1. Risk Management for First Nations
Presented by:
Bob Burhoe, CIP, CRM
AFN Insurance Brokers Inc. began operations in Our president and founder, Gil Saunders, saw a need - to provide quality insurance products at competitive prices to First Nations in Canada. He developed insurance products designed solely for First Nations.
The AFN Insurance approach: to educate First Nations in the area of Risk Management and Loss Controls to keep losses at a level that our prices would satisfy insurers and benefit First Nations. AFNIB is now one of the largest suppliers of First Nations insurance in Canada. We provide insurance coverage from coast to coast to coast.

2. Your Mission
As a First Nation Government your specific mission will be unique to your people - but it probably includes providing services and other assets for your people
Risk Management can help by identifying risks that damage or destroy assets and/or prevent services to those who need them

3. Facilities & Services
What services or facilities do you need to carry out your mission?
Do you have to provide them all or can others provide some?
What do you need to carry out your mission? - Community Centers - Playgrounds
Even if you have others provide some of the services, you may not escape liability if something goes wrong. If they are responsible for damages but can’t afford to pay for them you may still get stuck with the bill.

4. Community Centre?

5. Police Services?

6. Playgrounds?

7. Recreation & Administration?

8. Fire Hall and Radio Station?

9. Water?

10. Elders Wellness Centre?

11. Trading Post?

12. Risk Management in a nutshell
Identify Risks that prevent you from accomplishing your goals
Decide how to reduce or eliminate each Risk identified
The Purpose of Risk Management
Each of the previous slides showed resources supplied by different communities. For each resource there are corresponding risks. Buildings can burn or suffer water damage - reducing your resources. Winter slip and fall hazards can injure residents or visitors.

13. Risk Identification
How are Risks identified? One method is to classify your risks as the insurance industry does.
In order to identify Risks we need an organized method of classifying them. There are different methods but the most common is to classify them in the same manner as the insurance industry does.

14. Insurance Approach
Insurers use different categories for ease of understanding
Makes sure nothing is missed
Has the advantage of relating risks to insurance coverages
In order to identify your risks we need an organized method of classifying them.
There are different methods but the most common is to classify them in the same manner as the insurance industry does.
Insurance people are very cautious and want to make sure nothing gets missed – this approach helps with that goal.
Another big advantage - its easier to relate risks to insurance coverages.
Insurance is one way of transferring a risk that could hamper your efforts to attain some of your goals.

15. Risk Identification Categories
Here are the major categories used.
Review the boxes and comment briefly.
Lets take a brief look at each category.

16. Property & Income Risks
Fire, vandalism, theft, windstorm, flood, etc. damage to buildings or equipment
Loss of income resulting from the damage
Contingent exposures (extra costs or loss of income resulting from damage to property of others)
Solutions: Education, Loss Controls, Insurance

17. Automobile Risks Owned Vehicle Exposures
Your liability to others from an accident
Damages to your vehicle
Non-Owned Vehicle Exposures
Liability to others from an accident of employee using his/her own car
Solutions: Selection, Training, Insurance
The likelihood of vehicle accidents can be minimized by selecting qualified personnel and providing the necessary training for the type of vehicle they are to drive. Unfortunately sometimes an accident happens in spite of our best efforts.
Automobile legislation varies from province to province so these remarks may be out-of-place in some areas.
Non-Owned Automobiles – the employee’s policy provides primary insurance coverage – but, an employer can be called upon to pay if the employee doesn’t have enough insurance to cover all the damages. If an employee drives their own car for a business reason you may be called upon to pay damages if an accident happens.

18. Crime Risks Employee Dishonesty Burglary, Holdup, Forgery
Solutions: Selection, Controls, Insurance

19. General Liability Risks
Negligence
You owe a reasonable duty of care to those who enter your lands - especially children
Joint & Several Liability
You only have to be 1% negligent to end up paying for 100% of a judgment
Contractual exposures
You can be liable for damages because of what’s in a contract – be careful of what you sign

20. General Liability Facts
Injuries happen where and when no one is looking
For every injured child there will be two litigious parents
Anything over 2 feet in height is a climbing apparatus for a child
Duty owed to children is strict liability. That means the burden of proof switches – you’re presumed guilty and have to prove your innocence.

21. More General Liability Facts
If it moves, it can collide with something
If it was constructed, it can break
If its a liquid, it can squirt, seep, leak or drown
If its a gas, it can escape
If its up, it can fall
More unfortunate truths.

22. Absolute General Liability Facts
If its alive and under 10 years old, it will be curious and adventurous
If its alive and over 10 years old, it will be curious and adventurous
Children come in all ages.

23. Health & Disability Risks
Death or Injury to Key Persons at home or while traveling
Death or Injury to Others - employees, contract workers
Solutions: Separate travel, Cross training, Insurance
Workers Compensation pays employee. What about the employer? If the employee is a “key” employee and you can’t find a replacement to carry out the same duties – you may suffer financial losses.
Travel considerations: If you have “key” people – do they travel together to meetings or conventions? Consider having them take different cars or airplanes rather than traveling together.
Group Benefits, Life Insurance

24. Insurance Insurance is a major Risk Management tool
How do you go about getting it?
A well-designed Risk Management Program employs many methods of reducing or eliminating risks.
Time doesn’t permit us to cover most risk management procedures.
Another seminar being offered covers the subject of loss control – a major Risk Management tool.
So I’m going to move right to insurance which is also a major part of a successful risk management program.

25. Selecting a Broker Decide what you want from a broker
Insurance expertise? Risk Management advice?
Ask others in your position who they recommend
Do they provide sound advice?
Ask about the service - Any problems?
Have they experienced a claim? What happened?
In a specialized area such as First Nations Governments you need to know your broker can deliver broad coverage at a reasonable premium.
If your operation has risk management personnel or others who participate in this process you will need a broker who can help analyze and explain insurers or adjusters loss reports and related recommendations – and to review and check them for accuracy.
If your account is new to the area of insurance and if you have specialized needs such as loss control services to bring your insurance account up to a certain standard before the regular marketplace will accept the risks you want to transfer - you need a broker that has the experience and the necessary contacts to do that - and who can explain the engineering reports and the consequences associated. - Also look after your more critical insurance needs for the time it takes to get that in place.

26. Meet with the Selected Broker
Meet with the Broker you select. Talk to them about your account. Ask questions. Did what they say make sense?
A good Broker will ask what you expect – besides a good price – and they’ll tell you what they can supply!

27. Tendering your account
Get a consultant to help determine priorities, collect data, establish risk management practices, determine insurance needs – can be expensive or
Pick one or two brokers who specialize in First Nations Government insurance programs – get them to recommend and price an insurance program tailored to your requirements
There are very few brokers able to provide insurance coverage designed for First Nations. Not many insurers offer products to First Nations.
One who does is AFN Insurance - through our coast-to-coast network of affiliated brokers.

28. AFN Insurance Licensed across Canada Serves only First Nations
Insurance programs distributed by selected broker for each province
Programs for
First Nations Governments
First Nations Housing
Tribal Councils
Others
AFN Insurance Brokers Inc. began operations in Our president and founder, Gil Saunders, saw a need - to provide quality insurance products at competitive prices to First Nations in Canada. He developed insurance products designed solely for First Nations.
The AFN Insurance approach: to educate First Nations in the area of Risk Management and Loss Controls to keep losses at a level that our prices would satisfy insurers and benefit First Nations. AFNIB is now one of the largest suppliers of First Nations insurance in Canada. We provide insurance coverage from coast to coast to coast.