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Top 10 Costliest Claims and How to Avoid Them

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Introduction Introduction Types of Claims Generally Types of Claims Generally

Covered by GSBACovered by GSBAWCF Workers’ Compensation Employers’ Liability

RMF Property Auto Physical Damage Auto Liability Auto Medical Pay General Liability School Leaders’ Liability Superintendent & Drivers’

Education Bonds Crime 2

Types of ClaimsTypes of ClaimsGenerally NotGenerally Not Covered Covered

District has sovereign immunity for most non auto Student and Visitor accidents

There is no medical pay coverage for premises accidents for guests or students

There is no liability or workers’ compensation (WC) coverage for employees who engage in certain intentional acts

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Two WorstTwo Worst Workers Workers’’ Compensation ClaimsCompensation Claims

#1. Bus Driver- $865,000.00• Struck by passing vehicle while standing by

bus on side of road• Amputated leg• Catastrophic- Still on benefits• If settled, MSA alone will cost in excess of

$200,000

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Two WorstTwo Worst Workers Workers’’ Compensation ClaimsCompensation Claims

#2. Custodian- $834,000.00• Struck by sweeper• Multiple lumbar, cervical and hernia

surgeries• Catastrophic- still on benefits• If settled, MSA will cost at least $100,000

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ConclusionsConclusions

1. After a motor vehicle accident, all personnel at the scene should exercise extraordinary caution and avoid standing in or near the roadway

2. Physical capacity to perform duties should be an integral part of job descriptions and assignment

3. Loss of control of medical usually leads to excessive treatment and lost-time

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RecommendationsRecommendations1. Assure drivers and responders are well trained

on safety protocols for on-site accident investigations

2. Provide detailed job descriptions, which include physical requirements, to medical personnel conducting pre-employment physicals

3. Post up to date medical panels 4. Provide modified duty

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WC Causes of LossWC Causes of Loss

Largest number of claims and highest costs so far in FY 11 are accidents caused by slips, trips or falls.

2nd largest number of claims and 2nd highest costs in FY 11 are strains from lifting, pushing, pulling or repetitive motion.

Please utilize our new Target Safety Program to train employees to avoid accidents.

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Four Worst Liability ClaimsFour Worst Liability Claims

#1. Auto Liability- $1,150,000.00• Bus turned left in front of on-

coming vehicle• Killed mother of small child• Settled for limits

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Four Worst Liability ClaimsFour Worst Liability Claims(Continued)(Continued)

2. EPL- $1,075,000• Alleged discrimination• High Legal Costs • Settled

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Four Worst Liability ClaimsFour Worst Liability Claims(Continued)(Continued)

3. Auto Liability- $1,000,000• Bus ran off the road• Multiple serious injuries • Reserved at limits

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Four Worst Liability ClaimsFour Worst Liability Claims(Continued)(Continued)

4. Auto Liability- $900,000.00• While a vehicle was turning, the mirror struck

a pedestrian standing on the curb at the corner• GSBA was informed only minor injuries• Actually permanently disabled elderly

woman, who is now in a nursing home• Settled for near limits

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Four Worst Liability ClaimsFour Worst Liability ClaimsConclusionsConclusions

– One auto claim was reported with incorrect information, delaying contact with the claimant

– One auto claim involved turning left in front of on-coming traffic

– One auto claim involved turning a school vehicle too sharply at a corner and failing to notice a pedestrian

– Discrimination claims of all types are increasing in number and cost- sexual, racial, age, etc.

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Four Worst Liability ClaimsFour Worst Liability ClaimsRecommendationsRecommendations

– Report all claims promptly with accurate information enabling immediate contact and reducing claims costs

– When bus routes are set, avoid left turns on two way streets

– Avoid turning vehicles too sharply at intersections– Train drivers to keep a watch out for pedestrians– Train administrators, managers and supervisors, how to

act in a non-discriminatory manner

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Action Plan to Reduce Bus AccidentsAction Plan to Reduce Bus AccidentsWe suggest training in the following sequence from our School Bus Safety Course-

Safety Basics (per Jeff Cassell of School Bus Safety Corp.)LLC Defensive Driving

– (Rear End Other Vehicle Claims)Intersections

– (Intersection Accident Claims)– (Failure to Yield Right of Way Claims)

Danger Zones – (Pedestrian or Bicyclist Claims) – (Hit Parked Car or Fixed Object Claims)

Safe Backing – (Backing or Rolling Back Claims)

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Four Worst Property ClaimsFour Worst Property Claims

# 1- Fire- $2.8 Million• One location• Historical building

# 2 – Flood- $2.7 million • 42 Locations in 5 districts• Damage at one location was discovered late• Hidden hazardous material under gym floor

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Four Worst Property ClaimsFour Worst Property Claims

# 3- Fire- $2.5 Million• One location• Vacant Building

# 4 – Wind & Hail- $2.25 million • Four locations, two districts• One district failed to discover and mitigate damage in vacant building,

increasing damage

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Property Claims Property Claims ConclusionsConclusions

• Late reported claims create problems for all• Serious storms may result in hidden damage through water intrusion and migration• Hidden hazards such as mercury and asbestos may be exposed by a loss• Several of our worst property claims involved vacant buildings • Historical buildings are very expensive to repair and need to be valued accordingly

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Property Claims Property Claims RecommendationsRecommendations

• Report claims promptly• Hire a general contractor experienced with storm damage repair• Select vendors in consult with the adjuster• Make certain contractors are performing moisture tests and checking for

hazardous materials• Regularly check your buildings, including interiors of vacant buildings,

especially after storms

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Wrap upWrap up GSBA realizes prompt and professional service is

extremely important in the event of any loss. We want your experience to be as positive as possible under the circumstances.

If you have any questions or, if we can be of assistance, please call:– Your Member Advocate – Butch Walker of US&C at 678.376.0003 extension 11 or

toll free at 888.245.4722

– Olan Hembree of GSBA at 770.822.3627.

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Questions ?Questions ?

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Thank you!Thank you!

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