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 dollars 8 claims per school per year / 47 thousand dollars 60% Workers’ Compensation 22% Commercial Auto 10% Liability 8% Property Data= July July 2014

Loss Review Severity ($) of claims is different

Workers’ Compensation - $90M

Property - $74M

Liability - $24M

Liability (Employment)- $6M

Liability (Wrongful Acts)- $4M

Commercial Auto - $22M

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 / Mitigation Liability – 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