Transcript RCCS SAFETY REFRESHER TRAINING PROGRAM

MODULE ONE – INTRODUCTION TO THE RCCS
INSURANCE COMPANY
 A group of companies that join together to
form their own insurance company.
 By sharing the same risk, the companies can
develop specific safety and risk control
policies to promote a safe work environment
and minimize exposure.
 The RoofConnect Insurance Company originated in
May 2004 with 18 members from across the country
with a commitment to developing a safety culture that
other contractors in the roofing industry would be
compared to.
 The name was officially changed to RCCS Insurance
Company two years later. As stated in the logo – RCCS
is an abbreviation for Roofing Contractors Committed
to Safety.
 Since 2004 the captive has gained 9 new members and
had 2 member leave, bringing the current total to 25.
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After labor and material, insurance
costs are usually the third biggest
expense for a company.
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Today’s construction environment is
VERY competitive, and with labor
and material being close to equal,
insurance costs can mean the
difference in winning a bid and
losing it.
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Company’s incurring too many losses
can have insurance premiums that
make the cost of doing business
unrealistic. Injuries and claims can
put a company out of business.
 Insurance premium is determined by a number of
factors,
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Size of company
Exposures based by classification code
Frequency & Severity of losses over previous years
Other factors
 After factors are calculated, a premium (dollar
amount) is determined, that the employer pays for
insurance.
 Insurance company takes money today, for
claims they may be paying tomorrow.
Money collected is placed into stock
market. This is one way Insurance
Company’s make money.
 If claims incurred by the employer exceed
the premium paid, the insurance company
is obligated to pay the exceeded costs to a
point. If this happens;
 Insurance premiums will get much
larger in the following years.
 Insurance company may choose not to
renew.
 If claims incurred by the employer do not
reach the premium paid, the insurance
company pockets the difference.
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In a sense, its owning your own insurance company.
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Risks are shared with other company’s from around the country.
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Insurance Premiums calculated in roughly the same manner, and paid into the captive.
Positives
-Premiums paid into captive are combined,
with money earned going into the captive.
-After a few years, company’s that do not
incur significant losses equaling their
premium spent, will receive some cash back.
-Money going back to the company can then
be used to purchase equipment, fleet, expand,
etc.
-Insurance costs can become consistent rather
than fluctuating, making budgeting and
bidding easier.
Negatives
-If losses exceed the premium put in
by a particular company to an
extent, the company may have to
pay additional premium.
-Losses incurred by all captive
members affect the profitability of
the captive. Selecting the right
roofing companies and reducing
loss is critical.
 To ensure success of the captive,
 Members have set minimum standards for company’s to
enroll.
 Company’s are carefully selected for the captive. Only the best of the
best are allowed to participate.
 Company’s are not allowed into the captive if they have risk exposures
greater than the captive is willing to accept.
 Company’s with poor loss experience are not accepted.
 HC&A conducts a pre-qualification safety audit and
reports to the owners.
The following is a list of safety and risk control services
RCCS approved by the Loss Control Committee:
 Development of Best Practice Standards (BPS)
 Benchmarking
 Semi-annual BPS and jobsite safety inspections
 Accident Alert Program
 Jobsite Alert Program
 Monthly Newsletters
 Monthly Toolbox Talks
 Semi-annual Safety Managers’ Meetings
 Introduction to the RCCS Captive for Supervisors
 The RCCS Insurance Company has adopted safety and
risk control criteria that each member must adhere to
to be considered a member in good standing.
 The safety and risk control criteria is referred to as Best
Practice Standards.
 Best Practice Standards are discussed by the RCCS
Loss Control Committee and then presented to the full
membership for a vote to determine if they will be
classified as a REQUIRED or RECOMMENDED best
practice standard.
 The Best Practice Standards are divided into the
following categories:
 New Employee Hiring Practices
 Post Accident Management Systems
 Effective Safety Committees
 Documented Jobsite Safety Evaluations
 Field Crew and Supervisor Safety Training
 Vehicle Use Policies and Fleet Safety
 Written Safety Program Evaluations
 Field Staff and Supervisory Accountability
 General Liability
 Each member receives semi-annual
audit of the best practice standards.
 Non-compliant Best Practice Standards
are shown to the full membership at
the semi-annual RCCS Executive
Meetings.
 Each year the captive sets goals to reduce the
frequency and severity of claims within the RCCS
Insurance Company.
 By tracking the losses over several policy years, the
Loss Control Committee can show the success of the
safety program and discuss new Best Practice
Standards to help curve off a recent spike in claim
frequency, such as Ladder Falls.
 The benchmarking uses claim frequency and severity
based on each company’s payroll and vehicle count to
compare their losses to the goal and to each other.
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Non-Zero Claim Frequency per $1,000,000 in payroll 05/10 – 03/11
6.44
5.81
5.00
0.00
4.49
0.70
0.00
0.34
RCCS Member
4.47
3.91
2.33
2.63
0.78
0.79
0.19
0.49
Program Goal - 1.80
2.66
1.92
1.95
1.83
2.29
1.40
0.96
0.54
Captive Members - 1.68
0.79
1.06
0.00
Accident Alerts are issued whenever a serious injury occurs
within the RCCS Insurance Company.
The primary purpose of the Accident Alert is to determine the
underlying cause(s) of the accident so that steps can be put in
place to prevent similar types of accidents from occurring. –
Essentially let’s learn from other members in the program that
share similar risk as we do.
Accident Alert Criteria includes:
Fall greater than 6 feet
All Ladder Falls
Claims expected to exceed $25,000
Any accident or near miss that provides a value to the members
2010
2011
 Jan. 15 – Ladder Fall
 Jan 5 – Ladder Fall
 Jan. 28 – Ladder Fall
 Jan 5 – Ladder Fall
 Feb. 8 – Roof Fall
 Feb 21 – Ladder Fall
 June 29 – Asphalt
Burns
 July 21 – Ladder Falls
 Aug. 10 – Roof Fall
 Sept. 3 – Ladder Fall
 Dec. 2 – Ladder Fall
 The true intent of the Scorecard System is to evaluate the
crew’s real-time adherence to the safe work practices
established by the RCCS Insurance Company.
 By tracking the overall performance of the captive, we can
identify trends by scorecard category, project foreman
and/or RCCS Member.
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The Jobsite Alert Program has been created and adopted by RCCS to promptly alert the
Captive Executive and Loss Control Committees member of deficiencies found during
HC&A jobsite inspections in which the employee or employees onsite were found to be
egregiously in violation of RCCS, OSHA or other requirements which subjected the
captive to a significant potential for loss.
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This alert is meant to be implemented only when HC&A findings believe those involved
knowingly violated said requirements or should have through reasonable prudence been
aware of and protected against the hazard. Examples include but are not limited to;
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Complete lack of fall protection
Working around open hole/skylight covers without adequate protection
Egregious ladder set up (ie. on ice, very poor angle, improper ladder for job)
Significant disregard for fire prevention and protection requirements (ie. smoking
around flammables, no extinguishers during hot works operations)
Using heavy equipment to fly material of general public unprotected areas.
Working in very close proximity to unprotected and live electrical lines.