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Intergovernmental Relations. Insurance & Indemnity Issues Scott Barber HR Direct0r, Town of Florence President, AMRRP Board of Trustees. Arizona Municipal Risk Retention Pool ●77 members ●74 covered for property/liability ●71 members covered for workers’ compensation.
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Intergovernmental Relations Insurance & Indemnity Issues Scott Barber HR Direct0r, Town of Florence President, AMRRP Board of Trustees
Arizona Municipal Risk Retention Pool ●77 members ●74 covered for property/liability ●71 members covered for workers’ compensation
We know we’re a Pool and not an insurance company because…. (a short bit of promotion, if you please)
Value Added • City of Prescott – Yarnell Hill Fire AMRRP Response • City of Prescott AMRRP policy bound • June 1st - Yarnell Hill Fire tragedy June 30th • Four days prior to fire, loss control visited to discuss hot shot crews and training potential
Value Added • Immediate Response/Presence • Within 20 minutes from notice (via news media), conference call arranged to pull AMRRP team together (loss control, claims, administrative support resources) • Within 12 hours from notice, onsite team arrived at fire ground command center to establish staff work post • Within 24 hours, reached out for advice from pools involved in tragic events (Newtown shootings, West, Texas chemical explosion, Colorado South Canyon Fire)
Value Added • Communication • Continuous AMRRP onsite presence for 6 weeks • Immediate support provided to Human Resources and Public Information Officer • Retained professional communications consultant to assist in press conferences and messaging in advance of State Forester and ADOSH reports
Value Added • Communication • Face to face meetings with widows and family members to explain work comp benefits and accelerate hand delivery of the initial checks • Regular meetings and conference calls with reinsurer to provide notice and updates • Coordination with family liaisons (family, friends, union reps, fellow firefighters)
Value Added • Pro-Active Direction • Retained nationally-recognized crisis intervention expert to ID potential PTSD claims among others with direct contact with the tragedy • Retained workers’ compensation and tort liability counsel to protect the City’s interest in anticipation of litigation • Assistance locating needed documents for claims and reporting
Value Added • Emotional Support • Coffee, lunch and listening for beleaguered city staff • Continued support after the tragedy for things not related to claims/potential claims • Support to assist community and public relationships and resource allocation
What do we (together) insure?
We know we insure: ▪ Buildings ▪ Cars & trucks ▪ Equipment ▪ Employees ▪ Etc. ▪ ????? It is in the best interest of all members to know what we together are insuring (risk identification)
What about MPCs and CFDs? Coverage question raised in 2009. Surveyed members, discussed legal implications, determined AMRRP was likely already covering these entities so we needed to get them “scheduled”.
Leased Employees (smartworks, ESI) Member raised question of coverage and loss of coverage under immunity statutes in 2009. Discussed and identified need for a legislative fix. Ran the bill in the 2010 session and it passed. Big “thanks” from the schools pool.
What about IGAs and other contracts? Do you even know the risks your community is assuming through these agreements? • Mutual/Automatic Aid • Task Force Participation • HazMat Response Agreements • Facility Leases • Street Light/Traffic Signal Maintenance • Sports Leagues • Etc.
Reality = many of us couldn’t do what we do without the benefit of mutual/automatic aid agreements & IGAs Reality = “The Golden Rule” “He who has the gold makes the rules”
Policy Calls: -Sending a fire captain to Louisiana to assist w/Hurricane Katrina -Sending employee to NM wild-land fire to help with administrative tasks -Airport tenant agreements -Aquatic center rental for private parties -After/before school programs (@ school facilities)
3 Steps of the Risk Management Process: 1. Risk Identification & Assessment 2. Manage Risk (elimination & mitigation) 3. Risk Transfer (via contract or insurance) AMRRP Board discussing IGA issue for some time, but especially during the past year. We’re going to be seeking ways to positively impact all 3 steps listed above.
One possibility is a IGA Assistance Lifeline Program. Members would be able to access specialized legal review of IGAs. Likely would be narrow review of indemnification and insurance provisions. Another…coordinating defense when defendant entities are members of the Pool to minimize legal fees and apportion liability (through binding arbitration/other means?).
Tools you already have: ►Mandate (internal) review of all contracts and agreements; index them for ready access; pay attention to certificates of ins. ►Don’t use the other guy’s forms/templates (see “Golden Rule”). ►Increase awareness of issues with managers, department directors and elected officials. ►Do you know what a TULIP is? ►Each other.