Billy Smith NBIS Claims and Risk Management Tim Conlon NBIS Claims Manager

Preventing and Protecting against OSHA’s top 10 Workplace Violations

PpP Preventing and Protecting against

OSHA’s top 10 Workplace Violations

Billy Smith NBIS Claims and Risk Management

Tim Conlon NBIS Claims Manager

Top Ten in Construction with Cranes CC 1926

In This Session • We will cover the Top Ten List from OSHA for all of

Construction • We have identified and will review the top OSHA violations for

the Crane Industry • We also identified several violations for transportation and

the list of most cited violations according to DOT FMCSA • We will close with some recommendations to protect your

employees and your company from fines, penalties, and liability.

The Early History of Crane Safety Standards in the US

• 1916 – ASME Code of Safety Standards for Cranes (American Society of Mechanical Engineers)

• Between WWI & WWII – US Army & Navy created Military Crane Safety Standards

• 1943 – ANSI B30.2 Safety Codes for Cranes, Derricks, & Hoists (American National Standards Institute)

• 1968 – PCSA Standard #2 Mobile Power Crane & Excavator Hydraulic Crane Standards (Power Crane & Shovel Association)

• 1968 – ASME B30.5, Safety Code for Crawler, Locomotive and Truck Cranes

OSHA Gets Involved In Crane Safety

• OSHA created in 1971 and soon expands regulations to include a section called “Cranes, Derricks, Hoists, Elevators, and Conveyors” as Subpart N of 29 CFR part 126. This was essentially an incorporation of the AMSE B30.5 established in 1968.

• Between 1971 and 2010 (39 years) there were no new safety regulations enacted that addressed crane safety.

Crane Industry Leaders Influence Safety

• 1982 – Don Dickie founder of the Construction Safety Association of Ontario published the Mobile Crane Manual. Key innovation was on spelling out responsibilities among contractors and personnel.

• 1991 – Howard Shapiro – leading crane expert published Cranes and Derricks. Shapiro advanced Dickie’s work and pioneered the concept of a “Lift Director”

C-DAC Launched SC&RA Insurance Program Provides Useful Data

• 1998 – OSHA’s expert Advisory Committee on Construction Safety & Health (ACCSH)established a workgroup to recommend changes to the old 1970 standard.

• 1999 – ACCSH implemented a “negotiated rulemaking” process to develop the new standard.

• 1999 - SC&RA Insurance Program Manager provides detailed claim data to C-DAC committee to assist in developing recommendations

OSHA Establishes New Crane Safety Standard

• 2003 – C-DAC issued a “consensus draft” document.

• 2008 – OSHA published proposed rule

• 2009 – Public hearing held • 2010 – OSHA issued final rule

ASME Updates B30.5 Standard in 2007

• 2007 update spelled out different responsibilities essentially building on Shapiro’s work:

Crane Operator Crane Owner Crane User Lift Director Site Supervisor …all had a list of specific

responsibilities

RESPONSIBILITIES

Between 1989 & 2008 there were Four Major Crane Accidents that had a Major Impact on Crane

Safety

San Francisco Tower Crane Collapse of 1989

• Tower Crane collapsed and fell 343 ft. from 20th floor of downtown building.

• 5 killed, 19 injured including crushed school bus

• Property damage estimated at $10 million

• Crane operator was inexperienced.

• Accident led to public outcry that crane operators be trained.

“Big Blue” Collapse at Miller Park Baseball Stadium in Milwaukee

• “Big Blue” – One of the largest Heavy Lift Cranes in North America at the time

• July 1999 – crane attempted to lift 400+ ton roof section in high winds

• Lift was performed over objections of Riggers & Ironworkers and Operators

• This accident resulted in 3 killed, five injured and several hundred million in property damage.

• Accident raised industry safety awareness right at the time C-DAC was developing the new OSHA safety standard

New York City – Two Tower Cranes Collapse in 90 Days

• March 2008 – East 51st St. Tower Crane collapsed during “jumping” operation

• 7 dead, 24 injured, several buildings damaged and millions in property damage.

• Accident occurred from deviation and improper rigging procedures during jump

• This accident resulted in 3 killed, five injured and millions in property damage.

New Crane Standard Was Designed to Reduce the Three Leading Causes of Crane Accidents

1)Crane Operator Error 2)Ground Conditions 3)Powerline Hazards

In Order to Address these Key Crane Accident Causation Factors OSHA Developed a “One-Two Punch” Approach

1) Multi-Employer Doctrine 2) Controlling Entity

Under New Crane Standard OSHA Now Has More Enforcement Power

• OSHA has used the new Crane Standard to expand its enforcement powers under the:

Multi-Employer Doctrine

(controlling entity)

What is the Multi-Employer Doctrine?

“An employer who controls or creates a worksite safety hazard may be liable under the Act (OSHA) even if the employees threatened by the hazard are solely employees of another employer.”

OSHA Also Created an Entirely New Concept Called the “Controlling Entity”

This concept is not found in any other OSHA standard. This creates new regulatory responsibilities for certain jobsite safety issues among other trades other than just the employer (which has always been the main area of OSHA authority)

Controlling Entity

What is the “Controlling Entity?”

The Standard defines “Controlling Entity” as follows:

An employer that is a prime contractor,

general contractor, construction manager or any other legal entity which has overall responsibility for the construction of the project – its planning and completion.”

Controlling Entities’ Responsibilities

Responsibilities of Controlling Entities:

OSHA 1926.1402 assigns controlling entities specific responsibilities for ensuring that ground conditions necessary for cranes on construction sites are safe.

New OSHA Standard Creates a “New Hierarchy” in Crane Safety

As a result, OSHA’s enforcement capabilities have an extended reach to all contractors working on a jobsite where there is a working crane. Therefore all contractors will be responsible for safety procedures of their own employees working near the crane and for training their employees to follow safe crane procedures.

These regulations have created a new hierarchy for crane safety consisting of the following entities:

• Employers • Users of Equipment • Utility Company Owners/Operators • Controlling Entities

22

Top Ten for all of OSHA

Top Ten for all of OSHA

Penalty Box

Penalty Box

OSHA CRANE VIOLATIONS NEW RULE CC 1400 Oct 2014 to Sept 2015

What is OSHA finding? (last year) How are we doing? What should I be looking for in my company?

1926.1402 Ground Conditions

1926.1404 Assembly / Disassembly

1926.1408 Powerline Safety (up to 350kv)

1926.1412 Inspections

1926.1413 Wire Rope Inspection

1926.1417 Operation

1926.1419 Signals

1926.1424 Work Area Control

1926.1425 Keeping Clear of the Load

1926.1428 Signal Person Qualifications

1926.1430 Training

1926.1431 Hoisting Personnel

1926.1437 Floating Cranes and Land Cranes on Barge

Top 10 Loss Categories Crane & Rigging

Specialized Carriers Industry data compared to NBIS Claim Data

Claim Data Developed from NBIS Insurance Program Claim Data from 2009 to 2016

Crane & Rigging Top Ten Loss Types Based on Severity - Total Paid

1) Dropped Loads $6.6M 2) Bodily Injury $5.6M 3) Property Damage $5.4M 4) Overturned Crane $5.0M 5) Contract Risk Transfer $3.5M 6) Boom/Jib Strikes Worker $1.4M 7) Rigging Failure $1.0M 8) Hook/Block Strikes Worker $500k 9) Load Falls from Forklift $400k 10)Objects Fall Off Load $300k

Source: Crane Related Fatalities in the Construction Industry, ASCE’s Journal of Construction Engineering & Management (September 2006)

#1 - Dropped Loads

• Total Paid: $6.6M • Average Paid

Claim: $140k • Claim Frequency:

47 claim reported Risk Management Alert – High Severity Potential

# 2 – Bodily Injury

• Total Paid: $5.6M • Average Paid Per

Claim: $25k • Claim Frequency:

224 claims reported Risk Management Alert – High Severity & Frequency Potential

# 3 – Property Damage

• Total Paid: $5.4M • Average Paid Per

Claim: $12k • Claim Frequency:

451 claims reported Risk Management Alert – High Frequency & Severity Potential

# 4 – Overturned Crane

• Total Paid: $5M • Average Paid Per

Claim: $165k • Claim Frequency:

30 claims reported

Risk Management Alert – High Severity Potential

# 5 – Contractual Risk Accepted AI Tenders

• Total Paid: $3.5M • Average Paid Per

Claim: $81k • Claim Frequency:

43 claims reported

Risk Management Alert – High Severity Potential

# 6 – Boom/Jib Strikes Claimant

• Total Paid: $3.5M • Average Paid Per

Claim: $81k • Claim Frequency:

43 claims reported

Risk Management Alert – High Severity Potential

# 7 – Rigging Failure

• Total Paid: $1M • Average Paid Per

Claim: $35k • Claim Frequency:

29 claims reported

Risk Management Alert – High Severity Potential

# 8 – Hook/Block Strikes Worker

• Total Paid: $500k • Average Paid Per

Claim: $21k • Claim Frequency:

24 claims reported

Risk Management Alert – High Severity Potential

# 9 – Load Falls From Forklift

• Total Paid: $400k • Average Paid Per

Claim: $21k • Claim Frequency:

19 claims reported

# 10 – Objects Fall Off Load

• Total Paid: $300k • Average Paid Per

Claim: $43k • Claim Frequency:

7 claims reported

Risk Management Alert – High Severity Potential

Signs of Safety Improvement for Industry

These categories were previously on the “Most Wanted” List of Industry Safety Loss Prevention

Priorities

• Powerline Contact - Ranking dropping now 16th –

• Ground Conditions – Ranking dropping now 15th -

• Two-Block – only 4 claims in 6 years

US Department of Transportation Increases Involvement In Trucking Safety

• Federal Motor Carrier Safety Administration (FMCSA) created on January 1st, 2000.

• Key programs created:

– Compliance Safety Accountability (CSA)

– Hours of Service (HOS) & Driver Restart Study

– National Registry

FMSCA 2014 Critical Violation Summary

• Key Fatality Factors • Compliance Based on

Fleet Size • Top Acute Violations • Top Critical Violations • Key Roadside Inspection • Violations

Top Driver Related Factors for Fatal Crashes National Highway Traffic Safety (2014)

• Speeding – 262 fatalities reported in 2014 due to speeding

Distracted Driving Fatalities Now Exceed Drunk Driving

• Speeding – 230 fatalities reported in 2014 due to distracted driving

• 18 y/o driver had sent 8 text message to his girlfriend 0-2 mins prior to impact 18 y/o Pick is folded between truck and bus

2014 Compliance Reviews by Fleet Size

• Very Small - 1-6 Power Units 41% • Small - 7-20 Power Units 30% • Medium - 21-100 Power Units 20% • Large – 100 or more Power Units 9%

Top 10 Acute Violations (2014)

Lack of Drug & Alcohol Program Leads Violations

• Failure to Implement Alcohol & Drug Testing Program - 13%

• Failing to Implement Random Drug Testing - 16%

Top 10 Critical Violations (2014)

Lack of Record-Keeping Leads Critical Violations

• Failing to Require Driver to Prepare Inspection Report - 32%

• No Driver Record of Duty Status – 11%

Roadside Inspections: Vehicle Violations (2014)

Inoperative Turn Signal Leads Roadside Inspection Violations

• Inspection/Repair and maintenance of parts & accessories - 20%

• Inoperative Turn Signal – 41%

Top 10 Moving Violations

Speeding Leads Moving Violations By Long Shot

• 6-10 MPH Over - 16%

• 11-MPH or Over – 10%

Specialized Carriers Ten Loss Types Based on Severity - Total Paid

1) Rear-end $2.6M 2) Head-on $2.5M 3) Side Impact $2.1M 4) While Turning $2.1M 5) Multi-Vehicle $900k 6) Sideswipe While Passing $840k 7) Rollover $400k 8) Backs Into/Rolls Back $150k 9) Load Securement $130k 10) Struck Parked Vehicle $115k

#1 – Rear-ends

• Total Paid: $2.6M • Average Paid

Claim: $26k • Claim Frequency:

102 claims reported

Risk Management Alert – High Severity Potential

# 2 – Head-On Collisions

• Total Paid: $2.6M • Average Paid

Claim: $258k • Claim Frequency:

10 claims reported

Risk Management Alert – High Severity Potential

# 3 – Side Impact Collisions

• Total Paid: $2.1M • Average Paid

Claim: $17k • Claim Frequency:

122 claims reported

Risk Management Alert – High Frequency & Severity Potential

# 4 – While Turning Collisions

• Total Paid: $2.1M • Average Paid

Claim: $32k • Claim Frequency:

66 claims reported

Risk Management Alert – High Frequency Potential

# 5 – Multi-Vehicle Collisions

• Total Paid: $920k • Average Paid

Claim: $20k • Claim Frequency:

47 claims reported

Risk Management Alert – High Frequency & Severity Potential

# 6 – Sideswipe

• Total Paid: $840k • Average Paid

Claim: $26k • Claim Frequency:

32 claims reported

Risk Management Alert – High Frequency Potential

# 7 – Rollover

• Total Paid: $400k

• Average Paid Claim: $21k

• Claim Frequency: 19 claims reported

Risk Management Alert – High Frequency & Severity Potential

# 8 – Powerline Contact

• Total Paid: $274k • Average Paid

Claim: $10k • Claim Frequency:

28 claims reported

# 9 – Load Securement

• Total Paid: $135k • Average Paid

Claim: $3k • Claim Frequency:

47 claims reported

# 10 – Struck Parked Vehicle

• Total Paid: $110k

• Average Paid Claim: $3k

• Claim Frequency: 27 claims reported

Signs of Safety Improvement for Industry

These categories were previously on the “Most Wanted” List of Industry Safety Loss

Prevention Priorities

• Backing Into/Roll Backwards – claims down

• Motorcycle claims down – only 3

• Fire claims down – only 4

Cranes in Transit Loss Types Based on Severity - Total Paid

1) Rear-end $1.5M 2) Multi-Vehicle $1.4M 3) Struck Pedestrian $1.4M 4) While Turning $1.3M 5) Head-On $770k 6) Sideswipe While Passing $650k 7) Rollover $530k 8) Merging $510k 9) Struck Fixed Object $480k 10) Crane Pulls Out $370k

#1 – Crane Rear-ends

• Total Paid: $1.6M • Average Paid

Claim: $6k • Claim Frequency:

277 claims reported

# 2 – Crane Multi-Vehicle

• Total Paid: $1.4M

• Average Paid Claim: $20k

• Claim Frequency: 68 claims reported

# 3 – Crane Struck Pedestrian

• Total Paid: $1.3M

• Average Paid Claim: $195k

• Claim Frequency: 7 claims reported

# 4 – Crane Hits While Turning

• Total Paid: $1.3M

• Average Paid Claim: $18k

• Claim Frequency: 74 claims reported

# 5 – Crane Head-On

• Total Paid: $770k • Average Paid

Claim: $153k • Claim Frequency:

5 claims reported

# 6 – Crane Side-Swipe

• Total Paid: $635k • Average Paid

Claim: $12k • Claim Frequency:

50 claims reported

# 7 – Crane Roll Over

• Total Paid: $535k • Average Paid

Claim: $30k • Claim Frequency:

18 claims reported

# 8 – Crane Merging

• Total Paid: $510k

• Average Paid Claim: $51k

• Claim Frequency: 10 claims reported

# 9 – Crane Struck Fixed Object

• Total Paid: $480k

• Average Paid Claim: $7k

• Claim Frequency: 68 claims reported

# 10 – Crane Intersection Hit

• Total Paid: $400k

• Average Paid Claim: $7.5k

• Claim Frequency: 54 claims reported

Case Study – Parking Garage Collapse

• $20M claim • No Liability on

Crane • Good Contract

protected Crane Company & their Insurance Co.

• Legal Fees Reimbursed

Case Study – Heavy Haul Trial

• Oversized Load • No Liability • Fatality • Claimant Driver

Married Mother of 8

• No Excess Coverage

In Closing

• Training and documentation (recordkeeping) • Responsibilities (internal and external) • Management Culture • Equipment Maintenance • Contract Risk Transfer (Terms and Conditions) • People (meat in the seat) • Claim Expertise • Avoid Hammer (selection)

We leave with this: Where does Safety start ad end ???