Risk Control and Incentive Programs Rick Hudson Sr. Risk Control Consultant Willis Pooling Practice

Risk Control and Incentive Programs Objectives Benefits of a Risk Control Programs Risk Control & Incentive Programs…Some Ideas Additional Risk Control and Safety Ideas

Risk Control and Incentive Programs REGULATORY COMPLIANCE PROGRAMS VS RISK CONTROL PROGRAMS

Risk Control and Incentive Programs Protects –People –Income –Property –Assets –Time –Public Image –Environment Prevents and Reduces Legal Liability

Risk Control and Incentive Programs “Trees Die at the Top” Peter Drucker Top Management Commitment –County Commission –County Manager –Department Managers –Department Supervisors

Risk Control and Incentive Programs Safety Committees Injury Management (Early Return to Work) Motor Vehicle Operator Program Drug Free Workplace Risk Management Grants Loss Control Incentive Programs

Safety Committees Safety Committees are instrumental in developing and administering in-house and outside risk control programs, and incentive programs. –Expertise –Leadership –Communication

Injury Management (Return to Work) Reduced Claims Costs Reduce Workers’ Compensation Costs Discourages Fraudulent Claims Positive Workplace Morale Reduced Employees Turnover

Motor Vehicle Operator Program Qualify and Hire the “Best Drivers” Vehicle Use Policy Limit Liability Reduced Auto Rates Reduced WC Rates Easy to Monitor

Drug Free Workplace Program It is estimated over one hundred billion dollars each year is spent on the consequences of substance abuse in the workplace Costs include absenteeism, accidents, equipment damage, and increased medical costs and insurance premiums. Research indicated that health insurance costs for employees with alcohol problems are approximately twice those of other employees Employees who abuse alcohol or drugs have two times as many accidents, three times as many vehicular accidents, and use three times as much sick leave as those who do not.

Drug Free Workplace Program Local Government Insurance Pool (Tennessee) –Pre-Employment Testing –On-the-Job Injury –Random Testing (CDL or Safety-Sensitive Position) –Reasonable Suspicion Testing 5% WC Discount for members certified as a Drug-Free Workplace Risk Control and Claims Verifies Compliance

Lightning and Surge Protection Program CORSA (Ohio) Reduction of Lighting and Electrical Surge Losses A. –No Cost On-Site Lightning/Surge Evaluation with Detailed Report. –Member Installs Equipment that Meets or Exceeds Evaluation Recommendations. –CORSA Will Waive the Property Damage Deductible in the Event Lighting and Electrical Surge Loss B. –No Cost On-Site Lightning/Surge Evaluation with Detailed Report. –Grant Program to Fund the Cost of Equipment and Installation. –Member Pays for the Property Damage Deductible in the Event Lighting and Electrical Surge Loss

Risk Management Grant Program NPAIP/PACT (Nevada) The program may award members up to $10,000 Examples of potential grant uses include: –Attending a risk management seminar or conference such as AGRIP, PRIMA, PARMA, CJAPA or PERI Institute. –Purchasing equipment that promotes employee or premises safety. –Purchasing equipment or materials that facilitate OSHA or other regulatory compliance. –Risk management training –Other enhancements to risk management programs

Loss Control Excellence Program NPAIP/PACT (Nevada) The Loss Control Excellence Program involves a rigorous review of the member’s policies and procedures geared towards the reduction of loss. Members who complete the program receive a cash award and a plaque representing their commitment to implementing effective loss control measures. –Counties –Schools –Hospitals The program may award members up to $3,000

County Loss Control Excellence Program Sections – I.Loss Control Organization II.Employment III.Vehicle Fleet IV.Law Enforcement V.Fire Services VI.Parks and Recreation VII.Streets and Roads VIII.Utilities IX.Fiscal Controls

Loss Control Incentive Program PComp and PCoRP (Pennsylvania) A program that recognizes loss control activity. A premium discount is available for satisfactorily completed or implemented items. Lack of positive loss control activity will cause a debit or surcharge.

Loss Control Incentive Program PComp Criterion for Credit –1% Safety of Loss Control Program –1% Timely Claims Reporting –1% Return to Work (RTW) Program –1% Human Resources Management –1% Education and Training

Loss Control Incentive Program PCoRP Criterion for Credit –0.5% Credit – Education & Training –0.5% Credit – Sexual Harassment –0.5% Credit – Prison Policy Review –0.5% Credit – Prompt Claims Reporting –0.5% Credit – Vehicle Safety Program –0.5% Credit – Driver History Program –0.5% Credit – Embezzlement Control

Risk Control and Incentive Programs Final Thoughts Webinars E-Learning Newsletters Bulletins Training Videos Training and Education Consultants

Risk Control and Incentive Programs Thank You