who else owns this construction loss
TRANSCRIPT
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Who Else Owns this Construction Loss?
By: Steve Hunt, CPCU, ARM
President and Senior Safety Consultant
The Warren Group, Inc.
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Subrogation
Subrogation is often overlooked or not pursued
because the focus is on what the employer or
worker may have done wrong.
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Who Else Owns this
Construction Loss?
Purpose:
Provide ideas and tools to assist you in
qualifying construction losses for
subrogation potential.
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Learning Objectives:
• How to identify viable subrogation
opportunities
• Techniques for working subrogation cases for
a successful outcome
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Why are Construction Losses Unique?
• High Severity losses
• Multiple parties
• Fast moving environment compared to
general industry
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High Severity losses?
• Approximately 1,200 deaths and 480,000 non
fatal injuries annually.
• Construction has 6% of the workers but 20% of
the deaths.
• Construction deaths and serious injury rates are
considerably higher than that of other large
groups: Retail, Manufacturing, Agriculture,
Transportation, Wholesale, Utilities, etc.
Source: US Department of Labor
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Falls (32.0%)
Other (6.2%)
36a. Distribution of leading causes of deaths from injuries,
construction, 2005
Exposure (13.5%)
Contact w/ objects
(20.0%)
Transportation (28.4%)
Source: Center for Construction Research & Training
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50
100
150
200
250
300
350
400
450
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Year
Nu
mb
er o
f d
eath
s
Fall to lower level Contact with electric current
Highway accident Struck by object
Source: The Center for Construction Research & Training
36c. Leading causes of work-related deaths, construction, 1992-2005
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From roof (33%)
From ladder (16%)
Other (25%)
37a. Distribution of causes of deaths from falls in construction,
1992-2005 average
From girder, struct. steel (8%)
From scaffold, staging (18%)
Source: The Center for Construction Research & Training
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3.8
1.0
2.1
2.7
2.7
3.1
3.8
4.6
4.7
5.0
6.1
7.5
23.8
38.7
All construction
Plumber
Construction manager
Heat A/C mech
Electrician
Foreman
Drywall
Carpenter
Brickmason
Painter
Welder
Laborer
Roofer
Ironworker
Number of deaths per 100,000 full-time workers
Source: The Center for Construction Research & Training
37b. Rate of deaths from falls, selected construction occupations,
2003-2005 average
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Multiple Parties
• General Contractor
• Subcontractors – roofing, masonry, steel
erectors, carpentry, HVAC, plumbing, etc.
• Rental equipment companies – back hoes, lifts, etc.
• Rent and perform companies – Scaffolding erectors, cranes with operators.
• Construction Management Companies Owner
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Construction vs. General Industry
• OSHA 1926 - Construction Safety Standards
• OSHA 1910 - General Industry Safety
Standards
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Most Cited OSHA 1926
• Fall Protection - Guarding open sided floors / platforms
• PPE – Head protection from impact, falling flying objects
• Electrical – Ground fault protection & path to ground missing or disconnected
• Scaffolding – Guardrails & frames
• Ladders – Various
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OSHA – Multi-employer Worksites
• Exposing Employer
• Creating Employer
• Controlling Employer
• Correcting Employer
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Safety Standards
• Hazards
• Equipment
• Procedures
• Training
• Supervision
Regulatory and industry best practice
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Most Workplace Injuries:
• Are predictable
• Are preventable
• Some safety standard or duty was violated
• All have A CAUSE!
• Most have MULTIPLE CAUSES
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Keys to Subrogation
• Determine involvement of all parties
• Determine cause or causes
• Determine responsible parties
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Determine Causes and Involvement:
• Someone else created a hazard and it led to
our person being injured.
• Someone else failed to perform and it led to
our person being injured.
• Someone else’s equipment failed and it led
to our person being injured.
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Barriers to Cause
Determination and Subrogation
• Late reporting
• Misreporting – initial reports minor incident
• Business relationship
• Other parties involved may not cooperate
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Barriers to Cause
Determination and Subrogation
Construction is fast moving
• Physical evidence can get covered up quickly.
• Workers / Witnesses move from job to job, some
disappear.
• Machinery and equipment get repaired and put back
into service.
• Language communication issues
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Barriers to Cause
Determination and Subrogation
Your case?
No scene,
No pictures,
No witnesses,
No statements,
No machinery or equipment
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Proper Investigation can
Yield Improved Results
Accurate information is needed quickly
1. Detailed descriptions of events
2. Alleged cause
3. Equipment involved
4. Parties involved
5. Witnesses
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What information do we need?
• Names – Companies involved, witnesses,
supervisors, etc.
• Photographs
• Secure the scene, if possible
• Subcontractor Contracts
• Copy of Safety Programs for this job
• Safety meeting minutes
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What information do we need?
• Accident investigation reports
• OSHA Inspection report
• Construction plans
• Safety inspection reports
• Witness statements
• Key person interviews
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Case Study
• Plumber checking pipes falls through
uncovered floor opening.
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• Arc Flash burn at Waste Water plant
construction site
I was onsite the following day
Case Study
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• County inspector falls when walk board gives
way over 14 foot hole.
No onsite completed – only 5 photographs provided
Case Study
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• Mason drops concrete on electrician from
three stories up
No photographs due to limited initial investigation
I was hired 2 years after the incident
Case Study
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• Roofer’s laborer falls through unguarded
floor opening.
Onsite one month after fall
Case Study
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• Fall off of a Metal Roof
No onsite or onsite photographs but good information from
witness statements and depositions.
Case Study
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Conclusion
• Responsibility is not always clear cut.
• Rarely do we get everything we would like to
have, but sometimes it is enough to achieve a
positive outcome.
• The more thorough and timely the
investigation, the better the outcome.
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Questions?
Presented at Selective Insurance Claims Adjusters
2010 Annual Conference, Hershey, PA
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Source: E-mail safety contest joke series