Insurance Risk Management for K-12 Schools Jerry D. Loghry MS, ARM, CSP, CPP.
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Transcript of Insurance Risk Management for K-12 Schools Jerry D. Loghry MS, ARM, CSP, CPP.
What is Risk?
The possibility for loss!
Frequency x Severity
Accepting certain Risk can also result in opportunity / gain / profit.
Risk Management
The process of identifying, assessing, controlling, eliminating, and minimizing unforeseen events that may affect resources or profits.
Risk Management Technique - Insurance
Major insurance coverages for schools.
−Property
−Inland Marine
−General Liability
−Commercial Auto
−Workers’ Compensation
−Linebacker (D&O)
−Crime
−Data Compromise
−Equipment Breakdown
−Violent Acts
−Health
−Disability
−Dental
−Vision
Loss Control
Understanding where losses occur is a key to preventing and mitigating the human and financial costs.
Loss Review
12,000 claims per year / 70 million dollars8 claims per school per year / 47 thousand dollars
60% Workers’ Compensation22% Commercial Auto10% Liability8% Property
Data= July 2011 - July 2014
2012 2013 2014$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Claims Trend - All Lines (policy year)
Total Incurred # Claims
Tota
l Inc
urre
d
# Cl
aim
s
Loss Review
Severity ($) of claims is different
43%
35%
11%
10%
Total Incurred By Line
WORK COMPPROPERTYLIABILITYAUTOBOND
Workers’ Compensation - $90M
FALL-SLIP
PHYS ATTACKED
OVEREXERTION
CUT/PUNCTURE
STRUCK BY
FALL-ELEVATED
OTHER NOC
STRUCK AGNST
CAUGHT IN
TEMPERATURE
CUMUL TRAUMA
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Work Comp - Claims Frequency
Workers’ Compensation - $90M
FALL-SLIP
OVEREXERTION
FALL-ELEVATED
PHYS ATTACKED
STRUCK BY
OTHER NOC
MOTOR VEHICLE
CUMUL TRAUMA
CAUGHT IN
CUT/PUNCTURE
STRUCK AGNST
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000
Work Comp - Total Incurred
Workers’ Compensation - $90M
53%37%
11%
Frequency
Zero Dollar ClaimsMedical Only ClaimsIndemnity Claims
12%
88%
Severity
Medical Only ClaimsIndemnity Claims
41%59%
Indemnity Claims
Indemnity costMedical cost
Property - $74M
HAIL
WIND
FIRE
WATER DMG
LIGHTNING
BOILER/MACH
SPRINKLER
FREEZING
CRIME
PROP MISC
SEWER BCKUP
PERS PROP
VANDALISM
VEHICLE
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000
Property - Total Incurred
Liability - $24M
EMPLOYMENT
SLIP/FALL
WRONG ACTS
UMB AUTO
ATTACKED
SPORT EVENT
STRUCK BY
GL MISC
PLAYGROUND
VEH ACC
PROP DAMAGE
CAUGHT IN
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000
Liability - Total Incurred
Liability (Employment)- $6M
Employ Practices-Wrongful Term/ Employment
Employ Practices-Discrimination
Employ Practices-All Other
Employ Practices-Libel/Slander/Defamation
Employ Practices-Invasion of Privacy
Employ Practices-Harassment
Employ Practices-Wrongful Hiring/Refusal
Employ Practices-Wrongful Demotion/Promotion
Dmg -Employment Issues
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000
Employment Claims - Total Incurred
Liability (Wrongful Acts)- $4M
Pub/Sch Wrongful Acts-Educational Method
Pub/Sch Wrongful Acts-Breach of Contract
Pub/Sch Wrongful Acts-Civil Rights
Pub/Sch Wrongful Acts-All Other
Pub/Sch Wrongful Acts-Harassment
Pub/Sch Wrongful Acts-Abuse/Molestation
Pub/Sch Wrongful Acts-Zoning and Permits
Linebacker-Pub/Sch Off Wrong Acts-Open Mtg La
Pub/Sch Wrongful Acts-Invasion of Privacy
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000
Wrong Acts Claims - Total Incurred
Commercial Auto - $22M
INTERSECTN
OFF ROAD
REAR-END
HAIL
AUTO MISC
ANIMAL
BACKING
PEDESTRIAN
FIXED OBJ
WINDSHIELD
SIDESWIPE
CROSSED CL
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000
Auto - Total Incurred
Prevention / Mitigation
Workers’ Compensation –
• Slip and Fall Assessments− Sidewalk / Parking lot maintenance− Winter weather procedures− Floor cleaning− Matting− Footwear− Elevations & Ladders
• Ergonomic Assessments− Food service− Custodial− Bus maintenance− Office workstations
Prevention / Mitigation
Property –
• Roof Maintenance− Gutters and scuppers− Planned replacements− Flashing− Timely repairs
• Fire Prevention− Automated sprinklers− Flammable storage− Fire doors− Housekeeping− Electrical overload
Prevention / MitigationLiability –
• Slip and Fall Assessments• Accounts receivable & money handling• Employment Best Practices
− Hiring practices• Background and reference checks• MVR checks• Interviewing
− Harassment prevention program− Abuse prevention program− Employment law− Job descriptions− Pre & Post job offer testing
• Functional capacity• Drug screening• Psychological
− Employee Handbook• Policies and procedures
Prevention / Mitigation
Commercial Auto –
• Driver selection− Proper licenses− MVR checks− Drug & alcohol testing
• Training− Backing & parking− Defensive driving
• Vehicle maintenance• Rules and regulations
− Distracted driving− Fatigue− Weather
• Accident reporting & investigation