New Mexico bill would increase employer-paid comp legal fees


The amount of money that employers would need to front for employee discovery costs in workers compensation cases that go to settlement would increase under a measure introduced Thursday by New Mexico lawmakers.

New Mexico House Bill 455 would require employers to advance up to $10,000 in comp settlement cases in which the employee requests any discovery to take place, up from the current maximum of $3,000.

Under the bill, if the injured worker prevails on the claim, any discovery costs that were advanced by the employer shall be considered paid by the employer, but if the employee does not prevail he or she would be required to reimburse the employer for those advanced costs.

The measure would also raise the cap for overall attorneys fees in comp cases by $10,000, stating that any legal fees on behalf of a claimant or an employer for a single accidental injury claim shall not exceed $32,500, up from the current maximum of $22,500.

The bill would permit a workers compensation judge to exceed the maximum amount of legal fees ordered to be paid if the judge finds there is “good cause” to do so, which could include the worker’s claim being for permanent total disability benefits, if the worker’s injuries are serious, if additional litigation ensues, or if the judge finds a violation of the settlement has occurred.

The bill would also amend current law to remove language that makes it a misdemeanor subject to fines and jail time to violate any provision of this section of the workers comp law.

 



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OSHA fines toolmaker $164K over amputation


In less than two years, three workers at a leading tool manufacturer in Barberton, Ohio, suffered injuries from unguarded machinery, triggering an Occupational Safety and Health Administration inspection that led to $164,742 in proposed fines.

The latest injury at Wright Tool Company occurred on Oct. 26, 2022, when a worker suffered a left thumb amputation while hand-feeding parts into a drill press using air-activated clamps. In December 2020 and June 2022, two other workers performing similar tasks suffered laceration injuries, according to OSHA’s announcement on Thursday.

Investigators cited Wright Tool for one willful violation of machine guarding standards, as well as two serious and one other-than-serious violations. OSHA found the company also failed to conduct hazard assessments to identify personal protective equipment needs and other requirements, did not test energy control procedures at least annually or train each employee to ensure they understood hazardous energy control procedures, and failed to enclose shafting.

 

 



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Lawsuit filed by fired firefighter dismissed


A federal court has dismissed a lawsuit against Haines City, Florida, that was initiated by a firefighter who claimed he was fired after 19 years on the job in retaliation for seeking workers compensation accommodations.  

The United States District Court for the Middle District of Florida on Tuesday granted summary judgment to Haines City in a case brought by former firefighter William Valencia.

Mr. Valencia sued in state court in October 2020, six months after his firing, alleging retaliation under the state’s workers compensation law.

The case was later removed to federal court after an amended complaint added alleged federal law violations.  

Mr. Valencia argued his firing was pretextual, and that the real justification was his seeking workers comp after experiencing job-related stresses that caused him to suffer from issues such as high blood pressure and anxiety.

The city contended the firing was proper and actually related to job performance. It asserted Mr. Valencia failed to prove a disability under the Americans with Disabilities Act, one of the counts in the suit.  

In granting summary judgment, the court found the city offered “legitimate non-discriminatory and non-retaliatory reasons for its conduct,” and that Mr. Valencia failed to prove that his firing was for reasons other than job performance.

The city said Mr. Valencia was fired for job-related issues such as improper use of a department purchasing card, failing to turn in assignments on time, failing to attend a training class and other issues.

 



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AIG expects tighter property insurance market; reports results


Excess property insurance buyers should expect higher deductibles and related tightening in terms and conditions this year, American International Group Inc.’s top executive said Thursday.

Speaking on a conference call with analysts to discuss the insurer’s fourth-quarter 2022 results, Chairman and CEO Peter Zaffino said: “In excess and surplus lines property I expect to see higher deductibles, more wind deductibles, tighter terms and conditions.”

Looking back on the fourth quarter, Mr. Zaffino said AIG saw an average 3% increase in its North America commercial lines business, but average rates rose 9% excluding financial lines and workers compensation.

Retail property rates rose 15%, its E&S unit Lexington saw rates increase 12%, and excess casualty was up 9%, he said.

International commercial rates increased 4%, driven by Asia Pacific, where rates climbed 9%, and Europe, the Middle East and Africa, where rates rose 7%.

“While we experienced downward pressure on rate in certain lines early in the fourth quarter, we saw a reacceleration of price increases toward the end of the quarter,” Mr. Zaffino said. For example, retail property renewal rates rose 24% in December when the effect of recent catastrophe losses were felt by the market, he said.

AIG has re-underwritten much of its book over the past five years, which put it into a position to buy more reinsurance coverage at moderate rate increases during year-end renewals, despite significant rate hikes in the overall reinsurance market, Mr. Zaffino said.

AIG bought more property catastrophe reinsurance, securing $6 billion in limits, and improved the terms, he said. AIG’s overall reinsurance costs increased less than 10%, he said.

For the fourth quarter, AIG reported net income of $264 million compared with $3.74 billion in the prior-year quarter, which included a $3 billion gain from the sale of a real estate portfolio. Profit was also hit by a decrease in net realized gains of derivative activities, AIG’s earnings statement said.

On an adjusted basis, AIG’s pre-tax income fell 19.7% to $1.2 billion. The insurer attributed the decline to a $489 million decrease in alternative investment income, largely from private equity investments, which was partially offset by better underwriting results.

Its general insurance business saw net premium written of $5.61 billion, down 6%, largely driven by a decrease in personal lines premium and the effect of foreign exchange changes on international business.

Its North America commercial lines business reported $2.27 billion in net written premium, up 3% compared with the prior-year quarter.

AIG’s general insurance combined ratio was 89.9% for the quarter, improving from 92.4% in the prior-year period. North America commercial lines reported an 84.4% combined ratio, improving from 94.8% in the 2021 period.

For the full year, AIG reported net income of $10.25 billion, up 9.5% compared with 2021.

During the fourth quarter, AIG completed the initial public offering of its life and retirement business Corebridge Financial Inc. AIG expects to complete a secondary offering of Corebridge stock by the end of the first quarter, Mr. Zaffino said.

 



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N.Y. provided ‘very modest’ support for workers with COVID: Study


New York’s workers compensation system provided only limited support for essential workers who contracted COVID-19, according to an abstract of a study published in the Journal of Occupational and Environmental Medicine.

Researchers analyzed COVID-19 claims from workers at nursing care facilities and compared them with recorded nursing home staff COVID-19 infections and deaths reported to the U.S. Centers for Medicare and Medicaid Services in 2020 and 2021.

The analysis reportedly found 21.9% of 29,814 COVID-19 claims were awarded benefits, despite 86.8% of claimants working in essential industries. Study authors said 1.4% of 46,505 COVID-19 infections recorded by CMS resulted in a claim, and 7.2% of the 111 deaths recorded by CMS received death benefits.

The authors concluded that New York’s workers comp program “has provided very modest support to essential workers for the likely work-related burden of the pandemic in NYS.”

WorkCompCentral is a sister publication of Business Insurance. More stories here.

 

 



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States urge swift action on OSHA heat safety rule


Attorneys general from six states have petitioned the Occupational Safety and Health Administration to take swift action to implement national heat standards for indoor and outdoor workers.

OSHA in October issued an advance notice of proposed rulemaking to start accepting comments from stakeholders about the pending rules. The notice followed President Joe Biden’s announcement that the federal workplace safety regulator would be implementing new heat standards for workers throughout the country.

Attorneys general from California, Maryland, Massachusetts, New Jersey, New York and Pennsylvania said in jointly filed comments that three states — California, Minnesota and Washington — have adopted rules to protect workers from heat-related illnesses, demonstrating that such standards are both feasible and effective.

“But without national heat standards, millions of outdoor and indoor workers across the country will remain vulnerable to illness and death from occupational heat exposure,” they wrote. “Accordingly, we urge OSHA to develop standards that set maximum heat thresholds for both outdoor and indoor workers; require employers to implement robust preventative measures to mitigate heat-related risks to workers; enhance current reporting and recordkeeping requirements; and implement other safeguards for workers, such as increased work site inspections, enhanced protections for vulnerable workers, and whistleblower protections.”

The comment period on the advance notice of proposed rulemaking closed Jan. 26.

WorkCompCentral is a sister publication of Business Insurance. More stories here.



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Safety technology uptake slow in construction


Technology is increasingly being used to improve safety and efficiency on construction sites, but moves to introduce connected equipment and other resources often face barriers.

Lack of data proving the benefits of technology, costs, privacy concerns and difficulties in changing entrenched practices have limited uptake of the devices, experts say.

But given the risk of grave injuries and death among construction workers, the number of technology-based safety applications is multiplying, they say. 

“Technology has taken shape,” but such applications are in their “infancy,” said Tom Grandmaison, Boston-based executive vice president and manager of construction at Willis Towers Watson PLC. 

 

One of the biggest challenges to adopting newer technologies is explaining the benefits to construction companies, which are often budget conscious and reluctant to change established practices. In addition, lack of data showing the benefits of the new products may stymie efforts to obtain management and insurer support. 

“We don’t have dozens and dozens of years of credible before-and-after-utilization-of-technology data,” Mr. Grandmaison said. 

Construction technology is designed to improve everything from operational efficiency to subcontractor risk management. Among the most well-known types of technology-based equipment are wearables (see related story). Smartphone applications are another popular technology being used to improve safety. 

“Today, there are a plethora of useful apps that are on the market and available to users,” said Dwayne Hartman, construction loss control lead for Kansas City, Missouri-based brokerage Lockton Cos. LLC.

Mr. Hartman said some companies use these apps, and corresponding handheld devices, to do such things as monitor the air temperature to help stave off heat-related illnesses or to warn workers about getting too close to a hazardous area at a job site. 

But there are privacy concerns with certain devices that collect data related to workers. 

Companies must proactively train workforces on how to use the devices and be transparent with the workers to help allay privacy concerns, Mr. Hartman said.

Wearables are used by companies in workers comp cases to show whether an employee was following proper policies and protocol at the time of a job site injury, said Kevin O’Sadnick, senior risk control manager with St. Louis-based insurance provider Safety National Corp. 

It is important for companies to promote the technology in such a way that it is a benefit to workers, he said. 

“It does become very important when it comes to the rollout or the way these things are described or pitched to employees,” Mr. O’Sadnick said. 

For example, companies would benefit from promoting camera technology as a coaching and training tool rather than “fault-finding devices,” he said. 

Despite the difficulties in introducing the products, they will likely improve safety over time, Mr. Hartman said. 

“We are supportive of all of this technology,” Mr. Hartman said. “We think over time it’s going to be more beneficial than it even is today.” 

Adding to the difficulty in adoption, some technologies have raised concerns with labor unions over worker privacy. 

Collective bargaining agreements can stand in the way of technology adoption, said Rob McDonough, U.S. construction practice leader for New York-based broker Marsh LLC.

Richard Kennedy, U.S. workforce strategies leader for Morristown, New Jersey-based Marsh Specialty, said companies introducing new technologies need to promote the worker benefits of the devices. 

“Getting the workers to understand the value of such devices to them … and that it’s not Big Brother watching over them” is important, Mr. Kennedy said. “We’re careful to hear their concerns and to listen to their concerns and to alleviate their concerns.”

Other benefits of introducing new safety technologies include associated improvements in wellness and occupational work habits, said Greg Perruzzi, New Jersey-based senior vice president-construction vertical leader for Gallagher Bassett Services Inc. 

Mr. Perruzzi, who worked in the construction industry for two decades as a risk manager for some of the largest developers in the U.S., said informing the operational workforce on the benefits of technology is a key step toward adoption. 

In terms of return on investment, Mr. McDonough said some companies adopting the technologies can get preferential insurance rates, although he also noted that in many cases employers are not yet seeing the “actual tangible return on invested capital.” 

It is difficult to estimate when the technologies might lead to a significant reduction in comp claims, said Mr. O’Sadnick of Safety National. 

“If you can show any value, you might be able to get enough legroom to roll out a pilot program … just to run it on a trial basis,” he said. 

The cost of adopting a technology doesn’t simply relate to purchasing or licensing the product. Training, updating company documentation and attorney work to ensure legal compliance are other factors to consider.

And such costs of both adopting the technology and managing the change can make it difficult to justify. 

“The employers have to be able to see the value in the devices,” Mr. Hartman said. “It’s safe to say it’s more cost prohibitive for smaller contractors.”

 

 

 



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Contractors turn to wearable devices to monitor safety at worksites


Among the various technologies used by the construction industry to help improve worker safety, so-called wearables have attracted significant interest.

“We’ve got a lot of clients and prospects who are trying to experiment with some of these things,” said Boston-based Tom Grandmaison, executive vice president and manager of construction at Willis Towers Watson PLC. 

Examples of wearables include cameras mounted to uniforms and hardhats that are designed to warn workers about job site dangers and to help keep track of employee movement. 

Another example are devices called “exoskeletons,” which are used by workers to aid physical strength and support. 

Some of the newer products in the wearables sphere include safety devices sewn directly into reflective vests and hardhats to warn of different job site dangers such as heavy equipment moving around the workplace.

“They’re getting pretty sophisticated,” said Dwayne Hartman, construction loss control lead for Kansas City, Missouri-based brokerage Lockton Cos. LLC.

The construction industry has seen an increase in the use of wearables in the past few years, Mr. Grandmaison said, as more insurers and contractors look to the devices to “give them a leg up on monitoring what’s going on in their projects.” 

 

 



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First responder PTSD presumption bill filed in New Mexico


Police and emergency medical services first responders would have a presumptive workers compensation injury if they get diagnosed with post-traumatic stress disorder relative to a workplace incident under proposed legislation filed by New Mexico lawmakers Tuesday.

New Mexico House Bill 427 would create a presumption that post-traumatic stress disorder is proximately caused by employment for law enforcement officers and emergency services first responders if a physician or psychologist determines the diagnosis to be work-related.

The PTSD must result in physical impairment, primary or secondary mental impairment or death in order for workers to quality for comp benefits.

Under the bill, if a court subsequently determines the presumption does not apply or that the condition is not related to employment, an employer’s workers comp insurance provider shall be reimbursed for health care costs borne by the medical or health insurance plan or benefit.

If signed into law, the measure would take effect on July 1.  

 

 



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