Risk Management Returning to Work During COVID-19

R I S K M A N A G E M E N TRETURNING TO WORK DURING COVID-19

P R E S E N T E D B Y :LILLIAN ROMERO-GOMEZ

P R E S I D E N T

BAKER, ROMERO & ASSOCIATES

INSURANCE BROKERS, INC.

“Focusing on the Human Side of Doing Business”

RISKMANAGEMENTBASICS

“ T h e s e c r e t o f g e t t i n g a h e a d i s g e t t i n g s t a r t e d . ”~ M a r k T w a i n

“ F o c u s i n g o n t h e H u m a n S i d e o f D o i n g B u s i n e s s ”

RETURNING TO WORK DURING COVID-19

COVID-19COVID-19 is a respiratory disease caused by SARS-CoV-2 virus. Symptoms range from mild to severe and in some cases can be fatal.

To reduce the impact of COVID-19 outbreak conditions on employees, it is important for employers to implement an effective risk management program.

“ B y f a i l i n g t o p r e p a r e , y o u a r e p r e p a r i n g t o f a i l . ”~Benjamin Franklin“ F o c u s i n g o n t h e H u m a n S i d e o f D o i n g B u s i n e s s ”

F o c u s i n g o n t h e H u m a n S i d e o f D o i n g B u s i n e s s

R I S K M A N A G E M E N T

Risk Management deals with uncertainty and risk.

How does an organization protect its workforce during a pandemic?


R I S K M A N A G E M E N T O V E R V I E W :

Questions and concerns from clients as they plan on returning to work.

Risk Management Basics - Guidelines

Directors & Officers Responsibilities

Risks and Considerations On Returning To Work during a pandemic

Risk Management: Insurance and COVID-10

General Liability, Workers’ Compensation, Employment Practice Liability, Volunteer Accident, Cyber Risk


RISKS CONNECTED WITH RETURNING TO WORK: INSURANCE CONCERNS & QUESTIONS

“Will our workers’ compensation insurance policy provide coverage if an employee claims she contracted the virus while working at home?”

“Can we have employees sign a waiver and limit our responsibility if they contract COVID-19?”

“Will our General Liability policy defend our organization if we are sued because a client contracted COVID-19?”

“We are planning for a special event next year (?) Can we purchase Event Cancellation Insurance in case we have to cancel the event?”

We will be renting office space to another nonprofit because many of our employees are opting to work from home and we have vacant office space. Can we add them on to our General Liability policy?

“We want to request that older staff or staff with health issues have their temperature taken before they come into the office so as to protect them from the virus.”

“We are collaborating with another organization and they have asked us to add them as additional insured since they do not carry insurance.”

“We just had a ransom cyber attack. Will our General Liability policy provide funds for the ransom?”

“We have made the painful decision to terminate a few staff due to lack of funding brought on by the pandemic, will our EPLI policy provide us with legal protection if the executive director and board of directors are sued?”


RISK MANAGEMENT BASICS

E STAB LISH A R ISK M AN AGE ME N T T E AM T O P LANE MPLOYE E S RE TURN TO TH E WORKPLACE

I DE N TIFY R ISKS I N VOLVIN G RE TURN IN G T O W ORK

E VALUATE R ISK I N VOLVIN G R E TURN IN G T O W ORK

C ON TROL R ISK ( WAIVE RS, H OLD H ARMLE SS, IN SURAN CE)

R E VIE W


R I S K M A N A G E M E N T B A S I C S : T I P

A SK OTHER N ON-P ROFITS A B OUT THEIR R ETURN T OW ORK R ISK M A NA GEMENT P OL ICIES A ND THEIR

P ROCEDURES TO M ITIGATE COVID-19


“Don't be afraid to ask questions. Don't be afraid to ask for help when you need it. I do that every day. Asking for help isn't a sign of weakness, it's a sign of strength.”~Barack Obama

D I R E C T O R S & O F F I C E R SR ISK M ANAGEMENT IS E VERYONE’ S R ESPONSIBILITY

The board must be kept informed and participate in the organization's safety programs involving COVID-19. Board needs to be informed as to how the organization will reopen safely and consider legal guidance.

A Safety Risk Culture is a shared responsibility with:• Employees & Consultants• Management• Volunteers• Board of Directors

EVERYONE NEEDS TO WORK TOGETHER


RISKS CONNECTED WITH RETURNING TO WORK

All employers should develop and implement appropriate policies in accordance with Federal, State, and local regulations and guidance, and informed by industry best practices, regarding:

Social Distancing Temperature checks (if appropriate) Sanitation Use and disinfection of common and high-traffic areas



RISKS CONNECTED WITH RETURNING TO WORK

Return to work protocols Explanation of any screenings Instructions on bringing new and old equipment into the office and how to

disinfect appropriately. Information on any changes in the work environment e.g. restricting access to

break rooms, social distancing Inform employees of cleaning policies to prevent the spread of COVID-19.Employees need to be educated about COVID-19 and how to protect themselves and their work environment.REMINDER: Address how many people can enter an elevator (don’t assume this is common sense.)


W H A T S T A F F N E E D S T O K N O W W H E N T H E Y R E T U R N T O T H EW O R K P L A C E:

RISKS CONNECTED WITH RETURNING TO WORK :

D E V E L O P A N I N F E C T I O U S D I S E A S EP R E P A R E D N E S S A N D R E S P O N S E P L A N

Plans should address the level(s) of risk associated with various worksites and considerations should include:

Where and how might employees and volunteers be exposed to COVID-19

Employee’s individual risk factors (e.g. older age; chronic medical conditions, pregnancy)

How can you implement social distancing?


RISKS CONNECTED WITH RETURNING TO WORK:B A C K T O B A S I C S A F E T Y T I P S

B A S I C I N F E C T I O N P R E V E N T I O N

Promote frequent handwashing Use alcohol sanitizer intermittently Encourage employees & volunteers to stay at home if they are not feeling well. Encourage respiratory etiquette, including covering coughs and sneezes Determine if employees’ temperature should be taken and assess for symptoms prior to their starting

work. Wear a face covering. (Be aware that there are some exempt from wearing a face covering.) Discourage employees from using other workers’ phones, desks, headsets, equipment, if possible. Clean and disinfect surfaces, tools and equipment regularly with bleach or bacterial disinfectant. Don’t shake hands when greeting others.


RISKS CONNECTED WITH RETURNING TO WORK:BACK TO BASIC S A F E T Y T I P S

Face Coverings

People if CA must wear face coverings when they are in the high-risk areas such as public area, healthcare , public transportation, working with the public.

Exempt from wearing face covering:

Persons younger that two years old.

Persons with medical condition

Persons who are hearing impaired

Persons engaged in outdoor work or recreation e.g. swimming, walking etc.

Recommend that you consult with your employment attorney if you have employees that can not wear a face covering so as to develop appropriate policies and best practices to protect the workforce.


RISKS CONNECTED WITH RETURNING TO WORK:BACK TO BASIC S A F E T Y T I P S

S OCIAL D ISTANCINGSocial distancing means avoiding large gatherings and maintaining distance (approx. 6 feet) from others when possible

(e.g. breakrooms and cafeterias).

Strategies for social distancing include:

Implementing flexible worksites (e.g., telework)

Implementing flexible work hours (e.g. staggered shifts)

Increasing physical space between employees at the worksite.

Increasing physical space between employees and customers (e.g. drive through, partitions)

Implementing flexible meetings and travel options (e.g. postpone non-essential meetings or events)

Delivering services remotely (e.g. phone, video, web, ZOOM)“ F o c u s i n g o n t h e H u m a n S i d e o f D o i n g B u s i n e s s ”


RISKS CONNECTED WITH RETURNING TO WORK:B ACK TO BASIC S A F E T Y T I P S

R E V I EW Y O U R L E A SE Find out what precautions landlord in putting in place concerning common areas, hallways, doors and

bathrooms e.g. hand sanitizers, deep cleaning, safety signs & rules, etc.

A I R FL OW I N O F F I CE Ask about the air-conditioning filtration system? There is CDC guidance suggesting that airflow in confined,

inside spaces can facilitate the spread of COVID, but there are many variables including the type of air conditioning system, duct system, type of filtration and number of occupants in the building.

Consider adding a HEPA Air Purifier in your office areas.



INSURANCE AND COVID-19

THERE IS NO SINGLE INSURANCE POLICY THAT WILL ADDRESS

PANDEMIC EXPOSURES.

TRANSFER OFRISK

INSURANCE

I N S UR A N C E F O R M O S T N O N P R O F I TS


G E N E R A LL I A B I L I T Y

Med. Pay? Volunteers may be excluded.

S P E C I A LE V E N T S :

Are volunteers included under special

events liability?

D I R E C T O R S & O F F I C E R SL I A B I L I T Y

E M P L O Y M E N TP R A C T I C EL I A B I L I T Y

F I D U C I A R Y

C R I M EVolunteer

Dishonesty

(Phishing scams-social engineering

endorsement?)

C Y B E RL I A B I L I T Y

Volunteers may be included in coverage

(cloud provider-review your agreement, most cloud

providers transfer the liability risk to client.)

W O R K E R S ’ C O M P E N S A T I O N

V o l u n t e e r E n d o r s e m e n t ?

B U S I N E S SA U T O M O B I L E

N O N - O W N E DA U T O M O B I L E

P R O F E S S I O N A LL I A B I L I T Y A B U S E& M O L E S T A T I O NA r e v o l u n t e e r s

c o v e r e d ?

A r e v o l u n t e e r s i n s u r e d u n d e r a u t o p o l i c y ?

CAUTION: BECAUSE OF COVID-19, THERE MAY BE A REDUCTION IN LIMITS ONCERTAIN LINES OF INSURANCE

RISK MANAGEMENT PROCEDURESINSURANCE & COVID-19?

WORKERS’ COMPENSATION New changes have been enacted in CA allowing

employees to be covered under workers compensation if they contract COVID-19. The new executive order states that employees who contract COVID-19 will automatically be “presumed” to be work related without the employee having to provide any further proof.

WHAT SHOULD EMPLOYERS DO? Closely follow CDC and OSHA guidance for minimizing

or preventing exposures in the workplace. Update your INJURY AND ILLNESS PREVENTION

PROGRAM (IIPP)


RISK MANAGEMENT PROCEDURESI NSURANCE & COVID-19?

WORKERS’ COMPENSATION

INJURY AND ILLNESS PREVENTION PROGRAM-(IIPP)

IIPP is a workplace safety program created to identify, address and record workplace hazards.

California requires every employer to establish an IIPP.

Employers with 10 or more employees must have an IIPP in writing.

RECOMMEND: Add COVID - 19 addendum to specifically address COVID related safety issues.

WARNING: Employers who don’t follow the law expose themselves to penalties and Cal/OSHA Violations.


RISK MANAGEMENT PROCEDURESINSURANCE & COVID-19

E MPLOYMENT PRACTICE L IABILITY (EPLI) Can employers require employees to travel? Can employers terminate employees that refuse to come back to work or insist on working from home? Can telecommuting create challenges in accurately tracking hours worked. What risks are created from decisions about layoff, furlough and reduction in hours? How should employers handle employee quarantine cases with respect to employment and health-related

privacy? How will COVID-19 absences affect employees wages, and does that create an exposure for employers?

These questions require the advice of counsel. Employment law tends to be fact-specific, and HR professionals should consult with an employment attorney. Covid-19 may give rise to employment litigation. Make sure to review your insurance policy as there is no “standard” EPLI policy.

Several EPLI Insurance carriers provide free pre-claim legal advice from employment counsel free of charge.


RISK MANAGEMENT PROCEDURESINSURANCE & COVID-19?

GENERAL LIABILITY- COVERS CLAIMS OR SUITS FOR BODILY INJURY, PROPERTY DAMAGE AND VARIOUS OTHER LIABILITY EXPOSURES

Coverage applies to “bodily injury” and “property damage” only if: The “bodily injury” or “property damage” is caused by an “occurrence” that

takes place in the coverage territory. One exclusion to consider for negating coverage is the spreading of the virus to

members of the public (exclusion - Expected or Intended Injury). For example, if an insured requires employees to continue working and is aware that they are infected.


RISKS CONNECTED WITH RETURNING TO WORK:B ACK TO B ASIC S A F E T Y T I P S

SPECIAL EVENTS LIABILITY Due to pandemic there are currently many restrictions on having events.

Special Event Liability policies may exclude liability coverage for Covid-19.

Discuss the use of waivers / hold harmless agreements with your attorney.

Cancellation Event Policies may not include coverage for cancellation due to COVID-19.

Trends for fundraising have moved toward social media.

When Special Events do begin to open us, follow CDC guidelines. The size of the event should be determined based on state and local regulations.

BOTTOM LINE: When planning events in the future, implement strategies that mitigate the spread of COVID-19 and protect your organization.


SPECIALTY INSURANCE FOR VOLUNTEERS

VOLUNTEERACCIDENT INS.

V o l u n t e e r A c c i d e n t I n s u r a n c e i s u s u a l l y e x c e s s o v e r h e a l t h i n s u r a n c e p l a n s a n d c o v e r s a v o l u n t e e r s ’ i n j u r i e s p e r t h e t e r m s o f t h e p o l i c y .

S i c k n e s s ( C O V I D - 1 9 ) i s n o t b e c o v e r e d u n d e r m o s t a c c i d e n t p o l i c i e s .


TRANSFER OF RISKI NSURANCE—C YBER R ISK AND C OVID-19

The chaos caused by the Coronavirus outbreak may facilitate and increase cyber crime in years to come.

Implement and review a strong Cyber Risk Policy .

H I S T O R Y O F A L L D A T A B R E A C H E S I N T H E U . S .

w w w . p r i v a c y r i g h t s . o r g / d a t a - b r e a c h


TRANSFER OF RISKI N S U R A N C E — C Y B E R R I S K A N D C O V I D - 1 9


NOW WHAT… NEW NORMS… WORKING FROM HOME

• Studies are showing that a significant number of workers want to continue working from home after the pandemic ends.

• Cyber risk will continue to increase with remote workers. It will be challenging for organizations to protect systems and employees from hackers.

• Concerns with ergonomically sound workstations at home.• Potential for increase in workers’ compensation claims due to

injuries at home

CYBER RISKPANDEMIC & COMPUTER NETWORK

D O N ’ T A S S U M E T H A T Y O U R “ C L O U D P R O V I D E R ” W I L LA C C E P T L I A B I L I T Y . C H E C K Y O U R C O N T R A C T .

S A B O T A G E

H U M A N E R R O R

F R A U D

V I R U S T R A N S M I S S I O N

S Y S T E M M A L F U N C T I O N

CYBER RISK POLICY?• What access, training and controls are

in place for your computer network?

• How are employees working remotely being trained on cyber safety?

• How often are employees trained on how to keep their work area sanitized?


A N T I C I P A T E D C L A I M S A N D L A W S U I T SI N V O L V I N G C O V I D - 1 9


• Employment Practice Liability claims:o Right to sue is 3 years from the

wrongful act!• Workers’ Compensation Claims• Wage and Hour Issues• Directors & Officers Liability claims• Telework / Remote Claims• Cyber Crime• Business Interruption Issues• General Liability claims

RISKS CONNECTED WITH RETURNING TO WORKCOLLABORATION

C OL L ABORATION

Due to the pandemic, many nonprofits are collaborating with other nonprofits, cities or other entities to provide services to the community. These agreements range from informal collaborations to restructuring of services and mergers. Put it in writing – A Memorandum of Understanding outlines expectations, responsibilities and

who will be responsible if something goes wrong. Does the collaboration obtain an indemnification clause ? Have your attorney review all MOU’s. Does the agreement require insurance coverage at a specified limit? Additional Insureds?



R I S K M A N A G E M E N T I S E V E R Y O N E ’ S R E S P O N S I B I L I T YN O T I F Y Y O U R I N S U R A N C E B R O K E R …


Notify your insurance agent/brokerif your organization is changing itsoperations or collaborating withother entities

You may be able to save premium $ if you are temporarily closing or changing some of your services or operations.

RISK MANAGEMENT BASICSPREPARE FOR THE NEW NORMAL

THE NEW NORMAL Social Distancing Face masks Employee Screening Concerts & Special Events will not be possible for a while. Restaurants Take Out or possibly outdoor seating Classrooms and conference rooms will be reconfigured to help with

physical distancing. Offices and equipment, will be deep-cleaned regularly Prepare for a potential SECOND WAVE this fall(?)Working Remotely will continue for some time.

Work with your employment attorney and HR professional to make sure your organization complies with State and Federal regulations.


RESOURCES

O S H A - G U I D A N C E O N P R E P A R I N G W O R K P L A C E S F O R C O V I D - 1 9

H T T P S : / / W W W . O S H A . G O V / P U B L I C A T I O N S / O S H A 3 9 9 0 . P D F

S A F E T Y R E S O U R C E S

H T T P S : / / W W W . O S H A . G O V / S L T C / C O V I D - 1 9 / S T A N D A R D S . H T M L

U S D E P A R T M E N T O F L A B O R

Q & A ’ S F A C T S H E E T S –H T T P : / / W W W . D O L . G O V / A G E N C I E S / W H D / P A N D E M I C


https://www.osha.gov/PUBLICATIONS/OSHA3990.pdf

https://www.osha.gov/SLTC/covid-19/standards.html

Final Thought…

Science is telling us that we can dophenomenal things if we put our

minds and our resources to it.~ A n t h o n y S . F a u c i .


Disclaimer: This presentation is for informational purposes only. This presentation is not intended to provide any legal advice or opinion regarding insurance coverage or lack thereof as relates to the Coronavirus.

BAKER, ROMERO & ASSOCIATES, INSURANCE BROKERS, INC.

B E S T “ A ” R A T E D I N S U R A N C E C A R R I E R S .

F R E E H . R . S E R V I C E S

I N S U R A N C E C O V E R A G E R E V I E W

L O S S C O N T R O L P R O G R A M S

F I N A N C I N G O P T I O N S

N O B R O K E R F E E S

F R E E E D U C A T I O N A L E - M A I L B L A S T S

E D U C A T I O N A L S E M I N A R S A N D W E B I N A R S


B a k e r , R o m e r o & A s s o c i a t e sI n s u r a n c e B r o k e r s , I n c .

750 Terrado Plaza, Suite 238, Covina, CA 91723P: 626 332 2258 x102

F: 626 339 9921l i l l i a n @ b a k e r r o m e r o . c o m

www.bakerromero.com

C e l e b r a t i n g o v e r 3 4 y e a r s o f u n p a r a l l e l e d a n d a f f o r d a b l e i n s u r a n c e p r o t e c t i o n t o t h e n o n p r o f i t c o m m u n i t y


THANK YOU

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Risk Management Returning to Work During COVID-19

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