risk management and special events
DESCRIPTION
Webinar presentation on risk management issues in special events to the National Health Council Chief Development Officers Affinity Group by Joseph Caruso and Jim Linn. October 3, 2011TRANSCRIPT
Presented by:
1
Risk Management Issues in Special Events
Team Atlanta
Our Presenters
2
Joseph Caruso CIC, SCLA Area Senior Vice President, 25 years risk management experience, Finance and Claims background.Phone: 678-393-5281Mobile: 770-845-7075Email: [email protected]
Jim Linn Area Senior Vice President, 31 years risk management experience, Finance, Audit, and Underwriting background.Phone: 678-393-5280Mobile: 770-714-4714Email: [email protected]
Civil and Criminal Liability
Elements of Negligence
• Legal duty to act• Breach of legal duty• Causal connection• Actual damages
Risk Management &
The Nonprofit Sector
Risk Management &
The Nonprofit Sector
Great Free Resource Onlinewww.nonprofitrisk.org
Nonprofit Risk Management Center
Who are the Stakeholders?
• Before choosing and executing a risk management plan, the VHA must identify its stakeholders:Patients DonorsVolunteersEmployees
Patients and Risk Management
• The best risk management practices make the organization able to serve patients better– Patients are served in an environment that meets
their needs more often– More patients are served because the
organization spends less money responding to negative events
– Patients are protected from the organization’s negative risk outcomes
Donors and Risk Management
• Nonprofit organizations are subject to the risk appetites of donors– Donors (especially major gifts) must be convinced
that the organization will make prudent decisions and investments of their contributions
– Donors will reduce their giving if bad events happen
Volunteers and Risk Management
• The most valuable volunteers recognize that they are taking risks along with the organization
• Volunteers who are not concerned about their own risks may actually increase the organization’s risk
Employees and Risk Management
• Employees should not have to suffer the consequences of poor risk management– Budgets limited by poor risk financing tools– Working conditions compromised by poor risk
choices– Unneeded diligence to protect themselves
Role of Risk Management
• Good stewardship of donor funds, volunteer time, attention to patient needs and employee protection require good risk management practices
• For a nonprofit organization, these practices do not differ much from a for-profit corporation’s good risk management practices
Certificate & Information Management
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Contract Review• Who Is An Insured?
– Executive Officers, Directors, Employees and Volunteers of the VHA
• Additional Insured Status– Amends the “Who Is An Insured” section of policy– Frequently requested due to litigious society– Extent of Coverage afforded is based on Endorsement
• Waiver of Subrogation– Precludes recovery by grantors insurer regardless of liability on
the part of the requesting entity – Accident experience becomes part of grantors experience rating
impacting future premiums
Event Liability
Anyone can be sued
Are You Prepared?
• What could go wrong:– On premises/location injuries– Food poisoning– Product liability for prizes– Damage to premises/location– Adult beverage liability
Indemnification• Depending on the contract, you may become
liable for the negligence of others:– Employees– Volunteers– Venue– Servers– Caterers– Bartenders
Adult Beverage Liability
• Impaired decision-making• Alcohol-related personal injury• Over-serving• Serving under age• Contributing to DUI accident• Contributing to disorderly conduct
Know the Law• Familiarize yourself with your jurisdiction’s
Dram Shop Act laws• Synchronize your best practices with the
vendors• Be sure bartenders and event managers can
identify and cease service to over-served and under-aged patrons
• Consider a designated driver program• Call for help when appropriate
Know Your Contracts• Read your contract and any demands for
additional insured coverage• Identify all parties whose actions you may
become liable for• Seek indemnification from third parties when
appropriate• Implement best practices and encourage
others to implement as well
Sharing Best Practices• Brain storm event hazards both internally and with your Risk
Management Advisor and pre-plan response
• Engage your Insurance Broker in this process!
• Give strong consideration to subcontracting hazardous tasks such as food and drink service, amusement operation, and security and seek proper indemnification and waivers
• Collect participant and volunteer waivers
• Name an on-site incident response coordinator and communicate contact information to all staff and volunteers
• Establish accident investigation procedures that include witness statements and pictures
Weather Coverage• Coverage for loss of fixed expenses, revenue, and/or profit
associated with weather disruption of an event• Rain is the most common peril insured but policies can also be
written for snow, temperature, wind, hurricane or lightning• Rain coverage is generally written with a coverage trigger of
rainfall during a set timeframe in hours and common rain increments are .10, .20, .25, .50, .75 or 1 inch
• The lower the selected rain increment the higher the cost of coverage
• Premium rule of thumb is 5% of coverage limit in the middle of the rain increment spectrum
• Coverage must be bound at least 7 to 10 days in advance and most policies have a $500 minimum premium