Ideas Worth Stealing
Engaging employees to help prevent injuries, and to drive down claims costs and lost time was a common theme among the winners of the 2016 Theodore Roosevelt Workers’ Compensation and Disability Management Awards.
Representatives from three of the winning companies shared their strategies on Thursday morning during the “Steal these Ideas!” session at the 25th National Workers’ Compensation and Disability Conference® & Expo.
Hampton Roads Transit engaged its employees with a safety perception survey to better identify where to direct their efforts.
“Workers are advocating for themselves,” said Jennifer Massey, corporate director of safety, health and claims management, Harder Mechanical.
“We learned that employees did not feel that they could speak about safety issues,” said Danielle Hill, human resources compliance manager, Hampton Roads Transit.
HRT used the survey results to identify further strategies for improvement, and now conducts town hall meetings to keep the dialogue open.
Harder Mechanical Contractors engages employees in the return-to-work process immediately, clearly communicating the benefits of remaining at work during recovery.
Workers, in turn, talk to their treating physicians and insist that they not be taken off work.
“Workers are advocating for themselves,” said Jennifer Massey, corporate director of safety, health and claims management, Harder Mechanical.
Excela Health markets its safety initiatives aggressively, engaging employees to police themselves and each other.
Laurie English, senior vice president and chief human resource officer, Excela Health, said it’s not uncommon for an employee say to another, “You better not let the safety department see you – you have the wrong shoes on!”
The panel was moderated by Roberto Ceniceros, senior editor at Risk & Insurance® and chairman of NWCDC, and John Santulli, executive vice president of PMA Cos., the sponsor of this year’s Teddy Awards.
Congratulations to all of the winners of the 2016 Teddy Awards.
The Family That’s Safe Together
From a safety and workers’ comp perspective, the construction industry is one of the most daunting of all industries. The numbers say it best. One in 10 construction workers is injured every year, according to OSHA, and over the course of a 45-year career, a construction worker has a 1 in 200 chance of dying. Sobering odds.
One company beating those odds is Harder Mechanical Contractors, a 2016 Teddy Award winner.
Portland, Ore.-based Harder Mechanical specializes in process piping fabrication and installation, equipment installation, commercial HVAC piping and plumbing, instrumentation and controls, civil and poured-in-place concrete work and structural steel erection services.
The size of the company’s workforce varies, ranging from around 2,000 to more than 3,000 employees, depending upon the number of projects the company has in the works. Having that kind of revolving-door operation can be a major stumbling block for a safety program. But it has actually made the company double down on its efforts to create a safety culture that can thrive even as workers come and go.
“It’s a never-ending battle,” said Jennifer Massey, the company’s corporate director of safety and health and claims management. “Every day we have to reinforce it.”
It’s a battle they’re winning. The company’s injury frequency plunged from 71 to 18 in the past four years, and its total incurred cost per claim dropped from $21,322 in 2011 to $683 in 2015.
“We have a team that is aligned and focused to prevent injuries at the jobsite,” said company President Dustin Harder. “Our senior leaders are trained to support our crews and a lot of attention is put on the boots on the ground. Our field foremen are the first line of defense to preventing injuries and properly managing the ones that do occur.”
“Every person in the company, from the president to the apprentice, is deeply committed to the goal of achieving zero-injuries,” agreed the company’s general counsel and risk manager, Bill Murphy.
Results like that take diligence. Massey’s team is constantly on top of its leading and lagging indicators, working to spot any sign that the company’s safety efforts may need a course-correct.
When the team became concerned that workers were suffering hand injuries despite wearing gloves, it set out to find out why.
“The problem was, we just weren’t helping them to understand that they needed to wear the right gloves for the job they were doing, or to stop and change [gloves] as the conditions change,” said Massey.
With worker input, the team created a colorful quick-reference 4-by-8-foot glove matrix banner, matching images of glove types to specific jobs and tasks.
“We don’t want to just impose something upon the people out there in the field — they’re the ones turning the wrenches, and know how to do their jobs safely. We need to get their input so they own it,” she said.
The outcome was even better than expected — a rapid 60 percent reduction in hand injuries.
Getting to Zero
Harder Mechanical’s lost-time accident rate is enviable: Zero. The company just reached a remarkable 16 million man hours without a lost-time accident.
“That one is actually our easiest situation to deal with,” said Massey, well aware of how surprising that sounds. The key, she said, is an environment of trust. Workers readily partner with the company to make zero lost-time happen.
Employee pay scales are negotiated under collective bargaining agreements for each state jurisdiction and craft. If somebody is off work and getting TTD payments, said Massey, “they are severely affected” in terms of salary, health and welfare benefits for their families, and pension credit hours.
That’s a heavy burden to bear. Harder Mechanical makes sure that every employee understands there’s another option.
“We effectively communicate with them that … you can partner with us, and get your doctor involved, and all of us come together and agree that we’re going to keep you working no matter what. … Which would you choose if you were an injured worker?”
In the short-term, Massey’s team provides online training platforms. Recovering workers are brought to a warehouse location, where it’s easiest to accommodate restrictions safely. Treating physicians are highly cooperative because they understand that workers’ recoveries will not be compromised, and are inclined to follow their patients’ wishes.
“I tell [workers], you have to advocate for yourself and tell your doctor, ‘No, this is what I am doing; this is how the company and I are partnering.’ ”
In 2014, a steamfitter nearing retirement suffered a crushed leg, and nearly lost his foot. Despite multiple surgeries, he was able to utilize the online training platforms until he could return to modified duty at the warehouse.
The employee couldn’t return to his job in the same capacity, so Massey’s team brought in a vocational specialist to help design a permanent job description for him.
With assistance from the state’s preferred worker program, Harder provided numerous accommodations, including special shoes, rolling stools that allow him to rest his leg, a motorized scooter and a golf cart which he uses to travel between buildings.
“We don’t want to just impose something upon the people out there in the field — they’re the ones turning the wrenches, and know how to do their jobs safely. We need to get their input so they own it.” — Jennifer Massey, corporate director of safety and health and claims management, Harder Mechanical Contractors
Throughout the entire journey, he never had to worry about whether he’d be able to provide for his family. That allowed him to focus on his recovery. Eliminating that anxiety has a major impact on outcomes, Massey said.
“Our employees are not affected adversely, financially, so they’re focusing on getting better because they’re not stressed out about how they’re going to pay their bills, or how they’re going to have medical benefits for their family,” she said.
The Human Connection
One important feature of Harder Mechanical’s safety culture is how the company communicates with employees, reminding them why safety matters in the first place, especially in their lives outside of work.
That comes into play with safety commitment letters — letters that workers are asked to write to their families, making a personal promise to work safely.
It’s a tool so powerful that the company only uses it when circumstances warrant a wake-up call.
“We use it when we feel like we’re definitely trending the wrong way and we have to take prompt corrective action to turn the train around before something happens,” Massey said.
The same principle is applied in a lighter fashion in the company’s newsletter. That features a retiree profile in each issue that details the joys of a retirement they worked so hard for.
For Massey, getting employees safely to those golden years is personal.
“Coming up through, with my dad in the shipyard, [I knew] a lot of my dad’s colleagues who passed away from asbestosis, or they were totally broken down … their quality of life was not what it should be. … People who work hard, they deserve to enjoy the rest of their lives after working.”
Massey said the commitment to protecting every Harder Mechanical employee runs from the top down.
“For me safety is a value that we will never sacrifice,” said Harder. “I have worked personally with many of the guys within our company; they are an extension of my family, the Harder family. If one of them were to get hurt it’s like a family member gets hurt.”
“The company’s message and safety programs are focused on every worker being able to go home to their families at night in the same condition as when they left for work in the morning,” said Murphy. “I have always been impressed with the company’s consistent approach in all aspects of its business: ‘Do the right thing.’ ” &
Read more about the 2016 Teddy Award winners:
Bringing Focus to Broad Challenges: Target brings home a 2016 Teddy Award for serving as an advocate for its workers, pre- and post-injury, across each of its many operations.
The Road to Success: Accountability and collaboration turned Hampton Roads Transit’s legacy workers’ compensation program into a triumph.
Improve the Well-Being of Every Life: Excela Health changed the way it treated injuries and took a proactive approach to safety, drastically reducing workers’ comp claims and costs.
The Family That’s Safe Together: An unwavering commitment to zero lost time is just one way that Harder Mechanical Contractors protects the lives and livelihoods of its workers.
More coverage of the 2016 Teddy Awards:
Recognizing Excellence: The judges of the 2016 Teddy Awards reflect on what they learned, and on the value of awards programs in the workers’ comp space.
Fit for Duty: 2013 Teddy Winner Miami-Dade County Public Schools is managing comorbid risk factors by getting employees excited about healthy living.
Saving Time and Money: Applying Lean Six Sigma to its workers’ comp processes earned Atlantic Health a Teddy Award Honorable Mention.
Caring for the Caregivers: Adventist Health Central Valley Network is achieving stellar results by targeting its toughest challenges.
Advocating for Injured Workers: By helping employees navigate through the workers’ comp system, Cottage Health decreased lost work days by 80 percent.
A Matter of Trust: St. Luke’s workers’ comp program is built upon relationships and a commitment to care for those who care for patients.
Keeping the Results Flowing: R&I recognizes the Metropolitan Water Reclamation District of Greater Chicago for a commonsense approach that’s netting continuous improvement.
Mind the Gap in Global Logistics
Manufacturers and shippers are going global.
As inventories grow, shippers need sophisticated systems to manage it all, and many companies choose to outsource significant chunks of their supply chain management to contracted providers. A recent survey by market research firm Transport Intelligence reveals that outsourcing outnumbers nearshoring in the logistics industry by 2:1. In addition, only 16.7 percent of respondents stated they are outsourcing fewer logistics processes today than they were three years ago.
Those providers in turn take more responsibilities through each step of the bailment process, from processing, packaging and labeling to transportation and storage. Spending in the U.S. logistics and transportation industry totaled $1.45 trillion in 2014 and represented 8.3 percent of annual gross domestic product, according to the International Trade Administration.
“Traditionally these outside parties provided one phase of the supply chain process, perhaps transportation, or just warehousing. Today many of these companies are extending their services and product offerings to many phases of supply chain management,” said Mike Perrotti, Senior Vice President, Inland Marine, XL Catlin.
Such companies are known as third-party logistics (3PL) providers, or even fourth-party logistics (4PL) providers. They could provide transportation, storage, pick-n-pack, processing or consolidation/deconsolidation.
As the provider’s logistics responsibilities widen, their insurance needs grow.
“In the past, the underwriters would piecemeal together different coverages for these logistics providers. For instance, they might take a motor truck cargo policy, and attach a warehouse form, a bailee’s form, other inland marine products, and an ocean cargo form. You would have most of the exposures covered, but when you start taking different products and bolting them together, you end up with gaps,” said Alexander McGinley, Vice President, US Marine, XL Catlin.
A comprehensive logistics form can close those gaps, and demand for such a product has been on the rise over the past decade as logistics providers search for a better way to manage their range of exposures.
“Traditionally these outside parties provided one phase of the supply chain process, perhaps transportation, or just warehousing. Today many of these companies are extending their services and product offerings to many phases of supply chain management.”
–Mike Perrotti, Senior Vice President, Inland Marine, XL Catlin
A Complementary Package
XL Catlin’s Logistics Services Coverage Solutions takes a holistic approach to the legal liability that 3PL providers face while a manufacturer’s stock is in their care, custody and control.
“A 3PL’s legal liability for loss or damage from a covered cause of loss to the covered property during storage, packaging, consolidation, shipping and related services would be insured under this comprehensive policy,” McGinley said. “It provides piece of mind to both the owner of the goods and the logistics provider that they are protected if something goes wrong.”
In addition to coverage for physical damage, the logistics solution also provides protection from cyber risks, employee theft and contract penalties, and from emerging exposures created by the FDA Food Modernization Act.
This coverage form, however, only protects 3PL companies’ operations within the U.S., its territories and possessions, and Canada. Many large shippers also have an international arm that needs the same protection.
XL Catlin’s Ocean Cargo Coverage Solutions product rounds out the logistics solution with international coverage.
While Ocean Cargo coverage typically serves the owner of a shipment or their customers, it can also be provided to the internationally exposed logistics provider to cover the cargo of others while in their care, custody, and control.
“This covers a client’s shipment that they’re buying from or selling to another party while it’s in transit, by any type of conveyance, anywhere in the world,” said Andrew D’Alessio, National Ocean Cargo Product Leader, XL Catlin. “When provided to the logistics company, they in turn insure the shipment on behalf of the owner of the cargo.”
The international component provided by ocean cargo coverage can also eliminate clients’ fears over non-compliance if admitted insurance coverage is purchased. Through its global network, XL Catlin is uniquely positioned as a multi-national insurer to offer locally admitted coverages in over 200 countries.
“In the past, the underwriters would piecemeal together different coverages for these logistics providers. For instance, they might take a motor truck cargo policy, and attach a warehouse form, a bailee’s form, other inland marine products, and an ocean cargo form. You would have most of the exposures covered, but when you start taking different products and bolting them together, you end up with gaps.”
–Alexander McGinley, Vice President, US Marine, XL Catlin
A Developing Need
The approaching holiday season demonstrates the need for an insurance product that manages both domestic and international logistics exposures.
In the final months of the year, lots of goods will be shipped to the U.S. from major manufacturing nations in Asia. Transportation providers responsible for importing these goods may require two policies: ocean cargo coverage to address risks to shipments outside North America, and a logistics solution to cover risks once goods arrive in the United States or Canada.
“These transportation providers are expanding globally while also shipping throughout the U.S. That’s how the need for both domestic and international logistics coverage evolved. Until now there have been few solutions to holistically manage their exposures,” D’Alessio said.
In another example, D’Alessio described one major paper provider that expanded its business from manufacturing to include logistics management. In this case, the paper company needed coverage as a primary owner of a product and as the bailee managing the goods their clients own in transit.
“That manufacturer has a significant market share of the world’s paper, producing everything from copy paper to Bible paper, wrapping paper, magazine paper, anything you can think of. Because they were so dominant, their customers started asking them to arrange freight for their products as well,” he said.
“These transportation providers are expanding globally while also shipping throughout the U.S. That’s how the need for both domestic and international logistics coverage evolved. Until now there have been few solutions to holistically manage their exposures.”
–Andrew D’Alessio, National Ocean Cargo Product Leader, XL Catlin
The global, multi-national paper company essentially launched a second business, serving as a transportation and logistics provider for their own customers. As the paper shipments changed ownership through the bailment process, the company required two totally different types of insurance coverage: an ocean cargo policy to cover their interests as the owner and producer of the product, and logistics coverage to address their exposures as a transportation provider while they move the products of others.
“As a bailee, they no longer own the products, but they have the care, custody, and control for another party. They need to make sure that they have the appropriate insurance coverage to address those specific risks,” McGinley said.
“From a coverage standpoint, this is slowly but surely becoming the new standard. A logistics form on the inland marine side, combined with an international component, is becoming something that a sophisticated client as well as a sophisticated broker should really be asking for,” McGinley said.
The old status quo method of bolting on coverage forms or additional coverages as needed won’t suffice as global shipping needs become more complex.
With one underwriting solution, the marine team at XL Catlin can insure 3PL clients’ risks from both a domestic and international standpoint.
“The two products, Ocean Cargo Coverage Solutions and Logistics Service Coverage Solutions, can be provided to the same customer to really round out all of their bailment, shipping, transportation, and storage needs domestically and around the globe,” D’Alessio said.
The information contained herein is intended for informational purposes only. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy, and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the circumstances outlined herein. Please refer to the individual policy forms for specific coverage details. XL Catlin, the XL Catlin logo and Make Your World Go are trademarks of XL Group Ltd companies. XL Catlin is the global brand used by XL Group Ltd’s (re)insurance subsidiaries. In the US, the insurance companies of XL Group Ltd are: Catlin Indemnity Company, Catlin Insurance Company, Inc., Catlin Specialty Insurance Company, Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., and XL Specialty Insurance Company. Not all of the insurers do business in all jurisdictions nor is coverage available in all jurisdictions. Information accurate as of December 2016.
This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with XL Catlin. The editorial staff of Risk & Insurance had no role in its preparation.