It isn’t easy being a contract cleaning professional in today’s world of staffing challenges, competition, consolidation, margin pressure, rising commercial cleaning insurance costs, and more. The last thing these leaders can afford are increases in liability, auto, and workers’ compensation premiums due to claims that could have been avoided with better planning, training strategy, and staff empowerment.
Claims trigger premium increases, just as avoiding claims can reduce your premiums. For example, with workers’ compensation, a large claim — or worse, multiple small claims — can impact your rates for three years via your experience modification rate. Liability insurance carriers will raise rates or drop you altogether if your loss experience deteriorates. With commercial auto insurance, the supply is extremely limited. Rates increase due to accidents, bad driving records, and tickets with points.
So, what’s the game plan?
Pre-Loss Risk Management for Contract Cleaning Companies
Contract cleaning companies can take on contracts that bury them for years: specialists in office buildings taking on highly trafficked terminals, malls, or airports with contracts that include requirements for additional insured, waiver of subrogation, primary wording, and one-way indemnifications. All this leaves the contract cleaner with zero ability to defend a claim.
It all starts with how you bid on a job and get support from your trusted advisors: your insurance broker and attorney.
Inspecting the Janitorial Job Site for Safety
Always walk job sites to evaluate safety risks, in addition to pricing. If it is a large, non-standard, public job, walk the site with your insurance broker and carrier to evaluate the public risk. Identify and determine if you can manage physical risks, such as traffic patterns, day vs. after-hours work, and if the area has surveillance cameras.
Reviewing the Contract
Involve your broker and attorney in reviewing the contract and modify indemnification clauses to give yourself a chance to fight claims. Be disciplined. If the site inspection risk level is high and the owner will not amend the contract, it is prudent to walk away to live another day.
Emergency Preparedness and Documentation for Cleaning Crews
Documenting your processes for a number of scenarios is critical to staying ahead of issues and avoiding a last-minute rush to address an already challenging situation. Below are a few common areas you should focus on to stay prepared.
Training to Equip Your Employees: Does your janitorial staff have training, personal protective equipment (PPE), and communication tools? Do they know how to create an incident report with language that will not harm your case in court? Can you find them years later? It depends on many factors, including how they were treated as employees.
Incident Documentation and Evidence: Do you have a method to capture, store, and access an incident report three to five years from now when a lawsuit may arise? Will it note that a slip and fall occurred during the day when your staff only works after hours? Do you have access to video surveillance footage from the property owner that could be pivotal in litigation? This could capture a fraudulent workers’ compensation claim live, saving you upwards of $1 million.
Standard Operating Procedures (SOPs): Do you have written or electronic workflow documentation for every job site that you can access three to four years later for legal defense and depositions? If you can demonstrate standardization, it can help in litigation.
Preventative Equipment: Do you use the latest non-skid technology with floor treatment, cordless cleaning machines, and oversized safety cones that smart phone users — with their eyes on their phones — cannot miss? Proper safety signage should notify employees and the public of slippery walking surfaces and other applicable hazards.
OSHA Compliance and Chemical Safety: Do you document hazard communication training? Janitorial teams typically use a range of chemical products to sanitize and clean, and it is essential for the employees to understand if chemicals are hazardous or harmful when managed incorrectly. Are OSHA rules followed and Material Safety Data Sheets (MSDS) displayed?
Post-Incident Claims Management
When accidents do occur, use the tools and resources you have consistently. For example, if your employee writes, “The claimant slipped and fell on a wet surface,” in an accident report, years later in depositions it will be used against you. This is true even if the floor was mopped at 7 p.m. and the fall occurred at 10 a.m. the next morning. Coach your team to use clear, factual, and neutral language in these reports to avoid potential issues down the line.
Reviewing the physical site of the claim is essential. Was there clutter or cords placed by the tenant that could have caused the slip and fall? Were there any cracks in tile or worn or bunching carpets that should be replaced by the tenant? If the incident was due to third-party negligence, you may be able to tender the claim and reduce your loss run.
Remember, involve your insurance broker/carrier as soon as you’re able. Do they schedule claim reviews with legal defense or adjusters? Use these meetings to learn from a loss to prevent future losses. Discuss what type of litigation strategy can be utilized to limit exposure based on the injuries, venues, and contractual limitations.
Partnering for Long-Term Risk Reduction
Be diligent and leverage professional expertise. A contract cleaning professional can reduce the frequency and severity of worksite claims by adopting a comprehensive risk management program — pre- and post-incident — in partnership with their broker and carrier.
Jeff Rubin, executive vice president at HUB International Northeast, holds over 35 years of diverse experience in the insurance industry, specializing in building maintenance, window cleaning security guard, real estate, senior care facilities and healthcare. HUB International Limited is a leading full-service global insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services. With more than 19,000 employees in offices located throughout North America, HUB’s vast network of specialists brings clarity to a changing world with tailored solutions and unrelenting advocacy, so clients are ready for tomorrow. For more information, visit HUB Media Center.