Insurance company requiring spark arrestors

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I decided to post this here as well as the Dust collection forum because it may be a new woodworking business requirement.
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We are a now an 8 man shop finally making progress towards digging out of the hole that the housing crash put us into.
Replace failing computers, repairing equipment, looking at giving employees long overdue raises, repay myself for the second mortgage on my home to keep the business afloat. Sounds familiar Huh!

At the beginning of the year we changed insurance companies. As fate would have it our lead man had an incident with a pin gun borrowed from another employee.
He was really considerate towards minimizing the work comp claim and was back to work as shortly.
The insurance company requests a loss control inspection. We oblige the request and what does my insurance agent email back to me.
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Hi Lee,

S..... Insurance informed me that they have the following 4 recommendations for you following the recent loss control inspection:

1). Insured is currently missing spark arrestors in the ductwork and ventilation systems

2). The sawdust should be vacuumed and not blown down on all horizontal structures. Vacuuming should be completed more than on an annual basis.

3). Adding safety features to the Equip staple guns will not allow a nail to be released unless the tip is against a restricting surface (WC claim on 1/23/14)
(employee's personal pin gun)

4). A formal forklift training and evaluation program should be established

S..... Insurance is requiring compliance with recommendations “1” and “2” as these are critical to the prevention of fires and any combustible hazards associated with your line of business. S..... Insurance will be following up on the status of these items in mid-August to see how you are progressing with these recs.

E... will be contacting you in the next couple of days to discuss these items. Take care and have a great day!
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I called my agent and told him we have no money for spark arrestor equipment, but would look at it in the future as a goal as profitability returns. My agent informed me that this was not really a request but a requirement or they would drop my coverage. He checked with my prior insurance company to see if this was out of line. They said this spark arrestor requirement is the new norm and would be requiring it on new policies.
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Have any of you come across this new joy in running a small business?

Dave Grulke

Lee-

It’s not particularly surprising to me that an insurance company would “strongly encourage” you to do everything you can to prevent a combustible dust explosion. The Cabinet Makers Association recently produced an hour long webinar on that subject, and the recorded version of that session is available in our library for viewing.

General housekeeping has always been an insurance company concern. And better housekeeping impacts insurance premium costs. It’s not just the insurance company that is driving such health and safety concerns. OSHA has been increasingly more active in seeking out and fining woodworking businesses for combustible dust hazards. We all saw wood and therefore create dust. How the dust is handled makes the difference in being a victim or a hero and will impact your costs of doing business.

I’d further suggest that perhaps the insurance company you now have may not be the best fit for your business. The very best fit for an insurance company would be one that understands your business and perform the role of a valued partner and trusted consultant in helping you run a healthy, safe and profitable enterprise.

There are a handful of insurance companies that specialize in insuring woodworking businesses. You can find several of those companies listed in our associate member listings at the CMA website. Here's the link:

http://www.cabinetmakers.org/associates/associate-members-listing/

Kee
p us posted on how all this works out for you.

Combustible Dust Webinar

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JRutter