m unicipal l iability t he e ver -c hanging w orld of r isk and l oss c ontrol this session will...
TRANSCRIPT
MUNICIPAL LIABILITY
THE EVER-CHANGING WORLD OF RISK AND LOSS CONTROL
This session will explore the impact of risk and loss amongst AMRRP members and how you can lessen
their impact in your municipalities.
ICMA Practice Areas: 2, 3, 11, 12, 13
Page 2
Why should I care?• Loss effects the entire Pool
• Losses effect the potential for dividends
• Loss effects the city or town• Losses effect premiums
• Loss effects the City or Town Manager • Losses reflect poorly on you
Page 3
What is AMRRP (the Risk Pool)?• Self-insurance for municipalities
• 76 Arizona municipalities band together to offer effective insurance coverage
• How is AMRRP funded?• By member premiums
• Why is AMRRP different from other insurance?• Tailored Coverage• Special coverage and services• Personal service
Page 4
Coverage lines• Property, Casualty & Liability (P&C)
• Examples:• General liability
• Bodily injury, property damage• Auto
• UM, UIM, Collision, Comprehensive, Liability• Property
• Building and contents• Professional liability
• Personal injury• Governing body decisions
Page 5
Coverage lines• Worker Compensation (WC)
• Examples:• Employee injuries
• On duty• Public Safety
• Employee fatalities• On duty• Public safety
• Medical• Short-term• Long-term
• Lost wages• Loss of earning capacity
Page 6
Significant P&C exposures• Employment
• Failure to follow due process• Failure to document• Arbitrary and capricious• Hiring or not hiring
• Council action• Interference with staff• Land use decisions• Policy, Statute or Ordinance neglect
Page 7
Significant P&C exposures• Driving
• Inattention• Phones, Texting, Navigational devices, eating
• Unique to Emergency Services• Radios, Consoles, MDT’s, Phones
• Fatigue• Overtime / Shift changes• Illness / other stressors
Page 8
P&C claim mitigation• Employment resources
• Personnel Assistance Lifeline (PAL)• Public Safety Assistance Program (PSAP)• HR Sentry (online policy templates)
• Council decision resources• Land Use Assistance Line (LUAL)• Equal Employment Opportunity Commission / Arizona Civil Rights
Division Position Statement Program (EEOC/ACRD)
Page 9
P&C claim mitigation• Auto
• Minimize distractions• Policies for multi-tasking while driving• Defensive driver training
• Fatigue• Policy options and accountability
• Emergency service distractions• Standardization of equipment
Page 10
Significant Work Comp exposures• Slips, Trips & Falls
• Inattention• Lack of safeguards
• Strains and Sprains• Inattention• Improper techniques / equipment• Short cuts
Page 11
Significant Work Comp exposures• Training injuries
• Lack of preparation• Lack of safety controls
• Safety officers• Safety rules
• Exercise injuries• Improper techniques• Insufficient supervision• Faulty equipment
Page 12
Work Comp claim mitigation• Slips, Trips & Falls
• Improve focus and attention• Inspect for hazards• Install safeguards
• Strains and Sprains• Improve focus and attention• Improve lifting techniques• Provide / use appropriate equipment• Eliminate short cuts
Page 13
Work Comp claim mitigation• Training injuries
• Stretch, warm up, train properly• Institute policies demanding safety control
• Establish and train Safety officers• Establish and comply with safety rules
• Exercise injuries• Stretch, warm up, train properly• Supervise organized activities• Remove faulty equipment
Page 14
Arizona Work Comp “Snapshot”
• Arizona loss ratio 123% 3rd worst in nation
• National avg. medical claim cost = $ 28,000• Arizona avg. medical claim cost = $ 42,500*
*Due to utilization and fee schedule
Page 15
Work Comp “Snapshot”• National claims breakdown
• 59% medical (treatment)• 41% indemnity (lost wages, loss of earning capacity)
• Western Region claims breakdown• 65% medical (treatment)• 35% indemnity (lost wages, loss of earning capacity)
• Arizona claims breakdown• 73% medical (treatment)• 27% indemnity (lost wages, loss of earning capacity)
Page 16
E-mods• Definition
• Comparison of payroll to claims based on an algorithmic formula
• Impacts• Premium changes based on this factor
• Changes• Lower claims = lower E-mods
Page 17
AMRRP’s priority
Reduce Work Comp
claims and exposures!
Page 18
Work Comp strategies• Employee injuries
• Directed Care• Initial (1st ) physician visit• Designated physician (WC orientation)
• Return to Work Policy• HR Sentry• Light Duty Job Descriptions
• Light duty (temporary assignment)• Flexibility• Reduces lost time claims and significantly impacts e-mods
Page 19
Work Comp strategies• Training
• Online, In-person, WebEx• Complementary to Pool members• Safety oriented• Interactive
• Safety audits • Annual or as needed• Facilities• Equipment• Job Safety Analysis
Page 20
Work Comp strategies• Safety Committees
• Usually comprised by supervisory staff• Trained and mentored by AMRRP staff• Reviews incidents and claims• Identifies causes• Oversees mitigation tactics• Can meet monthly, bi-monthly or quarterly• AMRRP staff can attend upon request
Page 21
Loss Control Action Plan
• Sets specific goals for loss reduction• Identifies specific causes of loss• Specifies mitigation resources• Requires action to reduce losses
Treat the disease, not just the symptoms!
Page 23
Administrative interaction• City/Town Manager reinforcement
• Develop a “safety-first” attitude• Support the Loss Control Action Plan
• City/Town Staff serve as primary contact• Understand the AMRRP program• Responsible for Loss Control Action Plan implementation
• AMRRP’s Loss Control staff• 1 Manager and 3 Consultants, including one Law Enforcement specialist
Page 24
Challenges• Avoidable claims
• High risk special events• Employment claims
• Rising medical costs • Work Comp claims never close in Arizona• Minimal use of Directed Care and Return to Work / Light Duty• Due to utilization and fee schedule
• Yarnell Hill Wildfire
Page 25
Questions
?
Page 26
www.amrrp.org
Loss Control
Eric DuthieLoss Control Manager
(602) [email protected]
Coverage/Policy
Ed BantelProgram Administrator
(602) [email protected]
Arizona Municipal Risk Retention Pool14902 North 73rd Street, Scottsdale, Arizona 85260
Main:(602) 996-8810 | Toll Free: (888) 309-4339