Blog - Month: May 2024
How to Protect Your Tools, Equipment Against Theft
One of the biggest headaches for contractors is equipment and tool theft, as thieves regularly raid worksites after hours or steal tools from parked vehicles. They can make away with tens of thousands of dollars worth of equipment, and in serious cases it can result in project delays and workers unable to do their jobs.
Also, if the theft occurs away from the contractor’s own facilities and instead at a worksite or while the equipment is in transit, the company’s commercial property insurance policy won’t cover the theft.
However, there is a policy that will cover these types of thefts: tool and equipment insurance. While you should consider this inexpensive coverage, you should also take steps to safeguard your stuff.
Examples
- In September 2023, thieves stole more than $50,000 worth of tools and landscaping equipment from a worksite run by Ground Builders Landscaping in Douglas County, Nebraska.
- A Columbus, Ohio man who committed countless thefts of tools and construction equipment across a 10-county area was sentenced to more than a decade in prison in October 2023. It is estimated that upward of around $100,000 worth of construction equipment and tools were stolen by the thief.
- In November 2022, thieves stole $100,000 worth of tools and equipment from a construction site run by SolTerra Capital Inc., a Portland, Oregon developer.
How the insurance works
Typically, commercial property insurance only covers your equipment when kept within your premises. Tool and equipment coverage is a special type of insurance known as inland marine insurance; it covers movable equipment and tools wherever you’ve stored them.
It typically covers theft, vandalism, accidental damage, and loss of tools and equipment while they are on-site, in transit or stored at a designated location.
Some policies may offer coverage for the cost of renting replacement tools or equipment to minimize project disruptions. Others include provisions that compensate you for lost income and costs incurred due to project delay if these are caused by a covered incident.
Policies typically cover tools and equipment worth up to $10,000. If the value of everything is more than $5,000, the insurer will often require that all of the items are inventoried and scheduled on the policy.
However, the insurance won’t cover:
- Usual wear and tear on equipment and tools
- Tools that are over five years old.
- Damage resulting from deliberate misuse or breakage.
If you have extremely high-value tools and equipment, you would likely need to get a separate specialized policy.
Prevention tips
Besides insurance, the best approach is to avoid having your tools and equipment stolen in the first place. Fortunately, there are steps you can take to reduce the chances of theft.
Secure equipment and tools — If you must store your equipment on-site, set aside a section of your site where you can store the gear in locked, secure storage containers when not in use. Ensure these containers are well-constructed and tamper-proof and cannot be moved. Keep in mind that tool trailers are often stolen.
Install security cameras and alarms — Security cameras and alarms, along with signs announcing their presence, can help deter thieves. Cameras also can provide evidence of theft and alarms can alert your workers of intrusions.
Implement asset marking and tracking — Adopt asset-management solutions with telematics to discourage theft and aid in recovery if equipment is stolen. Implement tracking devices on high-value assets to enable real-time location monitoring. Visibly displaying that equipment is tracked and monitored can deter theft.
Create a reporting system for missing tools — Implement a system so that employees can report missing tools. A well-designed reporting system can help track any misplaced tools, while addressing issues like theft or inaccuracies with inventory as soon as they are discovered.
Train your staff — Devote an afternoon to discuss best practices in van and tool safety and security with your team. Additionally, ensure that new staff members are informed about these measures to maintain a vigilant and secure work environment.
Conduct employee background checks — Conducting background checks during the hiring process can help combat theft on your construction site. Background checks not only verify the qualifications and past work history of potential employees, but detect any known criminal activity as well.
Cal/OSHA Raises Penalties for 2024
Cal/OSHA penalties for several workplace safety violations by California employers have increased for 2024.
The penalties for both Fed-OSHA and state violations rise annually to account for inflation under the Federal Civil Penalties Inflation Adjustment Act. Penalties for most violations increased 3% on Jan. 16 from their 2023 levels.
Here’s a rundown of the new penalties:
- General and regulatory violations, including posting and recordkeeping violations: maximum penalty is $15,873, up from $15,375 in 2023.
- The minimum penalty for a willful violation: $11,337, up from $10,981.
- The maximum penalties for willful and repeat violations: $158,727, up from $153,744.
- The maximum penalty for serious violations, including tower cranes and carcinogen use: $25,000, unchanged from 2023.
- The maximum penalty for both a serious and other-than-serious violation: $16,131, up from $15,625.
- The maximum daily penalty for a failure to abate: $16,131, up from $15,625.
- The maximum penalty for a serious or repeat violation: $161,323, up from $156,259.
The takeaway
As the maximum penalties for Cal/OSHA violations grow every year, and as a responsible employer, you should focus on keeping a safe workplace that is targeted at reducing the risk of injuries to your staff.
It not only helps avoid injuries, but also keeps a lid on your workers’ compensation costs and reduces the chances of receiving citations from Cal/OSHA.
GPS Tracking: Monitor, Protect and Optimize Your Firm’s Assets
For any business — big or niche — protecting your assets is key to protecting your company.
A lost or stolen company-issued laptop, for example, poses the risk of exposing trade secrets and confidential information, and a company car or equipment used in a crime may damage your business’s name forever.
With theft and shrinkage on the rise, it’s more important than ever that businesses embrace GPS tracking technology to keep track of their company-owned vehicles and high-value assets, including inventory.
From food service to construction, waste management, field services or whatever business you have, you can have complete control and peace of mind with a GPS asset-tracking system. Combine this with value-adding features such as fleet management and telematics, and you will have an investment that pays for itself.
The benefits
GPS tracking can benefit your organization by increasing efficiency, reducing costs, enhancing security, improving customer service — and providing valuable data for decision-making and compliance. However, it’s essential to implement GPS tracking ethically and transparently, addressing any employee concerns about privacy and data usage.
Fleet management benefits
Interval-based reporting: GPS asset trackers provide regular reporting about a vehicle’s location in intervals or when it moves.
Route optimization: GPS systems can suggest the most efficient routes, reducing costs and improving on-time performance.
Driver behavior monitoring: GPS tracking can record driver behavior such as speeding, harsh braking and excessive idling.
Stolen vehicle recovery: Tracking can assist in quickly locating and recovering stolen vehicles or assets.
Asset tracking and management
Inventory control: GPS tracking can help monitor the location and movement of valuable items, reducing theft and improving inventory management.
Maintenance alerts: Systems can schedule maintenance based on actual usage and location data, reducing downtime and extending the lifespan of assets.
Historical data: Systems store historical location data, which can be analyzed to identify trends, optimize operations and make data-driven decisions.
Other benefits
Accurate ETAs: By knowing your vehicles’ exact locations and estimated arrival times, you can provide customers with accurate information, enhancing their experience.
Proof of service: GPS tracking can prove service or delivery, reducing disputes and improving customer trust.
Geofencing: You can set up geofences and receive alerts when vehicles or assets enter or exit specific areas, helping to prevent unauthorized use or movement.
The takeaway
It might be tempting to choose cheaper, do-it-yourself options for your asset-tracking requirements, but you should remember what will be at stake. When it is your livelihood that is on the line, it is always best to trust experts who can blend hardware and software solutions tailored to your needs.
With a quick online search, you can find hundreds of asset-tracking vendors and websites that rank the different systems.
Apart from comparing prices and functions, consider the geographic coverage, after-sales support and maintenance, and other services that GPS asset-tracking vendors offer. Research which service providers other companies in your industry prefer to use, and seek reviews and recommendations from experienced GPS users.
Opioid Overdose Meds May Be Coming to Your First Aid Kit
Efforts are afoot to create new laws and regulations that would require California employers to include the opioid overdose medication Narcan in their first aid kits.
The National Safety Council (NSC) recently asked the Cal/OSHA Standards Board to create new regulations requiring construction sites and general industry workplaces to stock medications that can reverse opioid overdoses.
On the legislative front, two state assembly members have introduced bills that would require workplace first aid kits to include naloxone hydrochloride, the substance that can reverse overdoses.
More than 83,000 people died of an opioid overdose in 2022 in the U.S., including nearly 7,000 Californians, according to the Centers for Disease Control. Workplace overdose deaths jumped 500% between 2011 and 2021 and overdoses account for 9% of workplace deaths nationally. In California, overdoses accounted for 18% of workplace deaths in 2021.
Naloxone, sold under the brand names Narcan and RiVive, is available in an over-the-counter nasal spray or as an injectable.
These medications temporarily reverse overdoses from prescription and illicit opioids, are not addictive and are not harmful to people when administered.
In its Dec. 8 petition to Cal/OSHA’s Standards Board, the NSC asked it to add naloxone to the list of required items in both construction sites as well as general industry workplaces.
“With the number of workplace overdose deaths on the rise, opioid overdose reversal medication is now an essential component of an adequate first-aid kit,” wrote Lorraine M. Martin, president and CEO of the NSC. “The inclusion of an opioid overdose reversal medication requirement in rules 3400 and 1512 would help California combat the opioid crisis by ensuring worksites are appropriately equipped to respond to such an emergency.”
She also called for training to use the medication.
Legislation
Two bills are in play.
AB 1976: Authored by Assemblyman Matt Haney (D-San Francisco), this bill would require first aid kits on job sites to include Narcan. It would require the Standards Board to draft enabling regulations by Dec. 31, 2026.
AB 1996: Authored by Assemblyman Juan Alanis (D-Modesto), this measure would require operators of stadiums, concert venues and amusement parks to stock Narcan. It would not require Cal/OSHA to create new regulations as the measure is aimed at helping members of the public.
The takeaway
In light of the opioid overdose epidemic, more and more employers and operators of facilities that cater to the public have started stocking naloxone. With opioid overdoses so prevalent in U.S. workplaces (18% in California alone), the simple addition of this over-the-counter medication can save the life of a worker.
Narcan is available over the counter for around $40 at most major retail pharmacies. It’s a simple and inexpensive addition to a first aid kit for any employer. It would be good practice to keep one in your safety kit … just in case.
Meanwhile, if any of these efforts are codified, we’ll let you know.