A risk manager identifies areas of exposure to loss, manages the potential effects of risks, and reviews key risk areas including property, general liability, professional liability, automobile liability, employee injury, directors and officers liability, fiduciary liability, aircraft liability, and crime. The risk manager works to ensure the organization has appropriate insurance coverage for these risks and implements risk management strategies to reduce losses and increase efficiencies.

1. What Risk Manager Does ID exposure to loss Manage potential effects

2. 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

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

4. 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!

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

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

7. 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

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

9. 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

10. 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

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

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

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

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

15. 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

16. 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

17. Automobile Liability Ordinary auto insurance Not off-road vehicles

18. 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

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

20. Fiduciary Responsibility Handling $ for employees Employee payroll deductions

21. Aircraft Liability Injury from unloading aircraft Helipads

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

23. 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