Public Sector Risk Management Challenges
From budget issues to cyber and active shooter events, public entity risk managers have a lot on their plates these days. This session at the PARMA 46th Conference & Expo offered risk manager and broker perspectives to a range of recent challenges facing the public sector.
- David Nunley, Risk Manager (retired), City of Anaheim
- Steven Schwarz, Risk Manager, City of Fremont
- Zachary Gifford, Director, Systemwide Risk Management, California State University
- Robert Lowe, Vice President, Public Entity, Alliant Insurance Services
Limits: Nuclear jury settlements are driving up the need for larger limits. Know your exposure. Do a quick risk analysis and ask for limits to meet your risk. You never want to have to go back to your governing body and tell them that you do not have enough insurance. The challenge is, from a budgeting perspective, can you afford the amount of limits that you should be purchasing?
Cyber Risk: Cyber is a moving target. Everyone is still wrapping their heads around it because trends change every six months. All entities should be purchasing cyber insurance, and with higher limits than in the past, as hacking events get more dynamic. No system is impenetrable.
Active Assailant Coverage: This is a new coverage that was developed as a result of the uptick in active shooter incidents. It is inexpensive and constantly evolving. The coverage can pay for a variety of things like counseling for survivors, the redesign of office space that could have been damaged, media relations management or a monument to commemorate the victims.
Medical Malpractice Coverage: Educators often employ nurses or clinical services, so this coverage is encouraged. For municipalities, treatment provided by fire departments brings a potential medical exposure. Cities are also taking larger roles in homelessness issues and shelters, which may contract with medical professionals, which also creates exposure.
Fleet Management: Insure for a concentration of risk or for large value items, if you do not have a blanket coverage form. Fire trucks go into high-risk areas. They are not only near fire, they also are often parked near cliffs and can fall off. Keep these risks in mind when considering coverage.