https://completemarkets.com/Article/article-post/1637/SALES-MARKETING-MODULE-IV/
Sales & Marketing: Module Iv
SALES & MARKETING: MODULE IV INTRODUCTION The material in this module gives you suggested step-by-step approaches to selling Life insurance, explaining in depth each of the seven 'Action Steps to the Sale' that were originally outlined in the 'Life Personnel' section of your Agent's Guide under 'Training.' Here's a quick overview of those steps: Prospecting Pre-Approach Setting the Appointment Qualifying Interview a. Establish trust, needs recognition, premium commitment b. Gain agreement to take a closer look c. Conduct comprehensive fact-find Presentation/Close Policy Delivery/Client Building Obtaining referred leads These steps all work together to form the sales process. At the end of this introduction, you'll find illustrations that show how these steps work together to put you on an 'Action Track' for selling. This 'Sales and Marketing' section goes into each of these steps in great detail, outlining how to accomplish each one and how they work together, and providing you with proven selling language to use at each step along the way. The steps can be used for selling both Personal and Business Life insurance. However, note that we have centered this discussion around the selling of Personal Life insurance. The different aspects of selling Business Life insurance can be found under 'The Business Life Sale' in this section. The material in this section was developed by Nordhaus Marketing in conjunction with Kinder Brothers & Associates, Life insurance managing and marketing consultants. The language and techniques presented here have all been field-tested by major multi-line carriers, and they work. Use this material to develop a Life insurance selling process within your agency-you can train yourself to sell Life or train a new Life producer to sell it the way you want it sold. PROCESSES APPLY TO ALL LIFE AND FINANCIAL SERVICES SALES The processes described in this section for each of the seven action steps will apply in general to just about any Life sale you are going to make, no matter whether you bring in a Life insurance salesperson, train your own people to sell, or opt for another choice in setting up your Life Department (these choices and their implications are outlined in the 'Life Operation Options' section of this Agent's Guide). In other words, the language and techniques we present are universal to the general Life/Health/Disability sale. However, if you have P/C producers and/or CSRs who are also going to sell Life, they will have to know how to make the transition from the P/C sale into the Life sale and its language. So, we have included, after our explanation of the seven action steps, a section on making the transition from the P/C sale. You'll notice that we have approached all this material by addressing 'you'-'you should say this,' or 'you should do that' to make an effective Life sale. The 'you' we are addressing is anyone who is going to be performing that actual step in the sales process. Your CSRs may be performing part of the steps by sending letters and making appointments; your P/C producers, as noted, may be selling some Life insurance; you, the agency principal, may be doing some selling; or you may have full-time Life producers making the entire sale. In any case, we are addressing whoever it is in your agency who will perform that part of the sales process. More information on distributing the responsibilities for Life insurance in your agency can be found in the 'Life Personnel' section of this Agent's Guide. TWO-CALL SALES PROCESS You'll also notice as you read through this 'Sales and Marketing' section that the emphasis is placed on making a two-call sale. The qualifying interview is your first call, where you qualify the prospect and gather necessary information. You then take that information back to the office to prepare for the second call-the presentation/close-where you actually make the sale and collect the premium. There is a specific reason for encouraging this two-call sales process. Our research and experience has shown that many P/C agents are reluctant to bring a Life insurance person into the agency. Why? Because P/C agents are often unfamiliar with the Life sales process and are afraid of turning over all their P/C accounts, which they worked so hard to obtain, service, and retain, to a Life person, who might just 'barrel through' them and lose the P/C business. The two-call process eliminates this fear by mandating that the Life insurance salesperson bring all the information gathered in the first interview back to the office for assessment and review. This enables the P/C agent to know what has been said and what's being done with his or her accounts. The two-call sales process will help foster the trust relationship that is so necessary to the success of a Life insurance department in a P/C agency. Of course, there will be times when a one-call sale is necessary or more cost effective-when the need is so dominant that it's obvious what should be sold. That's why we've included information in this 'Sales and Marketing' section on the dominant-needs sale, when it's appropriate, and how to go about making it. But until a trust relationship has been established between your Life and P/C departments, and until you, the P/C agent, feel comfortable with the Life insurance sales process, we encourage use of the two-sale concept. The seven Action Steps can be used and adopted for all types of Life insurance sales, from the simplest Term sale to the most complicated total financial planning sale. In the 'Sales Campaigns' section, you'll find more detailed information and marketing ideas for specific types of Life insurance. ACTION STEPS ACTION TRACK Seven Action Steps EXPLANATION OF THE PROCESS Action Step 1: Prospecting building a reservoir of prospects Action Step 2: Pre-Approach sending letters to prospects to prepare them for appointment setting Action Step 3: Setting the making contact to sell the agency's concept and set Appointment the time and date of the initial appointment Action Step 4: Qualifying face-to-face meeting where you probe to find out Interview needs, desires, and buying motives, and where you conduct an extensive fact-find to gather necessary information Action Step 5: Presentation/ the buying interview during which you present your Close insurance proposal and sell the prospect on the program Action Step 6: Policy Delivery/ the process of turning the new customer into a Client. Building loyal and long-time client, beginning with a personal delivery of the policy Action Step 7: Obtaining, getting qualified leads from clients that you can. Referred Leads feed back into your prospect reservoir to begin the process over again ACTION STEP 1: PROSPECTING A sale must begin with a prospect; in fact, with many of them. Recall the 'Rule of Fifty' explained earlier in the 'Marketing Plan' section of this Agent's Guide. We discussed the fact that, if you want to support a Life department in your P/C agency, you need to be able to generate at least 50 leads the first week and at least 25 leads per week thereafter that feed into a pool of leads for your Life producer to follow up. These leads are generated by various people in the agency-CSRs play a role through their daily connection with insureds, as do your Life producers, who should be going after referrals and other lead sources such as centers of influence (more about these later). The P/C agency principal can also play a role in lead generation by sitting down with a Life producer and deciding which P/C accounts make good Life prospects. If 25 or 50 leads a week sounds like a lot to you, consider the following facts: According to the Life Insurance Marketing and Research Association (LIMRA), only one household out of three has been contacted recently by a Life insurance agent. The others either haven't bought Life insurance or have purchased it through the mail. According to LIMRA, in 19% of all households, not one member of the family has any Life coverage (including Group Life). In 38% of households, not one member carries individual Life. In 23% of households surveyed, the head of the household does not have Group Life coverage. In 45%, the head of the household does not carry individual Life. In 49% of households, at least one member of the family has no Life or Group Life coverage. In 64% of households surveyed, at least one member has no individual Life coverage. In 38% of households, not one member of the family has individual Life. What these statistics mean is that there are many households out there that have a genuine need for Life insurance who have not been contacted or sold! In other words, chances are you won't have problems maintaining 50 leads a week for your Life department. Read on for methods of generating these leads. LEAD GENERATION Your leads have to come from somewhere. Following are some ideas for lead-generation sources. The P/C Database The P/C agency has a decided advantage over a Life agency or single Life insurance salesperson-built-in leads. The Life producer's biggest problem isn't selling, it's generating leads. A P/C agency's Life department has that problem solved. Your agency is in a unique position to provide quality leads to the Life producer. Your P/C files can be mined for Life sales on a regular basis, and this can lead to additional 'total-account' P/C sales also. Consider the fact that, as an insurance agent, you are often one of the first people to hear about important events that affect your clients, such as: purchase of a new home, car, or boat a new job or expansion of business an addition to a house a new baby or grandchild You'll also learn about the accidents, fires, thefts, and so on that take place. All these events have one common thread: They indicate a change in financial condition that could trigger a review or a need for Life insurance. Your CSRs can be trained to watch for these types of changes and feed the leads to your Life department. More information on training CSRs to do this can be found under 'Training' in the 'Life Personnel' section of this Agent's Guide. You'll also find forms that can help CSRs and producers generate and track these leads. Your P/C database is an ideal source for Life insurance leads. You should be able to come up with at least 50 initial leads, and probably quite a few more, by looking no further than your own P/C files. In fact, we encourage you to use your P/C database as your major source for Life leads because: there's a plentiful supply the prospects will be familiar with your name and service it's more profitable for the agency because you can make the total account sale total account selling increases your chances of retention Although we encourage using your P/C database for prospects, we would be remiss in not mentioning other prospect sources, especially referrals, which are a valuable source. Information about other lead-generation sources follows. Referrals Just as they do in your P/C operation, referrals can play a large and important role in your Life insurance prospecting. In fact, they are so important that an entire Action Step is devoted to developing referrals. You'll find more information on this subject under 'Action Step 7: Obtaining Referred Leads' later in this section of your Agent's Guide. Purchased Lists Many times, a good way to get your prospect list started, or to augment it, is to purchase a list from a mailing house or other source. Dun & Bradstreet is probably the most well-known list source, and can yield prospects for your Group and Business Life. Dun & Bradstreet usually provides the names of executives or officers of the companies on its lists, therefore providing you with names to target for individual Life and financial planning services, too. Other lists target individuals by ZIP code, income, and a number of other variables. Your Life insurance companies may be able to help you buy lists at a preferred rate. Miscellaneous List Sources Centers of influence: Many influential people who you meet on an everyday or professional basis in your community can become sources of prospects for you. These people include: Certified Public Accountants, who often review their clients' Life insurance coverage Attorneys, who often have advance notice of situations that may involve Life insurance (business reorganizations, revision of wills, and so on) Bankers and officers of financial institutions, who have information on new businesses and new homeowners in town Real estate agents, who are in touch with new business and home buyers Editors of business publications, who often know in advance about changes in business (promotions, new partners) that may trigger a Life insurance need You're bound to meet and socialize with some of these people in your community, particularly if you belong to such organizations as the Rotary or Kiwanis Clubs. Public records: Your county's files and records can provide a source of prospects for you. If real estate transactions in your county are computerized, you should be able to obtain a list of property transfers, letting you know who has recently bought and sold homes in the area. Computerized lists of property taxes can also let you know who owns expensive property and may be affluent enough for your higher-line Life products. Yellow Pages: An advertisement in the Yellow Pages can bring you in business, but advertising is not the only way to use the Yellow Pages. Doctors, attorneys, accountants, architects, and other upscale professionals who need Life insurance to protect their assets and employee benefits for their businesses will be listed in the Yellow Pages. 'Let your fingers do the walking' for prospects. Prospecting Tools You can use a variety of tools to gather or augment your prospect list, including multi-media advertising, direct mail, brochures, and more. A brief word about each of these should suffice: Advertising: The advertising for your Life insurance operation should be part of your agency's overall advertising campaign. Advertising can generate leads by familiarizing the general public with your name and location. When a need comes up, they'll think of you. Your ads can also ask directly for a telephone contact, helping to generate leads. You can choose from a variety of advertising media and methods, based on your needs and situation, including print ads in newspapers and magazines and electronic ads on radio and television. There is a lot to be said about types of ads and methods, and this is really not the place for it. Your library should have volumes of information on advertising, and an advertising agency can be a great deal of help, for a price. Direct mail: Direct mail can be effective for generating leads, particularly if you have a product whose advantages stand out clearly on paper. Advertising low Term insurance rates, for example, can get people's attention. Make up fliers and blanket your area, asking for phone calls. Or, send letters to all the addresses possible in your area. These kinds of blanket, high-volume mailings differ from the pre-approach mailings that we will discuss under 'Action Step 2--Pre Approach' in that you will most likely not follow up on these direct mailers with a phone call asking for the appointment. You wait for return cards or phone calls. Brochures: A well-designed agency brochure can convey the message that your agency provides professional total insurance protection-including Life and related coverages. You can use a brochure in many ways to help generate leads. Bring it along when you review a client's coverages, to gently remind him or her of all the services you offer. Use the brochure in mailings to selected prospects, or as a direct mail piece with a cover letter. As to the design of your brochure, look to advertising materials or a professional agency to help you get your message across effectively in your community. And you can turn to the 'Idea Center' section of this Agent's Guide to see some samples of agency brochures. Newsletters: Newsletters can be used as a prospecting tool, although they are primarily sent to customers to keep your name in front of them and to provide a backup for E & O claims. Using newsletters for lead generation involves placing them throughout the community-in doctors' and other professional offices, and so on-so that your name appears before the community. If you have a prospect list already generated through other sources, you can use the newsletter to acquaint prospects with your agency and get them interested in Life insurance coverages. The newsletter content could center on Life and Group Benefits only, or could be a combination of P/C and Life. Some agencies write and produce these newsletters in-house; others use an outside service, such as that provided by Insurance Marketing Services, Inc. WHO ARE MY PROSPECTS? Prospect Categories In the most general sense, you can define a prospect as any person or business that has a need your agency can meet through your Life department. When you're trying to get together a list, however, it helps to have a few more details. A joint survey by LIMRA and the American Council of Life Insurance (ACLI) provides some facts that may help you define who your prospects are. The survey placed household groups into the six categories that follow. Keep in mind that the numbers quoted from the survey are averages: If you live in a busy metropolitan area or any area where jobs are plentiful and salaries high, the figures will be higher. Even so, the profiles provide some useful information about what types of prospects are out there and what types of coverages they have and need. 1. Strugglers: Mostly single Make up 25% of all households High School educations, hold blue collar or clerical jobs Average age of head of household is 33 Average income of $10,000 Average net worth of $1,000 More than half of these households have no Life insurance and only 3% are covered under pension plans. The chief financial objective in this group is liquidity, followed by safety. These people will be prospects for lower-priced policies, because they can't afford much else. If they move up the line, you sell them more. 2. Traditional Savers: Married, with children under six living at home Make up 20% of all households Better educated than strugglers, but hold blue collar, clerical, and service positions Average age is 36 Average income of $25,000 Average net worth of $19,000 This group values Life insurance coverage: 59% have individual coverage and 95% carry Group coverage at work. While 77% are covered by pension plans, only 17% have individual Disability insurance. Their chief financial objective is security, followed by liquidity. These people realize the need for protection, but low discretionary income makes them a more difficult sale-low-priced products that provide protection are likely to get their attention. 3. Payroll Deducters: Married, two-income households Make up approximately 13% of all households Hold unskilled jobs Average age is 42 Average income of $25,000 Average net worth of $26,000 Two-thirds of this group have individual Life insurance and 88% are also covered under Group plans. Their primary financial objective is growth. These people will be targets for payroll deduction Group coverages and lowercost individual Life that has some savings features. 4. Climbers: Married or single, upwardly mobile Make up approximately 14% of all households Have college degrees and work in sales, lower-level management, and professional capacities
https://completemarkets.com/Utility-Districts-water-and-sewer-electric-Insurance/Storefronts/
https://completemarkets.com/Article/article-post/709/Service-Fumbling-The-Ball/
Service: Fumbling The Ball
Part one of this series by Brenda French takes a look at how poor service is costing the industry. The next two articles will discuss the factors that contributed to the industry’s service crisis and offer recommendations for solving the problem.
'Everyone is in service. If you aren’t serving the customer, you’d better be serving someone who is.'
Service America
Because friends and neighbors know that I work in the insurance industry I periodically receive calls asking for information or referrals. That is, until this year. Since January, I’ve been overwhelmed with calls from frustrated and angry friends. This consumer angst crystallized for me when I attended a barbeque and the topic of insurance surfaced. Everyone was complaining about bad service and had a horror story to tell.
I leaped to the industry’s defense gallantly, but as expected, these consumers had little interest in our problems. As customers, they expect fast, professional service with no hassles when they need help.
To get the customer’s perspective across, I’ll share four of the stories from the barbeque. Since my friends were in a cooperative mood, I gathered these statistics:
Number of customers 18 (nine couples)
Average age 51
Total annual insurance premiums $189,000
(Auto, Home, Life, Disability, and Small Business)
Average annual investments $200,000
(RRSPs, Stocks, GICs, etc
Number of days to untangle service problems 48 (three per household)
In the day-to-day busyness of our professional lives, it’s easy to lose sight of what drives the insurance business: creating long-term relationships with profitable customers. Maintaining empathy for customers, especially when they’re upset, can be even harder. As the industry has focused on improving financial results, many executives have ignored the impact on customers, confident that they’ll accept the latest price increases. Although this is probably true, when we combine hefty rate increases with poor service, we have to expect a backlash.
Consider these four 'telling tales' that illustrate the growing discontent between consumers and the industry:
SCENARIO A: MARY AND ANDY
Mary and Andy, self-employed professionals with three children, have been insured with Traditional Brokerage for more than 20 years. All of their Personal insurance has been with ABC Insurance Co. for the past 15 years. They own a million-dollar home, a cottage, and three cars. They also have these investments with Emerging Brokerage: $400,000 in RRSPs, $50,000 in stocks, $2 million in Life insurance, as well as Professional Liability and Income protection. Andy’s father and brother co-own a successful contracting firm and also have their Personal and Commercial insurance with Traditional Brokerage.
Mary and Andy had a water damage claim three years ago when the sewers in their neighborhood backed up, flooding their basement (this and one small Auto fender bender 20 years ago have been the only claims). They were very impressed with how professionally and speedily their claim was managed. Their adjuster was reassuring and knowledgeable. During the damage assessment process, Mary told the adjuster not to worry about such things as the furniture legs being refinished since they weren’t really noticeable. She felt that because the insurance company was being fair and professional she wanted to cooperate as much as she could. After their claim, Mary and Andy were very pleased that their business was with a professional firm like ABC Insurance Co. In addition they invested $10,000 in grading and weeping tiles so that their basement wouldn’t flood again.
About a year ago, XYZ Insurance Company purchased ABC Insurance. Fast forward to March of this year. XZY Insurance sent a letter to Mary and Andy informing them that they wouldn’t be renewing their Homeowners insurance. When Mary called Traditional Brokerage, they were informed that their broker had retired but their new broker would look into it and get back to them. Three phone messages and three weeks later, they still hadn’t heard from the broker. In frustration, they eventually moved all of their personal insurance to Emerging Brokerage.
Andy’s father and brother are watching events closely. Their Business insurance is coming up for renewal in two months.
Mary and Andy: 'Angry people will be much more prone to gouge or cheat on any future insurance claims. If I had an insurance claim today, I’d insist on having the legs on our furniture fixed and would be looking for anything else that could be added to the claim. Any sense of loyalty customers might have had has been thrown back in our faces.'
SCENARIO B: JUDY AND MARK
Judy and Mark are self-employed professionals who both work from home. They have no children. They own an $800,000 house, a cottage, and two cars. They have $300,000 in RRSPs, $50,000 in GICs and $500,000 in Life insurance. They also have Income Protection and several Business policies. In fact, they recently realized that they had nine policies with four different brokers. They find the whole process very confusing and have no idea how things evolved like this. Like many consumers, they view insurance as an expensive necessity and manage it with benign neglect. They pay their bills yearly, never have claims, and assume that their brokers will keep them informed. Until recently.
In June of this year, they received the renewal for the insurance on their cottage that had been due in March. The brokerage had changed carriers, increased the coverage and rates, and backdated the invoice — which was also stamped overdue. When Mark tried to call their broker, he discovered that he couldn’t reach anyone after 4:30. He left two voice- mail messages and eventually the broker came to visit them. The broker explained that they were overwhelmed with work, and that at times, staff was working until 6:00 pm. This didn’t impress these professionals, who work long hours regularly.
This event prompted Judy and Mark to review all of their insurance and to start asking some questions. They quickly discovered that they spend twice as much on insurance and investment products each year as they do for their mortgage. They also realized that they probably shouldn’t have their insurance spread among so many brokers. They aren’t receiving all the discounts that are available to them, have some potential gaps in their coverage, and don’t have a single professional who can advise them on 'the big picture.' What’s more, neither could remember when any of their four brokers had actually spoken to them.
Judy and Mark are in the process of moving all their business from the four brokers and consolidating it with New Strategy Brokerage that was referred to them.
Judy and Mark: 'Bad service coupled with large rate increases sensitizes us to view everything that comes from the insurance companies negatively. A reservoir of bad will has developed that will take a long time to change.'
SCENARIO C: HEATHER
After Heather’s divorce, she decided to move all of her insurance — and potentially her investments — to another brokerage. A VP with a leading manufacturing firm, she plans to retire in 10 years. She owns a late model SUV, a condo in downtown Toronto that’s mortgage free, and $250,000 in Life insurance, plus $125,000 in RRSPs and $10,000 worth of GICs with her bank.
When Heather called a brokerage near her office, the broker recommended a new company that was offering very competitive rates. She agreed and placed her Auto insurance with Best Rates Insurance Co. on a monthly pay plan. Six months later, she purchased a Condo package from the same broker and carrier, and paid for it in full. Three weeks later she received a registered letter informing her that the package was being cancelled for non-payment. Heather called her broker, who straightened things out.
When her Auto policy renewed six months after that, the premium increased from $1,600 to $4,200 (with no accidents, violations, or tickets). She called her broker, who discovered that a coding mistake had been made and in fact her premium had decreased $100 from the previous year.
Three months later she received a letter from the insurance company saying that the post-dated check she’d given them had been returned NSF. They were going to take two months payments from her account and if there were another NSF check, cancel her coverage. There was only one problem. Heather had never given them any post-dated checks. When she contacted her bank, she discovered that $650 had been withdrawn for these 'NSF' checks. It took three months to have the money refunded.
Last month, her Auto insurance renewed again and went up $1,000. Again, Heather called her broker, only to find that he no longer worked there. The brokerage partnership had split and her broker had gone one way and her file another. Although no one at the brokerage knew who was handling her account, they promised that someone would get back to her within 48 hours. A week and a half later, she received a voice-mail message informing her that all insurance premiums were up substantially this year and if she wasn’t satisfied she could cancel her policy — which is exactly what she did. The company continued to make withdrawals for her non-renewed policy for the next three months to the tune of $947.85. She’s still trying to get her money back.
Heather: 'These experiences radicalize consumers. They will scrutinize everything and squeeze back on price at every renewal.'
SCENARIO D: ANDREA AND JOHN
Andrea and John are professionals who have just married for the second time and have four children in their combined family. They own a $700,000 house and two cars, have $200,000 invested in RRSPs, $20,000 in GICs and $2.5 million in Life insurance. This year Andrea’s trying to coordinate their financial services, including insurance. Previously, John had his Homeowners insurance with an agent, his Auto insurance with a broker and his RRSPs with his bank. His Professional Liability and Income Protection are with his professional association. Andrea had her Auto and Homeowners insurance with a broker and her RRSPs with her bank. Her Income Protection and Group Benefits package are with another broker. Andrea had an at fault accident three years ago. John has no violations and is claims free.
Andrea’s goal was to place all the insurance with the same company for one-stop shopping and to maximize discounts. Because service had been poor with all of her previous insurers, she decided to use a direct writer who advertised good service. The first policy up for renewal was John’s Auto insurance. When she called the direct writer, NewWay, Andrea emphasized that she’d had an accident and needed to be able to place the two Auto and Homeowners policies with the same company. She was told that would be no problem. When Andrea’s Auto policy came due two months later, she called NewWay, but was placed on hold for more than 20 minutes. This happened three times in one week. No matter when she called, Andrea wasn’t able to get through nor was she able to leave a message. The following week, she called while doing some administrative work, waited 45 minutes, and still didn’t get through.
In the third week, she called right at 8:30 and was eventually put through after a 15-minute wait. When she spoke to the agent, she was told they couldn’t accommodate her because of her accident. Company policies had changed and there were no exceptions. To top it off, her current insurer no longer offered accident forgiveness, so her Auto premium increased $1,200 over the previous year.
Andrea spent the next week calling around to see what she could do about coordinating their policies, but no one was interested in the business because of her accident. After three months of planning and organizing, Andrea and John are in the same position as when they began.
Andrea and John: 'Any organization that comes up with a better game plan will attract customers. My brother also had a terrible service experience with his insurance agent. There’s a cauldron of discontent that has been created by shortsighted business practices and disregard for customers.'
HOW DID THIS HAPPEN?
Our industry’s financial difficulties are creating an inward focus that excludes long- simmering customer service issues. This happens for two reasons.
First, we’ve done a less than adequate job on the distribution side in identifying which customers create profitability and delivering the quality service needed to retain those relationships.
Second, insurance company decision makers are disengaged from customers and their needs. The closest they come is through sterile research that analyzes internal company data and actuarial models. Unfortunately, this information lacks nuance, doesn’t view the customer as a human being, and only provides data on past activities — ignoring what would happen if customers were treated differently. Because no carrier or distributor has enough information on its customers to cultivate profitable relationships with them, it’s all too easy to ignore their demands for quality service.
This deadly two-step means that we’re missing profitable opportunities with existing customers and new prospects, using rate increases as a blunt instrument to correct poor financial results, and treating customers disrespectfully. We’ve inadvertently created a process that disappoints and alienates customers faster and more efficiently.
This raises some key questions.
How did service delivery spiral out of control so quickly?
What will be the long-term implications of today’s poor quality?
Most important, how can we get off this reactive treadmill to deliver the quality service needed to foster profitable lifetime relationships with our customers?
OTHERS TIDBITS FROM THE BARBEQUE AMBUSH:
'Savvy consumers like us know and respect good service when we receive it. Since we have lots of choices, we’ll leave the minute we are treated badly.'
'All businesses are going through tough economic times. The best way to stay in the black is to treat your long-term customers very well so that they stay with you. Previously, if my agent had asked for referrals, I would have given them. Now, I won’t.'
'Some consumers will now view a claim as an opportunity to get even. They’ll see it as an entitlement issue because of bad service and unreasonable rate increases and find ways to pad the claim.'
'Nobody’s stupid. We recognize bad business practices when we experience them. The insurance industry is over-promising and under-delivering.'
https://completemarkets.com/Article/article-post/925/WORKPLACE-FIRE-SAFETY/
Workplace Fire Safety
WORKPLACE FIRE SAFETY by Bill Grieb Fire safety is important business. National Fire Prevention Week in October focuses on the importance of fire safety in the home, in schools, and at work. But fire safety in the workplace is the principal focus of the Occupational Safety and Health Administration (OSHA) -- and saving lives and preventing injuries due to fire is a key concern. According to National Safety Council figures, losses due to workplace fires exceed $3 billion. Workplace fires result in an estimated 360 deaths every year. There is a long and tragic history of workplace fires in this country. One of the most notable was the 1911 fire at the Triangle Shirtwaist Factory in New York City, in which nearly 150 women and young girls died because of locked fire exits and an inadequate fire extinguishing system. History has repeated itself in the Hamlet, NC fire, where 25 workers died in a poultry-processing plant. There, too, problems involved the fire exits and extinguishing systems. In its workplace inspections, OSHA checks to see whether employers are complying with its standards for fire safety. TYPES OF FIRES Class A - Ordinary combustible materials, wood, paper, etc. Treat with water (cooling) or dry chemicals (coating). Class B - Flammable liquids, gases, and greases. Treat by excluding air with carbon dioxide, etc. Respirators may be required if the firefighters' fresh air supply is threatened. Class C - Electrical fires. Treat with nonconductive extinguishing agent. Class D - Combustible and reactive metals such as magnesium. Treat with nonreactive heat-absorbing extinguishing medium. Maine 200 Not long ago, OSHA instituted the Maine 200 program. About 200 companies worked with OSHA to improve safety. Employers received federal assistance in developing health and safety programs and were assured that inspections had a low priority. According to a White House press release, employers identified more than 14 times as many hazards as could have been cited by OSHA inspectors. Approximately 60% of the participating businesses reduced injury and illness rates. OSHA looks for the following: 1. Management commitment 2. Employee participation 3. Hazard identification effort 4. Correction and documentation 5. Training for employees and supervisors 6. Reduction of illness and injury The Maine 200 approach has proved cost effective in reducing workplace injury and illness. The program is being expanded by OSHA. Fire Causes The main hazards that result in fire are: Smoking Electrical Poor Housekeeping Grease (cooking, industrial, etc.) Spontaneous combustion Friction-for example, overheating bearings Explosion of vapors, dust, atomized liquids or gases Chemical reactions Fire requires three things: fuel, heat, and oxygen. Removal of any of these will prevent or stop a fire. There are five steps in fire prevention and protection: engineering; planning; training; inspection; and follow-up. ENGINEERING The first step in fire prevention is to engineer the site for fire prevention and protection. This includes attention to layout, design, construction, and materials. Automatic and manually operated fixed-sprinkler or extinguisher systems may be installed. Process and work flow should be analyzed for contribution to fire hazard or inhibition of effective response. PLANNING The second step is development, documentation, and communication of emergency response plans. Plans should include: Responsibilities of management, supervisors, employees, public Response resources, including sprinklers and extinguishers, by-pass, shutdown, and reservoir systems Response personnel duties, training, and tools Coordination with public resources such as fire departments and their equipment and facilities such as fire hydrants Means of sounding alarm and communication with affected persons Isolation and containment planning Planning and resources for disabled and others Evacuation-locally, horizontally (nearby areas), and globally Shut-down procedures and back-up systems Emergency communication systems First aid provisions and training Provision of water, food, clothing, and shelter as needed TRAINING The third step is employee and public training: Are postings appropriate, understandable, and adequate? Are employees trained to identify and respond to emergency situations? Are designated employees trained to participate in response to fire emergencies? Are reviews and drills conducted as appropriate? INSPECTION The fourth step is regular inspection to: Ensure compliance with plans Test systems and extinguishers Verify adequacy of postings Review response capability and training Identify new or existing hazards Effect and verify improvements FOLLOW-UP The fifth step includes: Maintain watch after fire is extinguished Account for all personnel and public Secure the site, facilities, equipment, and materials Search affected areas for hazards (plumbing, electrical, structural, hazardous material or fire by-products) and report findings Identify causes and effect changes to prevent recurrence Report as appropriate to management, government, and public OSHA FIRE SAFETY REQUIREMENTS OSHA standards require employers to develop evacuation and prevention plans. Employers must provide proper exits, employee training, and fire-fighting equipment. Emergency Evacuation Planning Each employer needs to have a written emergency action plan for evacuating employees. This would describe the routes to use and procedures to be followed by employees, as well as procedures for accounting for all the evacuees. When appropriate, special procedures for helping physically impaired employees must also be addressed, and the plan must include procedures for the employees who temporarily remain behind to shut down critical plant equipment. Means of alerting employees to a fire emergency must be part of the plan. An employee alarm system-voice communication or sound signals such as bells, whistles, or horns-must be available throughout the workplace complex for use in an evacuation. Employees must know the evacuation signal. The written plan must be available for employee review. Fire Prevention Plan Employers need to implement a written fire prevention plan to complement the fire evacuation plan. After all, heading off the occurrence of fires is the most efficient way to handle them. Make the written plan available for employee review. Housekeeping procedures for storage and cleanup of flammable materials and waste must be included in the plan. The recycling of flammable waste such as paper is encouraged; however, handling and packaging procedures must be included in the plan. Procedures for controlling workplace ignition sources such as smoking, welding, and burning must be addressed in the plan. Heat-producing equipment such as burners, heat exchangers, boilers, ovens stoves, fryers, and so on must be properly maintained and kept clear of accumulations of flammable residue; flammables should never be stored close to these pieces of equipment. Building Fire Exits Each workplace building should have at least two means of escape to be used in a fire emergency, and they should be remote from each other. Fire doors must not be blocked or locked when employees are within the building. A delayed opening of fire doors is permitted when an approved alarm system is integrated into the door design. Exit routes from buildings must be clear and free of obstructions and properly marked with exit signs. Employee Training All employees should be apprised of the potential fire hazards of their job and trained in what to do in an emergency. Employers must review the fire prevention and evacuation plans with newly assigned employees-and with all employees when the plan is changed. Portable Fire Extinguishers Each workplace building must have a full complement of proper fire extinguishers. Employees intended to use fire extinguishers must be instructed on the hazards of fighting fire, how to operate the available fire extinguishers properly, and the procedures to follow in alerting others to an emergency. Only approved fire extinguishers are permitted for workplace use, and they must be kept in good operating condition. Proper maintenance and inspection of this equipment are required. When the employer wishes to evacuate employees instead of having them fight small fires, there must be written emergency plans and employee training for proper evacuation. Fire-Suppression System Properly designed and installed fixed fire-suppression systems enhance fire safety in the workplace. Automatic sprinkler systems throughout the workplace are among the most reliable of these. The fire sprinkler system detects the fire, sounds an alarm, and sprays water at the fire's location. Automatic fire-suppression systems require proper maintenance to keep them in serviceable condition. When it's necessary to take a fire-suppression system out of service while business continues, the employer must temporarily substitute a fire watch of trained employees standing by to respond quickly to any fire emergency in the area. The fire watch must correlate to the employer's fire prevention plan and emergency action plan. Signs must be posted about areas protected by total-flooding fire-suppression systems. These use agents that are a serious health hazard, such as carbon dioxide, Halon 1211, etc. Such automatic systems must be equipped with pre-discharge alarm systems in the area to warn employees of the impending discharge and allow time for evacuation. An emergency action plan should provide for the safe evacuation of employees from the protected area. Such plans are to be part of the facility's overall evacuation plan. FIRE SAFETY RULES ... A-C-T, DON'T PANIC! A - ASSESS THE SITUATION Identify the hazards: nature, degree, and auxiliary hazards Determine who is threatened: co-workers, other employees, the public C - CHOOSE YOUR RESPONSE Select action level Individual action: extinguish a small contained fire Limited response involving others Major response with fire and rescue department T - TAKE ACTION SOUND THE ALARM Warn co-workers and public Call, meet, and direct fire department Report to management EVACUATE Evacuation rules: maintain order Do not use elevators; help others If caught in smoke: breathe through nose in quick short breaths and crawl along floor Move to inside handrail of stairways, move in single file Do not impede firefighters and other responders Do not block stairways, exits, etc. Do not reenter until told to do so Move threatened vehicles RESPONDING TO A FIRE Isolate the area as much as possible by closing doors, etc. Shut off required machinery, power, and gas Activate automatic and/or manual fire extinguishers Attempt to extinguish fire if it can be done without risk to your safety Use extinguishers, hoses and equipment only if you are trained to operate them safely and effectively Use respirators as needed after receiving proper training GENERAL FIRE PREVENTION RULES Smoking should be limited to certain areas, and the limitations should be enforced. Use only the ashtrays and containers provided in smoking areas. All electrical cords should be inspected regularly. Do not overload electrical circuits. If an electrical cord becomes warm, disconnect any attached appliances and report it immediately. Keep the environment clean. Don't allow paper to pile up. Don't allow boxes or furniture to lie in aisles or at exits. Don't block self-closing doors. Printed with permission from Safety Information Currents, vol. IV, issue 10.