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It's still warm - even hot - in some areas of the country, but winter is just around the corner and now is the time to start thinking about getting your business ready for the cold winter ahead. Poor preparation can cost your business money in higher energy costs and higher repair bills.
- Outside: Cleaning out gutters and drainpipes around the outside of your building can save you from a lot of problems later in the winter. Clogged drains and gutters can lead to expensive water damage. While inspecting the drainage system, it might not be such a bad idea to give the roof a quick look. Unnoticed damage or wear might lead to leaks during the winter. Better to catch these problems before the first rain of the year. Most important is to check insulation. A lot of money spent on heating escapes through poorly insulated doors and windows.
- Inside: Run a test on your furnace. It is best to find out early if you are going to need to have it repaired. This is especially true if you have to call in a contractor to do the repairs. Waiting until the first freeze to discover that the furnace isn't working will likely mean a long wait for the needed repair as everyone else will also be calling. Check the insulation around your pipes and water heater. Proper insulation can save you money on energy bills but it can also save you from expensive pipe bursts.
- Cars: This is the time to think about winterizing your company cars before it gets cold. This might mean replacing batteries, putting on snow tires, replacing windshield wipers and checking the coolant. Because of the way car batteries work, they are more prone to lose their charge when it is cold outside. Thus, a battery that works fine in August might leave you or your employees stranded in January. A tire change is obvious to those in certain parts of the country, but it is important to make the change before the first snowstorm of the year. Windshield wipers can get cracked and dry during the hot summer months. It is not unusual to turn them on during the first rain of the year to discover that they need to be replaced. Coolant is something you normally don't think about in the winter, but having the wrong mix of coolant and water can leave you with an expensive problem during the winter months.
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Throughout much of the United States, thunderstorms are a common part of life. But new data from Munich Re shows that in the first half of 2009, there were approximately $6.1 billion in insured losses from thunderstorms in the United States. According to the same report, that is more than eight times the insured losses from floods, winter storms and wildfires combined.
The number for the first half of 2009 was more than $1 billion higher than the five year average. And Munich Re reports that the losses from thunderstorms have tripled in the last 30 years.
Fires caused by lightning are often covered by your fire policy, but you should check with your insurer to make sure the electronic shock that can fry computers and phones is covered, too. Here are some other things you can do to protect your business:
- Install a protection system: The idea is simple, a metal rod on the roof attracts the lightning and wiring directs the energy around the building. But while the idea is simple, installing it properly is vital. So, have a licensed electrician put in the system.
- Use surge protectors: All those computers, phones and electrical equipment you use to run your business are particularly vulnerable to lightning, and simple power strips just aren't enough to protect them. Instead, it's important to install properly certified surge arrestors on electrical service panels. Installations typically include surge arrestors for the main electric panel, as well as other incoming lines, such as phone and data lines. Proper surge suppressors can also be installed on specific equipment. As with the protection system, it is best if you consult an expert about what your business needs.
- Unplug: If you know a storm is coming, unplug your equipment.
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| Rising number of fraud cases |
The number of insurance fraud cases referred to the National Insurance Crime Bureau skyrocketed in the first half of 2009. A total of 41,619 "questionable claims" were referred to NICB in the first half of 2009 compared with 36,743 received during the same period in 2008. Insurance company members forward these cases to the NICB for closer inspection when fraud is suspected.
"While there has been modest improvement within a few categories of referrals, the overall number of questionable claims for the first half of 2009 is 13 percent higher than it was at this time last year," said Joe Wehrle, NICB's Chief Executive Officer.
Almost all areas reported a rise in claims. In commercial insurance, the biggest jump was in product liability claims. The NICB reported a 90 percent increase in referrals in that area. Slip and falls as well as fire also showed an increase.
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Southern California has been hit again by a massive wildfire. The Station Fire burned more than 150,000 acres and destroyed more than 150 structures - it also cost the lives of two firefighters. And while those in Southern California know the dangers that wildfires can bring, those in other parts of the country should also be aware of the risk and prepare for the possibility of losses suffered by fire.
The Insurance Information Institute reports that California has been the victim of eight of the 10 costliest wildfires in U.S. history. But they also warn that dry conditions make fire a real danger in many other parts of the country, too. Texas, Oklahoma, Georgia, North Carolina, Alabama, Florida, South Carolina, Mississippi and Arizona are among the top 10 states outside of California with the largest number of fires in 2008, the I.I.I. reports.
In response to this danger there are some precautions you can take:
- Insurance: Make sure you have enough insurance coverage to rebuild your business and cover the costs incurred while you are shut down.
- Property protection: This means creating a defensible space around buildings and making sure your have installed proper, working fire suppression systems.
- Have a plan: Have a plan in case the worst happens. This applies not just to fires but to other natural disasters like hurricanes or earthquakes. Make sure your employees know what to do in an emergency and have a plan in place to respond if main buildings or facilities are unreachable or destroyed.
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| Recession means fewer workplace deaths |
The economic downturn was undeniably a bad thing, however, there was some good that came from the recession. One of those things was a substantial drop in workplace deaths, according to new figures from the U.S. Bureau of Labor Statistics.
"Economic factors likely played a role in the fatality decrease," the bureau said in a news release. "Average hours worked at the national level fell by one percent in 2008, and some industries that have historically accounted for a significant share of worker fatalities, such as construction, experienced larger declines in employment or hours worked."
In 2008 there were 5,071 workplace deaths compared with 5,657 deaths reported in 2007, according to the bureau. If these preliminary numbers hold, it will be the lowest number of workplace deaths recorded since 1992. And it wasn't just the total number of deaths that dropped. The number of deaths per full-time worker dropped from 4 fatal work injuries per 100,000 full-time equivalent workers in 2007, to 3.6 in 2008.
Transportation incidents, which accounted for approximately two-fifths of all the workplace fatalities in 2008, fell 13 percent from the 2,351 cases reported in 2007, according to the bureau. Workplace falls and injuries in the private construction industry were also down dramatically. Workplace suicides were up 28 percent in 2008, but workplace homicides declined 18 percent in 2008, according to the bureau.
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| Business briefs: Workers comp grades |
The numbers are in and Iowa leads the way with the best workers compensation program in the United States. The state report cards, issued by the Work Loss Data Institute, gave both Iowa and Minnesota an A+ for their handling of workers compensation. The group looked at seven years worth of data in five categories: (1) Incidence Rates, (2) Cases Missing Work, (3) Median Disability Durations, (4) Delayed Recovery Rate; and (5) Key Conditions: Low Back Strain. Illinois came in last and was one of nine states to get an F from the group.
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| Business briefs: Increase in twisters |
Researchers from the Georgia Institute of Technology say the number of tornadoes that spin off from hurricanes moving inland from the Gulf of Mexico is increasing. "As the size of landfalling hurricanes from the Gulf of Mexico increases, we're seeing more tornadoes than we did in the past that can occur up to two days and several hundred miles inland from the landfall location," said James Belanger, doctoral student in the School of Earth and Atmospheric Sciences at Georgia Tech. Scientists say four major factors seem to influence tornado generation from a hurricane: size, intensity, track direction and whether there's a strong gradient of moisture at midlevels in the storm's environment.
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| Business briefs: Piracy risks up |
In a reminder that risk doesn't stop at the water's edge, the U.S. Maritime Administration is warning that a recent lull in piracy off the the Horn of Africa and in the Indian Ocean is expected to end. Now that monsoon season is over, the U.S. government is warning companies that ship products through these regions to be on alert for increased pirate activity. Not only has the government advised ships to avoid the areas where piracy is common, but more ominously, it is advising mariners to "demonstrate a willingness to defend yourself."
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| Business briefs: Pay as you drive |
Traditional car insurance measures past behavior and certain facts about the drivers and companies to determine rates. But a new usage-based option is slowly becoming available in some areas. California's insurance commissioner just approved the final regulations for the option, joining several other states where it is available. A variety of methods can be used to measure the number of miles a person drives. Some use high-tech tracking devices to monitor car usage, while others rely simply on odometer readings. By keeping track of mileage, advocates of the coverage say it will encourage less driving, lower costs and protect the environment. "Pay as you drive is an innovative way to create financial incentives for California motorists to drive less, leading to lower-cost auto insurance, less air pollution and a reduced dependence on foreign oil," said California's Insurance Commissioner Steve Poizner.
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| Business briefs: Lesson from diamond heist |
In another reminder of the dangers of not carrying adequate insurance comes the story of Peter Kaplan, who was robbed of $1.5 million in jewelry. The diamond broker was traveling through New Mexico when he stopped his car to use the restroom, according to a report in the Albuquerque Journal. When he returned, someone had smashed his window and run off with the diamonds, one of which alone was worth $100,000. To make matters worse, Kaplan had no insurance and is now responsible for the losses. While determining the amount of insurance your business needs is an individual decision that takes into consideration a number of factors unique to your business, you should always make sure you have enough to avoid a devastating loss should the worst happen. This means not just theft protection, but enough property, business interruption and liability insurance to make sure your business won't go under from one terrible event.
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