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PR at the Doorstep Blasting Insurance Consequences

PR at the Doorstep Blasting Insurance Consequences. March 8, 2007 Ohio Drilling and Blasting Conference Hosted by: Dave Harrison. PR -the Big Picture. Do you use reasonable care ? Evaluate & protect exposures by blast design Inform and educate homeowners about blasting

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PR at the Doorstep Blasting Insurance Consequences

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  1. PR at the DoorstepBlasting Insurance Consequences March 8, 2007Ohio Drilling and Blasting Conference Hosted by: Dave Harrison

  2. PR -the Big Picture • Do you use reasonable care ? • Evaluate & protect exposures by blast design • Inform and educate homeowners about blasting • Hire & train qualified people • Contract qualified services • Integrate all of the above into a workable blast plan

  3. Claims • Where are they coming from? • #1 Frequency –CONSTRUCTION • Jobs are short, one of a kind • Variable working environments • Change not always welcomed • Community focused • Moderate Frequency –QUARRY/MINING • Established locations • Hire out of local area • Systematic shooting • Some PR Programs

  4. Why Is One Homeowner Important? • More likely to file erroneous claim based on lousy attitude and poor actions • Strict Liability permits easy claim making • It costs an average of $1,000 to deny • Hidden claim costs to you can exceed claim potential (i.e. man hours) • Sets tone for the remainder of the job • They will talk to their neighbors • Media • Authorities having Jurisdiction (permits) Blaster is deemed liable without fault or negligence, it is not necessary for a claimant to establish that the operations is dangerous, it’s already determined

  5. Understanding Insurance • A formal business device reducing risk by transferring the risks of an entity to an insurer. The Insurer agrees by contract, for a fee, to assume, to a specified extent, the losses suffered by the insured.

  6. Why Worry? • The majority of US Insurance companies are not interested in blasting • Post Oklahoma City and 9-11 fallout, general adverse perception about explosives • Domestic Drilling & Blasting Industry not large enough for renewed main stream insurance interest

  7. Major Insurance Mistakes • Does not reasonably protect property subject to blasting exposure with adequate PR, Pre-Blast Surveys and seismic Monitoring • Contracts a (low cost) survey provider without first sampling work product results and PR abilities. • Makes witnessed statements to homeowner assuming blasting liability before investigation • Blaster or helper not verifiably trained to complete proper monitoring and associated public relation skills • Claim attitude; “That’s why I have Insurance!” • Late reports of incidents or not at all • Pays for damages with out legal release or advice

  8. Major Insurance MistakesContinued • No verifiable attempt to correct known problems from poor blast planning and job bidding • Does not cooperate timely with damage investigations, -poor or lost record keeping • Does not welcome or follow through with insurance “Loss Control” assistance and recommendations • Poor governmental compliance record and attitude (MSHA, OSM, OSHA, DOT, BATF, State DEP, local FD, etc) • Develops adverse claims “frequency” and “notable trends” • Builds an impressive “loss ratio” ( claim cost / premium )

  9. What Could Happen? • Loss of immediate insurance coverage • Loss of desirable insurability standing • Major difficulties finding new coverage • Inadequate coverage's • No insurance = No work

  10. Conclusion • Misstatements and poor actions will cost you more then you think! • Future Insurability is at risk • Blast plans and bids must include PR and exposure mitigating blast designs • Use only reputable contractors • Know and follow your companies policies and procedures • Be prudent while being polite and sincere with all homeowners • Get Trained !

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