MODULE ONE – INTRODUCTION TO THE RCCS INSURANCE COMPANY by hcj

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									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.
-   After labor and material, insurance
    costs are usually the third biggest
    expense for a company.
-   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.
-   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,

        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.
   In a sense, its owning your own insurance company.
   Risks are shared with other company’s from around the country.
   Insurance Premiums calculated in roughly the same manner, and paid into the captive.


                  Positives                                          Negatives
     -Premiums paid into captive are combined,              -If losses exceed the premium put in
     with money earned going into the captive.              by a particular company to an
                                                            extent, the company may have to
     -After a few years, company’s that do not
                                                            pay additional premium.
     incur significant losses equaling their
     premium spent, will receive some cash back.            -Losses incurred by all captive
                                                            members affect the profitability of
     -Money going back to the company can then
                                                            the captive. Selecting the right
     be used to purchase equipment, fleet, expand,
                                                            roofing companies and reducing
     etc.
                                                            loss is critical.
     -Insurance costs can become consistent rather
     than fluctuating, making budgeting and
     bidding easier.
 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.
Non-Zero Claim Frequency per $1,000,000 in payroll 05/10 – 03/11
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.
 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.


 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;

    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.

								
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