Transcript General Liability Premises Case Study

ISRI Safety & Environmental Council
May 9, 2012
» Zero Accident Consulting:
Eight years with RecycleGuard
2438 safety visits to recyclers
Knowledge of losses and industry safety
practices
Provide consultative support
Support of ISRI, Willis, Chartis
» Session Objectives – at the conclusion of this
session participants will…
 Know the of business impact of Premises
General Liability claims
 Have exposure to some typical GL related
incidents
 Develop identify tactics that can prevent GL
incidents
 Know about the support available through
RecycleGuard
 Leave with ideas that can be implemented
immediately
» General Liability, Premises
» It is frequently offered in a package with property
insurance
» Commercial General Liability enables your
business to continue operations while it faces real
or fraudulent claims of certain types of negligence
or wrongdoing.
» Premises and Operations Liability. Provides
coverage for bodily injury and property damage
sustained by others at your premises or as a result
of your business' operations.
» How Big of an Issue is this?
» Who Are We Talking About:
Installers, Mechanics, Repair Personnel
Construction contractors and their personnel
Truck Drivers/Helpers for third-party haulers
Sales Representatives
Customers / Buyers
Scrap Suppliers /Peddlers
Virtually anyone who comes to your facility
is considered a business “invitee”.
» What Kinds of Things Can/Do Happen:
Slip / Trip / Falls
Individual struck by equipment and/or
material
Fork lift accidents
Vehicle accidents
Scrap falling out of trucks, piles, racks
Walking into things
Vehicle struck by equipment and/or material
Other
» What is Your Responsibility:
Exercise reasonable care to ensure a safe
environment
Follow standards, laws, regulations, etc.
Have written safety procedures
Enforce safety rules (employees and visitors)
Have a properly designed facility that
promotes safe operations
Post rules and regulations
Learn from incidents and accidents
 You negligence will contribute to the cost of a
claim
» RecycleGuard Tools and Support:
Customer Service Line
Consultative Services
On-Demand Webcast Library
Bulletins
Discounted Service for Criminal Background
Checks
On-Line Safety Training
On-Site Safety Training
Vehicle Monitoring
» 1st Case: “Fault Involving Forklift”
Incident Summary:
With the owner’s permission, a customer was throwing out trash in a privileged
area. An employee forklift driver did not see the customer at first due to an
obstructed view, he stopped as soon as he spotted the customer, a trash bin
slipped off the forklift and struck the customer
Damages:
Multiple fractures to legs, medical bills over $30K
Litigation and associated costs
Liability Issues:
Allowing customers to privileged areas without having a proper procedure to
ensure safety
Careless operation of heavy equipment
Potential Exposure:
$500K+
» 2nd Case: “Unfortunate Unloading”
Incident Summary:
A contracted leased crane operator unloaded a large pipe from a customer’s truck
& placed it on top of a pile of scrap. The pipe rolled off and struck the customer
Damages:
• Leg and shoulder injuries with reconstruction surgery
• Litigation and associated costs
Liability Issues:
• Allowing customers in the unloading area while operating heavy equipment
• Leased employee either unaware or not following the company’s safety
procedures
Potential Exposure:
$250K+
» 3rd Case: “Compressed Cylinder Missile”
Incident Summary:
While moving a tracked excavator crane through the yard one track ran over a large
fire extinguisher that was on the ground. The impact dislodged the discharge valve
and the pressure inside the cylinder cause it to become airborne at high speed.
The cylinder struck a third party truck driver.
Damages:
• Multiple injuries and resulting medical treatment and rehabilitation
• Lifetime disability claim
• Litigation and associated costs
Liability Issues:
• Improper storage and handling of compressed cylinders
•Careless operation of heavy equipment
•Possible inadequate separation of scrap operations from visitors
Potential Exposure:
$1.8M+
» 4nd Case: “Peddler Struck by Fork Lift”
Incident Summary:
A customer/peddler is not paying attention while walking through a non-ferrous
customer drop-off area. He is struck and partially run over by a fork lift that is
backing up.
Damages:
• Multiple injuries and resulting medical treatment and rehabilitation
•Litigation and associated costs
Liability Issues:
• Operating fork lift trucks in close proximity to customers
• Lack of diligence by the fork lift operator
• Layout of the unloading area
Potential Exposure:
$500K+
» 5th Case: “Peddler Struck by a Peddler
Vehicle”
Incident Summary:
A person is walking in an outdoor ferrous drop-off area and appears to be
distracted or not paying attention. Another peddler is moving a van into position
to drop off scrap. The driver backs up and fails to see the walking peddler who is in
the blind spot. Vehicle accelerates quickly and strikes the person walking.
Damages:
• Multiple injuries and resulting medical treatment and rehabilitation
• Lifetime disability claim
• Litigation and associated costs
Liability Issues:
• Layout of the unloading area requiring backing up
• Lack of visitor supervision yard employees
Potential Exposure:
$750K+
GROUP EXERCISE
Identify Contributing Factors and Safety/Risk
Management Controls:
 Group yourself in small teams – say three to five
 Select a scribe/spokesperson
 Select one of the five case study examples
 Discuss and prepare a brief overview of your
example answering the following questions:
 Should this have been anticipated and prevented
 In order of priority, what (if any), changes would
you recommend to prevent a future similar
incident
» Summary and Next Steps:
Premises Liability is a liability that needs
control.
One goal is to raise awareness.
Our real goal is to influence action.
Management support – is it present?
Safety Culture – do you have one?
» Session Objectives – at the conclusion of
this session participants will…
Know the of business impact of premises
general Liability claims
Have exposure to some typical GL related
incidents
Develop identify tactics that can prevent GL
incidents
Know about the support available through
RecycleGuard
Leave with ideas that can be implemented
immediately
How did we do?