On May 4, 2009, the Center for Disease Control (CDC) reported 279 confirmed cases of H1N1 flu infections in the United States. This article covers some of the issues employers should consider to plan and prepare for a pandemic flu outbreak and the potential impact on workers compensation programs. There are overlapping insurance issues including business continuity and workers’ compensation.
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“The 5Cs to Taking a Bulletproof Injured Worker Recorded Statement”
PLAN AND PREPARE
Business continuity plans address risk that can impact an enterprise. A pandemic event is an epidemic and employers need to assess the potential impact to their business.
Planners should consider these issues:
1- Stockpiling of antiviral drugs.
2- Stockpiling of respirators or facemasks.
3-Hygiene and use of disinfectants on surfaces touched by hands (i.e., desks, office equipment, door handles and light switches).
Please refer to the website: www.pandemicflu.gov for additional helpful hints and guidance.
IMPACT ON WORKERS COMPENSATION
Prevention
Every effort should be made to maintain an environmentally-clean workspace as possible. Employees should be reminded to wash their hands frequently and consideration should be given to distributing anti-bacterial hand cleansing lotions. Employees that show signs of having the flu should be encouraged to seek medical assistance and directed not to return to their work location until a diagnosis of the symptoms is made. Management will have to establish a policy to accommodate parents of school children who are not able to attend classes due to school closings by public health officials.
While disruptive to operations, employers must consider the cost of sporadic absences compared to having legions of employees away from work for a prolonged period.
Injury versus Illness
It is possible for employees to file workers compensation claims, alleging that they contracted H1N1 “in and out of the course of their employment”. The regulations in each state will ultimately determine coverage. If you have large concentrations of employees in a particular state (office buildings), an inquiry to the appropriate regulatory body should be made. Organizations with public contact such as retailers, security services, convention halls, etc. should also raise concerns about the appropriate coverage in the event of a pandemic event.
Finally, scenarios should be formulated and discussed with your insurance carrier, claim-handling organization and advisors. In particular, the question should be asked as to how multiple claims from a single event will be treated? That is, one claim or multiple? For clients with deductibles, the impact on your total cost can be substantial.
Michael Ferreira is the President of Safegate Risk Consulting, LLC. He has been in the insurance industry for many years and has expertise in brokerage, underwriting and claims. While in the brokerage industry, he was the client account executive for Walmart. He can be reached at: 917-767-9123.
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Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
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