10 tips & tools. to help you $ave on your workers comp insurance costs. Ask the Chesapeake Employers Attorneys - Questions on a Contested Claim

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1 Helpful Guidance for Chesapeake Employers Policyholders & Maryland Employers Spring tips & tools to help you $ave on your workers comp insurance costs OSHA Haz Com Pictogram Pull Out Poster Inside (English & Spanish) Getting the Most Out of Your Agent Relationship Ask the Chesapeake Employers Attorneys - Questions on a Contested Claim Chesapeake Employers Receives A.M. Best Rating

2 President s Message Our New Name, Our Renewed Promise A company often marks a milestone anniversary with a major change, for the better. As we celebrate our 100th anniversary in 2014, we made an exciting change to our insurance organization, when, on Oct. 1, 2013, IWIF became Chesapeake Employers Insurance Company. Now, as a nonprofit, non-stock, private corporation, our mission continues to be providing Maryland businesses with a readily available source of workers compensation insurance that features high quality coverage and service at a fair price. Our new structure now protects the assets of the company for our policyholders and their injured workers. We are financially sound, Chesapeake Employers has never been stronger. I am proud to announce that for the first time in the history of the organization, we have been awarded an A- (Excellent) financial strength rating from the A.M. Best company. This is a tremendous accomplishment and reflects our efforts during the past decade to control operating and claims costs while building our required financial strength. We also promise to champion and promote a safe workplace throughout Maryland. Our expert safety specialists are a great resource for our customers. Their guidance, combining their know-how and philosophy of finding safety solutions, is a value added service that sets us apart from other insurance carriers. Our safety services, together with our claims management services, can help you control your workers comp costs. A safe business ultimately equals a profitable business. Workplace safety is not only the right thing to do for your business, it s the right thing to do for your employees. I can speak from personal experience how your life can change in an instant from an injury. Last Spring I was up on a ladder pruning a tree when I fell 15 feet, suffering a number of painful fractures. I am fortunate to have healed but I realize I could have been safer working up on the ladder. I tell this story because in an instant, a worker s life can change forever. Sometimes we can lose focus on the impact we have on others. We do not simply sell a work comp policy we provide the benefits and financial assurance to be there for an injured worker and his or her family should the need arise. As our new Chesapeake brand message reminds all working Marylanders, At the end of every workday, someone s waiting for your safe return. I join my fellow Chesapeake Employers professionals in thanking you for the opportunity to continue to serve your workers compensation insurance needs. Best regards for many safe returns, Tom Phelan, CPA, President and CEO

3 In Celebration & Appreciation Years of Serving Maryland Chesapeake Employers Honors 100 Longstanding Active Policyholders We celebrate these Maryland employers for the confidence they have placed with Chesapeake Employers, formerly IWIF. In recognition of our 100th anniversary and for their loyalty, we want to honor our 100 longest active customers. 96 Years TOWN OF RISING SUN MD 93 Years JOSEPH P FORSTER AND SON LLC 86 Years GARRETT COUNTY BOARD OF EDUCATION 79 Years TOWN OF LUKE MD TAYLOR S ANTIQUE MALL INC 78 Years CAPITAL CONSTRUCTION COMPANY INC DULKERIAN S PERSIAN RUG COMPANY INC 75 Years EMORY GROVE ASSOC OF BALTIMORE INC 73 Years CITY OF ANNAPOLIS HOUSING AUTHORITY 66 Years RIPPONS BROTHERS SEAFOOD INC 65 Years HAMILTON PRESBYTERIAN CHURCH OF BALT EASTERN SHORE NURSERIES INC KELLER S BAKERY INC 64 Years CITY OF CAMBRIDGE MD SINCELL PUBLISHING COMPANY INC CITY OF COLLEGE PARK MD 61 Years PIMLICO LOAN OFFICE INC 60 Years MORAN COAL COMPANY INC BARTON HOSE COMPANY NO 1 CHEM MET COMPANY TOWN OF HAMPSTEAD MD COOPER & LEHMANN LLP 59 Years FROSTBURG UNITED METHODIST CHURCH HERMAN BORN & SONS INC MARY J & DOMINIC J PISTORIO WALTER L BREWER INC 58 Years GOAD LUMBER COMPANY INC LEWIS BROTHERS INC WHALEN MOTOR SALES INC 57 Years PRICE S GROCERIES & SPIRITS CAROLINE COUNTY MD THE HARFORD ENGINEERING COMPANY INC. SHORE PAPER BOX COMPANY INC 56 Years THE EASTERN SALES & ENGINEERING CO 55 Years PAPER ALLIED INDUSTRIAL CHEMICAL GARDENHOUR ORCHARDS INC COURTESY PARKING SERVICES INC 53 Years KAY CEE CLUB CHARLES C. TIRSCHMAN PALLET CO 51 Years BELTSVILLE REFUSE SERVICE INC SPRINKLER FITTERS LOCAL Years WILLIAMSON S NURSERY INC TOWN OF BARTON MD LEE A PATTERSON & SON FUNERAL HOME PA 48 Years MARYLAND SPCA OF BALTIMORE CITY INC 47 Years FRIENDS STOCKYARD INC PERZYNSKI & FILAR FLORIST INC ACME LADDER & EQUIPMENT COMPANY 46 Years RIEDEL S FLOWERS INC LOWER SHORE ENTERPRISES INC LANGREHR ENTERPRISES INC 45 Years BRUZDZINSKI FUNERAL HOME PA THE POTOMAC HUNT INC THE NORTHWESTERN LOAN COMPANY 44 Years TOM S BAR CUSTOM LAWN SERVICE INC CROFTON CIVIC ASSOCIATION INC SCHMIDT FARMS INC 43 Years MIDWAY INN C E SHIRK LUMBER & FARM PRODUCTS INC PASADENA SKATING CENTER WHEEL AWHILE INC LAUREL SKATING CENTER LOEBLEIN MEMORIALS INC NORTHWEST INSURANCE AGENCY TOWN OF PRINCESS ANNE MD SAINTS STEPHEN & JAMES C.O. SMITH APIARIES A B C ROOFERS INC INTERNATIONAL UNION OF ELEVATORS MAN ALIVE RESEARCH INC PATRICK J SHEEHAN MD ANGEL HILL CEMETERY OF HARFORD COUNTY EDWIN M HENRY JR LLC 42 Years BLANTON ANTENNA SERVICE INC SEDWICK S TAX SERVICE INC C DANIEL HELD HOWARD WILLIAM HB PARKVILLE BAPTIST CHURCH TOWN & COUNTRY LIQUORS AMVETS VALLEY MEMORIAL POST NO 9 ERR INC LONG SCHOOL BUS SERVICES LLC THOMAS D MORRIS INC THE TEACHERS ASSOC. of BALTIMORE COUNTY TOWN OF PRESTON MD BRAEHALL TRANSPORTATION INC MAJORS TRANSPORATION JAMESWAY INC 41 Years REDMILES SERVICES INC GOLDBERG LIQUORS SNOW HILL DAIRY LTD NORTHEASTER SIGN INC GARVICKS FARMS INC KONSTANTINE & STEPHEN & PETER PREVAS ESQ 40 Years LAUREL BOTTLED GAS COMPANY INC 39 Years JOHN W MACKALL SR KERN REALTY & APPRAISING INC ANNIE R BUTLER CORLEY ROOFING & SHEET METAL CO INC Spring

4 Save Money on Your Work Comp Costs 10 Money-Saving Tips & Tools Overview of the best practices to help save money on your workers comp insurance 1 Adopt a safety culture A commitment to safety on the part of your company s senior management is the first and most important step you can take to reduce accidents and lower your workers compensation insurance premiums. Because a majority of injuries are caused by unsafe behaviors, it is essential for management at all levels, but especially top management, to commit to developing and maintaining a safe and healthy workplace for all employees. Adopting a safe workplace can have long-term benefits as well as short-term, because your company s three-year loss experience (or e-mod) can decrease as you increase the number of safety measures in your operation that may cause injuries and lost-time claims to decline. As your injuries and claims decline, so can your overall workers compensation insurance costs. Chesapeake Employers can help you create this all-important safety culture. Contact one of our safety specialists for a personal consultation at or go to and visit the Safety University section. 2 Set up a safety program Your safety program should be a comprehensive one involving not only program development but also risk assessment surveys, risk analyses, loss reviews, ergonomics assessments, training sessions, and educational materials. Your safety program should involve all employees in your organization and emphasize that working safely is a condition of employment in your organization. 3 Employ good hiring practices Attracting qualified employees is important for any business. A well-organized recruitment and hiring process will ensure a better fit for you and your newest employees, and it will take you one step closer to your goal of making your business a safer place to work. Your goal is to hire an all-star employee, not your next work comp claim. We encourage you to consult with your human resources and employment legal counsel for information on Effective Hiring Practices. 4 Establish a drug-free workplace According to the 2006 National Survey on Drug Use and Health, 74.9 percent of all adult illicit drug users are employed full or part time. In a 2007 Substance Abuse and Mental Health Services Administration (SAMHSA) report, it indicated the highest rates of current illicit drug use were among food service workers (17.4 percent) and construction workers (15.1 percent). However, drug abusers can be found in all types of occupations. Under current Maryland law Health-General *, employers may test their employees for drugs and alcohol for any legitimate business purpose. Develop and implement a written substance abuse policy and make job offers contingent on passing a pre-employment drug test. Your substance abuse policy could also include these types of tests; random testing, post-accident and reasonable cause or suspicion. *Note: Under (b)(2) - this does not apply to an employer that has entered into a collective bargaining agreement that prohibits the employer from using a preliminary screening procedure to test a job applicant for the use or abuse of any controlled dangerous substances. 4 Spring 2014

5 5 Supervisory training and accountability for safety Supervisors set the standard for behavior each day on the job by ensuring employees adhere to all company safety rules and regulations. Management and supervisor training should focus on how to manage safety effectively by using constructive feedback to produce long-term results. Job descriptions should include safety roles and responsibilities, and performance appraisals and salary increases and/or bonuses should be tied to safety performance as a way to measure safety responsibilities. 6 Schedule ongoing safety trainings Safety training is really the key to preventing work-related injuries. When properly trained, employees will know how to prevent accidents by following proper workplace safety procedures. And, companies are required by OSHA to provide safety training to their employees. Document all safety activities, including training sessions and meetings where safety is discussed, as proof of trainings attended. Chesapeake Employers offers safety training on a host of topics, as well as jobsite safety tip and training sheets for various industries. 7 Form an effective safety committee Your safety committee should be able to regularly evaluate workplace safety conditions and recommend changes that address the causes of injuries or worker safety and health concerns. It is also the safety committee s responsibility to perform scheduled safety audits and site inspections to check for compliance with OSHA safety standards, to correct violations, to create plans to avoid recurrences, and to follow up on corrections. 8 Establish a prompt injury reporting policy and procedures Prompt injury reporting is an important step in controlling the cost and duration of your workers comp claims. Early intervention in a claim helps ensure the best medical care for the injured worker. Reporting injuries early can also help reduce unnecessary attorney involvement and the potential for litigation later on. Develop procedures for supervisors and employees to report injuries immediately, preferably within 24 hours of the accident. Proactively develop relationships with local healthcare providers, doctors, occupational specialists, and urgent care facilities that can evaluate and treat employees quickly, and encourage your employees to use these providers if they should get injured. The sooner Chesapeake Employers knows of the injury, the faster we can review the case for a compensability determination and provide initial benefits to your injured employee. Furthermore, our statistics show the longer the delay in reporting an injury, the higher the costs. 9 Designate someone to coordinate all work comp claims It could be someone in HR or someone in Finance. Establishing a central location and contact person for all work comp claims gives you greater oversight and control over them. Your company needs a proactive claims representative to stay in contact with us on all aspects of the claim. 10 Establish a return-to-work program Developing a transitional-duty program is another opportunity to control costs. An effective early return-to-work program minimizes lost time and helps to lower medical and indemnity costs, resulting in savings on your workers compensation insurance. n Chesapeake Employers has the know-how to help you implement these 10 cost saving tips and tools. For more information go to safety-university or contact Spring

6 Ask the Chesapeake Employers professionals As Maryland s leader in workers compensation insurance, Chesapeake Employers professionals are here to help answer your questions. We also encourage you to contact your agent partner and to visit our website, for more frequently asked questions and answers. Employers Questions on a Contested Claim What happens when one of my employees claims he was injured on the job but I have concerns? Sometimes employers have concerns about the legitimacy of an accident that an employee insists happened at work. As with any work accident, you need to report this to Chesapeake Employers so an investigation by your claims adjuster can begin. Your concern may be related to the occurrence itself or to the injury/ies the employee says he sustained. There are many questions you can address: Did an accident really occur? Were there witnesses? Who did the employee first report the occurrence to and when? What exactly did he say occurred? Did the employee complete the Employee Report of Injury? Is it the same thing he told his supervisor? Did the supervisor complete an Accident Investigation Form? Did the witness complete the Accident Witness Statement? What exactly were the injured worker s complaints? What body part does the employee claim he injured? Does the claim seem legitimate? Does something seem fishy? If you learn of inconsistent statements about how the accident occurred and something just does not seem right, then it is important to interview witnesses. Maybe the witness(es) says that nothing ever occurred. Maybe you hear that the injured employee is not really injured that he claims he cannot work, yet a coworker saw him painting a house. Does the employee have a second job? Ruth-Ann Lopez, Chesapeake Employers Sr. Attorney Deborah Levy, Chesapeake Employers Sr. Attorney Maybe you or coworkers were aware that he had been having back pain for weeks before the alleged incident in which he claimed he injured his back. After you ve gathered all the facts, our adjusters and attorneys will contact you to review the facts and prepare for a hearing. Why go to a hearing? If we believe, based on the information supplied by you and witnesses, that the claim is not compensable, we will raise issues so we can go to a hearing at the Workers Compensation Commission (WCC) and contest the claim on your behalf. Your cooperation, and that of your employees, is crucial to the success of our defense. Our reason for contesting the claim is because we have doubt about whether an accident really occurred, how the accident occurred, or if the injuries he complains of are really related to the accident. Why does the employer need to be at the hearing? We will identify witnesses we may need at the hearing after we interview them. We will prepare them for their testimony at hearing. It is also possible we may need certain documents from you such as timesheets or work orders to know where the employee was working at the time he claims he was injured. Your assistance and cooperation are very important to the success of our defense. We rely on you for information to make sure we have the right witnesses and documents for the hearing. Any information you can share with us will help us better prepare for the case in an effort to get a denial of the claim. n 8 Spring 2014

7 Chesapeake Employers = Vigilant Guardian Recent Success Cases at the Maryland Workers Compensation Commission Chesapeake Employers legal and claims professionals work in tandem to successfully litigate numerous hearing cases in front of the Maryland Workers Compensation Commission. Our thorough case preparation, investigation and defense help to keep premium costs fair by limiting unnecessary and excessive awards or claim payments. Here are a few summaries of recent hearing cases in which the Commission ruled in our favor. Successfully Defended The Case of the Pre-existing Condition In this case, Chesapeake Employers claims and legal departments worked together to defeat a claim for compensation for accidental injury. The claimant alleged injury to the right shoulder while moving boxes. The claimant testified that no pre-existing shoulder problems were present. However, defense counsel introduced medical reports detailing prior treatment to the right shoulder, including a diagnosis of right shoulder impingement syndrome. Counsel further noted that the claimant did not report the alleged accident to the employer until 19 days afterward, and failed to tell the treating physician of the incident until almost three months later. The Do-it-Yourself Claim Chesapeake Employers claims and legal professionals prevailed before the Commission on the issues of accidental injury and occupational disease. The claimant had previously attempted to add the neck and left shoulder to a prior claim, but the Commission denied causal connection. The claimant filed this claim, alleging chronic myofascial neck strain due to over 15 years of repetitive trauma in the workplace. The claimant acknowledged that there was no specific work injury on the date of the claim filing, but alleged that the injury had occurred over time. Defense counsel relied on an independent medical examination which indicated that the claimant s complaints were not related to the employment. Defense counsel argued that the changes noted on a cervical MRI were degenerative and simply related to age. Car Accident Complication Chesapeake Employers successfully defeated this claim for temporary total disability benefits and authorization for physical therapy and pain management. While investigating the claim, the adjuster discovered that the claimant was involved in a subsequent motor vehicle accident. Despite numerous hurdles, the adjuster obtained the medical reports related to the motor vehicle accident, which defense counsel presented to the Commission. Defense counsel argued that the subsequent motor vehicle accident was an intervening injury, breaking the chain of causation. The Commission agreed, denying the request for temporary total disability benefits as well as authorization for physical therapy and pain management. The Hand Bone Connected to the Neck Bone? The Chesapeake Employers claims and legal team were successful in limiting the injury claims from this accident. The claimant alleged that on the date of injury, the right hand was slammed against a heavy iron door. The injury to the right hand ultimately required surgery. The claimant testified at the hearing that the pain in the neck began right after the hand surgery. Defense counsel noted that the claimant s treating doctor was unsure of the cause of the neck pain and did not relate it to the accident. Defense counsel further argued that this case involved an injury only to the right hand and that there was no basis for relating the neck. Spring

8 Guest Column We can all use someone in our corner Getting the Most Out of Your Insurance Agent Relationship Shelley Arnold CPCU, AU, ARM, AAI, ACSR, AINS President, The Independent Insurance Agents of Maryland, Inc. Need an agent? Visit Chesapeake Employers website and click on the Find a Local Agent search feature. Chesapeake Employers partners with insurance agents as its primary distribution channel. We recently asked Shelley Arnold, President of the Independent Insurance Agents of Maryland, Inc, to share her viewpoint on this insurance topic. Many business owners feel it really doesn t matter where they buy their insurance. This misconception could be costing you and your business money, service and protection. This is one purchase that should never be treated lightly. Insurance is your safety net. It protects you, your family, your home, your autos and your business. Face it, business insurance can be very complicated. An agent can be a trusted counselor and assist with your insurance needs that range from the application process to the final audit. An agent is in your corner, and we can all use someone in our corner. Whether you are a small business or a large business, whether you are a partnership or corporation, whether you are a for profit or a not for profit, insurance agents can assist you in making the right decisions about your insurance needs and coverages. Your independent agent is a licensed insurance professional. Maryland requires producers to pass a licensing examination. After an agent receives his or her license, he or she is required by Maryland law to obtain 24 hours of continuing education credits every two years. Within that continuing education is a three-hour ethics course requirement. As a business owner, you are aware of the many ways you may purchase insurance. There are captive agents who sell only the insurance of one company. There are telephone representatives who can offer the insurance of one company and only on the telephone. You can purchase insurance on the internet, by telephone, and through direct mail. Then there is the independent agent. The independent agent represents multiple carriers, the average being five. This allows the agent to find you the best combination of price, coverage and service. It is also customary that the independent agent can offer you one-stop shopping, providing a full range of products for home, renters, automobile, business, life and health. The independent agent will also provide periodic reviews of your coverage and suggest changes that may benefit your insurance plan. As your business changes, so too should your insurance needs and coverage. An independent agent can monitor and react to those changes. This service is the value added service the business owner will discover with an independent agent. An independent agent also acts as your advocate. Face it, business insurance can be very complicated. An agent can be a trusted counselor and assist with your insurance needs that range from the application process to the final audit. How many times have you wished someone could explain a particular coverage, help determine a proper classification, explain the intent of a question on the application, assist your business when filing a claim, or translate those policy provisions into plain English? An agent is in your corner, and we can all use someone in our corner. Independent agents are business owners just like you. They have strong ties in their communities. Our independent agents are Trusted Choice agents. They sign a Pledge of Performance, which states they will treat you with the utmost respect and that they will treat you like a person, not just a policy. Trusted Choice agents operate in an altruistic and ethical manner. We all want to do what is best for our business, so shouldn t your policy come with an agent? n 10 Spring 2014

9 IMPORTANT OSHA REMINDER OSHA Revises HazCom Standard Employers must be in compliance by June 1, 2015 OSHA has revised its Hazard Communication Standard (HCS), 29 CFR , to align with the United Nations Globally Harmonized System of Classification and Labeling of Chemicals (GHS). GHS is a collaborative worldwide effort to standardize the classification and labeling of chemicals. To help companies comply with the revised standard, OSHA is phasing in the specific requirements over several years, from December 1, 2013 to June 1, 2016: By December 1, 2013 All employees must be trained on the new label elements and Safety Data Sheets. By June 1, 2015 Employers must be in compliance with all modified provisions. By December 1, 2015 Distributors cannot ship containers that do not have the new label elements. By June 1, 2016 Employers must be in complete compliance with the entire revised Hazard Communication Standard, including workplace labeling, updating their programs, and providing additional training on any newly identified physical or health hazards. IMPORTANT: This is only a short summary overview of the revised OSHA HazCom Standard. The revisions are extensive and employers are reminded to visit the OSHA website for complete details on the revised HazCom standards. The five main components that all employers should be aware of: Create and Maintain a Written Hazard Communication Program Provide Employee Information & Training Understand and Use New OSHA Universal Pictograms Representing Hazards New Safety Data Sheets (SDS) formerly known as MSDS New Labeling Standards Chesapeake News Shorts Chesapeake Employers Announces Leadership Promotions Frank Linardi, Jr. CPA promoted to Chief Financial Officer Joanne Dreher promoted to Director, Underwriting Department Sharon Rowell promoted to Assistant Vice President, Marketing and Business Development Amy Gates promoted to Director, Strategic Business Unit Address Reminder Help Us Stay Connected With You Do we have your correct address as part of your policy contact information? Chesapeake Employers wants to stay connected with our policyholders so you can receive our e-newsletter updates and other information. Please call our Contact Center at if you have a new address. If you have additional coworkers interested in receiving our latest news, helpful safety and claims management information, go to to sign-up directly for our e-newsletter. Spring

10 Main Number Outside the Baltimore Area Proud insurance partner with these associations and safety programs: f 8722 Loch Raven Blvd. Towson, MD Like us on Facebook & get more safety tips. Visit CEIWC.com and click on our Facebook icon link. This helpful newsletter is provided as a service by Chesapeake Employers and your agent PRSRT STD U.S. POSTAGE PAID Permit No Baltimore, MD MHI Maryland Home Improvement WASHINGTON AREA NEW AUTOMOBILE DEALERS ASSOCIATION Online Streaming Safety Training Videos at CEIWC.com Chesapeake Employers, along with the WUMBUS Corporation, bring you an extensive library of safety training programs all streaming online. You and your employees now have instant access to WUMBUS entire online safety training library to help with your training needs available whenever you re ready to train, from anywhere, anytime. You can stream an unlimited number of safety trainings every month at no additional cost! And you can preview them before downloading. Literally hundreds of titles are available. WUMBUS has a vast library of highly engaging, OSHA-compliant safety trainings. Most training videos are minutes long. Some video titles available in Spanish Our educational training library is available to all current Chesapeake Employers policyholders and can be accessed by going to CEIWC.com/Safety University. Important: You must use your Chesapeake Employers eservices account to access SafetyFlicks! Not registered? Click the eservices Login link on our website to create an account profile. Detailed instructions on how to stream the safety training videos are posted on the SafetyFlicks webpage. DVDs still available! For those who wish to order DVDs, they are also available. You may borrow up to two DVDs each month through Chesapeake Employers SafetyFlicks. WUMBUS will ship these directly to you at no additional charge. You will be responsible for returning the DVDs timely; a return shipping charge will apply. For more information contact Chesapeake Employers WUMBUS Administrator at Sample Safety Topics: Behavior-based Safety Contractor & Construction Driving Safety EAP Groundskeeping Safety Health and Safety Hospitality and Restaurants Human Resources OSHA Compliance Sanitation Safety Security Safety Warehouse Safety Chesapeake Employers SafetyFlicks is a service provided to Chesapeake Employers policyholders in good standing. All DVDs are the property of the WUMBUS Corporation. Late fees will apply to DVDs borrowed and not returned. Chesapeake Employers is not responsible for the accuracy of the content and information contained in any DVD or streaming video. If you have any questions concerning the material contained in the DVDs or streaming videos, consult your Chesapeake Employers Safety Services Consultant for further assistance.