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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