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Audio (MP3) Listen in New Window Presentation (PDF) Open in new window Making the Most of Insurance Renewal Loss Prevention Premium Reduction Tips Frank P. Smith, CPCU, AU Regional Underwriting Manager Objective • Quick review of losses we see as the insurer • Basic Risk Management measures to reduce losses These Best Practices will result in the best pricing for your account! Exposure/Controls by Coverage • Automobile Fleet • General Liability • Professional / Sexual Abuse and Molestation Automobile / Fleet Losses Cause: Fatigue/Vision? Comments: Several Fatalities Incurred: $907,600 Cause: Speeding Comments: Pedestrian fatality Incurred: $762,000 Cause: Failure to Yield – Stop sign Comments: 3 OV claimant injuries & 1 client injury Incurred: $622,010 Cause: Improper Left turn into traffic Comments: 3 OV claimants injured Incurred: $304,068 Cause: Broadsided by Other – Claimant on Scooter Comments: 1 claimant injured Incurred: $264,702 Cause: Pedestrian Ran into Vehicle Comments: 1 Fatality Incurred: $258,560 Cause: Ran Red Light Comments: 1 Client Injured. ID Drivers personal vehicle Incurred: $253,000 Cause: Following too close – rear ended OV. Pushed OV into traffic Comments: 2 OV claimants injured Incurred: $167,856 Cause: Asleep at Wheel Comments: 2 OV claimants injured. 1 client killed. Driver tested positive for cocaine. Driver was volunteer, completing community service requirement Incurred: $151,628 Cause: Improperly secured passenger Comments: Wheelchair tipped during sharp turn Incurred: $100,402 Cause: Inadequate Supervision Comments: Client jumped from moving van Incurred: $81,800 Automobile / Fleet Cause of Loss • Improper Driving Practices • Poor Driver Selection / Monitoring • Poor Driver Training • Poor Vehicle Maintenance • Uncontrollable Circumstances (weather, unfamiliar roads, etc.) Automobile / Exposures • 15 – Passenger Vans • Driver Turnover • Personal Use • Non-owned use • Age of Drivers Automobile / Risk Management • In-vehicle training for 15-passenger vans both empty and full • Use experienced driver • Limit the amount of weight placed in/on the vehicle • Never exceed 15 passengers in these vehicles • Always require use of seat belts • Maintain safe speed • Well rested • Train in emergency maneuvers • Pre-trip and Post-trip vehicle inspection – Tires, brakes, lights, maintenance schedule, etc. • Keep in mind longer, wider vehicles require more stopping distances and avoid abrupt steering Automobile / Risk Management Resources • Driver Training – Defensive Driving – Transporting Passengers with special needs • Driver Monitoring – Safety First Program (bumper sticker) • Technical Bulletins – Road Testing Procedures – Passenger Handling Observation Checklist – Drowsy Driving – Vehicle Inspection Form – MVR Review – 15-Passenger Vans unique characteristics – 3 second rule General Liability / Causes of Loss • Inadequate Maintenance (premise conditions) • Inadequate Procedures (spill control, indemnification agreements) • Life Safety Inadequacies (alarms, protection devices, etc.) • Operations (dealing and interacting with clients) • Sporting Activities / Field Trips • Numerous Opportunities for Injury to Clients and Visitors • Potential for Abuse General Liability – Risk Management • Staff Selection, Training, Supervision • Client and Customer Supervision • Maintenance and Inspection Programs • Life Safety Program • Evacuation Plans • Sprinkler Protection • Emergency Lighting • Fire Alarms - Central station General Liability – Risk Management Resources • Emergency Evacuation Procedures • Workplace Inspections • Child Abuse Prevention Programs • Fall Protection with Guards and Handrails • Background Checks • Slip and Fall Incident Report Forms Professional Liability Abuse & Molestation • Growing Concern • Formal Policy Statements and Programs to Address • Employee Selection and Screening – Criminal Background Checks – Well written Employment Applications – Reference Checks – verify employment related references • Employee Training and supervision Abuse and Molestation TABLE #1 (Defining Child Maltreatment and Rating Its Severity) Subtype of maltreatment: Physical Abuse Brief definition: A caregiver inflicts a physical injury upon a child by other than accidental means Examples of least & most severe cases: Least – Spanking resulting in minor bruises on arm. Most – Injuries requiring hospitalization, cause of permanent disfigurement, or lead to a fatality. Subtype of maltreatment: Sexual Abuse Brief definition: Any sexual contact or attempt at sexual contact that occurs between a caretaker or responsible adult and a child for the purpose of a caretaker’s sexual gratification or financial benefit. Examples of least & most severe cases: Least – A child is exposed to pornographic materials. Most – A caretaker uses force to make a child engage in sexual relations. Subtype of maltreatment: Physical Neglect Brief definition: A caretaker fails to exercise a minimum degree of care in meeting a child’s physical needs. Examples of least & most severe cases: Least – Food is not available for regular meals, clothing is too small, child is not kept clean. Most – A child suffers from malnutrition or severe dehydration due to gross inattention to his/her medical needs Subtype of maltreatment: Lack of Supervision Brief definition: A caretaker does not take adequate precautions (given a child’s particular emotional developmental needs) to ensure his or her safety in and out of the residence. Examples of least & most severe cases: Least – An 8-year-old is left at home for short periods of time with no immediate source of danger in the environment. Most – A child is placed in a life-threatening situation without adequate supervision. Subtype of maltreatment: Emotional Maltreatment Brief definition: Persistent or extreme thwarting of a child’s basic emotional needs (such as the need to feel safe and accepted) Examples of least & most severe cases: Least – A caretaker often belittles or ridicules a child. Most – A caretaker uses extremely restrictive methods to bind a child or places them in closed confinement such as a trunk or closet. Subtype of maltreatment: Educational Maltreatment Brief definition: A caretaker fails to ensure that a child receives adequate education. Examples of least & most severe cases: Least – A caretaker allows a child to miss school up to 15% of time. Most – A caretaker does not enroll a child in a school to provide educational instruction. Subtype of maltreatment: Moral-Legal Maltreatment Brief definition: A caretaker exposes or involves a child in illegal or other activities that may foster delinquency or antisocial behavior. Examples of least & most severe cases: Least – A child is permitted to be present for adult activities. Most – A caretaker causes a child to participate in felonies. Abuse & Molestation Risk Management Plan • Meet ALL statutory requirements • Develop and implement formal written policies and procedures • Develop and initiate an abuse prevention training Program • Develop and enforce accountability guidelines for re-employment of accused abusers Abuse & Molestation Components of a Formal Plan • Staff selection policies • Clear written policies prohibiting unauthorized conduct • Adopt supervision guidelines • Create confidentiality policies • Develop specific job descriptions • Notify parents of activities unacceptable • Notify parents of staff departures