2015 Teddy Award Winner

Checking Out Solutions

From celebrating safety success to aggressively rooting out fraud and abuse, Stater Bros. Markets is making workers’ comp risk management gains on multiple fronts.
By: | November 2, 2015 • 7 min read

Tamara Ulufanua-Ciraulo likes to think of the workers at her grocery store chain as “industrial athletes” — and all of the company’s safety, loss prevention, workers’ compensation and return-to-work programs are geared toward having them perform at their competitive best.

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“The grocery industry is a physically demanding job, and you have to be fit, like an athlete — they are lifting, running, pushing, stretching, straining every day,” said Ulufanua-Ciraulo, director of insurance at Stater Bros. Supermarkets in San Bernardino, Calif.

The grocer supports its industrial athletes not only with measures to expedite their recovery after injuries, but also with a myriad of incentive programs to avoid injuries altogether, Ulufanua-Ciraulo said — “We’re pushing safety in all avenues of the store.”

Indeed, the team has developed a wide swath of innovative programs, from safety awareness training using dedicated onsite loss prevention consultants, to incentivizing employees for loss prevention, to expanding modified duty to accelerate workers’ return-to-work, to clamping down on workers’ comp fraud, prescription abuse and drug selling.

Tamara Ulufanua-Ciraulo, director of insurance, Stater Bros. Markets

Tamara Ulufanua-Ciraulo, director of insurance, Stater Bros. Markets

The results have been impressive, with a reduction in injuries and a drop in workers’ comp costs.

Unlike most grocers, Stater Bros. has four dedicated loss control professionals from The Hartford, its workers’ comp insurance provider. The consultants work onsite to aid the grocer’s team in controlling exposure, reducing losses, improving operations and resolving compliance issues. The Hartford group reports directly to Steve Toscano, Stater Bros.’ supervisor of support services.

“We all look at the claims we have, which gives us the ability to identify and systematically eliminate risks that come on our plate as soon as they are trending,” Toscano said. “That approach is what gives us the edge.”

For example, after analyzing knife cuts within the meat department, The Hartford group suggested that meat cutters wear wire mesh gloves, resulting in an immediate reduction in lacerations.

“We are the only grocer in California to have all of our meat cutters state-certified,” Ulufanua-Ciraulo said.

“We care about our brothers and sisters. We care about our team. Our great leader Jack H. Brown always tells us, ‘Do the right thing for the right reasons.’ And we do.” — Tamara Ulufanua-Ciraulo, director of insurance, Stater Bros. Markets

The grocer is particularly focused on teaching workers how to be more aware of safety, said Mark Ramer, safety supervisor for Stater Bros.’ distribution center. For example, the company developed a concise directive on how to best handle hazardous materials: “Double bag it. Label it. Tag it.”

Playing on the “industrial athlete” theme, Stater Bros. offers the ICE PACK Program. ICE PACK is a lengthy but fitting acronym for “Industrial athlete Care and Evaluation working towards Prevention, Aid, Consultation and Knowledge.” The grocer offers free first aid, advice, taping, wrapping, and icing for aches, pains and injuries to distribution and transportation employees four days a week, in excess of two hours per day, provided by physical therapists. It’s “like an athletic training room with preventive care,” Ulufanua-Ciraulo said.

Because of this program, along with other safety initiatives, injuries at the distribution center fell from 118 in 2012, to 68 in 2014. The ICE PACK program was added to the transportation department this April, and since that time, there have been zero recordable driver injuries.

Celebrating Safety

Incentive programs for safe practices are a big deal at Stater Bros. Its “Safety Recognition Program” offers an increasing number of incentives for every year a store has had zero recordable industrial injuries, with rewards such as catered employee appreciation parties, Stater Bros. gift cards, in-store drawings, and Stater Bros. apparel gift certificates. In 2015, 25 stores exceeded the two-year mark of zero recordable industrial injuries, and the number of stores that logged one year without any reportable workers’ compensation claims rose from 33 in 2014, to 53 in 2015.

Stater Bros.’ employees share their appreciation for the store’s safety leadership during a party celebrating two accident-free years at Store #139 in Murrieta, Calif.

Stater Bros.’ “Jump Start Program” targets stores that have difficulty controlling workers’ comp injuries. The company recognizes store employees with incremental rewards on a fast-paced scale to keep employees engaged and thinking about safety, and as a result, the number of injuries have declined.

There is also an incentive program for safe practices for distribution center workers. Employees who work without a reportable injury during each quarter are eligible for a drawing of Stater Bros. gift cards, and 10 percent of all eligible employees receive a gift card. In addition, every employee who completes one year without a workers’ comp injury receives a gift card.

The grocer has also expanded its comprehensive modified work program for the transportation and distribution centers, from five days to seven days, to better accommodate injured employees’ current work week schedules.

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Employees are temporarily accommodated at retail locations based on their restrictions, and receive various types of scheduled training for the modified duty period, including training videos with testing and discussions that focus on body parts susceptable to injuries. In addition, third-party occupational therapists train and monitor the recovery progress of workers.

The expanded program complies with Stater Bros.’ collective bargaining agreement with the Teamsters Union, as workers have been able to maintain their regular rate of pay without moving to long-term status, Ulufanua-Ciraulo said.

“I’m sure our workers recognize how much the company is concerned about them personally and that we’re trying to ensure a smooth transition in their return-to-work, by allowing them to have a modified schedule for a period of time,” she said.

Tackling Abuse

The grocer is also particularly aggressive in its prescription monitoring, going above and beyond checking the state’s database system to make sure physicians are not over-prescribing medications to its workers. The company also conducts drug tests to determine whether workers are actually taking their drugs and not selling them, Ulufanua-Ciraulo said.

For example, if the grocer spends $4,000 a month in prescriptions for an individual worker who then tests “zero” because they are not taking their medications, Stater Bros. asks the treating physician to review the scripts.

The grocer has been able to overturn a “complex regional pain syndrome” claim because the doctor stated the employee could not do without the medications based on the diagnosis — even though the worker was actually not taking them.

Stater Bros. has implemented reviews for complex pharmacy claims to identify employees who may need an prescription drug intervention. It also uses “narcotics contracts” with employees to set expections for use of prescription medications.

Under the program, the grocer saw a reduction in prescription medication for “high utilizers” over a four-month period, resulting in savings of $100,000.

The company also closely monitors for workers’ comp fraud. The grocer learned about several Facebook and YouTube posts showing Shawna Palmer, a Stater Bros. employee who was off duty on a workers’ comp claim for an fractured toe, subsequently competing in local beauty pageants in high heels without any apparent discomfort.

Stater Bros. Markets’ Workers’ Compensation, General Liability & Safety Team

The grocer worked with its third-party administrator, Sedgwick Claims Management Services Inc., and the California Department of Insurance to collect more evidence of Palmer’s fraud, leading to her arrest last year.

In September, Palmer pleaded guilty to one misdemeanor count of workers’ comp fraud and was sentenced to 36 months’ probation, 50 hours of community service and ordered to pay a $1,000 fine and more than $5,000 restitution. The unusual story was picked up by news outlets nationally.

Because of its multi-faceted efforts, Stater Bros. has experienced a decline in workers’ comp claims frequency, Ulufanua-Ciraulo said. Workers’ comp claims decreased 12.5 percent from 2013 to 2014, on top of falling 7 percent from 2012 to 2013.

The grocer also has an extensive wellness program that includes an annual health and education fair to promote healthy and safe lifestyles, with onsite biometric screenings and ergonomic assessments of work stations. Stater Bros. was recognized as a 2015 Platinum Level recipient of the American Heart Association’s Fit-Friendly Worksite Award, for its commitment to providing physical activity and wellness opportunities to employees.

Toscano said that the grocer is successful because everyone works very closely to collaborate on risk management, safety and workers’ comp issues.

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“I also credit the success of our programs to the leadership of our company and those individuals who have set such high standards in my current role,” he said.

“These individuals have encouraged our team to continue to improve programs to meet the needs of our employees.”

Ulufanua-Ciraulo said her team’s approach fits with the company’s culture, summed up nicely in a Stater Bros. TV commercial jingle used years ago:

“Up in the morning, stay late at night. … Hard work and value, that is the key.”

“That is who we are,” she said. “We care about our brothers and sisters. We care about our team. Our great leader Jack H. Brown always tells us, ‘Do the right thing for the right reasons.’ And we do.”

_______________________________________________________

Read more about all of the 2015 Teddy Award winners:

AA LAX TuesdayRevamped Program Takes Flight: The American Airlines and U.S. Airways merger meant integrating workers’ compensation programs for a massive workforce. The results are stellar.

 

112015_03_stater 150X150Checking Out Solutions: From celebrating safety success to aggressively rooting out fraud and abuse, Stater Bros. Markets is making workers’ comp risk management gains on multiple fronts.

 

112015_04_columbus 150X150Revitalizing the Program: In three years, the Columbus Consolidated Government was able to substantially reduce workers’ compensation claims costs, revamp return-to-work and enhance safety training.

 

112015_05_barnabas 150X150Spreading Success: Barnabas Health wins a Teddy Award for pushing one hospital’s success in workers’ comp systemwide.

 

Katie Kuehner-Hebert is a freelance writer based in California. She has more than two decades of journalism experience and expertise in financial writing. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Emerging Risks

Stadium Safety

Soft targets, such as sports stadiums, must increase measures to protect lives and their business.
By: | January 10, 2018 • 8 min read

Acts of violence and terror can break out in even the unlikeliest of places.

Look at the 2013 Boston Marathon, where two bombs went off, killing three and injuring dozens of others in a terrorist attack. Or consider the Orlando Pulse nightclub, where 49 people were killed and 58 wounded. Most recently in Las Vegas, a gunman killed 58 and injured hundreds of others.

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The world is not inherently evil, but these evil acts still find a way into places like churches, schools, concerts and stadiums.

“We didn’t see these kinds of attacks 20 years ago,” said Glenn Chavious, managing director, global sports & recreation practice leader, Industria Risk & Insurance Services.

As a society, we have advanced through technology, he said. Technology’s platform has enabled the message of terror to spread further faster.

“But it’s not just with technology. Our cultures, our personal grievances, have brought people out of their comfort zones.”

Chavious said that people still had these grievances 20 years ago but were less likely to act out. Tech has linked people around the globe to other like-minded individuals, allowing for others to join in on messages of terror.

“The progression of terrorist acts over the last 10 years has very much been central to the emergence of ‘lone wolf’ actors. As was the case in both Manchester and Las Vegas, the ‘lone wolf’ dynamic presents an altogether unique set of challenges for law enforcement and event service professionals,” said John

Glenn Chavious, managing director, global sports & recreation practice leader, Industria Risk & Insurance Services

Tomlinson, senior vice president, head of entertainment, Lockton.

As more violent outbreaks take place in public spaces, risk managers learn from and better understand what attackers want. Each new event enables risk managers to see what works and what can be improved upon to better protect people and places.

But the fact remains that the nature and pattern of attacks are changing.

“Many of these actions are devised in complete obscurity and on impulse, and are carried out by individuals with little to no prior visibility, in terms of behavioral patterns or threat recognition, thus making it virtually impossible to maintain any elements of anticipation by security officials,” said Tomlinson.

With vehicles driving into crowds, active shooters and the random nature of attacks, it’s hard to gauge what might come next, said Warren Harper, global sports & events practice leader, Marsh.

Public spaces like sporting arenas are particularly vulnerable because they are considered ‘soft targets.’ They are areas where people gather in large numbers for recreation. They are welcoming to their patrons and visitors, much like a hospital, and the crowds that attend come in droves.

NFL football stadiums, for example, can hold anywhere from 25,000 to 93,000 people at maximum capacity — and that number doesn’t include workers, players or other behind-the-scenes personnel.

“Attacks are a big risk management issue,” said Chavious. “Insurance is the last resort we want to rely upon. We’d rather be preventing it to avoid such events.”

Preparing for Danger

The second half of 2017 proved a trying few months for the insurance industry, facing hurricanes, earthquakes, wildfires and — unfortunately — multiple mass shootings.

The industry was estimated to take a more than $1 billion hit from the Las Vegas massacre in October 2017. A few years back, the Boston Marathon bombings cost businesses around $333 million each day the city was shut down following the attack. Officials were on a manhunt for the suspects in question, and Boston was on lockdown.

“Many of these actions are devised in complete obscurity and on impulse, and are carried out by individuals with little to no prior visibility.” — John Tomlinson, senior vice president, head of entertainment, Lockton

“Fortunately, we have not had a complete stadium go down,” said Harper. But a mass casualty event at a stadium can lead to the death or injury of athletes, spectators and guests; psychological trauma; potential workers’ comp claims from injured employees; lawsuits; significant reputational damage; property damage and prolonged business interruption losses.

The physical damage, said Harper, might be something risk managers can gauge beforehand, but loss of life is immeasurable.

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The best practice then, said Chavious, is awareness and education.

“A lot of preparedness comes from education. [Stadiums] need a risk management plan.”

First and foremost, Chavious said, stadiums need to perform a security risk assessment. Find out where vulnerable spots are, decide where education can be improved upon and develop other safety measures over time.

Areas outside the stadium are soft targets, said Harper. The parking lot, the ticketing and access areas and even the metro transit areas where guests mingle before and after a game are targeted more often than inside.

Last year, for example, a stadium in Manchester was the target of a bomb, which detonated outside the venue as concert-goers left. In 2015, the Stade de France in Paris was the target of suicide bombers and active shooters, who struck the outside of the stadium while a soccer match was held inside.

Security, therefore, needs to be ready to react both inside and outside the vicinity. Reviewing past events and seeing what works has helped risk mangers improve safety strategies.

“A lot of places are getting into table-top exercises” to make sure their people are really trained, added Harper.

In these exercises, employees from various departments come together to brainstorm and work through a hypothetical terrorist situation.

A facilitator will propose the scenario — an active shooter has been spotted right before the game begins, someone has called in a bomb threat, a driver has fled on foot after driving into a crowd — and the stadium’s staff is asked how they should respond.

“People tend to act on assumptions, which may be wrong, but this is a great setting for them to brainstorm and learn,” said Harper.

Technology and Safety

In addition to education, stadiums are ahead of the game, implementing high-tech security cameras and closed-circuit TV monitoring, requiring game-day audiences to use clear/see-through bags when entering the arena, upping employee training on safety protocols and utilizing vapor wake dogs.

Drones are also adding a protective layer.

John Tomlinson, senior vice president, head of entertainment, Lockton

“Drones are helpful in surveying an area and can alert security to any potential threat,” said Chavious.

“Many stadiums have an area between a city’s metro and the stadium itself. If there’s a disturbance there, and you don’t have a camera in that area, you could use the drone instead of moving physical assets.”

Chavious added that “the overhead view will pick up potential crowd concentration, see if there are too many people in one crowd, or drones can fly overhead and be used to assess situations like a vehicle that’s in a place it shouldn’t be.”

But like with all new technology, drones too have their downsides. There’s the expense of owning, maintaining and operating the drone. Weather conditions can affect how and when a drone is used, so it isn’t a reliable source. And what if that drone gets hacked?

“The evolution of venue security protocols most certainly includes the increased usage of unmanned aerial systems (UAS), including drones, as the scope and territorial vastness provided by UAS, from a monitoring perspective, is much more expansive than ground-based apparatus,” said Tomlinson.

“That said,” he continued, “there have been many documented instances in which the intrusion of unauthorized drones at live events have posed major security concerns and have actually heightened the risk of injury to participants and attendees.”

Still, many experts, including Tomlinson, see drones playing a significant role in safety at stadiums moving forward.

“I believe the utilization of drones will continue to be on the forefront of risk mitigation innovation in the live event space, albeit with some very tight operating controls,” he said.

The SAFETY Act

In response to the terrorist attacks on Sept. 11, 2001, U.S. Homeland Security enacted the Support Anti-Terrorism by Fostering Effective

Warren Harper, global sports & events practice leader, Marsh

Technologies Act (SAFETY Act).

The primary purpose of the SAFETY Act was to encourage potential manufacturers or sellers of anti-terrorism technologies to continue to develop and commercialize these technologies (like video monitoring or drones).

There was a worry that the threat of liability in such an event would deter and prevent sellers from pursing these technologies, which are aimed at saving lives. Instead, the SAFETY Act provides incentive by adding a system of risk and litigation management.

“[The SAFETY Act] is geared toward claims arising out of acts of terrorism,” said Harper.

Bottom line: It’s added financial protection. Businesses both large and small can apply for the SAFETY designation — in fact, many NFL teams push for the designation. So far, four have reached SAFETY certification: Lambeau Field, MetLife Stadium, University of Phoenix Stadium and Gillette Stadium.

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To become certified, reviewers with the SAFETY Act assess stadiums for their compliance with the most up-to-date terrorism products. They look at their built-in emergency response plans, cyber security measures, hiring and training of employees, among other criteria.

The process can take over a year, but once certified, stadiums benefit because liability for an event is lessened. One thing to remember, however, is that the added SAFETY Act protection only holds weight when a catastrophic event is classified as an act of terrorism.

“Generally speaking, I think the SAFETY Act has been instrumental in paving the way for an accelerated development of anti-terrorism products and services,” said Tomlinson.

“The benefit of gaining elements of impunity from third-party liability related matters has served as a catalyst for developers to continue to push the envelope, so to speak, in terms of ideas and innovation.”

So while attackers are changing their methods and trying to stay ahead of safety protocols at stadiums, the SAFETY Act, as well as risk managers and stadium owners, keep stadiums investing in newer, more secure safety measures. &

Autumn Heisler is a staff writer at Risk & Insurance. She can be reached at [email protected]