For many years, PHCC and Corporate Partner Federated Insurance have had a joint Insurance Safety and Risk Management Committee (IS&RM). Made up of contractors, a PHCC state executive, PHCC National staff, and a representative from Federated Insurance, this committee provides a nationwide view of the broad exposure to the everyday risks of business owners. The committee meets virtually in the winter to pose questions to Federated. The winter meeting sets the stage for a summer in-person meeting hosted at the Federated Training Center in Owatonna, Minnesota. The summer IS&RM meeting, which took place last week, produced several recommendations on topics to share with PHCC members.

–Lithium-Ion Batteries: One of the recent points of emphasis has been related to losses from fires. In connection with this, there is growing concern for the use of Lithium-Ion Batteries. Today, most of us use these batteries routinely in laptops, smart phones, smart watches, vape devices, and a wide selection of cordless tools. The committee watched this Vape Video to see an example of what could happen. Larger batteries which store more energy can produce larger fire risks, fires that are difficult to extinguish. Some recommended best practices could include:

• Inspect batteries for damage of cracks.
• Be very careful with batteries that have been dropped or impacted.
• Never puncture a Lithium-Ion battery.
• Do not overcharge batteries.
• Do not use after-market batteries or chargers unless certified for use with your tool.
• Avoid charging batteries unattended, this means overnight when no one is watching.
• Avoid excessive heat, most Lithium-Ion batteries have a maximum temperature range of -5 to 140 degrees F. Storing or charging batteries in enclosed vans on hot summer days can increase risks.
• Dispose of Lithium-Ion batteries properly, these batteries may cause fires in the trash/waste stream.
• Follow the manufacturer’s instructions and recommendations.

–Non-Compete Agreements: The Biden Administration had advanced work rules which would have prevented the use of non-compete and non-solicitation agreements in most job situations. These proposed federal rules are no longer in-play but many states still have their own regulations. A non-compete agreement prevents former employees from working in competition with their former employer subject to some conditions such as time frame or geographic area. A non-solicitation prevents a former employer from soliciting clients or employees of their former employer, again subject to some conditions. If a business owner chooses to start using these agreements again, seek legal advice regarding your state or federal situation. Some ideas to consider are:

• Make allowance for involuntary separation, if you don’t have enough business to employ people, it may be unfair to prevent them from seeking work.
• Set a reasonable time frame, 2 to 5 years may be reasonable, for an eternity may not be reasonable.
• Set reasonable geographic boundaries, anywhere in the world is likely not enforceable while within 50 miles of your typical business territory might be reasonable.
• You may still protect confidential and proprietary information provided the information is actually confidential or proprietary.
• For new adopters of these policies, emphasize they are to protect the company and the employees’ jobs, perhaps using small signing bonuses if necessary.
• Always seek legal advice to keep in line with federal and state regulations.

–Distracted Driving: Motor vehicle claims continue to increase in the value of settlement losses. Commercial businesses are particularly at risk as business owners are seen as deep pocket targets. Investment groups have been buying claims from injured parties with the aim of pursuing larger and larger settlements. Distracted driving continues to be a significant factor, cell phone usage being a major contributor. Phone in hand or hands free makes no difference, anything that takes your mind off driving can be hazardous. Federated Insurance will focus and support their emphasis this year with the following thoughts:

• Distracted driving is a choice!
• Phone usage, book reading, eating food, watching movies, even changing GPS information can all lead to accidents.
• Employers need to train employees and work to verify compliance.
• Compliance starts at the top, the boss must set the example, no exceptions or excuses.
• Telematics and dashboard cameras can improve compliance or save the day when false claims are made.
• Understand we don’t multi-task, we task-shift; the brain does one thing at a time.
• At 60 miles per hour, 500 feet goes by in 6 seconds, a lot of things can happen in 500 feet.

The PHCC – Federated partnership provides many benefits for PHCC members with some Federated content available for all PHCC members, even non-Federated clients. PHCC thanks Federated for their long-standing partnership and appreciates their hospitality at this annual meeting. There is always something to learn, together these two organizations work to raise the knowledge of our industry. Thank you to all the topic specialists at Federated with special thanks to Patrick Cunningham and Teri Thompson for making these meetings so valuable and rewarding.