Construction Risk Blog

New OSHA Ruling on Construction Crane Safety

Unfortunately, in the last three years, the construction industry as seen more crane related accidents than they would have liked.  Several of which were very preventable.  The most notorious of these crane accidents took place in Manhattan in March of 2008 when a 200 foot crane collapsed onto a building, completely decimating a townhouse and leaving 7 people dead.

And then in May of 2008, also in NYC, another collapse claimed the lives of two construction workers.The old OSHA rules for Crane and Derrick safety has been in place since 1971 and because of advances in technology and techniques, an overhaul was necessary and the very public crane constructoin incidents, unfortunately, were the impetus to speed up this overhaul.  Here are a few of the major updates that will come into effect at the end of the year.  To read the whole final ruling go HERE

A few highlights from osha.gov:

• The rule becomes effective 90 days after August 9, 2010, the date the final rule will be published in the Federal Register. Certain provisions have delayed effective dates ranging from 1 to 4 years.
• A copy of the regulatory text is available at: http://www.osha.gov/doc/cranesreg.pdf
• Until the date of publication, the full rule, including the preamble, can be found at http://www.ofr.gov/inspection.aspx. After publication, the rule can be found at the Federal Register or at www.osha.gov.
• This new standard will comprehensively address key hazards related to cranes and derricks on construction worksites, including the four main causes of worker death and injury: electrocution, crushed by parts of the equipment, struck-by the equipment/load, and falls.
• Significant requirements in this new rule include: a pre-erection inspection of tower crane parts; use of synthetic slings in accordance with the manufacturer's instructions during assembly/disassembly work; assessment of ground conditions; qualification or certification of crane operators; and procedures for working in the vicinity of power lines.
• This final standard is expected to prevent 22 fatalities and 175 non-fatal injuries each year.
• Several provisions have been modified from the proposed rule. For example:
  • Employers must comply with local and state operator licensing requirements which meet the minimum criteria specified in § 1926.1427.
  • Employers must pay for certification or qualification of their currently uncertified or unqualified operators.
  • Written certification tests may be administered in any language understood by the operator candidate.
  • When employers with employees qualified for power transmission and distribution are working in accordance with the power transmission and distribution standard (§ 1910.269), that employer will be considered in compliance with this final rule's requirements for working around power lines.
  • Employers must use a qualified rigger for rigging operations during assembly/disassembly.
  • Employers must perform a pre-erection inspection of tower cranes.
• This final rule requires operators of most types of cranes to be qualified or certified under one of the options set forth in § 1926.1427. Employers have up to 4 years to ensure that their operators are qualified or certified, unless they are operating in a state or city that has operator requirements.
• If a city or state has its own licensing or certification program, OSHA mandates compliance with that city or state's requirements only if they meet the minimum criteria set forth in this rule at § 1926.1427.
• The certification requirements in the final rule are designed to work in conjunction with state and local laws.
• This final rule clarifies that employers must pay for all training required by the final rule and for certification of equipment operators employed as of the effective date of the rule
• State Plans must issue job safety and health standards that are “at least as effective as” comparable federal standards within 6 months of federal issuance. State Plans also have the option to promulgate more stringent standards or standards covering hazards not addressed by federal standards.
• OSHA will have additional compliance assistance material available within the next month.

Construction Risk Advisors has the ball rolling on Connecticut safety training for whatever needs our contractor clients have.  We will be upgrading our safety training options to include the new crane regs as soon as we can.  So, if you're reading this, and you own a crane or rigging company in Connecticut, give us a call to get you and your crew up to speed.  With the public crane incidents in the last 5 years, I have a hunch that OSHA is going to be very proactive in their enforcement of these new requirements.

Do you have any thoughts on the issue?  Think any of the new regs are too heavy handed?  Please leave a comment.  We would love for this blog to become a place where Connecticut construction companies can interact with each other about what is going on in their backyard as well as in their industry.

OSHA Seminar Seats Available!

We have a few FREE seats available on a first come, first serve basis!

CONNECTICUT CONTRACTORS: Are You Prepared for OSHA to Knock on Your Door or Visit your Jobsite unannounced?
OSHA inspections can be stressful and confusing at the same time. Companies should prepare for these inspections which could come at any time.
• Does your construction compnay have the qualified resources in-house to conduct a total review of your safety program, a review that will prepare you for all OSHA related enforcement initiatives?
• Are you completely confident that your safety policies, procedures and practices will hold up to scrutiny during an OSHA inspection?
• OSHA fines can run as high as $7,000 for a serious violation or up to $70,000 for a willful violation - not counting the costs of the negative publicity associated with such sanctions
• This program is designed to provide participants with the tools they need to inspect and review their company's safety program and practices, to insure the safety of their workers, and compliance with the dozens of OSHA regulations that apply to their business.

Registration: 8:45 a.m. Seminar: 9:00-11:30 a.m.
Presenter: Adam Drummond, President of National Safety Services
Location: TIMEXPO-The Timex Museum, Waterbury, CT

To register: seminar@litchfieldins.com or 860.618.1143

If you can't make it to the seminar, but would like to learn more about preparing your Connecticut construction company for an OSHA visit.  Contact the Construction Insurance Specialists at Construction Risk Advisors

If You Own a Construction Company, There’s a Bulls-Eye on Your Back

As I skimmed Saturday's Wall Street Journal, I saw a handsome couple featured in an ad for fractional jet ownership. The caption read, "Avantair allows us to be more productive and efficient as a law firm". My immediate thought was, "What kind of law firm uses a private jet?" I found the answer at their website.

They listed twelve settlements on their home page ranging from $350 million (United States record) all the way down to a measly $12 million. I guess that explains the jet as does the sub-header under their name, "Over $800 million in Verdicts and Recoveries". I believe that plaintiff's attorneys get 30-40% for their fee so on the conservative side that's $240 million. Not bad for a two person, husband and wife law firm!

You might think that your Connecticut construction company could never be exposed to the type of liability that would attract a law firm like this. Think again. Any business owner could go bankrupt tomorrow if they get on the wrong end of a lawsuit and lack the proper insurance coverage.

 

Here's a quick sampling of their settlements:

• $23.4 million against a drunk driver who killed three people. $13.5 million of the verdict was for punitive damages, uncovered by insurance. How certain are you that no one is ever drunk behind the wheel of one of your company vehicles?

• $25 million verdict for a man who fell while inspecting a building. Do you own any property? Could someone fall from a height of 12 feet? That's what happened here. (The verdict was in 1998. What would it be worth in 2010? $50 million?)

• $12 million for amputations due to electric shock

• In Miami-Dade County, Florida a jury awarded a 78-year-old woman and her husband $20.98 million for the injuries that she suffered in a car crash that left her on a ventilator for live. The plaintiff sued the driver and the driver's employer. The woman's attorneys successfully argued that the defendant driver was so distracted that he made no attempt to stop and slammed into the rear of the woman's car. After subpoenaing the employee driver's cell phone records they proved that he had been on the cell phone talking at the time. The case settled for $16.1 million five days after the verdict.

Connecticut construction company owners can't think they are immune from the liability described in the suits above. If you own property and you have employees and you own vehicles and equipment, you have the potential for a devastating lawsuit.

You need to change your buying criteria for insurance today. Contractors tend to go for the "fools gold" of cheap insurance. Don't you do that! You've worked hard to build your construction company. Get a good advisor and protect it with the right insurance coverage.

New "Move Over" Law in Connecticut

As of October 2009, a new law is in force to protect emergency vehicles and their operators during emergencies on Connecticut's highways.

 AN ACT ESTABLISHING A "MOVE OVER" LAW IN CONNECTICUT (LINK)

 

SUMMARY: This act requires a motorist approaching one or more stationary emergency vehicles located on the travel lane, breakdown lane, or shoulder of a highway with three or more travel lanes to (1) immediately slow to a reasonable speed below the posted speed limit and (2) if traveling in the lane adjacent to the location of the emergency vehicle, move over one lane, unless this would be unreasonable or unsafe.

For these requirements to apply, the emergency vehicle must have flashing lights activated. Under the act, an "emergency vehicle" includes a vehicle:

1. operated by a member of an emergency medical service organization responding to an emergency call;

2. operated by a fire department or by an officer of the department responding to a fire or other emergency;

3. operated by a sworn member of the State Police or an organized local police department;

4. that is a maintenance vehicle; or

5. that is a licensed wrecker.

A subsequent act broadened the provision as it applies to police officers to include other types of law enforcement officers such as Department of Motor Vehicle (DMV) inspectors and appointed constables who perform criminal law enforcement duties (see BACKGROUND).

A violation of these requirements is an infraction, unless the violation results in the injury or death of the emergency vehicle operator, in which case the fines are a maximum of $2,500 and $10,000 respectively.

EFFECTIVE DATE: October 1, 2009

Thanks to our friends at CNA for the heads up on this.

Singing that Safety Song

When you're in the Risk Advising game you can go long periods of time wondering if any of your clients are really listening to you. Last week I had one of those moments when my world brightened. I knew I had made an impact.

Ten years or more ago I was sitting with a client who was starting to struggle with workers comp losses. I made an impassioned speech about how the world was changing and safety needed to be a top priority. I even predicted that he would have his own safety director in the future. He listened politely but I could tell he thought I was a little crazy.

Then disaster struck one day. An experienced supervisor working without proper fall protection fell and broke both femurs. Ultimately, the claim settled for $700,000. My client's EMR (Experience Mod Rate) went through the roof and his insurance tripled over night. Profits were gone. Work was harder to come by.

He was a smart guy and maybe he remembered more of safety speech than I gave him credit for. It was easy for him to connect the dots. It was time to get some safety training.

Last week one of my associates visited this client to discuss their current claim situation which is pretty good. He had just hired his second safety professional and this company only has 30-35 employees. He related the day he heard me make my speech and told my associate how incredulous he was at the time. "Safety training is what the insurance companies" provide he remembered thinking to himself. This guy Phelan is nuts if he thinks I am going to spend money on safety. Now he has two safety professionals in a 30 employee construction company

It's a down economy and they're doing well. They aren't cutting back on safety. They're investing even more. Do you know what the difference is between this contractor and most others I visit? A lot! He gets it. Most others don't. A contractor's emphasis on safety could very well determine their financial future but instead they focus on buying cheap insurance.

Are you going to wait for the serious accident before you emphasize safety or are you going to start today? Learn from the lessons of others. Call me. It will make my day and may very well save the life of a valued employee

Safety Research Reduces Risk for All of Us

Safety Research Reduces Risk for All of Us

The Insurance Institute for Highway Safety (IIHS), a non-profit research organization funded by auto insurance companies, has long been a leader in promoting highway safety. As we stop to give thinks on this holiday, let's thank them for the hundreds of thousands of lives they have saved.

IIHS was established 50 years ago and at that time there were 36,000 highway fatalities annually. Fast forward to 2008 where there are now three times as many licensed drivers, four times as many cars and ten times as many miles driven than in 1960 and the number of highway fatalities has actually gone down to 34,017. If you do the math, it means that 500,000 lives have been saved. Fifty years ago five people were killed per-100-million vehicle miles. That number is now 1.36, a reduction of 75%.

 

 

 

 

 

 

 

 

 

 

 

 

The insurance industry has had a public relations problem forever. Too few people understand the positive impact the insurance industry has on society today. In addition to IIHS there is also the Institute for Business and Home Safety. This is another organization funded by insurance companies to promote business and home safety. They are currently building a $40 million research and training facility designed to identify and promate effective methods of property loss reduction and prevention. This research will improve construction methods and materials, improve building codes and ultimately prevent losses that disrupt the lives of millions of homes and businesses.

More directly, insurance companies help businesses (contractors in particular), in the area of occupational safety and health. Workers comp insurers are the primary source of loss prevention expertise for U.S. businesses. In the early part of the 20th century, a manufacturing worker had a 25% chance of being injured on the job. Now it is 5%. Insurers along with OSHA have played a pivotal role in this achievement.

As we give thanks to an industry that is often taken for granted, we must also remember that it is our friends and neighbors who are employed by these companies. They are the ones who live in the trenches every day working hard to save lives and property and to help return injured workers to their jobs as quickly as possible. Without these skillful professionals, our lives would be diminished and our businesses less valuable.