mhc 710 jh 01 risk management structure of risk exposure management
DESCRIPTION
TRANSCRIPT
1
What Risk Manager Does
ID exposure to loss
Manage potential effects
2
9 Key Areas of Exposure
1. Property2. General Liability3. Professional
Liability4. Automobile
Liability & Physical Damage
5. Employee/volunteer injury and illness
6. Directors and officers liability
7. Fiduciary liability8. Aircraft liability9. 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
A. Benefits allowed by state law
B. 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
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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