Avoid the Insurance Quoting Trap

by | Oct 31, 2018 | Risk Management | 0 comments

Avoid The Insurance Quoting Trap

By Eric Petersen, CIC

Shopping for insurance coverage can be an exhausting task. Starting with your phone ringing off the hook three to four months before your renewal from agents trying to “quote” your policy, to gathering equipment lists and insurance loss runs to listening to final presentations for hours on end, the traditional way to get an insurance quote will leave you frustrated and worn out. And worst of all, at the end of it, you probably will stay with your current agent and insurance company because most quotes will be very similar in price anyway. That my friend, is what I call, the Quoting Trap.

So how do you avoid the Quoting Trap yet still secure the best possible insurance program for your business? You must first start with an understanding of the following facts about the current insurance industry.

Fact #1 – Not Many Options

Unfortunately, there are only a handful of insurance companies that truly have the proper knowledge of the tree care industry to offer the best protection at the lowest price. Because of this you will see agents scramble to submit your information to those insurance companies. The first agent that submits the account is the one that has authority to get the quote from them.

Fact #2 – Prove it

To offer the lowest price, insurance companies need proof of why you will not have an accident or injury. This typically means providing loss runs from your prior policies to the quoting insurance company to show what your incident history has been and answering a few questions regarding your safety program.

Fact #3 – Not all Agencies are Created Equal

I’m sure you are sick of explaining how an arborist is much more than a tree trimmer to insurance agents looking to give you a quote. Because the vast majority of insurance agencies do not specialize in working with tree services, their knowledge of your industry is very basic and therefore they feel their only value is to place coverage and do the minimal amount of work on your account so that you renew your coverage the next year. The good news is that there are agencies that have dedicated themselves to the tree care industry and offer many more services than just insurance policy issuance to help your business.

Considering the above facts, when you allow a few agents to earn your business by giving them the minimal information needed to get a quote, you shortchange yourself. You create a race to see which agent can get the submission to the insurance companies the quickest versus actually showing the insurance company how you will be a profitable account. Many agents skip gathering vital information about your company that would dramatically improve your chances of lowering the insurance cost just so they can be the first agent in. On top of it all, you have done nothing to guarantee that the fastest agent is actually the best agent that can help you well beyond insurance.

The Solution to the Quoting Trap is to select the best agent for your company first and have them find you the best possible insurance program. I know what you are thinking, “Wait, that’s not a competitive situation!” But it is. Instead of asking the agencies to compete for your business based on who can submit the information to the insurance companies the fastest, you are asking them to compete on a much tougher level; “What are you going to do for me?”

It is then the agent of your choice that submits your information to all of the available insurance companies for quotes on your behalf. It is remarkable how much more effective at securing lower insurance premiums it is when only one agent is submitting for quotes. I recently was asked to quote a policy for a tree care service. Since I knew they were using other agents to get quotes, I asked my insurance companies if they have received a submission for this account before. Their response was astounding, “This may be one of the most shopped accounts out there. This year we received it from one agency and had calls from another. Last year it came in from 2 different agencies than this year.” Guess what? The insurance company did not want to spend time quoting this account unless they knew they had a real opportunity to win.

If you need help with your insurance or are interested in a FREE coverage review, contact ArboRisk. Our Thrive Risk Management program, specifically our New Heights Package, can help address some of these pain points and help steer your insurance in the right direction!

The graphic below depicts the Quoting Trap:

How to Get the Most Out of Your Safety Committee

by | Oct 17, 2018 | Safety | 0 comments

How to Get The Most Out Of Your Safety Committee

As you know, having a safety committee is a great way to improve your business. It gives your team members an avenue to discuss close calls or any situations that may concern them on the job site, while also showing insurance companies your dedication to safety. Ultimately, this will help increase your profit margin by limiting the injuries and accidents that occur along with lowering your insurance costs.

But are you really getting the most out of your committee? Here are my four quick tips to maximizing the benefit of your safety committee.

Create Committee Goals and Responsibilities
Have you clearly defined what you want the safety committee to do for your organization? Was your committee established because you had an accident in the past or because you’re scared of an accident in the future, maybe both? Below are some core responsibilities your safety committee should take charge of:

Reviewing your written safety program and implementation of safety policies.
Regular job site and equipment inspections.
Running safety meetings and analyzing incident/near miss data.
Addressing potential risks when providing new services.
Staying abreast of industry regulation and changes.

Involve The Right People
Making sure you have the right team is critical to ensuring the committee stays just that, committed. Diversity in your safety committee is paramount. Aim to have a committee that receives input from all aspects of your business. For example, you may have one foreman, one climber, one grounds crew member, one lift operator and one shop member all included.

Term Limits
Create a term limit for your committee and stick to it. Many times safety committees get stale because the same people have been on the committee for years and years. Establish a rule that each members will only be on the committee for a designated amount of time. This allows a committee member a certain amount of time to create action and provides the opportunity to involve more team members. Stagger the terms so that you always have fresh members joining the current committee. I recommend using two year terms. Two years is long enough to accomplish specific tasks, but short enough to keep it interesting for all members.

Rewards
Give incentives to the safety committee members. Everyone wants to feel rewarded for their hard work and being on a safety committee can add more responsibility and stress than their normal position. Set up a reward system that allows you to praise the committee for the procedural aspect of their role. This could be in a monetary bonus for every safety meeting held or additional time off for every job site inspection performed, get creative on what will motivate your safety committee members to do their absolute best. Remember that OSHA frowns upon safety programs that have an outcome-based incentive tied to them, meaning do not incentivize your team members based on the amount of injuries. Use concrete goals and procedures as your benchmark for the committee’s performance.

There you have it, four tips to get more value out of your safety committee. Remember that the ultimate goal of the safety committee is to strengthen the culture of safety within your organization so you can get every employee home safe each night. Empowering your team members with that goal is the surest way to succeed.

Written by: Eric Petersen

Is my Business Compliant with the DOT?

by | Oct 10, 2018 | Risk Management | 0 comments

Is My Business Compliant with The Dot?

It’s safe to say we are familiar with the DOT…but are we aware of the impacts it can have on our business if we are not compliant? In 2017, the U.S. Federal Motor Carrier Safety Administration changed the schedule of fines for DOT violations, dramatically increasing the penalties. Falsification of required inspection records can result in fines up to $12,000+. Granted each state will vary relative to the Federal DOT requirements, but we wanted to take a closer look at the most common violations and run through details that can help avoid issues. Simply put, the penalties stem from two different areas. Fleet compliance and Driver Compliance.

Fleet Compliance

– Vehicles not properly maintained/inspected
– Failure to maintain 12 month accident log

Similar to safety standards, many of the maintenance compliance issues can be resolved with proper documentation. Depending on the size of your business, you may want to delegate that responsibility to someone other than yourself (i.e. fleet manager or mechanic). If you are a TCIA member, check their safety resources for a maintenance schedule log, or look for one in the owner’s manual. If you do delegate that task to someone else, make sure you are scheduling reviews to ensure everything is being properly logged.

Vehicle inspections are key for both compliance, and more importantly, safety of your employees. I recently sat in on a presentation by one of our insurance carriers that stressed the importance of detailed inspections. The carrier had received applications for a trucking company that, on paper, had looked like a more than profitable account to insure. No auto losses and few worker’s compensation claims. Due to the size and operations, the carrier performed an inspection prior to quoting. What they found was a fully operating truck that had a crack right in the middle of the axle. This business had been successful on driving strategies, yet they were one trip away from a serious accident due to poor inspections. You can meet inspection requirements by stopping at a state roadside inspection program, or a third party inspection of your choice. Be sure you are filing the reports for your records and maintaining a copy in the vehicle if you have had the vehicle for more than 30 days. Also, remember the BLT sandwich! Brakes, lights, tires. Click here for a vehicle inspection checklist from the DOT website.

Accident logs should be pretty straight forward. Document the who, what, where, etc. of each incident, and even close calls just to be safe. There isn’t a standard reporting form, so you’re welcome to create your own or there is one on the TCIA website if you are a member. In general, the DOT considers an accident to be any occurrence in which there is bodily injury or property damage.

Driver Compliance

– Driver not in possession of required qualifications or licensing
– Failure to test or follow up on testing of driver for drug or alcohol use while on duty
– Lack of or defects in required documentation

If the DOT is to perform an on-site review for driver compliance, they’ll first look into your drivers qualifications and up to date licensing. Check out our Driver Qualification Criteria to be sure your potential and current employees meet the standards for being on the road. You should be conducting annual MVR reviews and have an accident disclosure agreement in your employee handbook.

One of the biggest causalities for fines from the DOT is business owners mishandling drug and alcohol abuse situations. If you, the owner, have “reasonable suspicion” that there is substance abuse, you are obligated to perform and record training/testing on substance use. It then needs to be followed up with a series of random tests for up to 60 months following an incident(depends on the severity). For more information on substance abuse and testing obligations, please reach out to an ArboRisk team member!

Business owners should keep files of all active drivers. The files should contain original applications, MVR records, previous employment records, training documentation, any incident reports involving the driver, and medical information.

Notice the trend? Everything needs to be documented and kept for records. Documentation will not only help in the case of an audit from the DOT, but with ensuring everyone gets home safe each night. There are a number of resources available through the TCIA and DOT that we’d be happy to provide for you. Feel free to reach out with any questions!

Written by: Malcolm Jeffris, CTSP

5 Simple and Powerful Safety Meeting Topics

by | Sep 12, 2018 | Safety | 0 comments

5 Simple and Powerful Safety Meeting Topics

Keeping your safety meetings interesting to your employees can sometimes be a challenge. Below are five simple yet very powerful meeting ideas that you can use to help continue to promote your culture of safety.

Watch Face Exercise – At the TCIA’s 2018 Winter Management Conference, Jim Spigener stated that 75% of all work related fatalities in the United States come from making a mistake while doing routine work. 75%!! To prove this point, he asked everyone to write down as many details about the face of your favorite watch. He said to include specifics like colors, what the numbers look like, what shape are the hands of the watch, etc. It was shocking to see how difficult it was to explain something as common as my favorite watch. This exercise will make the connection that we take routine items and tasks for granted which could lead to a serious accident.

Scenario Training – Gather your team in small groups and have the team write out three near miss scenarios from their personal experience. Then instruct the group to discuss the events and create solutions to avoid this near miss in the future. Have a team member from each group share their group’s near misses and solutions. This promotes open communication between team members and encourages everyone to continue to better themselves to be safe every day.

Old Rope Under Tension – Because many Arborists learn by watching something happen, this meeting topic shows the importance of always having a second line secured while making a cut. Take an old rope that is out of commission and put it under tension in a vertical setting like it would be when climbing a tree. Use a handsaw to lightly touch the rope until the rope fails. If you have enough rope, split your team up into groups to perform the same test. When the arborist realizes how little pressure is needed from the handsaw to compromise the rope, you should never again see someone not being tied in twice before making a cut.

What is Your Safety Story? – I wrote an entire post on this idea in a previous article (click here for it), however, it was such an easy, influential topic, I wanted to mention it again. Begin the safety meeting by asking everyone to write down a time when safety mattered to them. It could be from a serious accident that happened to them or one they witnessed. It could be from an event they heard about. Whatever it is, everyone has a story about the importance of safety that gets to their core. After everyone is done writing, explain why safety matters to you and what your safety story is. Then break the team up into small groups to discuss their individual safety stories. While this is similar to the Scenario Training exercise, this meeting idea should help employees dig deeper to find their motivator for safe behavior. When you focus on personal stories that revolve around safety, the message of working safe becomes a reality for your team.

Chainsaw Demo – Gather your team around a log in your yard. Tell everyone to watch very closely as the chain tears through the log easily. Ask them to take note of the sounds that it makes, the sight of the wood chips flying, perhaps the smell of the exhaust, chain oil and gas mixture. Get them to really be present in the moment of how powerful this machine is. Turn off the saw and pause, for dramatic effect. Quietly ask your team, what would they hear, see and smell if that saw was going through one of their limbs. A chainsaw is the most common tool that we use as Arborists and like our watch face, very often we take for granted what we use every day. When your team really thinks about the damage that a chainsaw can do and how quickly it can happen, there should be no reason that chaps are left in the truck.

There you go, five simple yet extremely powerful ideas to keep your safety meetings fresh and make safety personal to everyone on your team. By committing to safety excellence, we all can make sure that every arborist gets home safe each night.

Lastly, I want to credit Scott Jamieson of Bartlett Tree Experts for sharing the Scenario Training, Old Rope Under Tension and Safety Story meeting ideas at a TCIA Roundtable that ArboRisk hosted back in June of 2018. Thanks for your dedication to the industry Scott!

Written by: Eric Petersen