Jamie Ferris 1 COOPERATIVE EXTENSION Staff Orientation RISK MANAGEMENT BRIEFING Jamie Ferris CIC, AAI, CPIA P. W. Wood & Son, Inc.

Jamie Ferris 2 The University and The Associations Cornell & Associations are affiliated for education & supervision Cornell has oversight responsibility as agent for the State of New York by virtue of NYS County Law Article 5, 224(b) Treated separately for risk management & insurance issues: Therefore Cornell does not offer direct legal or insurance protection to the county Extension Associations

Jamie Ferris 3 Extension Associations: A Scattered “University” CCE owns and leases facilities CCE conducts a wide range of programming Extensive youth programming Thousands of grants and contracts processed every year

Jamie Ferris 4 Wood Office Role Extension Administration out sources the risk management services for Associations to The Wood Office We monitor the insurance programs General liability Auto liability Workers compensation 4H accident insurance

Jamie Ferris 5 CCE Risk Management Process A systematic program we have in place to prevent losses from happening or prepare to handle losses from unexpected, unintended or accidental events

Jamie Ferris 6 Risk: Dave’s Definition Any event or circumstance that presents the possibility of exposure to loss or danger to CCE as an organization, its Board, staff, volunteers, program participants, the general public or property Risk may be from internal or external sources.

Jamie Ferris 7 The Impact Of Risk Risk creates an exposure for financial loss Risk impacts people Risk impacts property Risk impacts operations Risk impacts revenues

Jamie Ferris 8 Who Is At Risk Of Liability? The Association Directors Employees Volunteers Participants

Jamie Ferris 9 Liability Exposure Examples Someone is injured on premises Someone injured during an activity or program Vehicle accident causing injury or damage to another party Liability from vendors/contractors Liability assumed from contracts Sexual abuse or molestation exposure

Jamie Ferris 10 LEGAL SOURCES OF LIABILITY

Jamie Ferris 11 STATUTORY LIABILITY THE BIG THREE CRIMINAL LAW TORT LAW Vicarious Liability CONTRACT LAW

Jamie Ferris 12 Tort Liability Chart

Jamie Ferris 13 A Tort Is Not A Pastry! A tort is created when you cause an injury to a person or damage to their property that results from your wrongful or negligent act Usually a civil wrong Does not include breach of contract Four parts to a tort

Jamie Ferris 14 #1: There is a Duty Owed There must be some duty owed to another party i.e. They have a right to personal safety on your premises or in your activities Or they must have a protected right i.e. freedom from sexual abuse freedom from libel or slander

Jamie Ferris 15 #2: A Breach Of The Duty There must be a breach of the duty owed injury or damage by your negligence An invasion of the protected right A person is sexually abused Damage of reputation as a result of libel or slander

Jamie Ferris 16 #3: Harm Results From Breach Of Duty There must be actual harm as a result of the breach of duty or invasion of right physical injury or death property loss or damage mental anguish

Jamie Ferris 17 #4: There is No Legal Justification For the Breach of Duty There is no justification for the actions of the person or organization that caused the breach of duty or invasion of rights There is no legal privilege There is no immunity – good Samaritan There is no intervening force

Jamie Ferris 18 Duty Of Care Hierarchy Highest duty of care is owed to children Business invitees You are making money off them Social guests i.e. A guest in your home Trespassers even have rights

Jamie Ferris 19 Risk & Insurance Review We review activities & programs We review grant requests We review Contracts We monitor use of CCE facilities by outside groups

Jamie Ferris 20 Why We Review Activities Is the activity related to CCE’s educational mission? Check for insurance coverage Check for any unusual risk exposures Recommend safety techniques Collaborative activities with other organizations for shared liability.

Jamie Ferris 21 Why We Review Grants Is the contemplated program/activity related to CCE’s educational mission Check for insurance coverage for proposed program or activity Advise you if the program will generate additional insurance cost Check for any contractual issues

Jamie Ferris 22 Why We Review Contracts Keep within scope of insurance coverage Prevent signing of contracts that are outside of the insurance coverage Negotiate change if necessary CCE should not assume liability by contract it is protected from by law

Jamie Ferris 23 Law Of Contracts Contract law changes the normal rules of tort law The contract language governs liability responsibility New York strictly construes and enforces contract language

Jamie Ferris 24 Contractual Liability Issues HOLD HARMLESS An assumption of risk Limited form is what we want Broad form is what they ask for It is a binding legal obligation Indemnification A contractual obligation to pay for damages Obligation exists even if there is no insurance Even if not your fault

Jamie Ferris 25 Our “Most Wanted” List Government contracts Facilities use forms Waivers of liability & assumption of another party’s liability Equipment leases All types of equipment “Licenses” Malls, schools, colleges

Jamie Ferris 26 Certificates of Insurance Certificates of Insurance provide evidence of required insurance coverage New York insurance regulations strictly govern the issuance of certificates We review and issue thousands of certificates every year for CCE

Jamie Ferris 27 Types of liability insurance Commercial general liability Covers CCE activities and premises Business auto liability (next slide) Directors & Officers liability Umbrella or excess liability

Jamie Ferris 28 Auto Liability Extension owned vehicles Employee vehicles Volunteer vehicles Commercial driver license requirements 10 passenger vehicles hauling kids & disabled

Jamie Ferris 29 Background checking Staff Motor vehicle record All new hire prospects must be checked after offer of employment but before putting on payroll Background checks Check any staff that will work with youths or vulnerable populations This includes potential new hires

Background check Volunteers Motor Vehicle check Check volunteers who have driving in their volunteer responsibilities, who drive CCE vehicles, or who will drive on long trips over 100 miles, Need 2 drivers Background check All volunteers beyond board members are required to be checked-no exceptions Check any volunteer who will volunteer for CCE for more than one calendar day/date per year. Jamie Ferris 30

Jamie Ferris 31 Risk Avoidance If a risk cannot be controlled, insured or transferred there is no choice but to avoid the risk altogether This is an extreme measure to handle risk but may be the only choice

Jamie Ferris 32 F.O.R.M. CODE 1501 Guide to Risk management & insurance section Resource to guide management and staff Specimen forms List of approved and disapproved activities

Submission for review New Program Use contract/grant submission form Submit for our Risk Management & Insurance review in the earliest stages of the planning process Do Not wait until the last minute to bring us in Do Not assume if another association is doing it we have approved it Jamie Ferris 33

Submission for review contract Use contract/grant submission form Send complete copy of all documents Give us ample time for review in case we require a change Nothing should be signed until we approve Only Board President or ED can sign Jamie Ferris 34

Jamie Ferris 35 Summary The Wood Office provides risk management and insurance services to the county Extension Associations as part of the University’s oversight responsibilities to NYS We are a resource to help you with risk management and insurance issues

Jamie Ferris 36 Key Wood Office contacts Jamie Ferris Karen Supek Erin Shoemaker Office phone: (607)