Construction Safety Week 2025

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

From May 5th – 9th, 2025 businesses across the country have the opportunity to participate in the annual Construction Safety Week. Since 2014, Construction Safety Week has been providing companies with free resources to help promote a culture of safety in the industry. For employers, this is a chance to focus on jobsite safety and make a continued commitment to keeping your employees free from harm.

Daily Safety Trainings

Alongside the number of free resources available through the initiative, Construction Safety Week provides daily safety training in English, Spanish, and French. The Daily Topics are built around this year’s theme All in Together, meant to emphasize the entire industry’s dedication to safety.

Monday, May 5th – Plan with Precision

Monday’s Daily Topic focuses on planning and preparation, placing a strong emphasis on identifying high-risk activities, implementing control measures, and ensuring collaboration in safety planning.

Tuesday, May 6th – Identifying High Energy Hazards

Tuesday’s Daily Topic is centered on identifying, controlling, and eliminating hazards that could result in fatal accidents before any work begins.

Wednesday, May 7th – Own Your Part

On Wednesday, the Daily Topic emphasizes each team member’s responsibility when developing a safe work environment. Accountability, communication, and leadership are key objectives in this Daily Topic.

Thursday, May 8th – Engage and Empower Team Members

Thursday redirects attention to team members, providing them with the tools and resources they need to foster a culture of safety. The Daily Topic centers on how training, communication, and trust can empower employees to make safe choices.

Friday, May 9th – Commit to Excellence

Friday’s Daily Topic asks team members to commit to building a safe work environment through planning, preparation, and support of one another.

For companies taking part in Construction Safety Week, Rancho Mesa offers a number of toolbox talks and trainings through the SafetyOne™ platform that can be used alongside the Daily Topics.

Along with the daily trainings, companies and employees can register to commit to a daily safety statement, and enter for a chance to win $1,000.

Key Dates that Will Define California’s Workers’ Compensation 2025 Rates

Author, Kevin Howard, Partner, Rancho Mesa Insurance Services, Inc.

In California, September 2025 will be a pivotal month for the state’s workers’ compensation marketplace. With inflated post-Covid-19 payrolls still affecting premiums, both the Workers’ Compensation Insurance Rating Bureau (WCIRB) and California’s Insurance Commissioner Ricardo Lara have been working to establish appropriate pure premium rates that are reasonable for both insurance carriers and employers.

Many California worker’s compensation carriers have shared that their combined ratios continue to rise. This means the cost of claims and expenses are increasing disproportionately to the collected premiums. And, at some point, a middle ground needs to be met based on the data analytics to ensure the carriers can continue to operate in the state.

Over the last few years, the WCIRB has provided Lara with recommendations to increase pure premium rates which should help to lower the carriers’ combined ratios, though the approved rates have trended lower than the recommendations. Now that the data shows carriers’ combined ratios are too high to sustain long-term, all eyes are on Lara over the next 5 months to see how this will unfold.

Pure premium rates are the WCIRB’s advisory rates, which change annually for each California class code. Pure premium rates do not include factors like commissions, carrier overhead expenses, or profit margins that are later added to the equation. The pure premium rates can be viewed as the starting point for independent carrier actuaries when they are deciding on annual increases or decreases based on the WCIRB’s posted pure premium rates.

A deep dive into the timeline of events that will shape the future of pure premium rates, dual wage thresholds, and carriers’ base rates per class code is important in order to understand the current workers’ compensation changes to come.  

January

Up until 2023, January 1 was the official date when carriers would file new base rates with the California Department of Insurance (CDI). However, moving the carrier rate filings away from the beginning of the calendar year helps carriers avoid the year-end crunch, analyze data more efficiently (including the prior Q4), and better synchronize their timelines with the WCIRB and CDI recommendations.

April

Around mid to late April, the WCIRB will make a recommendation for pure premium rates that would go into effect on September 1. This recommendation is based on actual data that has been analyzed by actuaries. This analysis offers tangible insights that the insurance commissioner, the Department of Insurance’s chief actuary, and independent carriers can use to make informed decisions.

May–June

At the San Francisco headquarters, the CDI hosts public hearings where stakeholders, unions, and insurers can comment on the WCIRB’s proposed changes that include, but are not limited to, pure premium rate recommendations.

July

Dual wage recommendations are issued by the WCIRB in July. Based on data collected since the prior 4th quarter, the WCIRB will make a split class code recommendation that takes into account wage inflation and economic shifts throughout each industry that utilizes dual wage thresholds.

September

Advisory rates approved by the insurance commissioner go into effect in September. For example, in the current year of 2025, the WCIRB has recommended a 11.2% increase in pure premium rates. The Insurance Commissioner and the chief actuary will make the advisory pure premium rates official, which could be the same, less, or more than the WCIRB’s recommendation.

In September, carriers also lock in their base rates according to their own predictions, needs, and actuarial results.

October

The WCIRB prepares for the next year by gathering actuarial data.

California has some really important dates to pay attention to this summer and into the fall. The current WCIRB-recommended 11.2% increase is the largest recommended increase in the past 5 years.  Communicating with your insurance broker and developing plans to prepare for this most certain increase will be critical to managing this line item on your profit and loss statement.

For questions about the pure premium rates and how they will affect your workers’ compensation premiums, contact me at khoward@ranchomesa.com or (619) 438-6874.

The Importance of an Insurance Pre-Renewal Meeting

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

At Rancho Mesa, we conduct annual insurance pre-renewal meetings with all of our clients and it has always been a crucial part of the insurance renewal cycle.  Now with increased pressure on all lines of coverage, the importance of the pre-renewal meeting is even more critical. 

Typically, we schedule our pre-renewal meetings about 120 days prior to the renewal effective date.  For example, if an insured‘s effective date is January 1st, we will be conducting our pre-renewal meeting sometime in September.  Keep in mind that insurance carriers are able to accept submissions 90 days before the effective date, and getting a submission out at that 90-day mark is our goal. It allows the underwriter time to underwrite the account properly and gather any additional information they may need.  With insurance markets hardening year after year, underwriters are requesting more information with regard to operations, risk management, and safety procedures. Even requesting a loss control visit from the carrier’s risk consultants are becoming more common. By getting our submission out at that 90-day mark, it allows adequate time for all of that to occur. Additionally, by giving the underwriter ample time to do their job, it allows them to release renewal terms weeks in advance of the effective date.  This aligns with Rancho Mesa’s commitment to complete insurance renewal meetings well in advance of the effective date, allowing then for certificates of insurance to be issued in a timely manner. 

Now, let’s dive into what takes place at these pre-renewal meetings.  First, these meetings give our team a chance to sit down with our clients and go over anything and everything related to their current insurance program.  We talk about any changes in company operations from last year, we make sure all of the vehicle, driver, trailer and equipment lists are up to date, and talk about forecasting payrolls and sales for the upcoming policy term.  In addition to that, we inform our clients on trends in the marketplace while also providing educated budgeting figures for what they can anticipate come renewal time.  Overall, these meetings typically take somewhere between thirty minutes to one hour, with the goal of securing all applicable renewal information for our team to approach the marketplace.

As premium and pricing trends continue escalating, pre-renewal meetings are a great way to get an early start on your insurance renewal cycle, setting your team up for the most competitive terms and pricing well before your effective date.

To discuss your insurance renewal, contact me at (619) 438-6905 or ggarcia@ranchomesa.com.

Avoid Surprise Premium Increases by Collecting Subcontractor Insurance Certificates

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

In the nonprofit world, every dollar matters. Whether you are running community programs, providing housing, or supporting individuals with disabilities, it is important to keep operating costs predictable and under control.

There is one area where we are seeing many nonprofits get blindsided during workers’ compensation audits and it often leads to unexpected premium increases.

If your organization pays independent contractors or subcontractors like drivers, program instructors, consultants, and maintenance workers and you do not collect certificates of insurance (COI) showing they have active workers’ compensation coverage, your insurance carrier may treat them like your employees during the annual audit.

The consequences of not collecting proof of workers’ compensation coverage means:

• The amounts you paid those individuals will be added to your payroll,

• Your final premium could increase significantly,

• You will be paying more for coverage you did not intend to buy.

We have recently seen multiple nonprofits hit with unexpected audit bills, not because they did anything wrong, but because they were not aware of this requirement.

Examples:

• A nonprofit that hired a part-time yoga instructor for their afterschool program did not request a COI. At audit, the instructor’s pay was included as payroll, adding over $3,000 to the final premium.

• Another organization paid an IT consultant $15,000 for a short-term project. The organization assumed since the consultant was not an employee, they didn’t need to worry about workers’ compensation. At audit, the amount paid to the consultant was included in the payroll calculation and the organization had to pay an extra $2,500 in premium.

Carriers are tightening their audit practices. If you cannot provide proper documentation that a subcontractor had their own workers’ compensation coverage, the carrier assumes your organization will be responsible if they get injured. Even if you never intended to cover them, they will count that payment towards your audited payroll and charge you accordingly.

To prevent an unexpected increase in premium at audit, always collect and keep on file a valid COI for any subcontractor or independent contractor you pay. The COI must show active workers’ compensation coverage for the time they performed work for you. If someone says they are exempt or does not have coverage, demand that they provide some form of documentation showing proof they do not need it. When in doubt, consult with your insurance broker and/or your workers’ compensation auditor to understand the potential issues.

If your organization is paying subcontractors or independent contractors, do not risk a surprise audit bill. Collect and retain COIs that prove they are covered. It is a small administrative step that protects your mission and your budget.

For questions about avoiding surprise workers’ compensation increases at audit, contact me at (619) 486-6569 or jmarrs@ranchomesa.com.

Workers’ Comp Rate Increases are Here — Are You Prepared?

Authors, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.; Matt Gorham, Account Executive, Rancho Mesa Insurance Services, Inc.

The workers’ compensation market in California is hardening. After many years of rate decreases, it appears that the market has started to bottom out.

The Governing Committee of the Workers’ Compensation Insurance Rating Bureau (WCIRB) voted in favor of pursuing an 11.2% rate increase. If the California Department of Insurance approves the WCIRB’s request, it would make the first rate increase in more than a decade.

In recent years, wage inflation has helped to offset rising medical care and claims handling costs within the workers’ compensation system, while carriers’ reserve redundancy releases have also contributed to the soft market.

With reserve redundancies declining and wage inflation stalling, the effect of rising costs in the workers’ compensation system are becoming more noticeable. Added to that, the diminishing investment returns for carriers and the need for rate increases and stronger underwriting performance becomes even more pronounced.

Below are four ways that your insurance broker should be helping to prepare you for the coming change:

Understanding Your Workers’ Comp Claims

Meeting with your insurance broker throughout the year can help you identify trends and underlying root causes for your claims. This can help you to implement practices and procedures that reduce the likelihood of the same type of claim recurring.

As an example, we identified that lower back strains are among the most common work injuries in one of the industries that Rancho Mesa specializes in, which led our team to develop the Mobility & Stretch Program and A.B.L.E. Lift Protocol.

Providing Effective Safety Resources

A strong safety culture depends on individuals consistently making safe choices and having access to the tools they need. Among other resources, Rancho Mesa provides clients with the SafetyOne™ platform, a website and mobile app that offers a suite of tools to implement safe practices, such as a library of topics for toolbox talks, online safety trainings, and safety observations.

Utilizing Workers’ Comp Claims Advocate

The workers’ compensation process can be complex and costly. Rancho Mesa offers an in-house workers’ compensation claims advocate to help navigate the claims process, manage claims, and provide accountability to adjustors. Leveraging your broker’s claims advocate can help manage the overall impact of claims on your insurance costs.

Exploring Loss Sensitive Plans

Rancho Mesa can help you evaluate a variety of loss sensitive options, such as captives; self-insured groups; large, intermediate and small deductible options; or retro plans to see how they compare against guaranteed cost. Having access to more product options allows for more relevant, effective advice on which program best meets your risk tolerance.

That final decision and recommendation will be done and take effect September 1st 2025.

While these increases will not directly impact you until your next renewal, taking action to prepare for the coming change is critical. Rancho Mesa is informed, has the resources available and most importantly the proactive commitment to help you navigate the approaching storm.

If you would like to learn more about our resources and approach to this process, please reach out to Sam Clayton at sclayton@ranchomesa.com, or Matt Gorham at mgorham@ranchomesa.com.

Shaping the Industry's Future with SDSU’s Construction Management Program

Surety Account Executive Andy Roberts interviews ⁠Thais Alves, Chair of the Construction Engineering and Management Program at SDSU, about her journey to academia, the growth of SDSU's construction management program, and the role industry support plays in shaping future leaders in construction.

Andy Roberts: Hello everyone and welcome back to Studio One. I'm Andy Roberts, a Surety Account Executive here at Rancho Mesa and also your host for this week's podcast. Today, I have the joy and honor of being joined in studio by Thais Alves, who is a professor and the Chair of the Construction Engineering and Management Program at San Diego State University. Thank you so much for joining me today.

Thais Alves: Thank you Andy. I appreciate the invitation and the opportunity.

AR: Yeah I was super excited when you said you were on board for coming in here and letting me ask you some questions and, you know, get to be on this side of it. So you know first off I think it'd be good to kind of tell us a little bit about yourself like where you're from, how you got here, just any background information you like to share with us and the listeners because you know I mean we've kind of connected over the last few years but that's usually just out on campus and getting ready to do the presentation and stuff like that.

TA: Right. I feel that I get to talk more about you than you get to talk about me. Yeah, so I'm originally from Brazil and this is a joke that I play with my students. I asked them where this accent is from and I get a few, you know, guesses. I was trained as a civil engineer and when I was in civil engineering during my time in the major, I thought I was going to be a structural designer, a geotechnical designer, and then at some point I got to see construction. And then that changed, like I had discourses towards the end of my major back in Brazil, and I got to intern in a construction site and work with people on the field and then started doing research, and then my career has been academic through and through and I went through my masters back in Brazil then I came to my PhD in Berkeley and all along the research that I developed was always related to people in the industry so I didn't have a lab on campus. I say that my labs are the construction sites, the organizations and this led me to where I am today because over the years as I did my research and advanced whatever theory I was working on, I met a lot of people along the way and this serves me very well today. It helps me to meet people like you, like Anne Wright. It helps my students get jobs, the program gets funded. So I think over the years, I just kept accumulating this human capital in these contacts and the network that I have today and I appreciate that. So that's how I got here and I've been at SDSU since 2009. So this is year 16 for me.

AR: Yeah, but it goes fast.

TA: It does and I mean, it's amazing to see how we have grown in different ways here, which I guess we are going to talk about later. But I feel that every step of my career prepared to the next one. When I was working back in Brazil at some point, I was asked to create a program there, and I went through the process of creating the program. And fast forward to 2017, I was asked to create the construction management program in addition to our construction engineering program. So one thing leads to the other.

AR: Yeah, absolutely. What's the difference like between, kind of, academics in Brazil versus stateside?

TA: So interestingly enough, and again, this is one of those things that your network leads you to places that you never know. When I finished my PhD program at Berkeley, I went back to Brazil and I started working there. And the place where I was working at, it's a city in the northeast of Brazil, it's called Fortaleza. And the industry was extremely supportive of the research of that group. They cannot financially back the schools there, like we have the support here, but they would support our research. So there was always this sense that you were working with people in the industry all along the way. Then when this opportunity came up here, I felt that I was very uniquely positioned because I came to an environment that was very similar to what I had worked with before and at that group back there.

AR: That's really nice.

TA: So I think the fact that there are academics that they have their lives on campus and they don't need to get out of school or to their labs to talk to people right they do research they teach and they stay there. In my line of work this is impossible.

AR: Absolutely. Yeah.

TA: So if I don't talk to people like you, if I don't invite people like you to come to my classes and build this network, I think this doesn't work, doesn't work for me, doesn't work for the students either.

AR: Well, and it's probably really beneficial for the students to be out participating in the network as well and kind of seeing, you know, I find the industry very exciting and, you know, we're always building stuff around San Diego and, you know, it really and it helps their perspective to see stuff in real life.

TA: Yeah, and I think here, the community here in San Diego is absolutely phenomenal. I mean, I think, I see other CSUs, right? I see my colleagues in UCs and the CSUs, and when I tell them the kind of support we enjoy here in San Diego, they get so jealous, right? Because we have AGC supporting our program, it's beyond belief, like all that they do for us and all the support that we enjoy from AGC, the leadership, the staff, the board, also we have the support of NECA who's also a strong backer of our program. We see this here as like a very unique place to be and this reflects in terms of the relationship that the industry also has with our students. So for example, every week or every other week, the students bring folks from the industry to speak. So yesterday there was a company speaking in one of our student chapters. Tomorrow there is another one. And everybody, because we are in a metropolitan area, it's very easy for everybody to drive to SDSU and present. So I feel that we are extremely blessed, not just in terms of support, but where we are. It gives us access to construction projects, to professionals like you and so many other opportunities.

AR: Yeah, well, it's really beneficial, too. I mean, you think about it, like, especially on AGC, like, you know, San Diego is one of their better, bigger, you know, more involved chapters, you know, kind of nationwide. And same thing with NECA, too. Right, so it's really beneficial for her to have those kind of involvement, you know and those types of organizations backing you and helping you out.

TA: Yeah, and the other point is you know, we've been pointed the fact that these are special chapters These are groups of people who have been recognized nationally and I can also I cannot forget CMAA also has been with us in the program since the very beginning and so much so that the chapter we have one of our major chapters is called AGC and CMAA. So it's a chapter that pulls these two organizations together and CMA has also been along with us. Our chapter has received awards in the past. The local CMAA chapter has received awards, SDSU as a partner has received awards. In other words, we work well together and I think there is this symbiotic relationship that people want to be associated with us and we want to be associated with them and we grow together. I think that's very important.

AR: Yeah, well, it's just so nice too on those like, you know, the AGC and NECA, there's so many owners that are really, really involved in those organizations. I mean, I've seen taking a real vested interest in what's going on at San Diego State and it's really exciting and it's really great to see like the community really participate and want to see that grow because, you know, it takes time out everyone you know their day to do that kind of stuff but they see the long-term value in it and you know when we come and speak in your class and you see all the different internships that all the kids have with all the different companies and it's really exciting. And you know you see the excitement from them too when we ask that question of like who are you working for this summer, who did you work for? And you know, they all want to raise their hands and tell us all about it.

TA: Yeah. And I mean, come August, I'm going to be emailing you and Megan and Anne to come back and present to them. And it's, it's very rewarding to see the interest in the local companies like they want to hire from our program. And we also receive very good feedback when we hear from them about the students who are going to work in the local market. And most of them, they stay here in Southern California. Their plan is to stay in San Diego. If they can find a job here, they will stay here. And then the next choice is to stay up to L.A. in Southern California, and some of them stay go up north, back where their families are. But most of our students, they stay here. So that's one more reason for the local industry to support the program because they don't have to go and recruit people from elsewhere and make them get used to the way we live here. And of course it's a very expensive area. So whoever wants to be here, they already know how this area works, how it functions, they know the industry. So that's very important too.

AR: Yeah, Well, so kind of you know, we've seen what the support is kind of done with the program like how like where's the program come? Like how did it start originally and like when you came in on? 2017 you said.

TA: 2009.

AR: 2009. Okay. Oh 2017 was when you did the construction management portion of it.

TA: Yes.

AR: So like how is it transformed from when it started to like where it is now?

TA: Yeah, that's a story that I told a few times, but it's interesting how the industry came together and it all started with Pete Phelan's and the Phelan's family. He came into the university and said, "Hey, you guys have a civil engineering major here, but we should have construction-related majors."

And during that time, the university looked around and said, "You know, if you want that construction major, I guess you're going to have to fund it,” or something along these lines. And they hired somebody who started the program, Professor Ken Walsh, and he was a very important figure to start this whole program, because I think he came here in 2004. So over 20 years ago, he started the program. The Phelan's family named it, so they made a big gift, and our program is named J.R. Phelan's Construction Engineering Management Program, and when you look at that, the program is housed in the College of Engineering, so they had to start with construction engineering first. So in 2008, I believe, was when the first class graduated with a construction engineering degree, so between 2004 Ken Walsh came in here and started everything, and in 2008, the first class graduates. And fast forward to 2017, I'm in my office on a Friday afternoon. And if you are in your office on a Friday afternoon, you're going to pick up calls that maybe you should push to Monday, right? I have had several of those. It's like, “Should I pick up this phone?”

AR: You see that caller ID, you're like, I don't know about that one.

TA: Yeah. So I get a call from my Dean, the Dean of Engineering. And he said, "Look, the industry is asking when we are going to start a construction management program."

And he had talked to other people and he didn't find whoever was the person who was going to push that. And he said, "Do you want to do it?" And I'm like, "Yes, I will do it."

And actually when I was hired, in my interview, I was asked if I had any interest in starting a program and at the time when I arrived that program should have some relationship with the College of Business because there was some real estate component to it but when we got to 2017 and I got that call the dean said this program has to be in the College of Engineering and it's going to be a more engineering you know based kind of curriculum. He said I want the students to take classes in the College of Engineering, and you can put classes elsewhere, but it shouldn't be the bulk of the program. So this was 2017, and the program didn't get into the system for the CSU system until 2020. So it took three years for the program to show up online so that the students could apply. And then 2021, we got the first class admitted as construction management majors. So I was excited. I was, you know, so happy we have this picture of our first time we got that class together. We have the, it was during the COVID years.

AR: I was going to say, that's got to be a little challenging because everything was kind of all shaken up and not running as normal then.

TA: So we were in class in 2021, but everybody was wearing masks. So we have this picture of the first class in 2021, everybody's wearing masks and they're going to graduate this year. So I have to dig that picture and compare who made the four years, made the four years. But interestingly enough, there were several students who were around and they knew this major was coming. They were calling me and emailing me during the pandemic and they were like, "When is this major going to start? I want to start taking courses so that when it's officially the catalog, I'm going to jump in.”

So what happened was we graduated our first class in three years because of that.

AR: Oh yeah, they've done a bunch of the pre-kind of stuff.

TA: So I have this student number one that I remember, he was so insistent and I was like, "We don't have a major yet," he said, "but I'm going to start taking the classes."

And when the major is out, I have the classes ready and he graduated last year, he's working for Hensel Phelps. And it was James, his name is James Snoke. It's a shout out to him. I say this, he's the first construction management student who jumped in even though there was not an official major.

AR: Was he on the engineering side or was he somewhere else within the school like college?

TA: I don't know if he came as a business major and then he decided that whatever he got in as a major, he was going to follow the flow chart of the new major. So he met with me and he said, "What courses do I need to take so that when these start I'm already on track?" So because of him and others who came in those first few years, I had to put classes in place much faster than what I had to do for the class that is graduating now in four years. Because these guys were ahead of the curve.

AR: They're ready to go.

TA: So last year we graduated 14 students and this year we are going to graduate double that number, about double. So it just shows how the program is growing. You probably saw that when you presented that.

AR: Absolutely.

TA: Right, the class was very small when we had to change. Like you came to three different classrooms because the class…

AR: Each one’s bigger and bigger and each time you walk in, like, oh, man, there's a lot more people here to talk to.

TA: Yeah. And I mean, the more the merrier, right?

AR: Absolutely. Well, and it's really nice to when we go to do that, because the first time I did it, you think about, oh, it's college kids. Like, what's their interest level going to really be like? But everyone in there is so invested in this major and what they're doing. And they're so engaged. It makes it a lot of fun to come in there and they're always asking questions and you know seem to really, maybe not, I don't know if it's enjoy the right word but I appreciate that we're there to talk to him about something and what they take away from it So it makes it fun on our end too.

TA: Yes, and you know yesterday I was talking to somebody who has a son who wants to switch into construction management and I wrote to that person This is somebody who is in the industry and the son wants to join the industry, he's in a different major, he's not finding his path and wants to join construction management and I said, you know, through the transfer. So this person's going to have to apply and transfer like any other student who'd be admitted. So I told him that I like to think that our program is also very nurturing. We have such great support from the industry, right? These people want to see them grow, they're going to give them tough love when tough love is needed, but they are very nurturing. And I like to think that our faculty is like that too. So we are there, I'm there every day and I have another colleague who shares the office where we stay and my other colleagues are there, but she and I, we have this special bond that we are like, don't give me excuses, do your homework and like we are there and we are not accepting excuses. And another shout out, her name is Nancy Lakrori. I don't know if you have met her yet, but she's a phenomenal instructor. And she's very tough, very stern, but the students love her because they go through that and they know that they are learning for life, right? So having people like that in our program, it's very important because the students see that we are invested in their education. We are not just going there and talking, turning our backs, and collecting a paycheck. Like, we are there. For me, my work is not done until I see them walking on that stage and graduating. And hopefully, I'm going to be able to help them find a job. So I'm there all along the way.

Some students take more advantage of that than others. I think some of them, they are like, "Oh, I'm going to figure out my own way." But some of them, they take advantage of this mentorship and they get engaged in the clubs and competitions. And so that also makes a big difference for them.

AR: Yeah, absolutely. And I mean, I can even see when I'm in your class, just how, you know, with how engaged they are and just a lot of them feel so free to come and just talk to you and seek out your advice and help, which is really nice and it shows that you care, which is really important.

TA: In our office, like the faculty, we are five faculty who are focused in construction engineering and management, and we enjoy the support of the entire department that is civil construction and environmental engineering, so the students take courses with different faculty in this department that has 20 different people, but five of us, we are focused on that office, in that office, we are construction related for the most part. So they see that we are there for them. And I have colleagues who are more interested in research and the students can focus that on research and do like cutting edge research here. But the fact is we want to see that they feel that they are supported and we are there.

AR: Yeah.

TA: Right, we are there for them. I think that's very important.

AR: Yeah, no, it absolutely is very important. So, you know, you said, you mentioned it's doubled from last year. Like how do you see, what do you see for the future? Like with enrollment and interest, I mean, it seems to me, interest is only going up.

TA: So that's a great question. So we accept students from two main sources, like either they come because they applied to get into SDSU or they are already at SDSU and they show up in my office and they say, “My dad is in business in some business area of finance or something like this and I did that because my dad told me to do it but I want to do construction management.”

So they show up at my office like that right so the problem is some of these students they entered SDSU entered SDSU through a very tough process. It's hard to get into the college of business. But some of them are trying to find easier paths to get and go there and say, now I want to get into your major. And you're like, not so fast, right? If you don't have the math and physics preparation, which you need more for construction engineering.

TA: Absolutely, especially if you're in like a business or like a finance, if you take a finance class, it's just a sort of that type. It's a big difference.

TA: Yeah. So if they want the engineering one, they have an even tougher path, but they also need that preparation for construction management, which some of them don't seem to know. So they have to spend two years taking courses and getting good grades to show that they can advance in the College of Engineering, right? We are not saying that the rigor is up or down or different or—they have to be good in STEM courses because that's what they are going to keep taking and they are going to follow classes with other students in engineering. And at some point the engineers, they take a turn and they do more design and the construction management students take another turn and they go and do more management. But they have to be prepared to advance and so to your point going back so this is the explanation of how they come in so we were having so many students who were already at SDSU who wanted to join our major they talked to their friends and they hear about the industry and all that and they want to switch majors and in the beginning we were accepting because the major had space in the classrooms. Well we don't have any more. So now I'm trying to keep the program at 200 students. We have 175 for construction engineering and construction management, out of that 120 are construction management, 55 are in construction engineering, but we have 20, 30 students at any given time that they are trying to take those classes in the first two years and they are appearing some of our classes, right? So right now we have 200 people. Our advisory board wants to grow the program and I'm like, we cannot because who's going to staff the classes?

AR: That was going to be my next question.

TA: So we maxed out, like the class that you saw, that's the maximum. So we are counting that these classes that we used to have 15 people and now they have 60, that's it, right? We can't, so this generated a lot of discussions because the students would come as undeclared and they said, “Oh, now I want to do construction management.”

And maybe some people who are going to be listening to this podcast know somebody who wants to be in one of these majors and the right way to do is if they don't get in as a freshman, go to a community college, do the first two years in a community college, reach out to me, we can talk about how this person can start transitioning to SDSU until they apply and they transfer. That is a sure bet.

AR: That's great to know. That's really great to know and great to put out there.

TA: Yeah. This is very important because I receive messages and the students contact me about that and I think community colleges are so cost so cost efficient. They are not going to pay the big tuition of the big schools, and they take care of those core classes in the beginning, and there is an additional advantage. When students are in a community college, they can go to SDSU and take one course per semester, and they pay a fee, I think it's like $50. Don't quote me on that, but it's a small fee. It's not the full tuition for the course, but they can do what is called cross-enrollment. So for example, I teach a course that is called construction and culture, is construction engineering 101. And I have a lot of students who are in community colleges, and they are taking that course through cross-enrollment, but they get to know how we function

AR: That's fantastic. That's a great program.

TA: It's really good. And I have students, they are so in awe because I start my classes talking about internships and scholarships and clubs and events that are coming. So they are in awe that they have the opportunity to participate in those events even though they are still in the community college stage, right? And the same internships that I post for my students is posted to everybody and they start getting engaged with the industry early. So I love that kind of arrangement that we have the Freshman and we have the students who are going to be transferring already getting used to the system.

AR: Absolutely. I mean, that's just a great way to set this program up and them up for long-term success.

TA: Absolutely. And I cannot tell you how many great examples there are of students who they start on this path and they are so focused. Some of them are more mature. Some of them come from the military. They are veterans. And when you start talking to them, you see the wheels turning. And by the time they transfer, they are like 10 steps ahead of the people who are not involved because they were paying attention and they were taking advantage of this opportunity. So that is, I think it's a great, it's a great program.

AR: Yeah, that's awesome. I mean kind of last question I have for you is like what kind of support can we give you or what else can the industry as a whole do to really support this program?

TA: Well, I think the first one is keep hiring our students keep backing up these pro these projects that are happening here, right? So that they happen as they should but we have an advisory board who is the backers, the supporters, the financial backers of the program, they are part of our advisory board and we are going to have a meeting next month and usually they ask me for a wish list, right? So they tell me what they want to see and we tell them what we need and we kind of negotiate where we can go with what we have. But I think the first one is I hope the industry keeps supporting the program by hiring our students, but also supporting the program financially. I mean, we just had the news that we were going to have three years of 10% cuts in our budget. And then this was in February. Last month, we heard the cuts are not going to be 10%. They're going to be 12% now.

AR: Oh, no.

TA: So any help, any help in any capacity, of course, I appreciate you all coming and guest-speaking because that is golden. They are having that already in school versus having to learn about surety and insurance and all later, right? So when they have this chance to learn in class, I appreciate immensely that the industry is so supportive in coming and guest-speaking. We have teams that are mentored by the local companies here also and it's very important that we have people who volunteer their time to keep training our students. This is this like internships, jobs, mentorship during the program, guest speaking and of course financial backing. Any amount it's well received because we are facing a very tough budget right now.

Like from the state side, we have been hearing about it and now we know how deep the cuts are going to be. And we want to keep the program the quality of instruction, the experience that the students have. And one thing that I think it's beautiful is our students, they fundraise for their activities too. They just don't sit there and wait for the money to show up, right? So I think they see how I work with the industry, they see how much support they receive, and they nurture these relationships as well. And that's something that I work a lot with them, how to work with the local industry, the local supporters, and just help them help us, right? It goes both ways. They want to hire; they want to be hired.

AR: Yeah well, they need to put that investment in. If they want to hire, you know, quality workers that know what they're doing, it makes sense for them to put that time investment in to make sure that the program's doing well and they're getting the instruction that they need.

TA: Yeah. And it's the it's phenomenal as you go around and you visit projects and you meet former students like we meet our former students and I think a testament to how well I think we do in this nurturing and mentoring and creating this community is that they graduate and they want to keep helping, they want to be associated with us. They want to come and get speak and mentor and offer internships and I love it. I mean, what's not to love about that? It's a phenomenal place. I really appreciate the support of the industry. I appreciate your support and Rancho Mesa's support in going and presenting to my students because that's going to make them prepared, that they're going to be better prepared for what's coming.

AR: Yeah. Well thank you for saying that I mean, I really enjoy that day. It's super fun to see that you know, it makes me feel a little old when I'm walking around the college campus now, but outside of that I love that day. So thank you so very much for taking the time and coming to talk to me today this has been really wonderful.

TA: Thank you and thank you and thanks to Anne Wright for introducing us and nurturing this relationship and Megan Sanker who's always with us in that presentation so I want to thank all of you it's very much appreciated and the students see that they appreciate that too so thank you.

AR: Yeah you're welcome.

Understanding Premise Liability for Landscape Maintenance Companies

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

Vice President at Rancho Mesa, Drew Garcia sits down with John Fischl, Regional Executive with Sentry Insurance, to discuss premise liability risks for landscape maintenance companies, focusing on preventing slip and fall accidents and strategies for mitigating these risks.

Drew Garcia: Welcome back everybody. I'm Drew Garcia, Vice President of the Landscape Group here at

Rancho Mesa. You're listening to StudioOne™ our safety and risk management podcast. Today we're joined by a Regional Executive of the Pacific Region for Sentry Insurance John Fischl. John welcome to the show

John Fischl: Oh, thank you, Drew. It's great to be with you.

DG: Oh, we appreciate you taking the time to come back in here. So, Sentry is a big partner of ours and particularly for me in supporting the landscape industry. And today we're going to take a few minutes to talk about premise liability, particularly for landscape maintenance companies, you know, protecting themselves, protecting their customer, protecting their insurance carrier, and also the general public from exposures that can exist on a commercial property.

And primarily we're talking about slip and fall, trip and fall issues that can occur where the insurance carrier might have to get involved if there's an injury or a claim. John, talk to us a little bit about the state of that market, what you guys are seeing, and then we're going to get into a little bit about some things that where we think landscape businesses can better protect themselves in the future.

JF: Well, Drew, as you know, the climate for liability claims in California has gotten very, very difficult. The personal injury attorneys, and I think everybody is aware of the amount of marketing those folks are doing. We've all seen that the hundreds of commercials on television for all the different firms and billboards, etc. Suffice it to say that if somebody gets injured on property, they are going to call--or very

likely will call--one of those personal injury attorneys. So because of that and the fact you've heard the term social inflation, people on juries nowadays are much more apt to award large sums of damages for injuries, pain, and suffering, etc. So because of those two things: the advanced level of marketing from the personal injury attorneys and the social inflation we see, even relatively minor injuries are turning into very large settlement amounts in a lawsuit. So that is a real challenge for anybody in the business of making sure that premises open to the general public are safe.

DG: A good point. And you see, you know, the impacts that has from the insurance carrier standpoint and ultimately the trickle down to the policy holder. When there's pressure on a particular line of insurance, and in this case we're talking about general liability and what that might bring from these premise liability exposures, when there's significant pressure on a particular line, like we've seen over the last five or six years with commercial auto, what's a typical reaction or what type of reactions could be seen from insurance carriers when there is that unanticipated pressure, maybe not enough rate adequacy, what are some positions that carriers have taken in the past to either handle or deal with scenarios like this?

JF: Well, as an insurance carrier, you only have a couple of choices. Number one, you can decide that the level of losses and the frequency of losses will be greater than what you can anticipate and you would then have no choice but to exit that market and in fact in the last year we've seen a major provider of liability coverage in California for the landscape industry do just that they exited the market. And this has happened multiple times over the last several years. The other thing a carrier can do is kind of hang in there, tighten up their underwriting, look less favorably upon a landscape operator that has some frequency of claims, perhaps not offer coverage to that landscaper, and also increase rates, which is ultimately what has to be done when the cost of lawsuits continues to rise. Carrier has no choice but to raise rates. That should be understood by everybody at this point.

And I think if you've been in business, you know, longer than five years at this point, you've probably been through some sort of market with insurance where you've been faced with non -renewal or significant rate increase. And, you know, it comes as a result of issues, you know, and I think that the stance that Sentry's taken at this point in terms of trying to work with the landscape industry to better shed, mitigate, and manage risk as opposed to having to non–renew or to exit the space is greatly appreciated.

So let's talk a little bit about what things a landscape maintenance company could do to maybe better protect, like I said, their business, their customer, the general public, and then ultimately you as theinsurance carrier to avoid being pulled into maybe an incident that really could have been avoided.

JF: I think there are two primary avenues that a landscape maintenance operator needs to carefully look at. Number one is anytime that operator has the opportunity to control the language in that maintenance agreement, that contract that makes clear who is responsible for injury on those premises from an unsafe condition. If you do not have the ability to control that language, for example, you're signing an agreement with a large property management firm or a municipality, keep in mind that the attorneys for those property owners have crafted the language so that claims on their premises can be transferred whenever possible to the vendors who are providing services for those premises. So knowing that number two is to put a procedure in place by which your maintenance crews are looking for unsafe conditions and reporting those.

And a good procedure would include perhaps taking photographs using their cell phones. Let's say for example of a heaved bit of walkway from a tree root. That photo goes into the office. Somebody in the office is then responsible for including the images in a quick narrative to the property owner that, “Hey, want to notify you, we've found this unsafe condition, somebody could trip and injure themselves, we recommend that you repair that unsafe condition as soon as possible.”

And then keep a record of that notice. And perhaps even once a year if that condition goes un-remedied, re-notify on a periodic basis. This way, when somebody does trip and fall and they break a bone and they call a personal injury attorney and that attorney sues the property owner, the insurance company for that property owner is going to try to transfer that claim to the landscape maintenance company's insurance.

If you've got documentation that shows you notified a property owner of the unsafe condition, you're now kind of off the hook and it is back in the property owner's liability because they were the ones negligent that even when told by you that they had an unsafe condition they did not remedy it. So the key is to inspect and report and retain those notices to ensure that these sorts of claims won't end up with your insurer and ultimately result in either the non -renewal of your insurance or the raising of your rates.

DG: Very clear and very simply put I don't think another question could probe any more information that our audience would need in that scenario. But if I can quickly recap to see if I've got this right, so we're focused on our contracts and whether that's something that we're imposing to our customer or the customer's imposing a contract on us, review that language and push back where appropriate. And then once you're in contract and maintaining a property, there needs to be some level of you know reporting and documenting potential hazards that are on that property that probably coincide with your scope of work and then, you know, reporting that to the property manager building owner and then keeping record of that information for some time.

I think today there's so many different management systems that are now available to landscape companies so there could probably be a workflow created within one of those systems already and if it's something that you don't have access to a management system. And like you mentioned, John, we've all got cell phones. Is there the ability just to snap a quick picture, send it to your supervisor? I mean, it doesn't have to be, I guess, as daunting of a task as people might think initially. And again, this is to hopefully better protect your business, protect your customer, your insurance carrier, and the general public. If there's an issue on a property, we're trying to avoid injuries at all cost for everybody and so I think not only are you providing resources and tools for the landscape industry to better manage your own risk but in turn you're creating safer properties and hopefully minimizing the overall amount of activity that can that can happen. And is there anything that you would you would want to add to, this or do you feel like we've covered it pretty well?

JF: I would just offer that the audience of landscape maintenance contractors understands the level of severity of these claims. Let me give you a couple of quick examples. Person trips on a raised piece of walkway, the person falls, breaks their fall with their hand and breaks their wrist. The wrist is a typical break that requires surgical intervention. That type of claim today is being settled for several hundred thousand dollars.

We've seen broken ankles where somebody steps into a depression or a hole in the grassy area. A broken ankle these days, that settlement will be several hundred thousand dollars. So there's never been a more important time to make sure that if you've signed a contract where you are going to be responsible for inspecting and reporting unsafe conditions, make sure that you have a procedure in place to do that to protect your insurance program for the future.

DG: You can kind of put into perspective like that. I think it helps our audience better understand the severity that's out there and how unpredictable that can be from the carrier standpoint in terms of when do I know this is coming in and do I have enough premium to offset that issue?

And I could see that's a challenge that your team is faced with and this is the reason why you're going to be looking for things like this that are going to elevate the landscape businesses overall risk management program and then in turn maybe there's opportunity to support a policy for them or work with them to some regard.

JF: Absolutely. And I would add that, you know, many of the types of repairs or service levels needed can actually create revenue for the landscape maintenance operator, be it the trimming of tree limbs or the removal of tree roots coming up in a grassy area that people could trip over. Irrigation systems that maybe need a little redesign because they're putting too much water on a street or a walkway, making that slippery. There's a number of things that the landscape contractor can actually get involved in and providing estimates to take care of these things. And there are other things like masonry work, paving, or maybe that's not something the contractor can do. They'd need to have the property owner find another subcontractor for that. But those are all opportunities and at the same time keeping your insurance program intact.

DG: John really well said we appreciate the time, the insight from your perspective is so critical right now for our customers but for the landscape industry in general and I think there's going to be a lot of takeaways from our audience today based on the information that you shared so we really appreciate you partnering up with the landscape industry and being here for us to share this information so everybody's in a better spot.

JF: Well, thank you, Drew. Appreciate having an opportunity to chat with your audience. And I'll just put in a little plug for Rancho Mesa. You guys are one of our very finest insurance agency partners. And we appreciate everything you do. Thank you.

DG: We appreciate that, John. Thank you so much.

Evolution of Exterior Insulation and Finish Systems in California

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

Exterior Insulation and Finish Systems (EIFS) has been around since 1969 and has grown in demand for new construction in California with a constant push to get closer to “net-zero” buildings. With our strong niche in plastering, drywall and painting contractors in California, one of the most frequently asked questions by insurance carrier underwriters pertains to whether a contractor self-performs or subcontracts out EIFS work. This has become a significant concern for insurers, particularly when it comes to the proper installation of drainage systems over wood-framed buildings and/or the use of inferior materials. Over the past decade, there have been significant strides to insulate contractors from claims arising from EIFS.

The major turning point for EIFS occurred during the 1995 hurricane season in North Carolina, when an increase in insurance claims highlighted the risks associated with improper drainage systems in EIFS installations (i.e. walls and ceilings). These claims prompted a dramatic shift in the way EIFS systems were installed and regulated moving forward. In response to these challenges, the industry made considerable strides to enhance moisture control, seismic resilience, and the use of materials that are better suited to California’s diverse climates—ranging from dry desert conditions to coastal, humid areas.

California’s building energy efficiency standards continue to evolve. As these standards become more rigorous, it is expected that EIFS will play an even larger role in meeting the energy demands of new buildings. The insulation provided by EIFS systems makes them a critical component of energy-efficient design, helping buildings achieve net-zero energy performance while still having curb appeal.

It is likely that EIFS will become a requirement for most, if not all, new construction projects in California in the near future. However, despite the system’s growing importance, many insurance carriers still view EIFS installations with caution, due to the historical challenges and claims associated with improper installation techniques. As a result, some insurers continue to treat EIFS as a “high-risk” exposure and require stand-alone policies to cover the potential risks.

Currently, there are approximately 7,660 plastering professionals employed in California, according to the most recent data from the Bureau of Labor Statistics (BLS.gov). However, only a small fraction of these employees are actively involved with EIFS installations. This limited exposure has contributed to a gap in the insurance market, with many carriers potentially lacking a deep understanding of the evolving EIFS industry and its improvements.

For plastering contractors in California, working with a knowledgeable broker is crucial to navigating the complexities of insuring EIFS work. Each company’s exposure to EIFS risk is unique, and it is essential to have a broker who understands these nuances. A specialized broker can help secure the most competitive pricing available and ensure that they are paired with insurance carriers that are not only familiar with the latest industry advancements but are also willing to offer comprehensive coverage for EIFS-related risks.

While industry change can take time, it is vital to have a broker who actively advocates on your behalf, challenging insurers’ outdated guidelines and promoting an accurate understanding of the current EIFS landscape. By building strong relationships with insurers who understand the evolving nature of EIFS, contractors can improve their risk management profiles and position themselves for long-term success.

If you have any questions relating to EIFS or any other insurance needs you may have, do not hesitate to reach out to me directly at ccraig@ranchomesa.com or you can call (619) 251-8278.

Keeping Drivers Safe with Proper Training and Vehicle Inspections

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

April is Distracted Driver Awareness Month, marking a perfect time to revisit your company’s driver training policies. Motor vehicle safety in the workplace is essential to protect employees from injury while limiting costs for the company. The Occupational Safety and Health Administration (OSHA) reports 39% of all fatal workplace injuries are caused by transportation incidents. Additionally, the Network of Employers for Traffic Safety (NETS) found that an on-the-job highway crash costs employers an average of $26,000, and an injury costs the employer nearly $80,000 on average. With these statistics in mind, it should be a top priority of all employers to implement a driver and fleet safety program.

Driver safety training should be administered regularly to all employees who are expected to drive as part of their job. Consistent retraining during the year can help keep safe driving tactics top-of-mind and prevent complacency.

OSHA recommends driver training to include:

• Vehicle characteristics, capabilities, and limitations

• Vehicle instruments, controls, and safety components

• Vehicle preventative maintenance checks and services

• Company driving policies and procedures - seat belts, distractions (including drowsy and impaired driving), aggressive driving and speeding

• Defensive Driving

• Vehicle Backing

Rancho Mesa offers a number of driver training courses through the SafetyOne™ platform, including Driving Safety, Distracted Driving, and Driving Defensively.

In addition to driver safety, vehicle maintenance is also an important step in protecting your employees and other drivers. Regular maintenance and inspections play a vital role in employee safety. Drivers should always conduct pre- and post-trip vehicle inspections and document any deficiencies. Defective vehicles should be removed from service until the issue is repaired. OSHA lists the areas of the vehicle that should be inspected before and after each drive, they include:

• Brakes/brake systems

• Tires – including air pressure

• Wheels, fasteners, and hubs

• Lights and signals

• Steering functions

• Fuel and exhaust system

• Fluid levels

• Windows and mirrors – clear view

• Emergency equipment and safety devices

• Cargo securement – if applicable

• Flatbed trailer fall protection systems – if applicable

Rancho Mesa’s Fleet Safety training, available through SafetyOne™, can improve a driver’s understanding of what is required of them before, during, and after their drive.

For additional information on how Rancho Mesa can help your company develop a fleet safety program, register for the Building A Fleet Safety Program with Rancho Mesa's Tools & Resources webinar on Friday, April 18, 2025.

The Crucial Role of Third-Party EPLI Coverage for Tree Care Companies

Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.

Operating a tree care business comes with numerous risks, from ensuring your team’s safety on the job to managing potential property damage. One crucial area of risk that is often overlooked is Employment Practices Liability Insurance (EPLI), specifically third-party coverage. Third-party EPLI can help protect your business from expensive lawsuits, making it essential for businesses that regularly interact with the public.

EPLI Coverage

EPLI is an insurance policy designed to protect businesses from claims related to employment practices. This includes allegations of discrimination, harassment, wrongful termination, and other workplace-related issues brought forth by employees. For many companies, EPLI is vital for covering the costs of defending against lawsuits, including legal fees, settlements, and damages.

While traditional EPLI coverage protects your business against employee claims, it is important to also consider third-party EPLI coverage.

Third-Party EPLI Coverage

Third-party EPLI coverage extends the protection of your EPLI policy beyond your employees. This provides an extra layer of protection for claims made by non-employees, such as customers, vendors, and members of the public. It covers allegations made by non-employees who may claim they were subject to harassment, discrimination, or wrongful conduct by your employees while interacting with your business. In the tree care industry, where workers frequently engage with clients, contractors, and the general public, this type of coverage is important.

Examples of Third-Party EPLI Claims in Tree Care

• Harassment Allegation from a Homeowner. A tree care crew is performing work on a residential property when a homeowner accuses one of the employees of making inappropriate comments or gestures. The homeowner files a lawsuit for emotional distress, potentially resulting in costly legal fees.

• Inappropriate Behavior from an Arborist in a Bucket Truck. While performing tree pruning, an arborist in a bucket truck sees a woman through a window who appears to be changing clothes. The woman later claims the arborist was staring at her inappropriately and files a harassment lawsuit against the tree care company. Even if the arborist did not intend any harm, this type of situation can lead to legal action and unnecessary costs.

Reasons Third-Party EPLI Coverage Is Essential for Tree Care Companies

• High Interaction with the Public. Arborists and tree care crews often work in public spaces or on residential and commercial properties where they have frequent contact with non-employees, increasing the likelihood of third-party claims.

• Legal Defense Costs. The costs of legal defense can add up quickly, whether or not your business is found liable. Third-party EPLI coverage can help offset these costs, preventing them from becoming a financial burden on your company.

EPLI Policy

• Third-Party Coverage. Not all EPLI policies automatically cover claims made by non-employees. Be sure to confirm that third-party protection is included.

• Defense Cost Outside Limit. If defense costs are deducted from the liability limit, they can quickly deplete your coverage, leaving less available for a settlement or judgment. It is crucial to look for a policy that offers defense costs outside the limit, ensuring that your liability coverage remains intact and fully available in the event of a claim.

Third-party EPLI coverage is an essential safeguard for tree care businesses, providing protection against claims made by non-employees such as homeowners, pedestrians, or subcontractors. With the high level of public interaction in this industry, the potential for costly lawsuits is significant. Ensuring your EPLI policy includes third-party coverage and defense costs outside the liability limit can help protect your business from unexpected legal and financial burdens.

To learn more about how EPLI insurance can protect your company, contact me at (619) 486-6437 or randerson@ranchomesa.com.

Contractors’ Guide to Navigating Cybersecurity Maturity Model Certification

Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.

In true government fashion, the Cybersecurity Maturity Model Certification requirement, more commonly referred to as CMMC, is a mouthful!  While most companies are familiar with or are working on compliance with this requirement by now, we felt it was appropriate to share the history of this certification with our audience.

I have enlisted the help of a long-time friend and trusted resource of mine, Mandy Irvine, founder and CEO of Hoop 5 Networks - IT and Cybersecurity Solutions. As experts in this field, she and Russell Emig, Hoop 5’s Certified Chief Information Security Officer have provided much of the following information.

Why Did CMMC Became A Requirement?

The CMMC framework was born out of the need to protect sensitive information within the U.S. Department of Defense’s (DoD) supply chain. Historically, the DoD relied on a set of cybersecurity requirements embedded within the Defense Federal Acquisition Regulation Supplement (DFARS). However, rising cyber threats and increasingly sophisticated attacks against defense contractors highlighted the inadequacy of those measures.

Evolving Threat Landscape. Over time, cyber-attacks grew more frequent and severe, targeting companies that managed Controlled Unclassified Information (CUI). The traditional self-attestation model for cybersecurity controls proved insufficient.

Unified Standard. CMMC was introduced as a unified framework to ensure that every organization within the defense industrial base meets a baseline of cybersecurity practices. This move helps safeguard not only government data but also the integrity of the broader supply chain.

Who Needs to Comply?

CMMC compliance is not reserved solely for technology companies; it extends to all entities within the defense industrial base.

Defense Contractors and Subcontractors. Any company that bids on or holds DoD contracts and handles CUI must comply with the relevant CMMC level.

Broader Business Ecosystem. This includes manufacturers, IT service providers, and even logistics firms that support the DoD. Essentially, if your organization is part of the defense supply chain, CMMC compliance is on the horizon.

The framework is structured into multiple tiers, ensuring that each organization implements security practices appropriate to the sensitivity of the data it handles.

What to Expect Regarding Compliance

Preparing for CMMC certification involves a structured process that may require substantial changes to an organization’s cybersecurity posture.

Assessment and Gap Analysis. Organizations typically begin with a thorough assessment of their current cybersecurity measures to identify gaps relative to CMMC standards.

Implementation of Controls. Depending on the required CMMC level, companies may need to implement a range of controls from basic cyber hygiene (like access control and incident response) to advanced measures for more sensitive data.

Third-Party Certification. For higher maturity levels, a formal assessment by an accredited third-party organization is necessary. This external validation ensures that the implemented controls are effective and align with DoD requirements.

Operational Impact. Beyond technology, compliance may affect business processes, training programs, and even contractual relationships. Preparing for CMMC is an investment in the future stability and credibility of your business within the defense sector.

Consequences of Non-Compliance

Failing to meet CMMC standards can have far-reaching consequences for companies involved in the defense supply chain.

Loss of Contracts. The most immediate risk is exclusion from bidding on or maintaining DoD contracts. For many companies, this loss of business could be devastating.

Increased Cybersecurity Risk. Without adherence to robust cybersecurity practices, organizations are more vulnerable to breaches. A successful attack could lead to the compromise of sensitive data, resulting in financial losses, legal ramifications, and severe reputational damage.

Regulatory and Financial Penalties. Non-compliance may trigger increased scrutiny from federal regulators. Over time, this could result in additional sanctions or penalties, further straining business operations.

CMMC represents a significant shift in how the defense industrial base approaches cybersecurity. Its history is rooted in the necessity to counter a landscape of evolving threats, and its requirements extend to a wide array of businesses involved with the DoD. Preparing for compliance is a comprehensive process that, while challenging, is essential for securing contracts and protecting critical data. Conversely, the risks of non-compliance underscore the importance of investing in robust cybersecurity measures.

Understanding the intricacies of CMMC will be crucial for organizations looking to secure their place in the future of defense contracting.

For questions about the CMMC, contact the team at Hoop 5. They are ready to be of assistance and support if needed.

A Hardening Insurance Market for Non-Profits-Steps to Prepare for the 2025 Renewal Process

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Non-profit and human services leaders started experiencing a hardening property and casualty insurance market in 2024 illustrated by reduced limits of liability, higher deductibles, and increased premiums. And, the market shift still may not have been enough to right the ship.

According to Insurancebusinessmag.com, reinsurers are seeking double digit increases in 2025 due to rising claim costs. Behind these rising claims costs are social inflation, emerging risks (i.e., opioid and synthetic chemicals), reserve increases, litigation funding and no promising tort reform. Reinsurers also argue that 2024 rate hikes were insufficient. As a result, these companies are reducing exposure to the US casualty market.

When reinsurers sneeze, the insurance market and its insurers catch a cold. In 2025, expect more signs of the hardening market. However, there are steps non-profit leaders can do to prepare for the renewal process in 2025.

Anticipate Premium Increases

Consider the organization’s growth in all rating factors, whether it be revenue, employee count, vehicles, or beds. Premium will increase accordingly before rate increases.

Complete Full Insurance Applications

An experienced insurance agent will ask clients to update applications in hard copy, using electronic documents, or via an online portal. If this is not happening, ask why. If it is happening, then complete the full version rather than truncated renewal applications. Creating competition in the marketplace means providing underwriters a full scope and understanding of operations. Very few underwriters will quote using another carrier’s renewal updates.

Review Contract Insurance Requirements

Many carriers are reducing limits of liability for abuse/molestation and professional liability. Others will no longer quote umbrella or excess liability. Stacking quotes from various carriers to achieve once readily attainable limits is possible, but this strategy comes with a significant premium cost. So, before stacking policies, review contracts with counties, regional centers, and funders to understand the required insurance coverage.

Engage with Partners Now

Communicate to organization partners the cost to maintain required insurance limits. Take a hard look at current programs to determine if outcomes (i.e., revenue and impact) warrant the increased insurance costs. Some programs may need to sunset.

A continuing hardening insurance market in 2025 will force non-profit and human services leaders to approach the renewal process with care and new focus. The recommended steps listed above will help organization leaders develop a renewal strategy while helping underwriters’ analysis prior to releasing quotes.

For more information about the hardening market, contact me at sbrown@ranchomesa.com or (619) 937-0175.

Step Up Your Safety: Essential Ladder Topics for National Ladder Safety Month

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

March is national ladder safety month. While worker safety should be a priority all year long, this month is a reminder of the dangers associated with ladders in the workplace. The Occupational Safety and Health Administration (OSHA) reports falls are a leading cause of death in the construction industry. A fall prevention plan and thorough ladder safety training can help protect workers from injury and prevent fatalities.

Following a few basic ladder safety rules can also ensure a safer work environment.

1. Choose the right ladder for the job

Make sure you are using the appropriate ladder for the task at hand. The ladder will need to be able to support the weight of anyone using it, plus the added weight of tools and materials. The ladder must also be tall enough so that a person can work from it without climbing onto the top three feet.

2. Thoroughly inspect the ladder before use

Before using the ladder, ensure there is no damage or missing parts. All bolts, screws, and hinges should be secure and there should be no broken or damaged rungs. The rungs or steps of a ladder should be clean of any oil, grease, or paint to prevent slips while climbing. If there is any damage to the ladder, it should not be used for work.

3. Set up the ladder in a safe area

It’s important to place your ladder on a level surface and away from any electrical wiring. If working in an area where people might be walking by, create a barrier around the base of the ladder to redirect traffic. If the ladder is placed in front of or near a door, block off the door. Be sure to keep ladders at least 10 feet away from power lines.

4. Exercise caution when using a ladder

Be sure to maintain three-point contact when using a ladder; you should never have more than one hand or foot off the ladder at any time. When using the ladder, do not lean over the side railings or move or extend the ladder while a person is on it. Use a tool belt to carry equipment so that your hands are free at all times when ascending and descending.

Regular training for employees and frequent ladder inspections can help reduce the risk of any falls or injuries and ensure workers are prepared for ladder use on a jobsite. Rancho Mesa clients can utilize SafetyOne’s Ladder Safety online training, and the mobile app’s built-in ladder observation to document inspections, any issues that are found and corrective actions.

 Toolbox talks for ladder safety, proper usage, types of ladders, and more are available through the SafetyOne™ platform and can be used to train workers on safe ladder use.

For more information, register today for Rancho Mesa’s ladder safety workshop at our Mission Valley office in San Diego, CA on March 21st, 2025

4 Steps to Ensure I-9 Compliance and Prepare for an Audit

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

The Trump administration has placed a strong emphasis on immigration policy. Significant changes to employment-based immigration and work authorization are anticipated to take effect within the next four years. For employers, this means I-9 compliance should be a top priority in order to avoid costly fines.

All employers in the United States are required to complete and maintain Form I-9 for each employee as proof of work authorization status. Businesses can be audited for I-9 compliance at any time. If your business is selected for an audit, you will have three days to provide documentation to U.S. Immigration and Customs Enforcement (ICE) inspectors.

Implement these four steps to ensure your business is in compliance before an audit takes place:

1. Complete I-9 forms for all employees

Documentation is required from both employees and employers. Employees should provide employers with proper documentation and proof of work authorization. Section 1 of Form I-9 will need to be completed by the employee. Employers will need to verify the validity of those documents and enter necessary information into the employer’s own records, in Section 2 and Supplement B of Form I-9.

Rancho Mesa clients can access additional guidance for completing the Form I-9 in the RM365 HRAdvantage™ portal to ensure record-keeping compliance.

2. Conduct an internal audit

Conducting an internal audit can help catch any errors before a formal audit occurs. Depending on the size of your business, you may want to audit all employee I-9 records, or for really large companies, just audit a portion of your records. Check for any errors or omissions in I-9 forms, ensure all forms are compliant with current Form I-9 requirements, and dispose of any expired I-9 forms. Regular internal audits can help ensure your business is prepared in the event of an official audit.

3. Correct any I-9 errors

If you do find any errors through an internal audit, be sure to correct them right away. To correct Form I-9 in accordance with U.S. Citizenship and Immigration Services (USCIS) guidelines simply:

• Draw a line through the incorrect information

• Enter the correct information

• Initial and date the correction

Errors made in Section 1 must be corrected by the employee, and errors made in Section 2 or Subsection B will need to be corrected by the employer.

4. Store I-9 forms and related documents in a secure location

I-9 forms contain sensitive information and should be kept in a safe and secure location. USCIS requires I-9 forms for each employee must be kept by an employer “for three years after the date of hire, or one year after the date employment ends, whichever is later.”

If an audit conducted by ICE does find your business to be in violation of I-9 requirements an employer could face fines worth tens of thousands of dollars. Repeat violations could also lead to criminal charges.

For questions about keeping your business in compliance with Form I-9 requirements, use the RM365 HRAdvantage™ portal to contact an HR expert.

Creating a Standard Operating Procedure for Work-Related Incidents

Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.

In order to improve a process, there needs to be a baseline. When it comes to tracking, reporting, and following through on a work-related incident, injury or illness, creating a standard operating procedure (SOP) sets the foundation.

Flow charts can help all stakeholders better visualize the process and show potential next steps based on yes/no questions. This type of operating procedure also shows the duties and obligations for the individual employee, supervisor, human resources personnel and safety manager that is involved.

This process will ensure your employee receives the timely care they need based on the particular circumstances and provide your staff the confidence that they are accurately handling the situation.

Other areas to consider within this work flow can be:

• OSHA reporting requirements

• OSHA recordkeeping

• Initial incident report

• Supervisor’s report

• Witness statements

• State-specific requirements

• Follow up reports to address the root cause and prevent similar incidents from occurring in the future.

Standardizing your injury reporting protocol is the first step to getting the appropriate care, minimizing the incident’s claim impact, and providing you training opportunities to reduce the risk of a similar claim reoccurring. As your business continues to evolve and grow, it is critical that you establish a protocol as your foundation and continue to fine tune it as new departments are created or areas for improvement are observed.

Controlling Auto Insurance Costs for Plumbers and HVAC Contractors

Author, Matt Gorham, Account Executive, Rancho Mesa Insurance Services, Inc.

Like most businesses, vehicles are an essential part of a plumbing or HVAC contractor’s operations. Whether the focus of their business is service and repair, tenant improvements, installation, or new construction, company leaders depend on trucks, vans, and cars to get their people, equipment, and materials safely to the jobsite.

Unfortunately, the cost to insure those vehicles has increased dramatically over recent years and there appears to be no imminent sign that trend will change.

According to AM Best, the U.S. commercial auto insurance segment sustained a $5 billion net loss in 2023. While it is still too early to know how the auto segment performed in 2024, early indications from the first half of the year showed further deterioration, marking the 12th straight year of net underwriting losses for auto insurers.

There are multiple reasons for the increase in auto losses. Distracted driving is contributing to an increase in the frequency of automobile accidents, while social inflation and third party litigation funding are amplifying the severity of associated losses. As all of these causes will continue to negatively affect the auto insurance marketplace broadly, avoiding auto accidents becomes increasingly more important for individual companies in controlling auto insurance costs.

While there are many factors that can lead to an auto accident, businesses can benefit from focusing on those within their control. Implementing or enhancing a fleet safety program with clear, actionable policies will better equip drivers to avoid accidents. Consider how your fleet safety program handles the following:

• Driver selection, qualification, and performance management. Establish clear written guidelines on who is eligible to drive and how their driving performance is evaluated. This may include policies such as requiring an applicant to provide their motor vehicle record as part of the interview or hiring process, participation in the Employer DMV Pull Notice program, incentives for safe driving, and responses to unsafe driving practices, near misses, tickets, or at fault accidents.

• Safety rules, vehicle use, and operating procedures. Define how and when drivers are allowed to operate vehicles. This should include policies that address use of cell phones and hands-free devices, impaired driving, personal use of company vehicles, company use of personal vehicles, passengers, seatbelt use, and speeding, among others.

• Driver training. Provide ongoing training for employees to understand their responsibilities as drivers and the risks that are present on the road. This could include in-person or video trainings that discuss topics like defensive driving, distracted driving, safe following distance, and driving in inclement weather. Having potential drivers successfully complete an in-person driving test in a controlled environment before getting on the road, as well as annual driving tests can also help reduce the likelihood of an accident.

  Learning management systems like Rancho Mesa’s proprietary SafetyOne™ platform can offer effective and convenient online trainings to ensure your drivers are knowledgeable and well equipped to drive for your company.

• Vehicle maintenance and inspection. Schedule and document routine maintenance tasks like oil changes, tire rotations, and brake inspections to help keep vehicles running smoothly. Implementing a daily vehicle inspection for items like active turn signals, working headlights and brake lights, and tire pressure reinforces the importance of safety to your drivers, while also proactively minimizing the risk of a dangerous maintenance issue that could lead to an accident.

Providing an easy way for your drivers to document and report their daily vehicle inspections and maintenance issues can increase the likelihood of compliance. Try one of our QR code-enabled Driver Vehicle Inspection Report (DVIR) to see just how simple it can be to document and report mechanical or safety issues with your fleet.

In addition to a robust fleet safety program, there are other tools and strategies that can be leveraged to provide savings in a challenging insurance marketplace, without sacrificing coverage.

To discuss these tools and strategies or for a complimentary review of your current fleet safety program and insurance program, contact me at (619) 486-6554 or mgorham@ranchomesa.com.

SB 428: Expanding California’s Workplace Violence Restraining Order Law to Protect Against Harassment

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

A new California law expands the state’s protections around workplace violence restraining orders.

Beginning January 1, 2025, employers were given the right to seek a temporary restraining order on behalf of an employee who has suffered harassment in the workplace. California State Senate Bill 428 (SB 428) was authored by Senator Catherine Blakespear and signed into law by Governor Gavin Newsom.

Existing state law allows employers to seek a temporary restraining order against a person who has perpetrated acts of violence in the workplace or has made credible threats of workplace violence. SB 428 expands those protections to allow employers to seek a temporary restraining order against a person who has harassed their employee(s), before harassment escalates to violence or threats of violence.

Individuals can also seek a restraining order against harassment for themselves.

The text of the bill defines harassment as, “a series of acts over a period of time, however short, evidencing a continuity of purpose, including following or stalking an employee to or from the place of work; entering the workplace; following an employee during hours of employment; making telephone calls to an employee; or sending correspondence to an employee by any means, including, but not limited to, the use of the public or private mails, interoffice mail, facsimile, or computer email.”

If an employer does request a temporary restraining order, and that order is granted by a judge, SB 428 states that the order will remain in effect for up to 21 days.

If the perpetrator of the harassment—otherwise known as the “respondent”—is also an employee of the same company that is requesting the temporary restraining order, a hearing will be held, “concerning the employers’ decision to retain, terminate, or otherwise discipline the respondent.”

If the respondent is determined to have been engaged in unlawful harassment, a restraining order may be issued with a duration of up to three years and the employer can request a renewal, “any time within the three months before the expiration of the order.”

However, the law does not allow employers to seek temporary restraining orders for any behavior or speech that is “constitutionally protected, or otherwise protected by Section 527.3 or any other provision of law.”

Rancho Mesa has a number of resources that can help protect your company and employees from workplace violence. Harassment prevention training, workplace violence training, and workplace violence policies can be found on the RM365 HRAdvantage™ portal.

Beyond a Single Bond: How We Help Contractors Stay Ahead of Their Surety Needs

Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.

We recently issued a very large bond for one of our contractor clients which prompted a discussion during the underwriting process about potentially moving their account to a surety carrier with a larger capacity. However, after enjoying a seven-year relationship with the current bond company and receiving an early indication that they could support the larger bond request, this provided us with an initial understanding that we might be okay staying with the current carrier.

Most bond companies will provide their agency partners, like Rancho Mesa, with a range of support for their typical bond programs. For example, they may indicate they are looking to support established contractors with single bonds up to $40,000,000 range and work programs up to the $80,000,000 range with the caveat that they can go higher for specific accounts.

So, once we had the initial indication, the next step was to talk to our contractor client about the potential size of their future projects that might require bonding over the next few months. Based on that discussion, we realized it was actually time to find a bond company with much larger capacity to fit our client’s future needs. So, the discussion turned from support for this particular large bond to ensuring we had support for larger capacity both today and in the future.

We successfully placed the contractor with a larger carrier by focusing on really understanding the client’s business over the long term instead of just considering a particular bond at a particular time. The additional communication was key. 

If you would like more information about ways to ensure you are placed with the best bond company to fit your needs, please contact me at (619) 937-0165 or mgaynor@ranchomesa.com.

Updates to California Sick Pay and PTO in 2025

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Beginning on January 1, 2025, changes to California paid sick leave and paid family leave took effect in California.

Use of Paid Sick Leave Expanded

The use of paid sick leave has been expanded to cover additional reasons for absence including:

• Jury duty

• Appearance in court under a court order as a witness in a judicial proceeding

• Any reason covered under the victim leave law, if the employee or their family member is a victim of any qualifying act of violence (QAOV)

Additionally, agricultural workers whose job description requires them to work outside may use paid sick leave to avoid unsafe smoke, heat, or flooding conditions.

To ensure your business is in compliance with these new requirements, update your paid sick leave policy to include these new uses.

Use of Paid Family Leave Requirements Changed

The requirements for an employee to use paid family leave have also been updated. Employers can no longer require employees to use up to two weeks of accrued, unused vacation time before they are able to receive Paid Family Leave (PFL) from the state.

Employers should update family leave policies to remove any requirement that employees must use accrued vacation time before receiving PFL benefits on or after January 1.

Changes to paid sick leave and Paid Family Leave policies can be made through Rancho Mesa’s RM365 HRAdvantage™ portal by utilizing the Company Policies/Handbooks feature.

For more information on other important changes to California employment law, register for Rancho Mesa’s 2025 Employment Law Update webinar.

Cal/OSHA’s COVID-19 Prevention Non-Emergency Standards End, Employers Still Required to Document COVID-19 Cases

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

February 3, 2025 marked the end of the California Division of Occupational Safety and Health (Cal/OSHA) COVID-19 Prevention Non-Emergency Standards.

However, while California employers are no longer required to follow any regulatory requirements, COVID-19 reporting and recordkeeping requirements (Title 8 Subsection 3205(j)) remain effect until February 3, 2026. The requirements specify that the employer must:

Keep a record of all employee COVID-19 cases.

These records should include the employee’s name, contact information, occupation, location where the employee worked, the date of the last day at the workplace, and the date of the positive COVID-19 test and/or COVID-19 diagnosis

These records must be kept for two years “beyond the period in which the record is necessary to meet the requirements of this section.”

Provide information on COVID-19 cases to all health and safety governing bodies when requested.

These records must be provided to the local health department that holds jurisdiction over the location of the workplace, the California Department of Public Health (CDPH), Cal/OSHA, and the National Institute for Occupational Safety and Health (NIOSH) immediately upon request and when required by law.

Although employers are no longer required to enforce a specific set of COVID-19 regulatory requirements, California employers must still adhere to state health and safety guidelines. These guidelines include:

• Maintaining a “safe and healthful” place of employment for all employees as required by Labor Code section 6400.

• Establishing, implementing, and maintaining an effective Injury and Illness Prevention Program (IIPP) as required by Title 8, California Code of Regulations, section 3203.

• Identifying, evaluating, and correcting any and all unsafe or unhealthy conditions, practices, or procedures associated with COVID-19 if COVID-19 is identified as a workplace hazard.

A COVID Resources Toolkit is available through Rancho Mesa’s RM365 HRAdvantage™ portal.

More information can be found on Cal/OSHA’s COVID-19 Guidance and Resources webpage.