© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Understanding Risk Management, Insurance and Legal Issues Chapter 14

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Rewards Intrinsic rewards Extrinsic rewards

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Risk Management Identifying potential hazards and creating a safety and health program to prevent their occurrence 5 elements of effective safety & health program: 1.Management leadership and employee participation 2.Workplace analysis 3.Hazard prevention and control 4.Safety and health training and education 5.Program evaluation

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hazards Sharp objects Machinery and equipment Slips, trips and falls Hot surfaces and liquids Chemicals Overexertion Muscular skeletal hazards Electrical hazards Motor vehicle accidents Infectious diseases Workplace violence Unpredictable work environments

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Safety Committees Responsible for: –Hazard identification and inspections –Hazard control –Training –Accident investigations Considerations: –Group must receive clear guidance. –Group cannot be dominated by management.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Insurance Program Identify and analyze the exposures or potential causes of loss. Know the options to address the exposures, and choose the best alternative for the group. Monitor the insurance program and make incremental adjustments to the package.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Addressing Risk Avoid Reduce Transfer

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Informed Consumer Property insurance Liability insurance Personal and advertising injury liability Fire damage liability Medical expense coverage Automobile insurance Employment practice liability

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selection of Insurance A caterer must have the right coverage to fit the business needs at a competitive rate. To keep costs down: –Higher deductibles –Higher coinsurance clauses –Low losses –Competitive quotes

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Contracts Binding agreements between two or more parties that create an obligation –Caterer is obliged to provide food and service. –Client is obligated to pay for food and service. Must cover a standard set of basic stipulations Before entering into a contract, an attorney should review its specific contents.