“The utility industry’s growth — spurred by a multi-billion-dollar investment via the Infrastructure Investment and Jobs Act — has created an unprecedented opportunity for utility contractors. But as states and localities look to improve U.S. utility infrastructure, utility contractors will face increasingly stringent standards and government regulations. Understanding these guidelines helps utility construction businesses stay compliant and prevent accidents and losses.”
– Michael Finati, UtilityPro Program Manager
As the utility construction industry continues to grow at an estimated rate of more than 5% annually, the future is bright for utility contractors. The United States’ aging infrastructure, urbanization, more severe weather events, and a push for safer utilities has spurred increased spending on upgrading utilities. Growing need and demand, combined with the allocation of billions of dollars for utility upgrades courtesy of the Infrastructure Investment and Jobs Act (IIJA), marks a rare opportunity for utility contractors to expand their business. However, the push to modernize U.S. utility infrastructure also comes with more rigorous standards, safety regulations, and increased risk exposure. By understanding government regulations and helping businesses safeguard against utility contractor insurance risks, brokers and their clients can put themselves in the best position for long-term success.
Compliance with OSHA regulations
One of the most common questions utility contractors ask is how to ensure they stay compliant, particularly with the laws set forth by the Occupational Safety and Health Administration (OSHA). While other OSHA guidelines — along with state and local laws — can still pertain to utility work, the laws under 29 CFR Part 1926 (OSHA Construction Industry Regulations) cover the majority of federal utility contractor safety compliance requirements. These standards are extensive, and while employers are responsible for adhering to all relevant laws, these 5 sections may warrant special attention by utility contractors.
1) General Safety and Health Provisions (1926 Subpart C)
OSHA’s General Safety and Health Provisions provide broad guidance on measures employers must take to protect employees. This includes general guidelines, such as job site safety evaluations, training program requirements, injury reporting, fire protection programs, emergency actions plans, and other contractor safety best practices.
2) Personal Protective and Life Saving Equipment (1926 Subpart E)
The use of personal protective and lifesaving equipment is one of the most basic steps to ensure workplace safety for utility contractors. The requirements surrounding the use of protective equipment for the head, hands, eyes, face, feet, and hearing are included in this section, along with guidance on safety belts, nets, and lifelines.
3) Fall Protection (1926 Subpart M)
Slips and falls are one of the most common — and costly — workers’ compensation claims. OSHA 1926 Subpart M describes an employer’s responsibilities related to fall protection, including the requirement to provide fall protection systems, such as guardrails, covers, fences, and barricades. It also clarifies an employer’s responsibility to provide a training program for all employees who could be exposed to fall hazards.
4) Excavations (1926 Subpart P)
As more utilities are buried below ground, excavation is becoming a more common part of many utility contractors’ work. Hazard prevention programs for utility contractors operating underground should include protective systems designed to prevent cave-ins, which may include sloping or benching, timber shoring, or shielding. For excavations exceeding 20 feet in depth, a registered professional engineer must also approve the support system design.
5) Electrical Power Transmission and Distribution (1926 Subpart V)
Since utility contractors are often in contact with power lines, Subpart V of 29 CFR 1926 is especially important. This section of regulations spells out an employer’s duty to assess job site safety hazards, make first aid available, instructions on deenergizing lines, and how to approach work on both overhead lines and underground installations.
Beyond compliance: How utility contractors can promote even greater safety standards
While compliance with federal, state, and local regulations is a great starting point, it’s only the bare minimum. Regardless of the job, utility contractor safety should always be the top priority for every business. Some key safety requirements for utility work include assessing hazards before beginning operations, providing employees with the personal protective equipment and training they need to mitigate risks, and always complying with all federal, state, and local guidelines. Let’s look at a hypothetical example to better understand how working by the book — and going above and beyond ordinary safety requirements — can help prevent potentially catastrophic losses.
A hypothetical real-life example
A local utility company in New Jersey was tasked with transitioning a neighborhood’s electric system from overhead lines to underground lines. Following a full site inspection and risk assessment, the company called 811. After the utility markouts were complete, the company began excavation. While CFR 1926.20(b)(2) requires frequent and regular inspections, the company’s policy required a daily inspection. During the inspection the next day, the job site supervisor noticed what appeared to be a corroded cast iron pipe. Though the line was live, it didn’t appear on any of the utility maps, and it wasn’t marked by 811. Fortunately, the company’s extensive training and policies, along with the attentiveness of its supervisors, helped identify the old gas line and avoid what could have been a deadly accident.
Conclusion
As the U.S. continues to extend its utility network across the country and update existing utility lines, utility contractors and insurance brokers are in a unique position to benefit from the industry’s impressive growth trajectory. However, it’s no secret that utilities are one of the most heavily regulated industries, with utility contractors not only contending with a strict set of regulations, but also with countless potential hazards on the job. While compliance with federal, state, and local guidelines is a necessity — and one that can help reduce risks — some accidents are simply unavoidable. Prevention may be the foundation of risk management for utility contractors, but when the unexpected occurs, a comprehensive specialty insurance policy like UtilityPro can help protect businesses and their employees.
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