3 Cyber Threats of Employee Telecommuting

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

The recent coronavirus (COVID-19) pandemic has created numerous challenges for both individuals and businesses all over the world. Last week, California Governor Gavin Newsom required all residents to “shelter-in place” and all “non-essential businesses” to cease “in-person” operations. In doing so and in order to keep their business operating, many employers transition employees to work remotely, otherwise known as Telecommuting. 

While this approach is nothing new for many businesses, employers have been required to expedite these accommodations which creates unanticipated Cyber Liability Exposure.

Below are three online threats that remote workers should be aware of:

1. Secured WiFi Networks

Make sure that all employees are using a secure WiFi network. An unsecured or public WiFi network are prime targets for malicious parties to spy on internet traffic and collect confidential information.

2. Use of Personal Devices and Networks

Many employees will be forced to use personal devices and home networks for work. These devices often lack the tools built into company networks, such as strong antivirus software and firewalls. This lack of security could increase the risk of malware which may allow personal as well as confidential information being exposed.

3. Phishing Scams

Workers may receive emails from hackers impersonating a supplier/vendor or even someone within the organization to obtain confidential information or to transfer funds unknowingly.

In order to minimize these threats, companies should implement a written “Telecommuting Agreement” that outlines specific practices and procedures when employees are working remotely. 

For information on implementing these and other internal policies, visit www.ranchomesa.com/COVID-19 and login to our RM365 HRAdvantage™ portal. Contact Alyssa Burley aburley@ranchomesa.com in our Client Services Department to learn more about the platform.

Healthcare Insurance Carriers Respond to COVID-19 Threat

Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.

As Rancho Mesa continues building resources for our clients and their employees across all sectors, we have compiled a list of healthcare insurance providers and their enhanced benefits designed to respond to the COVID-19 virus. Listed below is information related to COVID-19 testing when ordered by a physician.

Health insurers are responding to the Coronavirus threat by offering members no-cost screening and diagnostic testing.

Carrier	Enhanced Benefits1
Aetna	Screening/diagnostic testing provided at no cost. $0 copay telemedicine (for next 90 days2). Members diagnosed with COVID-19 will receive a care package with over-the-counter medications and cleaning supplies. CVS Health will help Aetna members that may be experiencing anxiety related to COVID-19 by: • opening Crisis Response Lines • providing plan sponsors with a Resources for Living toolkit • expanding 24/7 access to the Aetna Nurse Medical Line
Anthem Blue Cross	Screening/diagnostic testing provided at no cost.
Blue Shield of California	Screening/diagnostic testing provided at no cost.
Health Net	Screening/diagnostic testing provided at no cost.
Kaiser Permanente	Screening/diagnostic testing provided at no cost.
MediExcel Health Plan	Screening/diagnostic testing provided at no cost.
Oscar Health	Screening/diagnostic testing provided at no cost. Continuing to offer $0 telemedicine through Doctor on Call for most members.
Sharp Health Plan	Screening/diagnostic testing will be covered under the member's standard plan benefits.
Sutter Health Plan	Screening/diagnostic testing provided at no cost.
United Healthcare	Screening/diagnostic testing provided at no cost. Free Emotional-Support Help Line available for members suffering from fear or stress due to COVID-19, open 24/7.
Western Health Advantage	Screening/diagnostic testing provided at no cost.

¹ Screening/diagnostic testing when ordered by the physician.
² Aetna’s website states a 90-day window as of March 2020, but the page is posted without a start/end date. Check with Aetna before receiving services

View full table here.

For additional resources and telemedicine information for each carrier, download the full PDF document.

Frustrated You’re Not Getting Paid on a Bonded Project?

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

Getting paid on time by project owners is essential! As construction companies attempt to collect their account receivables, a frustration builds as the overdue payments stretch from 60, to 90, to over 120 days. You might have already paid certain suppliers or subcontractors, and now your cash flow is getting stretched because your receivable has been delayed. If this is a bonded project – you do have an additional avenue of recourse to collect.

You should first obtain a copy of the bond from the owner, municipality, or general contractor on the project. On a public works project this should not be difficult to obtain.

The next step is to work with your bond agent on the best way to contact the bonding company with your claim. Some bond companies will request you send an email to their claims department. Otherwise, your agent will have the bond company claim department address to ensure your claim goes to the proper area to receive attention. At Rancho Mesa, we have prepared letters that you can use as a sample to provide the bond company the proper information so your claim is not delayed.

The bond company should respond to you (usually within 20 days) and have you fill out their claim form and provide the backup documentation required to support your claim. They will then check with their insured to find out if the claim is legitimate and why payment has not been made.

If you would like a better understanding of how your professional bonding agent can assist you in filing a bond claim on a construction project, please feel free to contact me to ensure you are getting the proper direction to collect your money.

3 Reasons Your Pre-Renewal Meeting Is the Key to Your Success

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

Business leaders across the country head into each year with questions regarding the upcoming business insurance renewal process. Owners and officers alike rely on their insurance broker to help them navigate these uncertainties. Why should owners and officers expect a pre-renewal meeting?

Discuss important changes to your business

Between 120 and 90 days prior to the insurance renewal, expect your broker to produce a renewal packet designed to facilitate a face-to-face conversation. This important exchange is the perfect setting to update insurance applications, discuss additional coverages and explore any changes to the business. Without this crucial meeting, changes within your business may not be reflected in the documentation presented to the insurance carrier. And, that can be costly.

“When I met with Rancho Mesa three months prior to our insurance renewal, we game-planned a strategy to address a changing market as well as potential new programs and exposures,” comments Florence Andres, Director of Human Resources for North County Lifeline. “I feel comfortable that our broker strives to understand our business and mission. Every year, important decisions are made and questions are answered.”

Create a target premium and renewal strategy

In addition to application updates, it’s important to discuss a detailed review of losses, the current carrier’s performance and changes in the marketplace that will affect the renewal terms. During this meeting, the two parties agree on a proactive plan to approach the marketplace, target the renewal pricing and agree to a meeting 3 to 4 weeks prior to the renewal date to insure no last minute surprises.

How is this possible? By using industry benchmarking like Rancho Mesa’s StatTrac™ program, we are able to compare our client’s performance to their industry peer group.

“Benchmarking a client’s claims performance over five years provides important insight,” reflects Dave Garcia, Rancho Mesa’s President. “In addition to helping us set aggressive renewal pricing objectives, it also assists us in discovering underlining trends and root causes that help us create the appropriate service plan moving forward to correct those areas of need.”

Prepare for the hardening market

As we enter into a hardening property and casualty insurance market with the potential for escalating premiums, the need for a formal renewal meeting, done well in advance of the policy expiration date, should be expected by all business owners and officers. With the marketplace leading to increasing rates, higher retentions, and lower limit options, leaving an underwriter’s interpretation to chance is not an option. Your broker must paint an accurate picture of your company for the underwriter in a way that justifies the appropriate pricing.

If you have questions about the hardening insurance market or wish to learn more about Rancho Mesa and our “Above and Beyond” approach to customer satisfaction, please call me at (619)937-0175 or sbrown@ranchomesa.com.

What Employers Need to Know Before a Serious Injury Occurs in the Workplace

Author, Jim Malone, Workers’ Compensation Claims Advocate, Rancho Mesa Insurance Services, Inc.

Timely reporting of an employee’s work-related serious injury, illness or death can pose a challenge to the employer. As of January 1, 2020, these incidents (including any hospitalizations, unless the injured worker is admitted for medical observation or diagnostic testing) must be reported immediately to Cal/OSHA. Immediately means as soon as practically possible but not longer than 8 hours after the employer knows or, with diligent inquiry, would have known of the serious injury, illness or death.

Monitoring the employee’s status at a hospital can be difficult if the employer has not put in place procedures and policies that will authorize a healthcare provider to disclose information that is covered by the Health Insurance Portability and Accountability Act (HIPAA). For example, the employer must follow-up with the hospital providing care to the injured employee to determine if the incident must be reported to Cal/OSHA. The employer will need to know if the employee has been moved from the emergency room and admitted to the hospital for in-patient treatment. 

Ensuring policies and procedures are developed and implemented to restrict the use and disclosure of protected health information (PHI), are important elements of HIPAA compliance. If health information is used for purposes not permitted by the HIPAA Privacy Rule, or is deliberately disclosed to individuals not authorized to receive the information, there are possible penalties for the covered entity or individual responsible.

HIPAA permits PHI to be used for healthcare operations, treatment purposes, and in connection with payment for healthcare services. It can be argued that employers need this information to comply with State and Federal OSHA laws. Information may be disclosed to third parties for said purposes, provided an appropriate relationship exists between the disclosing covered entity (i.e., the hospital) and the recipient’s covered entity or business associate (i.e., the employee or employer). A covered entity can only share PHI with another covered entity if the recipient had previously or currently has a treatment relationship with the patient. The PHI has to relate to that relationship. In the case of a disclosure to a business associate, a Business Associate Agreement must have been obtained. Disclosures must be restricted to the minimum necessary information that will allow the recipient to accomplish the intended purpose of use. 

Prior to any use or disclosure of health information that is not expressly permitted by the HIPAA Privacy Rule, one of two steps must be taken:

1. A HIPAA authorization must be obtained from a patient, in writing, permitting the covered entity or business associate to use the data for a specific purpose not otherwise permitted under HIPAA.

2. The health information must be stripped of all information that allows a patient to be identified.

Employers may consider obtaining signed business associate agreements or HIPAA authorizations from their employees before any injury or accident occurs. This will ensure they are able to get the appropriate protected medical information from the hospitals so they can report “serious injury or illness” accurately and timely to Cal/OSHA. 

Therefore, it is extremely important for employers to learn the existing laws and new changes to these laws and have a plan of action in place to address these concerns before the next serious injury, illness, or death occurs.

Currently, reporting to Cal/OSHA can be made by telephone or e-mail. With these reporting changes, Cal/OSHA has also been directed to establish an on-line mechanism for reporting these injuries. It is always important to document when these incidents are reported to Cal/OSHA. Until an online mechanism is established, use of e-mail would be such method for documentation. Monitoring of the Cal/OSHA website for implementation of the on-line mechanism of reporting is also suggested.

For more information on how to report serious injuries and illnesses to Cal/OSHA, please reference “Cal/OSHA Updates: AB 1804 Changes How Injuries and Illnesses Are Reported.”

For more information about what is considered a serious injury or illness under Cal/OSHA, please reference “Cal/OSHA Updates: AB 1805 Changes Definition of Serious Injury or Illness.”

Strategies Employers Can Use to Combat the Coronavirus

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

According to the U.S. Center for Disease Control and Prevention (CDC) there is no evidence of widespread transmissions of COVID-19 (commonly known as Coronavirus) in the United States, at this time. For the general American public, such as workers in non-healthcare settings, where it is unlikely that work tasks create an increased risk of exposure to COVID-19, the immediate health risk from the virus is considered low. Business owners should ask themselves, would my company be prepared in the event of an outbreak? The CDC recommends creating an Infectious Disease Outbreak Response Plan.

Employers should be ready to implement strategies to protect their workforce in the event of an outbreak of COVID-19 while ensuring some semblance of business operations. The CDC has recommended the following strategies that employers can use, today.

• Actively encourage sick employees to stay home.

  • Employees who have symptoms of acute respiratory illness are recommended to stay home and not come back to work until they are free of a fever (100.4° or greater) without the use of fever reducing medicines. Employees should notify their supervisor and stay home if they are sick.

  • Ensure that your sick leave policies are flexible and consistent with public health guidelines and that employees are aware of these policies.

  • If your business utilizes contract of temporary employees, make sure the company you work with implements the same strategies as your business and recommends sick employees stay home.

• Separate sick employees:

  • The CDC recommends that employees who appear to have acute respiratory illness symptoms (i.e. cough, shortness of breath) upon arrival to work or become sick during the day should be separated from other employees and be sent home immediately. Sick employees should cover their noses and mouths with a tissue when coughing or sneezing.

• Emphasize staying home when sick, respiratory etiquette and hand hygiene by all employees:

  • Place posters that encourage staying home when sick, cough and sneezing etiquette, and hand hygiene at the entrance to your workplace and in other workplace areas where they are likely seen.

  • Provide tissue and no-touch disposal receptacles for use by employees.

  • Provide and encourage the use of alcohol-based hand sanitizer that contains at least 60-95% alcohol, or wash hands with soap and water for at least 20 seconds.

• Perform routine environmental cleaning:

  • Routinely clean all frequently touched surfaces in the workplace, such as workstations, countertops, and doorknobs. 

  • Provide disposable wipes so that commonly used surfaces can be wiped down by employees before each use.

• Advise employees before traveling to take certain precautions:

  • Check the CDC’s Traveler’s Health Notices for the latest guidelines and recommendations for each country to which you will travel.

  • Advise employees to check themselves for symptoms of acute respiratory illness before starting travel and notify their supervisor and stay home, if they are sick.

  • Ensure employees who become sick while traveling or on temporary assignment understand that they should notify their supervisor and promptly call a healthcare provider for advice, if needed.

• Additional measures in response to currently occurring sporadic importations of the COVID-19:

  • Employees who are well but who have a sick family member at home with COVID-19 should notify their supervisor and refer to CDC guidance for how to conduct a risk assessment of their potential exposure.

  • If an employee is confirmed to have the COVID-19 infection, employers should notify fellow employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality as required by the Americans with Disabilities Act (ADA). Employees exposed to a co-worker with confirmed COVID-19 should refer to CDC guidance for how to conduct a risk assessment of their potential exposure.

  • Engage state and local health departments to confirm channels of communication and methods for dissemination of local outbreak information.

It is extremely important for business owners to know what they can do to minimize the spread of an infectious disease.  It is equally as important to be prepared for an outbreak (whether it’s COVID-19 or any other potential infectious disease). Having an Infectious Disease Outbreak Response Plan can guide a business during these trying times. Rancho Mesa Insurance’s RM365 HR Advantage™ online portal offers instructions on “How to Handle an Infectious Disease Outbreak.” If you have any questions relating to this subject matter please feel free to reach out to Rancho Mesa Insurance.

Fire, Earthquakes, Leaks, Oh My! Property Insurance Market Continues to Worsen

The 2018 California Wildfires brought unprecedented destruction and loss to the region. The total value of insurance claims is estimated to exceed $13 billion. While some have theorized that Pacific Gas & Electric (PG&E) will reimburse insurance companies as a result of its negligence to maintain trees and equipment that caused the destructive wild fires, many believe this will not be the case.

The total damages expected to fall on PG&E exceeds $30 billion, most of which will go towards municipalities before it goes to the insurance companies. This is omitting any lawsuits that have yet to be filed. Also, much of what PG&E will be required to pay will come from…its insurance policy. 

Alternative Options to the Standard Market

Many of our clients have opted for alternative options to the standard insurance programs most are accustomed to purchasing to cover their property. These alternative approaches are allowing our clients to save money while still insuring their property to a level that they feel comfortable.

Many of these options are backed by the state of California and allow the client to have key coverage for fires, water leaks, vandalism, etc. while saving, in many cases, 60-80%. There is no limit to property size and geographic location on these alternative programs.

For more information about alternatives to standard insurance programs for property coverage, please contact Rancho Mesa Insurance Services at (619) 937-0164.

Don’t Trim Down Your Safety Procedures

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

Trees require regular maintenance to ensure their health and safety. Dead or diseased trees must be cut down in order to prevent injuries to people or damage to nearby structures. Maintaining trees through trimming is a dangerous task, even for experienced professionals. Unfortunately, accidents do occur. The three most common types of serious accidents experienced by tree trimmers are falls, electrocution, and being struck by falling objects.

Falls

Falls are a common accident for tree trimmers. They can occur by slipping off of a ladder, falling from a roof, or falling out of a tree. The typical fall victim is unsecured or not properly secured. Using proper personal protective equipment is essential in preventing falls.

Electrocution

The risk of electrocution is very high when working around power lines. Some trees are planted near overhead power lines and there is a risk of electrocution to anyone trimming branches. The worker may accidentally touch the wires, or a falling branch could knock down the wires resulting in a tree trimmer touching the lines. The most common type of victim violates minimum approach distances and makes contact with the power lines through a conductive tool/object such as pruning shears. Training employees on minimum approach distances and proper trimming techniques when working around power lines can help prevent electrocution.

Falling Objects

According to the Centers for Disease Control, being struck by a falling object is the most reported tree trimming accident. A falling object is typically an entire tree or its branches/limbs, but it could also be loose equipment like a chain saw. Most victims are struck by a tree or tree limb after it falls in an unexpected direction; however, careless accidents do occur in specified drop zones. Communication between employees in the tree and on the ground is imperative to ensure the safety of all.

Tree trimming professionals face dangerous hazards on a daily basis and it is extremely important to take precautionary safety measures to make sure that they are doing everything they can to reduce risk. Safety training materials for tree trimmers are available through the Risk Management Center.

For information about Rancho Mesa's TreeOne™ program, contact Rory Anderson at (619) 937-0164.

Managing the Inherent Risks of Personal Vehicle Use Within Your Company

Author, Daniel Frazee, Executive Vice President, Rancho Mesa Insurance Services, Inc.

While costs associated with auto liability continue rising across the country, there are risks within existing fleet safety programs that often get overlooked. If your business allows employees to use personal vehicles to conduct business, even just occasionally, you could be exposing your firm to considerably more risk. You can ignore this potential gap in coverage or closely examine the exposure while simultaneously developing a risk mitigation plan.

Review and Examine Liability Coverage

Before developing any guidelines, we encourage clients to identify those drivers that are using personal vehicles. Again, the pool here should include regular and non-regular drivers who are using personal vehicles. Once that list is finalized, request current declaration pages and/or certificates of insurance showing coverage periods and limits. As you examine this information, ensure that coverage is in force and pay close attention to the limits as many state minimum coverage requirements will be much lower than typical commercial auto policy limits (Example: $10,000 to $15,000 for bodily injury). Working to develop company standard minimum limits for personal use of vehicles is something you can establish with and through recommendations from your broker partner and carrier.

Hiring with Auto Exposure in Mind

Just as many managers do when hiring employees who will drive company vehicles, consider requiring the same guidelines for potential new hires who may use their own vehicles. These guidelines may include a current Motor Vehicle Report (MVR) which allows you to review accidents and track behavior. You may also enroll drivers in the Employer Pull Notice (EPN) Program which notifies businesses when employees have any type of driving activity in or out of the workplace. Lastly, be prepared with documented steps to take when your drivers exhibit unsafe driving behavior. This can include additional training, a suspension, or even termination depending on the frequency.

Written Expectations and Usage Guidelines for Drivers

Vehicle use agreements have become commonly used documents for employers. Depending on the layout, usage guidelines can help establish clear expectations and encourage real buy-in from the employee. As a reference point, Rancho Mesa offers an example of a usage guideline form available within the Risk Management Center.

Creating and Maintaining a Culture of Safety

Evaluating your respective safety programs is a process that takes time. Many employers are unfamiliar where to even start and perhaps which areas of their operation pose the greatest risk to their business’ financial health. With auto liability, in general, the potential for direct loss can impact balance sheets of all sizes. Part of our role as commercial insurance brokers is tying in years of experience seeing these gaps within programs, like personal vehicle use. We recommend first how to mitigate them and then tailor an insurance program that further reduces or eliminates the exposure. The points listed above represent only the start to your process in revamping your Fleet Safety Program. Call or email Rancho Mesa Insurance for a complete “all lines” safety review and coverage audit. Your company’s financial future could depend on it.

Have You Brushed Up on Your ABC’s?

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

California Assembly Bill 5 (AB 5), better known as the “Gig Worker’s Bill” became law on January 1, 2020 and is designed to reclassify many independent contractors as employees for purposes of wages and benefits. What does this bill mean and how does it affect you??

Previously, employers used the “Borello test” to identify someone as either an independent contractor or employee. In most cases, AB 5 changes the standards to the new “ABC test,” which makes it much more challenging for a person to be classified as an independent contractor. Both the Borello test and the new ABC test assume that the worker is an employee and the employer must prove that the worker is actually an independent contractor.

According to the new law, “a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that all of the following conditions are satisfied:

(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

(B) The person performs work that is outside the usual course of the hiring entity’s business.

(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.”

If you have hired an independent contractor who does not pass the ABC test, they likely will now be classified as an employee with minimum wage, unemployment insurance, sick leave, and income tax and social security withholdings. Independent contractors are not entitled to these benefits.

Doctors, lawyers, hair stylists, and insurance agents are just some of the more common independent contractor jobs that are not affected by AB 5. At this time, independent contractors such as architects and engineers are exempt from the ABC Test, but truck owner-operators, surveyors, and geologists are not exempt. In January 2022, contractors will not be able to hire owner-operators truck drivers. They will have to work with a company that has drivers who are employees.

AB 5 is intended to reduce the misclassification of workers and bring equality to the workplace. Although the bill has good intentions, it could negatively affect the way many companies operate. The ABC test has strict guidelines to be considered an independent contractor. With the reins tightening, it will be difficult for companies to enlist independent contractors to supplement their workforce when needed. Employers will be forced to hire actual employees or hold off on hiring employees all together.

For specific questions about AB 5 and how it will affect your business, contact our HR Experts via the RM365 HRAdvantage™ portal.

Cal/OSHA Updates: AB 1805 Changes Definition of Serious Injury or Illness

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

For reporting purposes, California Assembly Bill 1805 (AB 1805) outlines new definitions for what is considered a serious injury or illness. These changes were made to bring California’s laws more in line with Federal OSHA reporting standards. The changes include:

• Employers must now report all inpatient hospitalizations (regardless of the length of stay), unless the inpatient hospitalization is for medial observation or diagnostic testing.

• The phrase “loss of any member of the body” has been changed to “amputation” or the “loss of an eye” as needing to be reported.

• Workplace violence resulting in a serious injury, illness, or death that falls under the Penal Code are now considered reportable.

• Serious injury or death caused by an accident occuring in a construction zone on a public street or highway must now be reported.

• A “serious exposure” is now “any exposure of an employee to hazardous substances when the exposure occurs as a result of an incident, accident, emergency, or exposure over time and is in a degree or amount sufficient to create a realistic possibility death or physical harm in the future could result from the actual hazard created by the exposure.”

As of January 1, 2020, the changes to AB 1805 are in effect. Make sure your human resources, safety manger, and supervisors are aware of these changes and start the New Year off on the right foot.

Skilled Labor Shortages Prompt Subcontractors to Provide Performance Guaranty

Author, Andy Roberts, Account Executive, Surety Division, Rancho Mesa Insurance Services, Inc.

The construction industry is currently booming. According to a survey conducted by the AGC of America, and a recent article written by Rancho Mesa’s Kevin Howard, the industry shows no signs of slowing down, as 80% of contractors predict growth in 2020. While that’s great news for the industry, we are starting to see some trends that can cause some issues for contractors.   

With an abundance of work, contractors are finding it more difficult to find the skilled labors required to complete a project on schedule. This is causing more and more general contractors, who historically didn’t require their subcontractors to provide a bond, to now require their subcontractors to bond back to them on contracts over a certain amount. 

Bonding back is when a general contractor requires a subcontractor to obtain a performance and payment bond, even though the general contractor is already carrying a bond for the entire project. The bonds from the subcontractor operate in the same way as the bonds that the general contractor provided to the project owner, but now the general contractor has a performance guaranty from the subcontractor. This gives the general contractor an avenue to pursue recourse, should the subcontractor default or fail to perform up to the standards required by the contract, which is something that can happen if the subcontractor is having issues finding enough skilled labor.

Furthermore, this can present a problem for subcontractors who aren’t accustomed to bonding. They would need to get a bonding program put into place in order to work with a general contractor that they may have a long relationship with, who they previously never required a bond back. This makes it very important for subcontractors to have the discussion with the general contractor about potential bond requirements. An upfront conversation with the general contractor can help you avoid getting into a situation where you win a bid, but don’t have the ability to meet the bond requirement.

Fortunately, for contractors that are new to bonds or maybe don’t bond frequently, there are a variety of programs that the different sureties offer, whether it be credit-based, or a more traditional program. We can help navigate those programs and find the solution that works best for their company’s bonding needs. 

If you have additional questions or would like to explore all the different options that each surety offers, please contact Andy Roberts at (619) 937-0166.

OSHA Penalties Increase in 2020

Author, Lauren Stumpf, Media Communications Coordinator, Rancho Mesa Insurance Services, Inc.

On January 15, 2020 the Federal Register published the Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2020. This final rule increases civil penalties the Department of Labor assesses including those issued by the Occupational Safety and Health Administration (OSHA) based on workplace inspections and potential violations of safety and health standards. The rule is effective January 15, 2020. Beginning January 16, 2020 OSHA civil penalties will increase.

The new 2020 maximum OSHA penalties are as follows:

• Serious violation: $13,494 (increased from $13,260)

• Other-than-Serious violation: $13,494 (increased from $13,260)

• Repeat violation: $134,937 (increased from $132,589)

• Willful violation: $134,937 (increased from $132,589)

• Each failure to correct the violation: $13,494 (increased from $13,260)

• Each posting requirement violation: $13,494 (increased from $13,260)

For more information about the OSHA Penalties, visit https://www.osha.gov/penalties.

Cal/OSHA Updates: AB 1804 Changes How Injuries and Illnesses Are Reported

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

As of January 1, 2020, California Assembly Bill 1804 (AB 1804) changed how an employer reports a serious employee injury or illness to Cal/OSHA. The bill removes the option to submit the report via email and replaces it with an “online mechanism,” according to Labor Code section 6409.1 (b). Reports may continue to be made via phone.

Until Cal/OSHA implements an online mechanism for collecting serious injury and illness reports like Fed/OSHA, emailed reports will be accepted. However, reports submitted by phone are always recommended over an emailed report. Reports submitted via phone or an online mechanism allows Cal/OSHA to ensure vital information is collected that is necessary to evaluate the seriousness of the injury or illness.  

Cal/OSHA has not provided an estimated implementation date for the online report submission option.

As a reminder, California employers are required to report serious injury or illness of employees immediately. Serious injuries or illnesses must be reported as soon as practically possible. Deaths must be reported within 8 hours. All other injuries or illnesses must be reported once the employer learns of or should have known of the serious injury or illness.

2020 Promises Growth for Contractors but With a Twist

Author, Kevin Howard, C.R.I.S., Account Executive, Rancho Mesa Insurance Services, Inc.

Based on a recently published survey from the Associated General Contractors of America, 80% of contractors predict growth in 2020…but there is a twist. There is a major labor shortage.

The current California Unemployment Rate, is a staggeringly low 3.9% compared to an unbearable 12% during the 2008 recession. As Californians, this statistic is music to our ears. However, for construction owners, the demand to hire skilled workers from an extremely shallow workforce pool has created a need for Best Practices hiring strategies paired with enhanced methods of retaining employees.

As a 13-consecutive year Best Practices Agency, Rancho Mesa provides resources to equip our clients with strategies and methods to enhance human resources strategies. These efforts lead to broader protection from insurable risk.

We are excited to partner with Equal Parts Consulting on February 6, 2020 for a seminar that will equip businesses with the needed methods for this economic environment. Attendees can look forward to the following topics and discussions below:

• Strategies and best practices to create an easy to implement hiring process that aligns with your company’s culture.

• Effective ways to assess and evaluate talent to ensure they are aligned with your company purpose, values, and culture.

• Uncover some of the most important things your business can do to attract and retain the right talent for your culture.

Our goal is to help our contractor clients map out a game plan that will help retain talent, search for needed key employees and create a successful 2020 and beyond. Please feel free to contact me with any questions, at (619) 438-6874.

Work Comp Unit Stat: The Meeting That Saves You Money

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

California business owners are aware that their experience modifier (XMOD) is published annually, roughly three to four months before the expiration of their current workers compensation policy term. However, more often than not, companies are missing an incredible opportunity to make an impact on the calculation of their XMOD by strategically evaluating their work comp claims prior to the most critical month in the XMOD calendar known as Unit Stat.

The Workers’ Compensation Insurance Rating Bureau (WCIRB) defines the process of receiving loss and payroll information by classification as the Unit Statistical Report. The information is reported to the WCIRB by insurance carriers at specific intervals based on your company’s policy effective date. The information is valued for the first time 18 months after the inception of your policy and every 12 months thereafter. 

A policy that incepts in January 2020 will be valued for the first time in July of 2021 (18 month mark). This information will remain in your XMOD calculation for the valuations at 30 months and 42 months.

Once this information has been received by the WCIRB, from the respective carriers, it cannot be altered or changed until the following year’s unit stat. Thus, you may have a positive outcome on an existing open claim (reserve reduction or closure) but not see the benefit until the following year. Revisions to the XMOD once published are limited to a few circumstances; more information about revisions can be found here.

The loss information, sent to the WCIRB from the insurance carriers, will be evaluated at the paid (closed claim) or reserved (open claim) amounts. Typically, a claim that has been open for longer than 18 months signifies severity, litigation, lost time, permanent disability, or a combination of the group. For this reason it is absolutely critical that as a part of your risk management process you execute a
pre-unit stat meeting.

• When should I schedule my Unit Stat meeting?

• What should I do at this meeting?

• Who needs to be involved?

• How will this meeting save me money?

As a client of Rancho Mesa, we build this meeting into your annual service plan and take care of engaging the parties who need to be involved for the betterment of your XMOD. 

Ready to learn more about Unit Stat? Join us for a complimentary 25-minute webinar where we will discuss the process in greater detail and take time for Q&A.

Still not sure if further learning is necessary, ask yourself these questions:

• Have you ever been surprised by your XMOD being higher than you would have thought?

• Have you ever had an XMOD above 1.00?

• Has your XMOD ever caused your premium to increase?

The webinar can be viewed on-demand by clicking the link below.

It’s OSHA 300A Time

Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.

The holidays have come and gone and here we are at the end of another great year. Year-end means calendar updates, process changes and document reviews, as well as time to prepare for filing your OSHA 300A form. 

The OSHA 300A form is a summary of injuries and illnesses which occurred on the job during the calendar year. The form must be filed electronically on the Injury Track Application (ITA) starting January 2, 2020. Deadline for 2019 data submissions is March 2, 2020. It must be displayed from February 1, 2020 to April 30, 2020.

Don’t forget, if you are a Rancho Mesa client and utilize the Risk Management Center Incident Track feature, you have access to generate the Cal/OSHA 300A form and export it to a CSV file. From there you can upload it to the OSHA website.

Rancho Mesa has put together a 5-minute tutorial video on how to generate the electronic 300A form data file from the Risk Management Center, that can be uploaded to the Injury Tracking Application website for reporting the data.

For questions about how to track the injury and illness data in the Risk Management Center, contact Alyssa Burley at (619) 438-6869.

Generating Your Employee Handbook Is Easier Than Keeping a New Years Resolution

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

When business owners are asked if their employee handbooks are up to date, they typically shrug and say “It’s something we have been meaning to tackle.” It is hard to blame them when it often feels as though a newly revised employee handbook quickly requires an update due to changes in employment laws! There is a significant need for an easy to use option where employers can have an up to date handbook throughout the year and, have it generated at no cost. Rancho Mesa provides that solution.

As the California workplace climate changes, it is imperative that business owners have solutions before problems arise. Employee lawsuits against their employers are on the rise and Rancho Mesa clients must be prepared for the possible, if not inevitable. While updating an employee handbook can be one of the easiest obligations to neglect, skipping this task can have serious repercussions.

When laws and protocols change over time, it can be difficult making sure your employee handbook is up to date. Make sure it clearly communicates:

• What is expected of your employees.

• What are your company policies.

• What rules are in place.

At Rancho Mesa, we have taken the time to understand our clients’ needs and if there is a solution available, we try to accommodate. We provide a free option for our clients, to help them compose a compliant handbook that is:

• State and federal compliant.

• Handbook is fully customizable with optional policy update alerts. If a law were to change right after completing your handbook, you would receive an email with the change and have the option to add it to your handbook.

• Live HR support to assist with company specific question.

Please reach out to Alyssa Burley at aburley@ranchomesa.com with any questions you may have about the employee handbook builder option through the RM365 HRAdvantage™ portal. If you have any questions pertaining to your insurance needs, please call (619) 934-0164.

Have You Met With Your Bond Company This Year?

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

After a recent meeting between a Rancho Mesa contractor client, the bond company that supports our contractor, and Rancho Mesa as the contractor’s agent, the bond manager sent me an email stating, “now that I have met with [your client], we are willing to increase their aggregate surety line of credit by $10,000,000. Thank you for setting up the meeting.”

In the world of surety bonding, the various financial information the bond underwriter will analyze includes the Balance Sheet, Income Statement, A/R & A/P Aging, Bank Line of Credit, Work In Progress Schedule, and the owner’s personal financial statement. This is to determine the level of single project and aggregate program credit line to support the contractor’s bonding. These items all represent “objective” processes the bond company will use to make their credit decision.

However, it is also important to introduce the bond company to several “subjective” processes to include in their decision making. During a direct meeting between the contractor and the bond underwriter, you may uncover positive items that might make the difference between a yes or no response for a project. Examples might include:

1. Relationships with a certain municipality or a general contractor (in the case of a subcontractor client).

2. Various production schedules that could enhance the profit on a particular project.

3. Equipment savings unknown to the underwriter, etc.

As a home office contract bond underwriter in the late 1980s, I was invited by an agent and our branch underwriter to fly to Atlanta and meet with a certain contractor before deciding whether to support a large project that would require a bond. After walking though the jobsite with the client and reviewing the various estimating schedules for this particular project, I came back with a sense that the contractor could support a higher level of bonding beyond what our analysis of the financial numbers would have allowed. Therefore, we approved the bid for bonding. Although the contractor client came in third on that specific project, we had laid the groundwork for a much larger program of support going forward.

We recommend that you schedule to meet your bond company on an annual or bi-annual basis. If you would like a better understanding of how this meeting might increase your bond line of credit, feel free to contact me, Matt Gaynor, at (619) 937-0165 to discuss ways to ensure your bond program is efficient as possible.

The Flu Isn’t the Only Bug You Need to Worry About

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

Target, Capital One, and Equifax are all Fortune 500 Companies and household names we recognize. All have experienced a cyber liability breach in the last decade. When we hear of a data breach, we typically think of large corporations or more recently municipalities that collect customers’ personal identification information or are using technology to manage physical locations (i.e. buildings), transit systems, and people. However, just about any large, medium or small organization that uses technology to operate their business faces a cyber-exposure. And, as technology becomes more complex and sophisticated, so do the threats we face, which is why every business and organization needs to be prepared with both cyber liability insurance and an effective cyber security plan to manage and mitigate cyber risk. Below are two different cyber threats your company faces on a daily basis.

Ransomware is a type of malware that prevents users from accessing their system or personal files and demands a ransom payment, typically in the form of Bitcoin, in order to unlock and regain access to your data.

Social Engineering is the fraudulent attempt to obtain sensitive information such as usernames, passwords and credit card details by disguising oneself as a trustworthy entity via e-mail. This is typically accomplished by directing users to enter personal information at a fake website which matches the look and feel of the legitimate website.

A Cyber Liability Policy can help protect against data breaches and other evolving cyber exposures that are not covered by a standard property and general liability policy. These policies can respond in multiple ways such as credit card data remediation and notifications expense, network and information security liability, regulatory defense expense, crisis management expenses and computer program and electronic data restoration expenses.

In addition to the coverages above, many cyber insurers offer policyholders pre-breach services, employee training and IT forensics specialists. Some also provide data breach “coaches” who specialize in the unique legal and regulatory issues surrounding breaches, and will assist businesses with navigating the response process and ensure compliance with state and federal privacy laws.

Please contact Rancho Mesa to learn more about implementing a strong Cyber Prevention Plan.