2016 NWCDC

Ideas Worth Stealing

For the 2016 Teddy Award winners, employees are a key part of the secret to their success.
By: | December 1, 2016 • 2 min read
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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.

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]
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2016 NWCDC

The House of Safety

Building a solid safety and injury management program requires full engagement and constant follow-up.
By: | December 1, 2016 • 2 min read
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Building a solid safety and injury management program is a lot like building a house, according to two presenters at the National Workers’ Compensation and Disability Conference® & Expo in New Orleans on Thursday.

“If you don’t have a solid foundation to build on, your program will fail,” said Mitchell Chastain, a manager of logistics safety, loss prevention & security with Mohawk Industries.

Starting in 2011, Chastain partnered with Keith Myers, a regional director with BenchMark Rehab Partners, to build a safety program, including post-offer physical assessments coupled with an injury management program.

“If you don’t have a solid foundation to build on, your program will fail.”– Mitchell Chastain, a manager of logistics safety, loss prevention & security, Mohawk Industries.

In the first month of the program, the company conducted four post-offer physical assessments for Mohawk. It now conducts more than 200, said Myers.

Some applicants fail the test and must work with a trainer or physical therapist to become fit enough to work.

The goal, according to Myers, is not to prevent people from working. It’s to make sure people are in the right job and are fit for that job.

“We need to get very specific with these jobs,” he said.

Myers said he takes a sports conditioning approach to getting employees in shape for their work. That includes stretching exercises to improve range of motion.

Communicating clearly that the company is invested in employee safety and health is a key his program’s success, said Chastain.

In the event of an injury, even the hint of one, Chastain revealed something that is quite common in risk management: Sometimes it is the simplest, most common-sense approach that produces the best results.

Chastain said all Mohawk truck drivers have ice packs in their vehicles and are instructed to ice an area of their body when they feel tightness or pain; and to take an anti-inflammatory.

“You would be amazed at how much we have reduced injuries,” Chastain.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]
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Sponsored Content: XL Catlin

Mind the Gap in Global Logistics

Shippers need more than just a sophisticated system to manage their growing operations.
By: | December 1, 2016 • 6 min read
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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.

XLCatlin_SponsoredContent_Perotti“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.

XLCatlin_SponsoredContent_McGinley“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.

XLCatlin_SponsoredContent_Dalessio“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.

Unique Offering

“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.

Learn more about XL Catlin’s Logistics Services Coverage Solutions and Ocean Cargo Coverage.

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.

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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.




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