What Risk Manager Does ID exposure to loss Manage potential effects

ID exposure to loss

Manage potential effects

9 Key Areas of Exposure Property General Liability Professional Liability Automobile Liability & Physical Damage Employee/volunteer injury and illness Directors and officers liability Fiduciary liability Aircraft liability Crime

Property

General Liability

Professional Liability

Automobile Liability & Physical Damage

Employee/volunteer injury and illness

Directors and officers liability

Fiduciary liability

Aircraft liability

Crime

Property What is considered to be property Ways to Insure Property All Risks Named Peril Review property & ID risks

What is considered to be property

Ways to Insure Property

All Risks

Named Peril

Review property & ID risks

Buildings Basis for valuation Factors used by insurance company to determine value Choose coverage based on replacement cost or depreciated value Survey showed that 76% of business owners thought they had purchased replacement cost coverage. Only 9% in fact had such coverage!

Basis for valuation

Factors used by insurance company to determine value

Choose coverage based on replacement cost or depreciated value

Survey showed that 76% of business owners thought they had purchased replacement cost coverage. Only 9% in fact had such coverage!

Contents Difficult to value & track Replacement cost or original cost must be determined What is considered to be contents?

Difficult to value & track

Replacement cost or original cost must be determined

What is considered to be contents?

Electronic Data Processing Equipment (EDP) High Importance What is considered to be EDP? Valuation EDP Floater

High Importance

What is considered to be EDP?

Valuation

EDP Floater

Valuable Papers, Books & Documents Get assessment of replacement cost from loss control company Protect documents that will be used in trial or hearing Keep duplicates

Get assessment of replacement cost from loss control company

Protect documents that will be used in trial or hearing

Keep duplicates

Unusual Property High tech communications equipment Moveable property Exhibits Examples Radiation emission Should be insured on an inland marine “floater”

High tech communications equipment

Moveable property

Exhibits

Examples

Radiation emission

Should be insured on an inland marine “floater”

Personal Property of Others Leased equipment Patients’, guests’, employees’ & volunteers’ belongings Don’t allow highly valuable belongings Warn guests and employees to protect Employees are fully responsible

Leased equipment

Patients’, guests’, employees’ & volunteers’ belongings

Don’t allow highly valuable belongings

Warn guests and employees to protect

Employees are fully responsible

Boiler & Other Machinery Pressurized machinery Often underinsured Not required t/b insured by law Proper maintenance & a good back “ Joint Loss Agreement” Insurance rates are relatively low

Pressurized machinery

Often underinsured

Not required t/b insured by law

Proper maintenance & a good back

“ Joint Loss Agreement”

Insurance rates are relatively low

Business Income Losses Include Lost: Revenue Continuing operation costs Extra costs Opportunity Costs

Revenue

Continuing operation costs

Extra costs

Opportunity Costs

Additional Property Exposures Common risks “ Builders Risk” insurance Other things to insure Construction agreement Property lease agreements

Common risks

“ Builders Risk” insurance

Other things to insure

Construction agreement

Property lease agreements

General Liability Torts Jurisdiction Determinants 5 Categories of Cost Involved With Civil Action Criminal actions are generally uninsurable

Torts

Jurisdiction Determinants

5 Categories of Cost Involved With Civil Action

Criminal actions are generally uninsurable

General Liability Contract Typically inclusions: Bodily Injury Property Damage Legal Liability Employee benefits liability Patient’s property Typical Exclusions: Employee benefits Completed operations Products

Typically inclusions:

Bodily Injury

Property Damage

Legal Liability

Employee benefits liability

Patient’s property

Typical Exclusions:

Employee benefits

Completed operations

Products

Insuring Agreements What insurance company will pay Insurer has “right and duty to defend” Inclusion Exclusions Personal and advertising liability “ Named insured” Conditions section of policy

What insurance company will pay

Insurer has “right and duty to defend”

Inclusion

Exclusions

Personal and advertising liability

“ Named insured”

Conditions section of policy

Professional Liability Coverage is triggered by a “medical incident” 4 types of liability to include Consent” Provision in ins. Contract Occurrence vs. claims made policies

Coverage is triggered by a “medical incident”

4 types of liability to include

Consent” Provision in ins. Contract

Occurrence vs. claims made policies

Automobile Liability Ordinary auto insurance Not off-road vehicles

Ordinary auto insurance

Not off-road vehicles

Employee/Volunteer Injury and Illness 2 Parts to Workers Compensation Benefits allowed by state law Insures employees not included under Part A and employees families

2 Parts to Workers Compensation

Benefits allowed by state law

Insures employees not included under Part A and employees families

Directors and Officers Liability Personal management decisions Only coverage triggered solely by action against an individual D & O vs. General Liability coverage

Personal management decisions

Only coverage triggered solely by action against an individual

D & O vs. General Liability coverage

Fiduciary Responsibility Handling $ for employees Employee payroll deductions

Handling $ for employees

Employee payroll deductions

Aircraft Liability Injury from unloading aircraft Helipads

Injury from unloading aircraft

Helipads

Crime Insurance W/the property contract or separately 5 common insuring agreements

W/the property contract or separately

5 common insuring agreements

Affects of Risk Management Process Every aspect of health care organization Uninsured or underinsured loss can devastate Cost effective improvements in risk management can create accrued benefits Decreased losses=increased employee morale Properly protected assets=operational efficiencies Good safety record=good reputation in community Benchmarking

Every aspect of health care organization

Uninsured or underinsured loss can devastate

Cost effective improvements in risk management can create accrued benefits

Decreased losses=increased employee morale

Properly protected assets=operational efficiencies

Good safety record=good reputation in community

Benchmarking