Getting started

Just having a written safety program will not guarantee that your company job sites will be incident free. A commitment must be made by management to fully implement the program company wide. A written safety program shows your company is committed to managing the resources it has, including workers, company equipment and capital. By managing these resources, your company can control the costs associated with losses. You may also find that workers are more productive, due to an increase in confidence obtained from feeling protected from hazards and that the company is concerned about their safety.

Assessing your current safety performance

A good starting point would be to review data on your past insurance claims with your Risk Solutions representative. Include in your review all incidents, not just those associated with employee injuries (workers’ compensation) since damage to equipment or property indicates a safety improvement opportunity. Be aware of any indicators that show trends: for instance, four eye injuries over the past few years could indicate that personal protective equipment (PPE) may not be available or its use may not be enforced.

Talk to supervisors and employees about any incidents that almost resulted in a claim or accident. You should also consider performing several job site inspections and then compare them to determine if there are potential safety issues that are common at your job sites. Review past insurance reports and discuss findings with your Risk Solutions representative. All of these assessments can help in determining where there are gaps in your current safety program that need immediate attention.

Who develops the program?

Some companies have a full-time safety manager/coordinator/director and this person would be the logical choice to oversee development of the program. Several organizations offer sample safety programs that can be downloaded and used as a reference. Whoever develops your program should be familiar with the type of work you perform and the OSHA standards that apply. Other options that may be considered are:

• Selecting one of your current employees to be the safety coordinator. It is important to ensure they get the management support, information and training needed to be successful in fulfilling their new responsibility.
• Hire a consultant with the knowledge and experience in your industry to guide your company in developing your program. Consultants can be retained to develop the full program or provide input and recommendations that can save time and ensure the program meets your safety responsibilities.
• Work with your Risk Solutions representative who can provide guidance on how to implement your program.
• Designate a safety management team (safety committee) to develop the program. An advantage here is the safety committee can also champion the program in the field.

The safety budget

While developing written policies is fairly straightforward, implementing the program will require a financial investment. Safety practices are only effective when:

• Employees are trained on how to work safely.
• Time is allowed for job site inspections and oversight of the program in the field.
• Professional development training is provided for the designated safety coordinator and supervisors.

How to win support for your new program

Management support

Getting management support is critical to the success of any safety program. Management should understand that the financial investment of preventing accidents is a good business decision and will be less costly than having an accident. Management should understand that accident costs go beyond just medical payments or equipment repair (direct costs), but also include time spent by company staff in filing claims, finding replacement workers/equipment and lost production (indirect costs). Several studies have reported that for every dollar spent on direct costs $4 to $15 is spent on indirect costs. Another way to look at this is to use your company profit margin to determine how much work would have to be awarded to pay for accidents.

Yearly accident costs	Profit margin and amount of work / services necessary
	1%	2%	5%	10%
$1000	$100,000	$50,000	$20,000	$10,000
$5000	$500,000	$250,000	$100,000	$50,000
$10,000	$1,000,000	$500,000	$200,000	$100,000
$25,000	$2,500,000	$1,250,000	$500,000	$250,000

Worker support

The best way to ensure that the safety program will be successful is to involve all company employees in the development of the program. Seek employee input at every stage of development so your program doesn’t become just another set of rules.

In many cases, your employees know the hazards of their work better than you do and they may point out hazardous work tasks that should be changed or improved. Many of your employees may also be interested in and capable of leading safety training sessions. Using experienced workers who have been there to discuss why safety measures are important can enhance buy-in by other employees.

Responsibilities

Assigning responsibility to all employees in the company makes everyone accountable for safety and requires a team effort to be successful. Responsibilities are not just for workers in the field, as they do not have the ability or resources necessary to implement all aspects of the program. Additionally, as already discussed, management must support the program and that can only occur by assigning them responsibilities. Consider the following recommended responsibilities:

The company president will:

• Provide direction, motivation and accountability to ensure an effective safety program for all company locations and job sites.
• Provide for home office and field administrative safety activities in keeping with the company’s safety goals and objectives.
• Establish an adequate budget to fund the safety program for all departments and job sites.
• As part of performance evaluations, hold supervisors and superintendents accountable for the success or failure in achieving specified targeted company safety performance and insurance cost control goals.
• Assist supervisors and superintendents in the formulation of department and job site-specific safety programs.
• Assure that each member of the company supervisory team has a good working knowledge of all company, client and governmental safety requirements.
• Periodically take part in various employee training sessions.
• Review monthly safety status reports for the purpose of evaluating the company’s safety and insurance performance.

Supervisors

The supervisor/superintendent and foreman are responsible for the safety of all company employees working on their job site.

Supervisors will:

• With the assistance of the president, establish project safety, health, first aid, fire prevention and protection, site security and insurance claims handling programs that comply with applicable company and client contractual documents and specifications, federal or state OSHA standards and company safety and loss control procedures.
• Monitor the safety status of their department job site and employee morale by personally conducting a daily safety inspection of the entire work location and initiating needed corrective action by responsible supervision.
• Conduct accident investigations, analyze the causes and formulate recommendations for corrective and preventative action.
• Conduct safety training for field employees based on the work hazards they may encounter.
• Assure that each job site has the necessary safety equipment and protective equipment necessary for the work.
• Monitor the safety performance of all subcontractors to assure compliance with the safety performance requirements of the company and job site.
• Conduct job site safety meetings and answer employee questions regarding safety requirements.
• Conduct safety orientations for new employees.
• Enforce company and job site safety rules.
• In the case of any serious accident or OSHA inspection, notify the company president as soon as possible.

Employees

Each employee should be expected, as a condition of employment, to work in a manner which will not inflict self-injury or cause injury to fellow workers. It is important that each employee understand that the responsibility for his or her own safety is a job requirement.

Each employee will:

• Comply with all safety rules and regulations that apply to his or her own department or trade.
• Report all accidents and injuries immediately.
• Obtain the proper tools and personal protective equipment for the job at hand.
• Report all unsafe conditions to a supervisor in charge.
• Know what emergency telephone number to call in case of fire and/or personal injury.
• Help to maintain a safe and clean work area.

Accountability

Once responsibilities have been assigned, a method must be put into place to assure that the responsibilities are acted upon.

Each employee must be held accountable for their safety performance by their supervisor and supervisors must be held accountable by the company. The most proactive method is to establish accountability procedures. These procedures must be applied consistently and fairly to all levels of company employees. A safety program will fail if some employees are allowed to break safety rules because they are productive workers or get the job done by any means possible. One way to do this is to assign safety performance as a percentage of yearly incentive programs. Evaluating how involved supervisors were in implementing the safety program, such as conducting job site safety meetings, performing job site inspections and results of safety audits should all be weighted (given a percentage). When calculating yearly incentive bonuses the safety percentage could be used to determine the final bonus. For supervisors not achieving the safety goal, a deduction is applied to final incentive bonus amount.

Implementing the program

For many companies the thought of putting together a safety program is accepted as a good idea but just having a program does not mean safety goals will be met. Many safety programs are not fully implemented in the field and soon become just another binder on the shelf.

Implementing the safety program means that the rules for work are communicated to the field, inspections are performed to evaluate compliance of those rules and all employees are trained to perform safely around the hazards they encounter. It is also important to establish that all workers have the authority and responsibility to correct and report unsafe conditions, even if they are not exposed to the hazard. This will require supervisors to encourage reporting and actively investigate the nature of the hazard to determine why the condition exists. This may require the work to stop until the condition can be corrected and that decision must also be supported by the company.

Safety enforcement procedures

When it is necessary to warn an employee of an infraction of company safety rules, a written reprimand should be issued on a company employee warning form for proper documentation. When violations of safety rules occur, act immediately to correct the situation and alert other employees that these risks will not be tolerated.

By requiring safety as part of their ongoing work responsibilities, your employees will see that the company is interested and concerned about their wellbeing and not just profit. Enforcement procedures show that the company is serious about the program and a written warning offers notice to the employee that they are expected to follow the guidelines. Many companies use a multiple infraction format for enforcement:

• First infraction—written warning
• Second infraction—time off without pay
• Third infraction—termination

Termination should also be considered for gross misconduct, where the action of the worker could have resulted in a serious accident or major property damage.

Prior to issuing such a ruling, it is essential that your human resource department has been involved and it has been determined that the worker knew they were violating a company rule and were trained in the proper procedures.

Establishing safety requirements

The company safety program should contain the safety requirements that apply to the work activities performed on the job. A good starting point is to compile the common work activities (exposures) that are performed, identify the hazards and establish what the company will do to prevent an incident (safe controls). When deciding what requirements will be followed, a company has several options:

• Using OSHA standards as the bare minimum for being in compliance with federal/state safety laws
• Using standards established by the American National Standards Institute (ANSI) and other safety associations as best practice.
• Establishing company safety rules that are more restrictive then the OSHA/ANSI standards.

Reviewing and updating your program

Once your safety program is written, it is important to periodically review it to ensure the procedures are effective and goals are met. At least annually, review your company’s safety progress by reviewing insurance claims and inspections, incident reports, job site safety audits, supervisor safety reports and training needs. Also ask employees for any suggestions they have to improve the overall safety program. This is another good reason to establish a company safety committee for their input. A summary report to management on safety activities and the positive results in managing company resources and controlling costs will also help in their continued support.

Ten steps in developing a comprehensive safety program

1. Define your needs:
   • What are the hazards of normal and unusual or infrequent company operations?
   • What are the company’s insurance and legal risks?
   • What are the usual construction client safety specifications, if any?
2. Define your safety goals.
3. Write your policy.
4. Establish the budget.
5. Identify the person(s) who will carry out the program.
6. Set standards for employee accountability and disciplinary action.
7. Distribute safety policy and work rules to all employees.
8. Educate and train all employees in particular safety responsibilities.
9. Perform daily duties under the program.
10. Routinely audit and evaluate program effectiveness.

Additional resources

• OSHA Safety and Health Management eTool
• OSHA “Safety Pays” Calculator to assess costs of injuries
• OSHA Compliance Assistance Quick Start
• Hanover Risk Solutions Website

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Reference: 29 CFR 1926.20(b) Accident prevention responsibilities

This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC JAN 2019 12-380
171-1106 (11/14)

A cold weather plan for your facility should be an integral part of your overall maintenance plan for the building and equipment as well as part of your emergency response/contingency plan that helps your business respond to and manage an emergency event. Here are some tips to help you develop your cold weather plan.

Creating the plan

Develop a written plan to include actions to be taken during these junctures:

• Before the onset of winter
• When a winter storm is imminent and/or damaging cold temperatures are expected
• After a winter storm and/or prolonged cold weather

A plan is only as good as its execution. With that in mind, it is critical to the successful mitigation of damage to your facilities from the winter weather to include the following elements as part of your cold weather plan:

• Accountability for overall implementation, including pre-winter inspections
• Defined roles and responsibilities for outlined activities and responses
• Initial and annual training
• Annual review of plan to include evaluation of effectiveness and identifying improvement opportunities

To aid you in developing your plan, ask your team to consider some “what ifs,” such as:

• What if you lose heat to the building? What is your contingency plan?
• What if the facility is closed (weather, holidays, etc.) AND extreme weather is expected? How will you monitor your facility? Will someone be checking on the facility daily?
• What if a fire protection sprinkler pipe freezes and bursts? Is there someone on the premises who knows how to shut the system off? What about other systems that use water?
• What if there are areas that you know could be susceptible to freezing? How are you going to monitor them and what steps are you going to take should the temperature become dangerously low?

Before the onset of winter

Inspect the building

Develop a checklist to ensure:

• Openings around exterior walls such as windows, doors, or other openings are sealed
• Equipment penthouses are secured from cold air infiltration
• Louvers are closed or sealed
• Dampers on ducts leading to the outside are closed (if possible)
• Attics and other areas susceptible to the cold are properly insulated
• Adequate air flow to maintain heat in all areas of the building to a minimum of 40ºF
• Roof is in good condition or make repairs as needed
  • Drains, drain pipes, and gutters are free of debris
  • Roof cover is free of cracks or blisters
  • Decking is free of rust or other signs of deterioration
  • Flashing is secured
  • There are no cracked or bent roof supports (beams, columns, joists)

Check utilities and process equipment

• Check and repair heating systems as needed to include boilers, furnaces, ovens, process heaters, etc.
• Inspect process, water, condensate, steam lines subject to freezing for proper insulation or heat tracing
• Drain, blow out or flush lines for seasonal or idle equipment
• Check alternate fuel supplies for operability and supply adequacy

Check water-based fire protection equipment

• Make sure all your equipment has been checked in accordance with national fire protection association (NFPA) 25, Standard for the Inspection, Testing and Maintenance of Water-Based Fire Protection Equipment
• Be certain that central station water flow alarms are working properly
• Ensure areas including concealed spaces (attics, above false ceilings, under raised floors, etc.) are heated to 40ºF or greater
• Dry sprinkler systems
  • Drain water from low point drains
  • Ensure piping is properly pitched and replace broken or missing pipe hangers
  • Check system for air leaks and repair if needed
  • Make sure low air pressure alarm is functioning
• Fire pump
  • Check pump house temperature
  • » Electric engine driver — should be maintained at 40ºF or greater
  • » Diesel engine driver — should be maintained at 70ºF or greater
  • Ensure suction source is protected from freezing

Identify and align resources

The time to identify needed resources is before the winter season starts. Resource needs are going to vary depending on your location and operations. You may need resources such as:

• Qualified contractor to remove snow and ice from the roof
• Emergency generator
• Fuel supplies for critical operations such as fire protection equipment, processes, or on-site generators
• Snow removal services to ensure access to the property

When a winter storm and/or deep freeze is on the way

• Monitor weather reports for information to include power outages, potential damage, access to facilities and prepare for action
• If needed, activate the emergency response team
• Monitor temperatures in areas susceptible to freezing or significant temperature fluctuations
• Monitor snow loads of roofs, especially in areas subject to drifts, and take action as needed
• Clear snow from outside sprinkler control valves and hydrants to keep them accessible
• Prepare for possible power outage
• Remove ice dams

After the storm

• If needed, conduct a damage assessment and secure resources to complete repairs
• Initiate salvage operations
• If power was lost, make sure you have a plan to bring electrical loads back on line to prevent power surges that could damage equipment

For additional resources on cold weather hazards and developing a contingency plan visit the Hanover Risk Solutions website.

 

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC DEC 2018-302
171-1224 (10/15)

Does this apply to me?

Using cranes to load/offload, move and install building equipment/materials is an almost daily job on a construction site. Cranes may be rented for a small job or on-site for many months during larger construction projects. If your company:

• Owns or rents or uses cranes
• Works on construction projects where cranes are actively in use.
  You will want to make sure your workers understand crane hazards.

What does this cover?

Crane inspections

All cranes must be inspected daily by a competent person, typically the operator. Additional documented inspections must be performed monthly and annually and these will be more comprehensive.

Crane operator requirements

Crane operators must be certified by 2017 in all states¹. Currently some states already require crane operator certification.

Riggers and signalmen requirements

Riggers and signal persons must be qualified. This means they must understand how to determine load weights, inspect and choose the right rigging, know how to attach and control loads.

Crane set-up and use

Ground conditions must be evaluated before crane use along with powerlines and other potential hazards such as buildings/obstructions within the operating area. Keeping other workers out of material hoisting areas to prevent injury from falling loads or contact with equipment requires planning and communication.

Special operations (barge work, tandem lifts)

These are considered critical lifts and require comprehensive plans, oversight and training.

Tower cranes

Use of tower cranes requires that procedures for erecting, climbing and dismantlement are clearly understood and communicated to the work crew. In addition, a registered professional engineer should be used to evaluate structures, support foundations and counterweights.

What else do I need to know?

As of 2017, every crane operator was required to be certified to operate a crane on a construction site or during construction operations.¹ If cranes are rented it is important to ask about the certification of the operator.

The owner of the property or general contractor must evaluate the ground conditions to ensure the surface where the crane will be used can safely support the weight. This includes any subsurface hazards like underground vaults or utilities.

What about training?

There are several training rules in the OSHA crane standard. Even if workers are not directly working with a crane they should be instructed to keep clear of the swing area, to never enter the lifting area and to never approach a crane that has contacted an overhead powerline. More specific training is required for employees who are:

Crane operators — Must be qualified or certified by an accredited testing organization; qualification must include both a written and practical test.

Riggers — Must be qualified. This means they will have to be trained in the use of slings and rigging devices and understand concepts such as center of gravity and sling stress loading.

Signal person — Must be qualified and understand the types of signals used, whether hand or radio given and also have a basic understanding of crane operation.

Assembly/disassembly — When a crane is assembled, typically a lattice boom crane, the operation must be overseen by an assembly/disassembly director (A/D). The A/D must be both a Qualified and Competent Person who understands the manufacturer procedures for assembly/disassembly, rigging capacity and procedures and all other safety considerations of the procedure. The A/D must also provide instructions to the crew before the operation begins.

Critical lift plans — Due to the hazardous nature of working with two cranes or off barges critical lift plans must be developed and directed by a lift director. Workers who are involved with the operation must review the plan with the lift director.

Where can I get more help?

The Hanover Risk Solutions website has additional materials you can use and the OSHA website has a page that is dedicated to crane safety information.

¹ 29CFR 1926 Subpart CC Cranes

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you. The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC DEC 2018 12-373
171-1105 (11/14)

The Occupational Safety and Health Administration (OSHA) standards require that workers obtain training regarding the existence of various workplace hazards and the equipment, programs and controls that should be in place to prevent workplace injuries from occurring. Some OSHA standards also require advanced training of supervisors who will be overseeing hazardous work, such as excavations, work being done at substantial heights, electrical work and work that involves confined space entry.

What does this cover?

Each OSHA standard contains a discussion on various hazards and controls. Sometimes the standard will also contain a specific requirement on training. There is an implicit requirement within the OSHA standards that employers train their workers so even if a standard does not have a statement, such as “you will provide training on…,” it is implied and required that you train your workers on all hazards of their work under 29 CFR 1926.21 — OSHA Construction Standards.

What else do I need to know?

You should write down a list of the type of work your company performs and the hazards and equipment that will be present. Some equipment, like ladders, will be used for various types of work and would be an obvious topic for all workers' training.

What about training?

Common training programs include:

New hire orientations — Designed to give workers new to a company or jobsite an overview of company safety policies, what to do in the event of an injury, where to get personal protective equipment (PPE) and how to protect themselves from the hazards they may encounter.

Equipment — Workers who will operate equipment must be authorized by their employer. It is a good practice to evaluate all operators (such as operators of forklifts, crane, heavy equipment, trucks) on their ability to operate your equipment. This also allows them to become familiar with the make, model, and type of specific equipment they will operate on your jobsite. Some equipment, such as cranes, requires certified operators.

Hazard-specific training — Certain OSHA standards require workers to be trained about the hazards they will face and the safety protection equipment they will use depending on the work they are performing.

Some of these are:

• Fall protection — Workers must be familiar with any personal fall protection equipment they will use (donning, inspection, attachment to structures, etc.).
• Excavations — Workers must be familiar with the hazards of excavation/trenching work and the protective systems that will be used.
• Confined space entry — Workers must be trained on the hazards of confined space work based on their role (entrant, attendant, and supervisor) and the safety equipment used for evaluation (air monitoring), permit systems and emergency response.
• Electrical — If workers will be “qualified” to work on energized equipment, they must be trained in the use of PPE, tools and hazards they may encounter (arc flash/blast).
• Hazardous chemicals — Workers must be trained on the chemicals they use, how to read Safety Data Sheets and labels, and how chemicals they come in contact with can potentially hurt them.

Where can I get more help?

The Hanover Risk Solutions website has additional materials you can use and the OSHA website has a page that is dedicated just for electrical safety information.

 

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you. The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC JAN 2019 12-372
171-1103 (10/14)

If you are like many business owners, you might not take the time to thoroughly review a contract when it comes across your desk. You may leave this up to your office manager or casually review it yourself.

Yet, effective contract management can help protect your business from many potentially expensive lawsuits and judgments. This is especially true for record storage and destruction firms, since your customers are trusting you with documents that may be private and sensitive. A breach of this confidential data may result in costly lawsuits and negative publicity for your customer. This loss of trust in your services, on top of damages paid as a result of contract provisions, can be devastating to your business.

It is important that you understand how a written contract can benefit and protect your business — and it is essential for you to practice effective contract management.

Purchase orders, waivers, rental agreements, leases, terms and conditions and other types of written agreements can all function as contracts — to simplify matters, the term “contract” will be used here.

In addition to these common types of contracts used by most businesses, record storage and destruction firms use specific types of contracts unique to the needs of their industry. The following are examples of additional types of contracts often used by record storage and destruction firms which you may need to review:

• Business associate agreements giving you permission to receive Non-Public Personal Information (NPI) under the Gramm-Leach-Bliley Act, Protected Health Information (PHI) under HIPAA, or other confidential customer media.
• Confidentiality or non-disclosure agreements addressing confidential customer media.
• Consent forms for employee background checks and drug tests.
• Opt-out agreements for customers wishing to bypass particular security procedures.
• Agreements for responsible disposal of destroyed materials, with companies disposing of shredded documents and other media.
• Service agreements.

Record storage and destruction firms also need to consider how the unique nature of their services may require revising or adding to the contract clauses commonly used in other types of businesses. For instance, the following may need to be addressed in contracts used in record storage and destruction:

• Clarification of ownership of the records while they are in storage, including both private records and public records.
• Rights of the customer regarding control of the records while they are in storage, such as the right to order retention or destruction, and the right to audit records and documentation.
• Wording of indemnity provisions to properly address the services being provided — for instance, who has the right to invoke the indemnity provision for public vs. private records, and what actions are governed by the indemnity provision? Negligent destruction or spoliation of records may need to be addressed differently than intentional release or loss of the records.
• Wording of indemnity provisions to address duties that the customer may not be able to delegate (non-delegable duties), for instance, indemnification for fines issued by government agencies for failure to comply with record retention or privacy regulations.
• Wording of indemnity provisions, waivers of subrogation and insurance requirements to address the length of time these clauses apply. Ongoing services such as long-term storage may need to be addressed differently than completed operations such as document destruction.
• Procedures for notifying customers of actual or potential data breaches.
• Requirements for receipts for documents and other media received, such as bills of lading, customer acknowledgments of pickup and delivery, warehouse receipts and record transmittal forms.
• Use of chain of custody documentation for any transportation companies or other subcontractors used.
• Procedures for record retention and destruction, including security procedures.
• Requirements for certificates of destruction.

Companies that are members of the National Association for Information Destruction (NAID) have access to Standard Industry Contracts that can be used as a starting point for your attorney. For details, see naidonline.org

What a written contract does

Today’s fast-paced and highly litigious business environment requires proper contract management and knowledge. A written contract functions as a legal document and should do the following:

• Provide a clear statement of the work to be performed or the products and services to be rendered, to prevent confusion and misunderstanding.
• Provide clarification of the legal responsibilities and obligations of the parties through the use of indemnification clauses, “hold harmless” agreements and waivers or limitations of legal liability.
• Provide a method of dispute resolution to reduce and possibly eliminate costly litigation expenses, which can be especially important with international business partners.
• In some cases, shift insurance responsibilities by including Additional Insured requirements; or the contract may increase exposures thereby requiring the purchase of additional insurance coverage.

Before entering into a business relationship, read the contract and ask questions

• What are the costs, benefits and risks to each party? What does each party stand to lose or gain from each clause of the contract, and from the business relationship overall? This will help establish your negotiating position on each item.
• What procedures must be followed to complete the work safely and with the desired level of quality? Is the other party capable of meeting this level of safety and quality? Have you verified this through a formal qualification process?
• What insurance coverages and limits are needed?
• Are there written, enforceable and properly executed subcontracts and supply agreements in place with your contractors, subcontractors, tenants, landlords, suppliers of goods and services, suppliers of parts and raw materials, temporary employment agencies, and other business partners necessary for you to perform your obligations?

When drafting or reviewing a contract, look for

• Which state’s law applies to the contract, and for international business partners, which country’s law? What effect does this have on the contract?
• Does the contract include all addendums (i.e., no side agreements or verbal statements apply)?
• Is the contract enforceable? Is it a signed agreement between two or more parties? Are the parties competent adults who have been given the opportunity to review and understand the contract? For instance, a waiver written in small print, not in plain English, on the back of another document might not meet this requirement.
• Does the contract require specific dispute resolution methods? Is there an “Arbitration Clause”? This is especially important when dealing with international business partners where the Arbitration Clause may require you to arbitrate disputes in a foreign country.
• How does the contract compare to other contracts that may be in effect? Are they broader? Are they equivalent?
• What are the milestone performance dates of the contract?
• What requirements does the contract impose upon you?
• What requirements does the contract impose on the other party?
• What safety and quality control procedures are required?
• Are surety bonds or other security required for the contract?
• Will one party be allowing the other use of its tools, equipment or facilities or sharing access to the project location with others?
• If a contractor will be permitted to use subcontractors, or a tenant allowed to have sub-tenants, what requirements should this party be held to? How will they be addressed in indemnification clauses?
• What insurance requirements have been written into the contract? Some examples of insurance coverages that may be applicable include:
  • Auto liability
  • Commercial general liability
  • Contractual liability
  • Fire legal liability
  • Liquor liability
  • Product liability/completed operations
  • Professional liability/errors and omissions
  • Data breach
  • Builder’s risk
  • Installation floater
  • Bailee coverage
  • Motor truck cargo
  • Umbrella insurance
  • Workers’ compensation
• What limits of insurance are required for each coverage?
• Are there additional insured requirements?
• Are insurance companies required to have particular financial ratings? Most financially sound insurers carry an A.M. Best Company rating. Refer to ambest.com for information regarding a carrier’s current rating.
• When dealing with international business partners and foreign locations, are participating insurance companies licensed in the foreign countries where the contracted for work may be performed?
• When contracting with international suppliers and trading partners for the supply of goods and services being brought into the United States, is the international trading partners’ insurance company licensed and admitted to do business in the United States?
• Will you be notified if the required insurance has been cancelled?
• Does the contract contain waivers of subrogation? If so, which insurance policies are affected? Will those insurance policies still pay if a waiver of subrogation is in effect? What other entities are affected?
• What evidence of insurance must be provided to the contracting parties? Certificates of Insurance?

What additional insured status does

• A party with additional insured status has direct access to the other party’s (the named insured’s) insurance policy, including immediate access to legal defense. Without additional insured status, the first party would need to submit a claim to their own insurance carrier, and then attempt to recover damages and legal fees using a contract’s indemnity clause or through subrogation.
• The named insured’s insurance carrier cannot subrogate against additional insureds.
• A vendor's endorsement gives a company that is selling the products of another company Additional Insured status on the first company’s product liability insurance policy. A vendors endorsement may specify “blanket” coverage of all products and all vendors, or it may be specific to certain ones.
• Additional Insured status is generally not available for workers’ compensation policies.
• An alternate employer endorsement provides primary workers’ compensation and employer’s liability coverage to another party, such as customers of a temporary employment agency.

What an indemnity provision does

An indemnification clause or hold harmless agreement requires one party (the indemnitor) to assume financial responsibility for damages for which another party (the indemnitee) is liable. Does the contract have an indemnification clause? Is it more in favor of one party or the other?

Several types of indemnity provisions exist and generally fall into these categories:

• Limited form: Indemnifies only to the extent of the indemnitor’s own negligence. For instance, if the indemnitor is found to be 70% at fault in causing an injury, the indemnitor must pay the indemnitee 70% of the total damages. This is also referred to as comparative fault liability.
• Intermediate form: Indemnifies fully for the joint negligence of both parties but not for the sole negligence of the indemnitee. For instance, if the indemnitor is found to be 70% at fault in causing an injury, the indemnitor must pay the indemnitee 100% of the total damages. But if the indemnitor is found to be 0% at fault (i.e., the indemnitee is 100%, or solely, liable), the indemnitor is not contractually obligated to pay any damages.
• Broad form: Indemnifies fully for the joint negligence of both parties and also for the sole negligence of the indemnitee. For instance, if the indemnitor is found to be 70% at fault in causing an injury, the indemnitor must pay the indemnitee 100% of the total damages. But if the indemnitor is found to be 0% at fault (i.e., the indemnitee is 100%, or solely, liable), the indemnitor must still pay 100% of the damages. In some states, this type of agreement is against public policy and therefore, not enforceable.
• Hybrid: Uses a combination of two or more of the above three basic types of indemnification. For instance, a contract might require intermediate form indemnification for payment of legal defense costs, but limited form indemnification for payment of the actual judgment. Or a contract might require limited form indemnification for claims from outside third parties, but broad form indemnification for claims from employees of a contractor (i.e., third-party-over claims).
• Cross-indemnity or mutual indemnity: Each party agrees to indemnify the other for liabilities arising from its own negligent acts, errors or omissions. The above three basic types of indemnification focus on one party (usually the one that drafted the contract) being the indemnitee, and the other party being the indemnitor. Mutual indemnification focuses on each party being responsible for its own actions. This may be an easier or fairer way to allocate liability if the activities of both parties have about the same level of risk. But if one party has an inherently higher level of risk, mutual indemnification may not accomplish what each party intends.

Before a loss occurs

• Properly execute all contracts:
  • Are they enforceable, properly signed and properly dated?
• Keep an up to date list of all your contracts with the amounts and key deadlines noted.
• Have documentation readily available — contracts, change orders, certificates of insurance, and any documentation required by the contracts. Retain these documents for at least the expected life of the product/service covered by the contract, plus the applicable statute of limitations or statute of repose.
• Check certificates of insurance that you receive from others, to be sure that the coverages, limits, Additional Insured status, expiration dates, financial ratings and cancellation notification are as agreed to in the contract.
• Follow up to obtain new certificates of insurance before the old ones expire.
• Verify that you have proper insurance coverage as required in any contracts that you sign for each project, location, and contract provision.

After a loss occurs

• Regardless of who you believe may be at fault or whether all the facts are available, report the loss immediately to your agent and insurance company.
• Gather all documents pertaining to the contract, scope of work, meeting or construction notes, and any other known loss issues.
• Be prepared to discuss the facts and loss details with your insurance adjuster.

Always seek professional advice

• To fully protect your business and its assets, you should always consult experts who can properly advise you about a contract. It is important to:
  • Always consult an attorney to work with you to draft a contract suitable for your business and insurance needs.
  • Always contact your insurance agent when another party requires you to provide them with insurance, to make sure your current insurance program meets the needs of the contract.

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC NOV 2018-190
171-0915 (1/14)

If you are like many business owners, you might not take the time to thoroughly review a contract when it comes across your desk. You may leave this up to your office manager or casually review it yourself.

Yet, effective contract management can help protect your business from many potentially expensive lawsuits and judgments. It is important that you understand how a written contract can benefit and protect your business — and it is essential for you to practice effective contract management.

Purchase orders, waivers, rental agreements, leases, terms and conditions and other types of written agreements can all function as contracts — to simplify matters, the term “contract” will be used in this document.

What a written contract does

Today’s fast‐paced and highly litigious business environment requires proper contract management and knowledge. A written contract functions as a legal document and should do the following:

• Provide a clear statement of the work to be performed or the products and services to be rendered, to prevent confusion and misunderstanding;
• Provide clarification of the legal responsibilities and obligations of the parties through the use of indemnification clauses, “hold harmless” agreements and waivers or limitations of legal liability;
• Provide a method of dispute resolution to reduce and possibly eliminate costly litigation expenses, which can be especially important with international business partners; and
• In some cases, shift insurance responsibilities by including additional insured requirements; or the contract may increase exposures thereby requiring the purchase of additional insurance coverage.

When drafting or reviewing a contract, look for

• Which state’s law applies to the contract, and for international business partners, which country’s law? What effect does this have on the contract?
• Does the contract include all addendums (i.e. no side agreements or verbal statements apply)?
• Is the contract enforceable? Is it a signed agreement between two or more parties? Are the parties competent adults who have been given the opportunity to review and understand the contract? For instance, a waiver written in small print, not in plain English, on the back of another document might not meet this requirement.
• Does the contract require specific dispute resolution methods? Is there an “Arbitration Clause”? This is especially important when dealing with international business partners where the Arbitration Clause may require you to arbitrate disputes in a foreign country.
• How does the contract compare to other contracts that may be in effect? Are they broader? Are they equivalent?
• What are the milestone performance dates of the contract?
• What requirements does the contract impose upon you?
• What requirements does the contract impose on the other party?
• What safety and quality control procedures are required?
• Are surety bonds or other security required for the contract?
• Will one party be allowing the other use of its tools, equipment or facilities or sharing access to the project location with others?
• If a contractor will be permitted to use subcontractors, or a tenant allowed to have sub‐tenants, what requirements should this party be held to? How will they be addressed in indemnification clauses?
• What insurance requirements have been written into the contract? Some examples of insurance coverages that may be applicable include:
  • Auto liability
  • Commercial general liability
  • Contractual liability
  • Fire legal liability
  • Liquor liability
  • Product liability/completed operations
  • Professional liability/errors and omissions
  • Data breach
  • Builder’s risk
  • Installation floater
  • Bailee coverage
  • Motor truck cargo
  • Umbrella insurance
  • Workers’ compensation
• What limits of insurance are required for each coverage?
• Are there additional insured requirements?
• Are insurance companies required to have particular financial ratings? Most financially sound insurers carry an A.M. Best Company rating. Refer to http://www.ambest.com for information regarding a carrier’s current rating.
• When dealing with international business partners and foreign locations, are participating insurance companies licensed in the foreign countries where the contracted for work may be performed?
• When contracting with international suppliers and trading partners for the supply of goods and services being brought into the United States, is the international trading partners’ insurance company licensed and admitted to do business in the United States?
• Will you be notified if the required insurance has been cancelled?
• Does the contract contain waivers of subrogation? If so, which insurance policies are affected? Will those insurance policies still pay if a waiver of subrogation is in effect? What other entities are affected?
• What evidence of insurance must be provided to the contracting parties? Certificates of insurance?

What additional insured status does

• A party with additional insured status has direct access to the other party’s (the named insured’s) insurance policy, including immediate access to legal defense. Without additional insured status, the first party would need to submit a claim to their own insurance carrier, and then attempt to recover damages and legal fees using a contract’s indemnity clause or through subrogation.
• The named insured’s insurance carrier cannot subrogate against additional insureds.
• A vendors endorsement gives a company that is selling the products of another company additional insured status on the first company’s product liability insurance policy. A vendors endorsement may specify “blanket” coverage of all products and all vendors, or it may be specific to certain ones.
• Additional insured status is generally not available for workers’ compensation policies.
• An alternate employer endorsement provides primary workers’ compensation and employer’s liability coverage to another party, such as customers of a temporary employment agency.

What an indemnity provision does

An indemnification clause or hold harmless agreement requires one party (the indemnitor) to assume financial responsibility for damages for which another party (the indemnitee) is liable. Does the contract have an indemnification clause? Is it more in favor of one party or the other?

Several types of indemnity provisions exist and generally fall into these categories:

• Limited form: Indemnifies only to the extent of the indemnitor’s own negligence. For instance, if the indemnitor is found to be 70% at fault in causing an injury, the indemnitor must pay the indemnitee 70% of the total damages. This is also referred to as comparative fault liability.
• Intermediate form: Indemnifies fully for the joint negligence of both parties but not for the sole negligence of the indemnitee. For instance, if the indemnitor is found to be 70% at fault in causing an injury, the indemnitor must pay the indemnitee 100% of the total damages. But if the indemnitor is found to be 0% at fault (i.e. the indemnitee is 100%, or solely, liable), the indemnitor is not contractually obligated to pay any damages.
• Broad form: Indemnifies fully for the joint negligence of both parties and also for the sole negligence of the indemnitee. For instance, if the indemnitor is found to be 70% at fault in causing an injury, the indemnitor must pay the indemnitee 100% of the total damages. But if the indemnitor is found to be 0% at fault (i.e. the indemnitee is 100%, or solely, liable), the indemnitor must still pay 100% of the damages. In some states, this type of agreement is against public policy and therefore, not enforceable.
• Hybrid: Uses a combination of two or more of the above three basic types of indemnification. For instance, a contract might require intermediate form indemnification for payment of legal defense costs, but limited form indemnification for payment of the actual judgment. Or a contract might require limited form indemnification for claims from outside third parties, but broad form indemnification for claims from employees of a contractor (i.e. third‐party‐over claims).
• Cross‐indemnity or mutual indemnity: Each party agrees to indemnify the other for liabilities arising from its own negligent acts, errors or omissions. The above three basic types of indemnification focus on one party (usually the one that drafted the contract) being the indemnitee, and the other party being the indemnitor. Mutual indemnification focuses on each party being responsible for its own actions. This may be an easier or fairer way to allocate liability if the activities of both parties have about the same level of risk. But if one party has an inherently higher level of risk, mutual indemnification may not accomplish what each party intends.

Before a loss occurs

• Properly execute all contracts:
  • Are they enforceable, properly signed and properly dated?
• Keep an up to date list of all your contracts with the amounts and key deadlines noted.
• Have documentation readily available — contracts, change orders, certificates of insurance, and any documentation required by the contracts. Retain these documents for at least the expected life of the product/service covered by the contract, plus the applicable statute of limitations or statute of repose.
• Check certificates of insurance that you receive from others, to be sure that the coverages, limits, additional insured status, expiration dates, financial ratings and cancellation notification are as agreed to in the contract.
• Follow up to obtain new certificates of insurance before the old ones expire.
• Verify that you have proper insurance coverage as required in any contracts that you sign — for each project, location, and contract provision.

After a loss occurs

• Regardless of who you believe may be at fault or whether all the facts are available, report the loss immediately to your agent and insurance company.
• Gather all documents pertaining to the contract, scope of work, meeting or construction notes, and any other known loss issues.
• Be prepared to discuss the facts and loss details with your insurance adjuster.

Always seek professional advice

To fully protect your business and its assets, you should always consult experts who can properly advise you about a contract. It is important to:

• Always consult an attorney to work with you to draft a contract suitable for your business and insurance needs.
• Always contact your insurance agent when another party requires you to provide them with insurance, to make sure your current insurance program meets the needs of the contract.

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you. The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC JAN 2019 12‐190
171-1000 (01/14)

Carjacking is defined as seizure of a vehicle in transit either to rob it or divert it to an alternate destination. According to a U.S. Justice Department report, over 34,000 carjacking incidents occur annually in the U.S.

44 percent of carjacking incidents occurred in an open area, such as on the street or near public transportation facilities including airports, bus and train stations. 24 percent occurred in parking lots or garages near businesses such as stores, gas stations, office buildings, restaurants and bars.

93 percent of carjackings occurred in cities or suburbs. A weapon was used in 74 percent of carjackings. About 32 percent of victims of completed carjackings and 17 percent of victims of attempted carjackings were injured.

In only a quarter of carjackings was the vehicle and all property totally recovered.

You can help protect yourself against carjackers by becoming familiar with the methods, ruses, and locations that they commonly use.

Avoidance

The first step in avoiding an attack is to stay alert at all times and be aware of your environment. Be especially vigilant in the following situations:

• High crime areas
• Lesser traveled roads
• Intersections where you must stop
• Isolated areas in parking lots
• Residential driveways and gates
• Traffic jams or congested areas

Learn to avoid these areas and situations if possible. If not, take steps to prevent an attack. When stopped, use your rear and side view mirrors to stay aware of your surroundings. This increases your safety and makes it more difficult for an attacker to surprise you.

 

Reduce your chances of carjacking
When returning to a parked vehicle, assess the situation before getting in. Look into the backseat or passenger compartment for someone hiding in the vehicle.
Keep doors locked and windows closed when driving.
In traffic, look around for possible avenues of escape. Keep some distance between you and the vehicle in front so you can maneuver easily if necessary.
When stopped, allow at least one car length between you and the car ahead. You should always be able to see the rear tires of the vehicle in front.
If you can’t drive away from a threatening situation, draw attention to yourself — honk your horn or yell. Remain locked inside if possible.
Keep your valuables out of view while driving. Don’t leave valuables on the seat where they can be observed from the outside.
When stopping for fuel or refreshment turn off the ignition and take your keys when leaving the vehicle.
Keep a lookout if you see a stranger approaching your vehicle. Drive away as quickly as possible.
Above all, don’t resist an armed suspect. Your vehicle isn’t worth risking personal injury.

Tricks often used by carjackers

Accidents are one ruse used by carjackers to trick their victim. The following are common attack plans:

The Bump – The attacker bumps the victim’s vehicle from behind. The victim gets out to assess damage and exchange information. The victim’s vehicle is taken.

The “Good Samaritan” – The attacker(s) stage what appears to be an accident. They may simulate an injury. The victim stops to assist and the vehicle is taken.

The Ruse – The vehicle behind the victim flashes its lights or the driver waves to get the victim’s attention. The attacker tries to indicate that there is a problem with the victim’s car. The victim pulls over and the vehicle is taken.

The Trap – Carjackers follow the limo driver victim to the customer’s home. When the victim pulls into the driveway the attacker pulls up behind and blocks the victim’s car.

If you are bumped from behind or if someone tries to alert you to a problem with your vehicle, pull over only when you reach a safe public place.

When picking up a customer try to park in the street instead of the customer’s driveway if possible so you can not be blocked in. If you are driving into a gated community, call ahead to have the gate opened. Otherwise wait on the street until the gate is open before turning in and possibly getting trapped.

Think before stopping to assist in an accident. It may be safer to call and report the location, the number of cars involved and any injuries you observed.

Wait until you stop your vehicle in a safe place before using your cell phone. If you do stop at an accident scene, keep a safe distance away and make sure to position your vehicle so that you can drive away.

Always keep your cell phone with you and immediately alert someone regarding your situation.

During a carjacking

The foremost concern is your personal safety and the safety of your passengers. If you are confronted by a carjacker don’t resist. Hand over your keys and step back from the assailant. Remember: The vehicle can be replaced but a human life cannot.

In most carjacking situations, the attackers are interested only in the vehicle. Try to stay calm. Do not stare at the attacker because this may seem aggressive and cause them to harm you or your passengers. In most instances, it is probably safest to give up your vehicle.

After the attack

Safety

If you are in a populated area, immediately go to a safe place. After an attack or an attempted attack, you might not be focused on your safety. Get to a safe place if it’s possible to do so, before contacting someone to report the incident.

Reporting the crime

Describe the event. What time of day did it occur? Where did it happen? How did it happen? Who was involved?

Describe the attacker(s). Without staring, try to note height, weight, scars or other marks, hair and eye color, the presence of facial hair, build (slender, large), and complexion (dark, fair).

Describe the attacker’s vehicle. If possible get the vehicle license number, color, make, model, and year, as well as any marks (scratches, dents, damage) and personal decorations (stickers, colored wheels).

The golden rule for descriptions is to give only that information you absolutely remember. If you are not sure, don’t guess!

Conclusion

Safety

Avoidance is the best way to prevent a carjacking. Use your judgment to evaluate the situation and possible reactions. Know safe areas to go to in an emergency. Always carry your cell phone.

Non-confrontation is often the best response. The objective is not to thwart the criminal but to survive.

 

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation.  By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC JAN 2019 10-401 L
171-0897 (3/17)

Crushed hands and arms, severed fingers, blindness — the list of possible machinery-related injuries is as long as it is horrifying. There seem to be as many hazards created by moving machine parts as there are types of machines. Safeguards are essential for protecting workers from needless and preventable injuries.

A good rule to remember is that any machine part, function or process which may cause injury must be safeguarded. When the operation of a machine or accidental contact with it can injure the operator or others in the vicinity, the hazards must be either controlled or eliminated.

This document describes the various hazards of mechanical motion and presents some techniques for protecting workers from these hazards. General information covered includes where mechanical hazards occur, the hazards created by different kinds of motions and the requirements for effective safeguards, as well as a brief discussion of non-mechanical hazards.

Where mechanical hazards occur

Dangerous moving parts in three basic areas require safeguarding:

1. The point of operation: that point where work is performed on the material, such as cutting, shaping, boring or forming of stock.
2. Power transmission apparatus: all components of the mechanical system which transmit energy to the part of the machine performing the work. These components include flywheels, pulleys, belts, connecting rods, couplings, cams, spindles, chains, cranks and gears.
3. Other moving parts: all parts of the machine that move while the machine is working. These can include reciprocating, rotating and transverse moving parts, as well as feed mechanisms and auxiliary parts of the machine.

Hazardous mechanical motions and actions

A wide variety of mechanical motions and actions may present hazards to the worker. These can include the movement of rotating members, reciprocating arms, moving belts, meshing gears, cutting teeth and any parts that impact or shear. These different types of hazardous mechanical motions and actions are basic in varying combinations to nearly all machines, and recognizing them is the first step toward protecting workers from the danger they present.

The basic types of hazardous mechanical motions and actions are:

Motions

• Rotating (including in-running nip points)
• Reciprocating
• Transversing

Actions

• Cutting
• Punching
• Shearing
• Bending

Rotating motion can be dangerous; even smooth, slowly rotating shafts can grip clothing, and, through mere skin contact, force an arm or hand into a dangerous position. Injuries due to contact with rotating parts can be severe.

Collars, couplings, cams, clutches, flywheels, shaft ends, spindles, meshing gears and horizontal or vertical shafting are some examples of common rotating mechanisms that can be hazardous. The danger increases when projections such as set screws, bolts, nicks, abrasions, and projecting keys are exposed on rotating parts.

In-running nip point hazards are caused by the rotating parts on machinery. There are three main types of in-running nips.

1. Parts can rotate in opposite directions while their axes are parallel to each other. These parts may be in contact (producing a nip point) or in close proximity. In the latter case the stock fed between the rolls produces the nip points. This danger is common on machines with intermeshing gears, rolling mills and calendars.
2. Nip points are also created between rotating and tangentially moving parts. Some examples would be: the point of contact between a power transmission belt and its pulley, a chain and a sprocket and a rack and pinion.
3. Nip points can occur between rotating and fixed parts which create a shearing, crushing or abrading action. Examples are: spoked hand wheels or flywheels, screw conveyors or the periphery of an abrasive wheel and an incorrectly adjusted work rest.

Reciprocating motions may be hazardous because, during the back-and-forth or up-and-down motion, a worker may be struck by or caught between a moving and a stationary part.

Transverse motion (movement in a straight, continuous line) creates a hazard because a worker may be struck or caught in a pinch or shear point by the moving part.

Actions

Cutting action may involve rotating, reciprocating or transverse motion. The danger of cutting action exists at the point of operation where finger, arm and body injuries can occur and where flying chips or scrap material can strike the head, particularly in the area of the eyes or face. Such hazards are present at the point of operation in cutting wood, metal or other materials.

Examples of mechanisms involving cutting hazards include band saws, circular saws, boring or drilling machines, turning machines (lathes) or milling machines.

Punching action results when power is applied to a slide (ram) for the purpose of blanking, drawing or stamping metal or other materials. The danger of this type of action occurs at the point of operation where stock is inserted, held and withdrawn by hand.

Typical machines used for punching operations are power presses and iron workers.

Shearing action involves applying power to a slide or knife in order to trim or shear metal or other materials. A hazard occurs at the point of operation where stock is actually inserted, held and withdrawn.

Examples of machines used for shearing operations are mechanically, hydraulically or pneumatically powered shears.

Bending action results when power is applied to a slide in order to draw or stamp metal or other materials. A hazard occurs at the point of operation where stock is inserted, held and withdrawn.

Equipment that uses bending action includes power presses, press brakes and tubing benders.

Requirements for safeguards

What must a safeguard do to protect workers against mechanical hazards? Safeguards must meet these minimum general requirements:

Prevent contact: The safeguard must prevent hands, arms and any other part of a worker’s body from making contact with dangerous moving parts. A good safeguarding system eliminates the possibility of the operator or another worker placing parts of their bodies near hazardous moving parts.

Secure: Workers should not be able to easily remove or tamper with the safeguard because a safeguard that can easily be made ineffective is no safeguard at all. Guards and safety devices should be made of durable material that will withstand the conditions of normal use. They must be firmly secured to the machine.

Protect from falling objects: The safeguard should ensure that no objects can fall into moving parts. A small tool which is dropped into a cycling machine could easily become a projectile that could strike and injure someone.

Create no new hazards: A safeguard defeats its own purpose if it creates a hazard of its own such as a shear point, a jagged edge or an unfinished surface that can cause a laceration. The edges of guards, for instance, should be rolled or bolted in such a way that they eliminate sharp edges.

Create no interference: Any safeguard that impedes a worker from performing the job quickly and comfortably might soon be overridden or disregarded. Proper safeguarding can actually enhance efficiency since it can relieve the worker’s apprehensions about injury.

Allow safe lubrication: If possible, one should be able to lubricate the machine without removing the safeguards. Locating oil reservoirs outside the guard, with a line leading to the lubrication point, will reduce the need for the operator or maintenance worker to enter the hazardous area.

Non-mechanical hazards

While this manual concentrates attention on concepts and techniques for safeguarding mechanical motion, machines obviously present a variety of other hazards which cannot be ignored. Full discussion of these matters is beyond the scope of this publication, but some non-mechanical hazards are briefly mentioned below to remind the reader of things other than safeguarding moving parts that can affect the safe operation of machines.

All power sources for machines are potential sources of danger. When using electrically powered or controlled machines, for instance, the equipment as well as the electrical system itself must be properly grounded. Replacing frayed, exposed or old wiring will also help to protect the operator and others from electrical shocks or electrocution. High pressure systems, too, need careful inspection and maintenance to prevent possible failure from pulsation, vibration or leaks. Such a failure could cause, among other things, explosions or flying objects.

Machines often produce noise (unwanted sound) which can result in a number of hazards to workers. Noise can startle and disrupt concentration, and can interfere with communications, thus hindering the worker’s safe job performance. Research has linked noise to a whole range of harmful health effects, from hearing loss and aural pain to nausea, fatigue, reduced muscle control and emotional disturbance. Engineering controls such as the use of sound-dampening materials, and personal protective equipment, such as ear plugs and muffs, can help control the harmful effects of noise. Also, administrative controls that involve removing the worker from the noise source can be an effective measure when feasible.

Because some machines require the use of cutting fluids, coolants, and other potentially harmful substances, operators, maintenance workers, and others in the vicinity may need protection. These substances can cause ailments ranging from dermatitis to serious illnesses and disease. Specially constructed safeguards, ventilation and protective equipment and clothing are possible temporary solutions to the problem of machinery-related chemical hazards until these hazards can be better controlled or eliminated from the workplace.

Training

Even the most elaborate safeguarding system cannot offer effective protection unless the worker knows how to use it and why. Specific and detailed training is therefore a crucial part of any effort to provide safeguarding against machine-related hazards. Thorough operator training should involve instruction or hands-on training in the following:

• A description and identification of the hazards associated with particular machines
• The safeguards themselves, how they provide protection, and the hazards for which they are intended;
• How to use the safeguards and why
• How and under what circumstances safeguards can be removed, and by whom (in most cases, repair or maintenance personnel only)
• What to do (e.g., contact the supervisor) if a safeguard is damaged, missing, or unable to provide adequate protection

This kind of safety training is necessary for new operators and maintenance or setup personnel, when any new or altered safeguards are put in service, or when workers are assigned to a new machine or operation.

Protective clothing and personal protective equipment

Engineering controls that eliminate the hazard at the source and do not rely on the worker’s behavior for their effectiveness offer the best and most reliable means of safeguarding. Therefore, engineering controls must be the employer’s first choice for eliminating machine hazards. But whenever engineering controls are not available or are not fully capable of protecting the employee (an extra measure of protection is necessary), operators must wear protective clothing or personal protective equipment.

If it is to provide adequate protection, the protective clothing and equipment selected must always be:

• Appropriate for the particular hazards
• Maintained in good condition
• Properly stored when not in use, to prevent damage or loss
• Kept clean, fully functional and sanitary

Protective clothing is, of course, available for different parts of the body. Hard hats can protect the head from the impact of bumps and falling objects when the worker is handling stock; caps and hair nets can help keep the worker’s hair from being caught in machinery. If machine coolants could splash or particles could fly into the operator’s eyes or face, then face shields, safety goggles, glasses or similar kinds of protection might be necessary. Hearing protection may be needed when workers operate noisy machines. To guard the trunk of the body from cuts or impacts from heavy or rough-edged stock, there are certain protective coveralls, jackets, vests, aprons and full-body suits. Workers can protect their hands and arms from the same kinds of injury with special sleeves and gloves. Safety shoes and boots, or other acceptable foot guards, can shield the feet against injury in case the worker needs to handle heavy stock that might drop.

It is important to note that protective clothing and equipment can create hazards. A protective glove which can become caught between rotating parts, or a respirator face piece which hinders the wearer’s vision, for example, require alertness and continued attentiveness whenever they are used.

Other parts of the worker’s clothing may present additional safety hazards. For example, loose-fitting shirts might become entangled in rotating spindles or other kinds of moving machinery. Jewelry, such as bracelets and rings, can catch on machine parts or stock and lead to serious injury by pulling a hand into the danger area.

Reference

Concepts and Techniques of machine guarding — OSHA publication 3067.

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.
 

LC DEC 2018-461
171-1146 (1/15)

A fire in your restaurant can injure your employees and guests. It can also cause your business to shut down for repairs and harm your company's reputation. Here are some tips to keep your kitchen cooking:

Maintain your fire suppression system

• Service the system every six months.
• Make sure the caps are on the discharge nozzles — they protect the opening from being clogged by grease and debris.
• Is your system UL 300 compliant? It should be if you have deep fat fryers or your cooking processes produce grease laden vapors.

Clean your exhaust duct

• Clean filters and hood regularly.
• A build-up of grease within your exhaust system can lead to a fire. Use this chart to determine how frequently you should have the system cleaned by a professional service company:

Type/volume of cooking	Frequency of inspection and cleaning
Equipment using solid fuels such as wood or charcoal	Monthly
Kitchens with high-volume operations such as 24-hour cooking, extensive frying, charbroiling or wok cooking	Quarterly
Kitchens with moderate volume cooking operations	Semiannually
Kitchens with low-volume cooking operations such as churches, seasonal business, or day camps	Annually

Clean check your fryers

• Make sure your fryer is equipped with a high temperature shut-off switch — it will prevent your oil from overheating.
• Are your fryers located next to a gas stove, char-grill or other open flame appliance? If you answered yes and there is less than 16 inches of separation between the edges of the appliance, then you should have an 8-inch stainless steel baffle between the appliances.

Train your employees

• Show all employees how to manually activate the fire suppression system.
• Employees should know how to properly use fire extinguishers and where they are located.
• Emergency evacuation plans — they should know how to respond to an emergency and the steps to take to ensure the safety of guests and themselves.

Know the basics

• Provide Type K extinguishers for use on cooking fires.
• Maintain clear and uncluttered walkways and storage areas.
• Don't use extension cords or frayed electrical cords.
• Keep combustibles away from hot surfaces.
• Clean grill surfaces and kitchen equipment frequently.
• If you re-arrange equipment located under the hood, you may need to re-arrange the fire suppression system nozzles — contact the fire protection servicing company for an evaluation.

References and additional information

• Fire Safety Checklist for Commercial Cooking
• NFPA 96, Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations
• OSHA Youth Worker Safety in Restaurants

Your Hanover Risk Solutions Consultant is available to assist you if you have questions or need help with fire safety in your kitchen.

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC NOV 2018 LC 12-217
171-0888 (1/14)

The jewelry trade entrusts high value goods to all of its employees both on and off your premises. A good jeweler controls these exposures with a comprehensive security program that includes employee screening and selection, inventory control, on premises security procedures and travel safety plans. This bulletin will help you understand how to use and obtain background investigation information.

Employment application

A thorough background investigation starts with a detailed employment application that includes a release from the prospective employee to obtain background information, criminal history and credit information, and authorizes holders of this information to release that data to the employer. This is the key to being able to access the databanks that store the information you seek. Your legal counsel can supply locally acceptable wording for the release.

There are a number of reports available to you. Each report has a specific use that will help you screen your employees.

You can verify the work history of the prospective employee via a credit report. The list of employers and time frames should be consistent with the application data. Similarly, the history of residential addresses should be consistent with the work history of the candidate. If there are discrepancies, inquire as to the discrepancy and offer the candidate a chance to verify the information.

A minimum investigation should include credit and criminal background checks.

Credit report

What is the subject’s credit history? You are potentially entrusting this person with very portable and easily converted merchandise. Is there a history of bad money management that could indicate lack of responsibility?

Criminal history report

Criminal history reports can show arrests and convictions. Has the subject been involved in prior criminal activity? Is there evidence of minor infractions that indicate poor judgment or impulse control? Does the subject have a history of association with criminal activity? Many large losses in the jewelry business require insider information about values, trips and merchandise. The scope of your report should be a national records check. Local records checks do not offer enough data to verify an applicant’s background in this mobile society.

Other reports are available that can address specific questions.

Social security number verification

This report will allow you to match the name and SS# to detect an invalid SS#. This report can verify the accuracy of the other reports that use a SS number.

Motor vehicle reports

Motor vehicle reports should be used when the employee is driving a company vehicle or a personal vehicle for business purposes. You can verify their driving record and possession of a valid operator’s license.

Civil litigation reports

Civil litigation history reports can identify previous civil disputes to which your applicant has been involved.

Making hiring decisions without conducting a background investigation leaves you vulnerable to thefts, business disruption and loss of reputation.

You may wish to read more about discounted background investigation products through our Risk Solutions Partner, IntelliCorp here.

 

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This material is provided for informational purposes only and does not provide any coverage or guarantee loss prevention. The examples in this material are provided as hypothetical and for illustration purposes only. The Hanover Insurance Company and its affiliates and subsidiaries (“The Hanover”) specifically disclaim any warranty or representation that acceptance of any recommendations contained herein will make any premises, or operation safe or in compliance with any law or regulation. By providing this information to you, The Hanover does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.

LC DEC 2018 11-217b
171-1009 (1/14)