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Preventing Construction Job Site Theft

Although it is important for companies to trust their workers and the general public, the unfortunate reality is that theft can happen at any time. This is particularly true in the construction industry, where expensive tools and machinery are often left in plain sight or are easily accessible to criminals.

Construction site theft is especially damaging, as the theft of materials and tools can quickly delay a project, sometimes bringing production to a halt. What’s more, many construction workers pay for their own tools and, in the event of a robbery, may have to recoup losses out of their own pockets.

General Tips

While every job site presents its own set of unique challenges, there are a number of general tips firms can use to better secure a construction site.

The following are some basic strategies you can use to protect your materials and tools from thieves:

  1. Create a written security policy and job site security plan. These written plans should assign supervisory responsibilities, encourage awareness and establish basic best practices for securing tools and materials.
  2. Contact nearby property owners and local law enforcement officials whenever you start a new project. These parties can help monitor your job site, particularly during off-hours.
  3. Establish a means for your employees to report theft or suspicious activity. Be sure to maintain complete records of any security incidents, as they can be beneficial to law enforcement in the event of theft, vandalism or similar occurrences.
  4. Conduct thorough background checks on your employees before hiring them on full time. You should also keep a list of people authorized to be on the job site on hand at all times.

Worksite Protections

Equipping your worksite with theft-prevention features is mandatory if you expect to ward off potential criminals. Whenever possible, consider doing the following:

  1. Enclose your worksite with a security fence and provide limited access at all times. Use lockable gates whenever possible. Avoid using low-quality locks or leaving keys in the locks themselves.
  2. Ensure that your worksite is well lit at night to deter criminals.
  3. Utilize signage to keep unauthorized personnel off your worksite.
  4. Walk around the worksite at the beginning and end of each day to ensure that no items are missing.
  5. Consider hiring security guards to patrol the construction site, particularly at night.

If possible, install security cameras to safeguard your job site. Overall, training employees on how to best keep materials and equipment out of the hands of thieves is your first line of defence against losses.

Controls for Equipment, Tools and Materials

The number of tools and machinery found on a construction site can vary heavily from day to day, making it difficult to keep track of valuables. That’s why the first step in any good protection program is to inventory the equipment you have.

An inventory should be made available for each job site and should accomplish the following:

  • Inventories should track all newly purchased items. Copies of the inventory should be kept in a secure location.
  • Inventories should be up to date and include photos of the larger, more important equipment.
  • To aid in the settlement and recovery of any stolen equipment, inventories should include the following:
    • The original date of purchase
    • The original cost of the equipment
    • The equipment’s age and serial number
    • Relevant manufacturer information

Firms should assign one employee to be in charge of managing the inventory. This person would be responsible for keeping track of all materials, tools and deliveries.

Other major steps to securing equipment, tools and materials include the following:

  • Utilize a secured area to store your equipment.
  • Mark and label all tools in a distinctive manner for easy identification.
  • Implement a checkout system of all tools and equipment so you can track their whereabouts.
  • Establish a key-control system for heavy duty machinery.
  • Install anti-theft devices on mobile equipment.
  • Lock all oil and gas tank caps.
  • Park all equipment in a centralized, well-lit and secure area.
  • Avoid using your worksite for storage. Remove any tools, materials or equipment that are not in use.

In general, it’s important to keep inventory levels low on-site to discourage thieves. In addition, creating and maintaining an equipment program can make all the difference when it comes to safeguarding your tools.

Equipment programs should make employees, managers, supervisors and foreman responsible for equipment losses. Under such programs, all losses are must be reported, regardless of how small. You should review equipment programs at least annually.

Protect Your Projects

Theft is unpredictable, but there are many workplace controls that firms can implement in order to protect themselves. In addition, it’s important to speak to a broker to seek the appropriate insurance coverages.

© Zywave, Inc. All rights reserved


IT Security Is a Top Challenge for Firms around the World

A recent survey conducted by Protiviti and the Information Systems Audit and Control Association (ISACA), found that cyber security, privacy issues, infrastructure management and emerging technologies rank as the top IT challenges facing organizations today.

The annual survey—A Global Look at IT Audit Best Practices—gathered responses from over 1,000 IT audit professionals and focused on emerging technology, IT implementation, audits, risk assessments and hiring practices. Respondents were asked to name their greatest technology or business challenges.

The following were the top 10 responses:

  1. IT security, privacy and cyber security
  2. Infrastructure management
  3. Emerging technology and infrastructure changes
  4. Resource, staffing and skills challenges
  5. Regulatory compliance
  6. Budgets and controlling costs
  7. Cloud computing and virtualization
  8. Bridging IT and the business
  9. Project management and change management
  10. Third-party and vendor managementIn order to protect themselves and stay current on emerging risks, experts recommend that organizations continually review the IT risk landscape and adjust IT audit plans accordingly.

The survey also found that, while 90 per cent of large organizations conducted an IT audit risk assessment, only a little more than half of them did so on an annual basis.

© Zywave, Inc. All rights reserved


Key CASL Provisions Come Into Force July 1, 2017

Canada’s Anti-spam Legislation (CASL), which regulates the sending of commercial electronic messages (CEMs) and requires entities that distribute them to obtain prior consent, came into force on July 1, 2014. While many aspects of CASL have been in effect for years, key provisions—including the private right of action (PRA)—will be imposed beginning July 1, 2017.

Essentially, PRA allows individuals and enterprises to file a lawsuit in court if they feel they have been affected by a violation of CASL. PRA also opens the door for anti-spam class action lawsuits, with maximum damages capped at $1 million per day. PRA violations can be costly for organizations, and monetary penalties can occur if a business does any of the following:

  1. Sends CEMs that violate CASL ($200 per breach and up to a maximum of $1 million for each day noncompliant conduct occurred)
  2. Alters the transmission data of a CEM (a maximum of $1 million for each day noncompliant conduct occurred)
  3. Installs apps or other computer programs that violate CASL (a maximum of $1 million for each day noncompliant conduct occurred)
  4. Scraps, generates or accesses electronic addresses in violation of the Personal Information Protection and Electronic Documents Act (PIPEDA) (a maximum of $1 million for each day noncompliant conduct occurred)
  5. Sends CEMs with false or misleading information ($200 per breach and up to a maximum of $1 million for each day noncompliant conduct occurred)

Moreover, beginning July 1, 2017, transitional implied consent expires, and organizations will need to obtain express or implied consent prior to sending CEMs. Failing to do so could leave businesses exposed to significant monetary penalties under PRA. In order to prepare for PRA and the end of transitional provisions, organizations are encouraged to review their compliance programs.

© Zywave, Inc. All rights reserved


Exposures Pizzerias Must Address

All restaurants share similar exposures that if left unaddressed can cripple their operations. Pizzerias are not exempt from such risks and, in fact, carry a number of unique exposures of their own.

In order to protect your business, it is important to identify and address all risks related to managing delivery drivers, accepting online orders, handling food, liquor liability and more. Doing so can safeguard your operations from serious financial loss, business interruption or even legal action.

Property

As a business owner, you are dependent on the property you own or lease to carry out your operations. This can include expensive items like pizza ovens, commercial ranges and coolers. If this property is damaged or destroyed, your business may be forced to recoup thousands of dollars in losses.

As a first step to protecting your pizzeria, it is critical that you evaluate your property and determine which pieces are most critical to keeping your business running. For many pizzerias, equipment such as ovens, refrigeration units, fryers and other commercial cooking units are the most necessary items they own. These units are often expensive and difficult to replace on short notice.

Next, it is important to consider which perils are most likely to cause damage to your property. Having to bake and freeze a large amount of food products means that fire and water are the most common sources of property damage for most pizzerias. Accordingly, it is vital that all large pieces of equipment that use water or heat are inspected and maintained on a regular basis.

It is important to determine the replacement cost of all of your property, including furniture, fixtures, goods, smallwares and equipment. Only after doing so will you know the amount of insurance cover you need to adequately protect your property and equipment.

Delivery Liability (Non-owned Vehicles)

One of the most unique exposures related to pizzeria operations relates to delivery drivers. Even if delivery drivers have their own auto insurance, restaurant owners can be held responsible for accidents that happen to drivers delivering their product. And these accidents can be costly—sometimes millions of dollars.

As such, pizzeria owners should take the following precautions:

  • Obtain a copy of relevant vehicle records for all delivery drivers at the time of hire and keep track of any violations that may impact your business.
  • Inspect the delivery vehicle to ensure it is safe. Specifically, pizzeria owners should check the horn, mirrors, brakes and windshield wipers.
  • Avoid instructing drivers to rush. While getting pizza to customers in a timely fashion is important, accidents are far more costly than late deliveries.
  • Hold regular safety classes for drivers.
  • Purchase non-owned auto insurance to insure bodily injury and property damage caused by vehicles not owned by your business. Or, if you have the funds, purchase vehicles and create your own delivery fleet. These vehicles could then be protected under a regular commercial auto policy.

For more protection, it is important to hire mature drivers with good driving records.

Food Safety

Food safety should be the number one priority for any restaurant, particularly because you are dealing with the health and safety of your customer base. Food poisoning caused by contaminated menu items can lead to widespread illness and even death.

Keep in mind that food poisoning can be caused by more than just bad product, and pizzeria owners will also need to take into account things like spoilage or contamination. Power outages and natural disasters can all cause food contamination, resulting in lost product or potentially harming your customers. What’s more, these events are often unpredictable and out of your control.

Ensuring that your pizzeria is clean and serves fresh, safe food to patrons is your greatest responsibility. To protect your business, consider doing the following:

  • Join your province’s restaurant association. Check the federal and provincial online resources regarding food safety rules.
  • Perform regular self-inspections of your operations. Some typical considerations include the following:
    • How are foods cooked, cooled and reheated? How often and in what way are temperatures recorded? Are thermometers functional?
    • How are potentially hazardous raw foods prepared and served?
    • What is your food labelling process?
    • Where and how is food washed and prepped?
    • When, how and by whom is equipment cleaned and sanitized?

Liquor Liability

Serving alcohol to patrons is a great way for pizzerias to increase their overall profitability. However, anytime a restaurant serves alcohol, new risks emerge. ​​​Anyone involved in the serving of alcohol could be held liable for damages or injuries that occurred when alcohol is deemed to have been a contributing factor in the incident.​ Your organization may be held responsible for the actions of others if people are served past the point of intoxication.

To protect your business and employees, it is imperative to establish procedures that ensure that patrons are never overserved. All servers, bartenders and managers should be trained to identify individuals who are intoxicated.

Customer Data Breaches

Pizzerias are unique in that customers may never have to step foot into a brick-and-mortar store, instead relying on ordering online. And while online ordering is quick and convenient, it opens customers and pizzerias to attacks from cyber criminals. Personal information, credit card information and more are all at risk.

As such, pizzerias should keep all firewall and security software up to date. Maintaining a breach response plan can also help you get back online faster in the event of an attack, limiting overall losses.

Injuries

Owning or leasing a premise creates a range of exposures, including slips, falls and food-related illnesses. While general liability insurance will protect you if anyone is injured on your property, it’s important for pizzeria owners to take the following precautionary measures to limit risk:

  • Utilize security cameras to help document incidents and prevent fraudulent liability claims.
  • Document any and all incidences, noting the cause and what actions were taken.
  • Maintain a good relationship with a customer in the event of an incident.
  • Keep up with maintenance responsibilities outlined in leasing agreements, if applicable.

Employment Practices

Pizzerias are often small operations, making them a higher risk for employment-related liabilities. In fact, more than half of all claims filed for employment-related liabilities are against employers with fewer than 50 employees.

Employment-related claims can be extremely costly, especially in cases that drag on for years. Lawsuits filed for wage and hour violations are especially common for restaurants. Accordingly, it is important that your organization understands and complies with all applicable labour and employment laws.

More Information

While pizzerias are not unlike other restaurants, their unique exposures must not be overlooked. Contact your broker for assistance with finding the appropriate insurance coverage.

© Zywave, Inc. All rights reserved


Ways to Avoid Employment-related Liability

Employment-related lawsuits can occur for a variety reasons. Even something as common as a disgruntled employee who has been terminated for legitimate reasons can trigger legal action.

The fact remains that litigation can occur at any time, most often without warning. Employers who are not prepared for this could face expensive and embarrassing consequences as a result of a lawsuit.

To protect themselves, organizations should keep in mind the following tips to avoid employment-related liability:

  • Review and update your employee handbook. In the event of legal action, outdated employee guidance can create inconsistencies with your policies, which can look bad during a lawsuit.
  • Train supervisors and managers so they know how to respond in certain situations—particularly if workplace harassment is reported or observed.
  • Review your exit interview process to ensure they are conducted in a fair manner and are designed to gather vital information related to turnover and workplace culture.
  • Conduct wage audits and conduct performance evaluations to ensure that employees feel valued and that you have a system in place to provide fair compensation.

© Zywave, Inc. All rights reserved


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