american public transit association risk management seminar june 10, 2013
TRANSCRIPT
American Public Transit AssociationRisk Management Seminar
June 10, 2013
Introduction James M. Bridgeman – Dept. Manager Risk & Insurance
Bay Area Rapid Transit District Defending the Case
Dale L. Allen, Jr. – Attorney at LawLow, Ball & Lynch
Changes at BART Mark Smith – Independent Police AuditorBay Area Rapid Transit District
Was It Covered? Richard Peers – Director, Business DevelopmentPrice, Forbes & Partners
Purpose: To Help You Prepare For a Crisis
The Key Word is Prepare Planning For the Unthinkable◦A Terrible Image Flashed Around the World◦An Employee Accused of Murder◦Death Threats◦General Manager Doused with Red Paint◦Universal Condemnation – “We’re Toxic!”◦Rioting in the Streets
Reflections on a Difficult Time◦Power of Social Media◦Murder Charge Against Officer◦ Lack of Police Oversight Process◦ Lack of Communication with the Public
Officers Right to Remain Silent vs. BART’s Duty to Inform Public
Over a Week With No Information From BART
Oscar Grant Shooting – The Brokers Response◦CNN Coverage Picked Up by Most
Underwriters Before BART Could Formally Advise Them
◦Difficult to Piece Together Sequence of Events to Give Factual Unbiased Summary
◦Managing Underwriters Concern/Desire to Get Their Experts Involved
◦Relaying BART’s Strategy
◦Explaining Legal Process◦Understanding Political/Local Pressures◦Creating Open Communication◦Achieving a Favorable Renewal Despite a
$50 million Pending Demand
Oscar Grant Shooting – Coverage Issues Highlighted◦Criminal, Deliberate/Intentional Acts Often
Excluded◦Civil Rights Claims or Allegations of
Discrimination Typically Excluded◦Cyber Attack Not Covered◦False/Arrest/Detention Excluded in
Definition of Personal Injury◦Underwriters Watch Closely How BART
Spent Retention
Oscar Grant Shooting Lessons Learned◦Establish Reporting Plan for Major Events
Between Client/Broker/Underwriters◦Specialists Already Chosen◦Coverage Reviewed to Consider Better
Approach and Reasonableness of Exclusions◦Cover for Intentional Acts if Defending
Public◦Broad Definition of Legal Liability to Address
Civil Rights
◦Consider Cyber Liability and Cover If Suitable
◦Differentiate Between Employment and Passenger Related Discrimination
◦Not All of These Commercially Viable But At Least Consider
THINK!... How Such an Event Could Impact Your System and What Precautions You Have in Place
Settlements With Family $2,800,000
Defense Expense $1,200,000
Police Overtime $1,400,000
Officers Involved 0n Paid Leave
$1,000,000
Police Training $800,000
Police Audit $135,000
Cost to Fire Two Officers $350,000
New Police Equipment $100,000
Total $7,785,000
Tragic Event Lead to Many Changes◦Civilian Oversight of Police◦Review of Police Procedures & Training◦Plan For Communication With Insurers◦Need to Actively Communicate to Public