This document provides information on the importance of workplace safety and cleanliness. It recommends that businesses conduct regular safety meetings to inform employees of hazards, build morale around safety, and review safety guidelines. Recording meeting minutes can help minimize losses that increase insurance premiums. Regular "cleaning up" through intensive cleanups and maintenance reduces accident risks and improves operations.

1. Farmers
Business Solutions
W o r k e r s ’ C o m p e n s a t i o n • volume 7 • issue 2
®
It’s Time to Clean That Office!
In its “Handbook for Small Businesses,” the It’s the responsibility of all employees to con-
Occupational Health and Safety Admin- tribute to the well-being of their co-workers.
istration (OSHA) describes poor housekeeping Let them know it’s imperative to keep the
as “a major contributor to low morale and work environment safe, healthy and efficient.
sloppy work in general.” It From clearing exit ways to
also reminds small busi- changing light bulbs and
ness owners that most filters, simply “cleaning
safety programs begin with up” your place of business
an “intensive clean-up will reduce accident expo-
campaign in all areas of sures and improve daily
business.” operations. These practices
Because it’s easy to get also will help reduce even
too busy and overlook the smallest hazards that
the small things, stop for threaten employees and
a second and take a look escalate your business’s
around your office. Then experience modification
ask yourself, “When was factor.
the last time we had a And call your Farmers
good old-fashioned housecleaning?” If it’s agent today for a free and thorough review of
time for a cleaning, then get everyone your business insurance coverage, including
involved! workers’ comp. I
‘What’s the Frequency, Kenneth?’
D an Rather may never live down being
accosted by a mugger who asked that
question. But he clearly raised the public’s
potential modification increases should fall
more heavily on those who have frequent
losses.
awareness of the phrase to new heights. So when reviewing the prevention
In workers’ compensation, the of employee injuries, focus upon the
question of frequency resonates everyday hazards of your overall
most loudly in its impact on your busi- workplace, not just the cause of a
ness’s experience modification. And single unfortunate incident. In other
in developing the mathematical words, avoid the common assump-
formula—that either debits or tion that a single massive claim is
credits your comp premiums based upon the killer. Instead, as the Chinese
your past loss experience—regulators and might say, avoid death by a thousand pin
insurance actuaries specifically decided pricks. I

2. Multi-State The Characteristics of Comp Fraud
Might Mean Do you know the characteristics 4. The false information is
of workers’ compensation fraud? meant to prove, validate, affirm or
Multi-Headache Some back-to-basics information deny a claim for injury or loss
(the six elements usually involved payment, or to obtain insurance
in fraud) from a leading insurer: coverage;
1. False information is given 5. The false information must be
by an insured employer, an given with intent to defraud; and
injured worker, a witness, another 6. The false information must
person involved in a claim, an relate to the case (i.e., change the
insurance company or a claims way the claim was handled, inves-
adjuster working for an insurance tigated, evaluated or settled).
company; Farmers works with its insureds
2. The false information is spo- and the authorities to detect and
ken or put in writing; prosecute fraudulent workers’
3. The person who gives the compensation claims that drive up
N umerous businesses that
formerly may
found their marketplace and
have
information knows it’s false; costs for everyone. I
employees located within a
given state or county now are Safe Cleanup Is a Must
pursuing regional, national As Florida businesses under-
and international opportuni- took the task of recovering from
ties. If this is the case for your hurricane damages last year, the
business, don’t forget to be Occupational Safety and Health
sure your insurance protec- Administration (OSHA) took the
tion keeps pace! opportunity to remind all employ-
For example, if you have ers and workers to be careful
employees located in other when cleaning up after natural
states, does your current disasters to avoid potential
workers’ comp insurance injuries and illnesses. In particu-
meet the specific require- lar, OSHA pointed to the dangers
ments of each state? What if associated with fallen power lines ease from exposure to floodwater,
all your employees are hired and trees. and what to do if symptoms of ill-
and live locally, but their job Three OSHA fact sheets—Cleanup ness develop after exposure.
requires extensive travel or Hazards, Food Cleanup, and Fungi— • Fungi contains information on
extended stays in other provide these safety tips for hurri- fungal diseases and conditions that
states? And what of the cane cleanup (and may be applicable can develop after floods, tips on pro-
growing “telecommuting” to other catastrophic situations): tecting workers against exposure,
situations where an employee • Cleanup Hazards provides tips on and suggestions on what to do if
may live in one state, work avoiding injuries and health symptoms develop after potential
for an employer in another, hazards, such as how to avoid exposures. A Safety and Health
yet spend much of his or her electrical hazards and fires, and Information Bulletin (SHIB) on mold
time “on-the-job” in yet a suggestions on clothing and per- offers recommendations on how to
third state? sonal protective equipment to wear prevent mold growth and protect
Contact us now so that we while cleaning up. workers involved in the prevention
can review your coverage and • Food Cleanup discusses the haz- and cleanup of mold.
options with you. I ards contained in floodwater, how to For more information, visit
protect against contamination or dis- www.osha.gov. I

3. Advice: Don’t Let ‘Exempt’ Mean No Coverage
Every state workers’ compensa- If you—as an employer—find for medical care, lost wages and
tion law provides that certain indi- yourself in such a situation, go rehabilitation expenses?
viduals are exempt, or may elect through a mental checklist: • Is it possible they will find it
to be exempt, from necessary to file suit
workers’ comp coverage. against the company in
These individuals vary the hopes of getting their
by state, but often injury expenses covered
include domestic ser- under the firm’s liability
vants, sole proprietors, insurance?
partners and corporate • Will my liability
officers. insurance respond for
Many businesses take such a claim?
full advantage of ex- • How about the indi-
empting everyone possi- vidual’s group or personal
ble because it results medical and disability
in lower workers’ com- insurance? Will that
pensation premiums. respond for an on-the-job
But often overlooked— injury?
ironically—is the fact that the • What will happen if the exempt- For further information, contact
exempted individuals lack workers’ ed employee is injured on the job? your local and convenient Farmers
comp coverage. • Where will they be able to turn agent today. I
Volunteering Benefits to Volunteers
A re volunteers a key contribu-
tor to success for your busi-
ness? If you are a nonprofit
true volunteers don’t automati-
cally fall under the workers’
comp law, since by receiving no
suit, if successful, might be sub-
stantial.
Another possibility is to extend
organization, church, charity or compensation they do not meet your workers’ compensation
school organization, the answer the statutory definition of coverage to your volunteers.
is a resounding “yes.” But volun- employee. This would make benefits
teers may take part in other busi- So what do you do if one payable to them, just as with
nesses as well. For example, of your volunteers gets hurt? regular employees. The amount
retired senior executives can help There are several possible of such benefits and what
a new business get off the answers. The right one depends limitations, if any, they will
ground or a family member can upon balancing your sense of impose upon the volunteer’s
put in uncompensated hours obligation for benefits with the right to sue you for the injury
helping out at the family store or possible liability you may incur vary by state.
restaurant. for their losses. For instance, Talk today with your Farmers
While such donated services you may decide to do nothing. agent about what approach
often can spell the difference Then no benefits may be due you’d like to take towards pro-
between failure and survival for the injured volunteer, but they viding benefits for such injury,
such firms, what happens if one also may then have the right of and the options available to you
of these folks suffers an on-the- suit against you, alleging your in your state for providing bene-
job injury? As paid employees, negligence is what led to their fits. The key is to make your deci-
workers’ compensation benefits injury. The amount of damages sion today, before it’s decided for
would automatically step in. But that may be awarded in such a you by an injury. I
Unless specifically noted, Farmers is not associated with any other corporation, association, or other group cited in this publication, and neither assumes any liability for nor makes any
representations regarding the contents of any Internet Web site other than www.farmersinsurance.com.

4. Farmers Start Scheduling Safety Meetings
Business Solutions
R egardless of what business you’re in, it’s imperative that your
employees feel safe at work. Regular staff meetings focusing strictly on
safety can contribute to employee security and well-being.
volume 7 • issue 2 Safety-themed staff meetings can help you:
• Inform employees of potential hazards;
I Multi-State Might Mean
• Build morale among employees who know their well-being is
Multi-Headache
important;
I The Characteristics of Comp • Discuss new precautions staff may need to take and review current
Fraud guidelines for effectiveness and clarity; and
I Safe Cleanup Is a Must • Save money!
Remember to record the minutes of meetings and include all topics
I Advice: Don’t Let ‘Exempt’
discussed, suggestions offered, progress made, as well as attendance.
Mean No Coverage
These meetings will assist in minimizing losses that could lead to an inflat-
I Volunteering Benefits to ed experience modification factor and higher premium. I
Volunteers
For more information about
your insurance needs, fill out
this form and fax it in. Please call me about:
Or call us today! (702) 655-5556
J Our workers’ compensation policy
J Workplace safety issues
Thank you for your referrals. My name: _____________________
J Our employee benefits plan
If you’re pleased with us,
For immediate response, please
spread the word! We’ll be J Employment practices coverage contact me at my business number:
happy to give the same great J Farmers Care ®
(______)_______________________
service to all of your friends
E-mail address:
and business associates.
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