti-theft devices. And even if you don‘t qualify, simple and often
cheap measures can deter a thief from even trying to steal your car.
Tornados becoming
increasingly costly
With
smaller losses from hurricanes in the last few years, tornados are beginning to
rival hurricanes for catastrophic losses to businesses and homeowners. A.M.
Best recently reported that $1 billion in insured losses from a single tornado
event was becoming more common.
Just
this year, there have been several devastating tornado strikes in the United
States. The so called “Super Tuesday” tornados that hit the south in early
February were the most deadly string of twisters to hit the United States in
more than a decade. And the storm that produced a tornado that hit downtown
Atlanta in March could end up resulting in losses of almost $1 billion. In May,
a series of storms smashed through Oklahoma and Missouri killing 23 people.
Since 1953, tornado-related events have been responsible for almost 57 percent
of catastrophic losses each year.
And
twisters are not just a problem in the South and Midwest. While more tornados
are reported in states like Texas, Kansas and Oklahoma, the states with the
most losses are in the Northeast. New Jersey is the state with the most
expected losses, according to A.M. Best.
Most
business insurance policies will cover tornado damage and most comprehensive
vehicle policies will cover damage to company cars. But it’s not a bad idea to
review your coverage if you do business in a tornado-prone area of the United
States.
Simple wind solution in
works
What
if the howling winds of a hurricane could be harnessed to keep the roof on a
building, instead of ripping it off? That’s the idea behind a vent in
development by a Virginia roofing company and professors and students at
Virginia Tech.
The
squat little vents, which look more like tiny barbeques than potential building
savers, are already on several buildings in Virginia and the Carolinas. They
work by taking advantage of something called the Venturi effect. You might be
familiar with the effect if you’ve ever noticed how cigarette smoke is pulled
out the window of a moving car. The air outside the window is moving past the
relatively still air inside the car. The faster moving air is at a lower
pressure than the air inside, so the smoke is sucked out. Using a carefully
designed system of tubes and two bowl-shaped pieces, the researchers have
produced a vent that creates the same effect under the membrane of a flat roof.
The faster the wind blows, the greater the difference in air pressure and the
more tightly the roof is pulled down onto the building. Just as the faster you
drive the faster the smoke is pulled out the window.
While
still in the planning stages, the device has the potential to change the way
roofs are designed and installed on commercial buildings. Chuck Johnson, one of
the roofers who came up with the idea for the system, says building roofs now
are held in place using fasteners and adhesives. “Now, so many fasteners are
required that roofing is very expensive and the integrity of the deck is
compromised,” he said. “Plus, if you ever have to take the roof off, you have
to take it off in pieces and recycling the material is impossible. It’s all
very labor intensive. .. We are using physics instead of mechanical fasteners
or adhesives. The harder the wind blows, the better it works.”
If
the V2T vents prove to be useful and effective, it could be a elegant solution
to one of the more expensive ways hurricanes and strong storms damage
buildings. Many buildings suffer a great deal of damage in storms after most of
the strongest winds have passed. This is because once their roofs are damaged
or destroyed there is little to keep the wind and rain out of the vulnerable
insides of the building. If an effective way could be found to keep the roofs
on in the first place, a lot of water and storm damage could be avoided.
Little knowledge goes a
long way
A
recent survey has revealed that a disturbing number of small business owners
have little knowledge about their workers compensation insurance.
The
survey by Employers, a group of workers compensation providers, found that one
in seven small business owners and executives could not name their workers
compensation insurer. A similar number admitted they do not understand how
workers compensation protects employees with work-related injuries or how it
can protect their business against catastrophic claims.
It
is important for business owners to have a firm grasp of how workers
compensation works and what is covered. And it isn’t enough just to know the
name of your insurer and have a general understanding of what workers compensation
is. It is also important to know what is covered, what isn’t, what is required
when an employee is injured, where potential liabilities lurk and what the laws
of your state are. Most states mandate that businesses carry workers
compensation insurance, and the rules on what they must carry vary from state
to state.
Most
of the basics are fairly easy to master, and one of the best places to get
information specifically tailored to your company is through your insurance
provider. Not knowing some of these basics could lead to costly -- and very
preventable -- mistakes. If you don’t know something, ask. The Employers survey
shows you wouldn’t be the only one who should be asking more questions.
Business briefs: Wellness
liars?
In an effort to save $500 in
a company wellness program, 39 Whirlpool production employees in Evansville,
Indiana, apparently lied on insurance forms saying they didn’t smoke. News
reports say the company suspended the workers and will be investigating what to
do next. "Falsification of company documents is one of the most serious
offenses our employees can commit," company spokeswoman Debby Castrale
told the Evansville Courier and Press. "We treat it very seriously."
Incidents like this show the difficulty in having large amounts of money riding
on what is essentially the honor system. It is possible the cheaters might not
have been caught if they hadn’t been seen smoking on company property. As more
companies institute wellness programs with financial incentives, it is
important to remember cases like this one.
Business briefs:
Regulating health
In an effort to promote
healthy employees, one California assemblyman is pushing the state to force
companies with $1 million in contracts with the state to have employee wellness
programs. A report in The Sacramento Bee says that Assemblyman Lloyd Levine,
who once tried to mandate that captive elephants be fitted with GPS units to
make sure they were getting enough exercise, is looking for ways to improve the
health of workers in the state. But small business owners see the bill as just
another regulation that promises to hurt their bottom line. “Why are we putting
the responsibility on businesses? It’s individuals who make decisions about
their lifestyles,” Michael Shaw, assistant state director for the National
Federation of Independent Businesses, told The Bee.
Business briefs: Ups,
downs of settlements
The number of securities
class action cases settled last year rose 21 percent, from 92 in 2006 to 111in
2007, according to Cornerstone Research. Despite the jump in the number of
cases, the total value of settlements in 2007 dropped dramatically. It went
from an all-time high of $17.2 billion in 2006 to $7 billion in 2007. But these
numbers are skewed by two massive cases. Most of the drop between last year and
2006 is due to the $7.2 billion Enron settlement, the majority of which was
approved in 2006. The 2007 numbers were also heavily influenced by one case.
The Tyco International settlement, which cost $3.2 billion, accounted for almost
45 percent of the total value of settlements approved in 2007.
YOUR PRIVACY:
Rust Insurance Agency values your trust as one
of our most important assets. We are committed to preserving that trust and to
protecting your privacy. This Privacy Policy is provided to you so that you
will understand what Rust Insurance Agency does with the personal information
you provide. This policy applies with respect to our insurance products and
services.
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We collect nonpublic personal information about
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with customer service, and fulfill our legal and regulatory requirements.
“Nonpublic personal information” is information about you that is personally
identifiable and that we obtain in connection with providing you insurance
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following:
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As we have indicated in this Privacy Policy
Notice, we collect certain nonpublic personal information about you, and we may
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If
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