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Digital Dilemma TAKING ADVANTAGE OF TECHNOLOGY WITHOUT TRIPPING OVER CYBER PITFALLS

HEALTHY SCHOOL TEAMS, HEALTHY STUDENTS WORKERS’ COMP TOP TEN: HOW TO CUT COSTS IN 2011

FEBRUARY 2011

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Volume 27, No. 2 | February 2011 | www.primacentral.org

The Public Risk Management Association promotes effective risk management in the public interest as an essential component of public administration.

CONTENTS

INTERIM EXECUTIVE DIRECTOR Marshall Davies, Ph.D. PRESIDENT Laura Peterson, JD, MPA Director of Risk and Insurance University of Wyoming Laramie, WY

7 DIGITAL DILEMMA Taking advantage of technology without tripping over cyber pitfalls By Robin Leal

PAST PRESIDENT Ron Hayes Risk Manager Calcasieu Parish School Board Lake Charles, LA PRESIDENT-ELECT Cindy B. Mallett, AIC, CWCP, ARM-P Risk Manager City of Gainesville Gainesville, GA DIRECTORS Betty Coulter Risk Management Director City of Asheville Asheville, NC Matt Hansen, MPA Director, Risk Management Division City & County of San Francisco San Francisco, CA

11 HEALTHY SCHOOL TEAMS, HEALTHY STUDENTS By Ryan Foley

16 WORKERS’ COMP TOP TEN How to Cut Costs in 2011 By Debbie S. Champion, Brandy Johnson and Megan M. Usovsky

Dan Hurley, CSP, ARM-P, MS Senior Director, Risk Management & Safety Norfolk Public Schools Norfolk, VA Dave Parker, ARM-P Risk Manager Pima County Sheriff’s Department Tucson, AZ Marilyn Rivers, CPCU, ARM, AIC Director of Risk and Safety City of Saratoga Springs Saratoga Springs, NY EDITOR Jennifer Ackerman, CAE Senior Manager, Communications 703.253.1267 • jackerman@primacentral.org ADVERTISING Donna Stigler 888.814.0022 • donna@ahi-services.com

16 IN EVERY ISSUE 4 News Briefs | 19 Advertiser Index | 20 Member Spotlight

Public Risk (ISSN 0891-7183) is published 10 times per year by the Public Risk Management Association, 500 Montgomery Street, #750, Alexandria, VA 22314 tel: 703.528.7701 • fax: 703.739.0200 email: info@primacentral.org • Web site: www.primacentral.org Opinions and ideas expressed are not necessarily representative of the policies of PRIMA. Subscription rate: $140 per year. Back issue copies for members available for $7 each ($13 each for non-PRIMA members). All back issues are subject to availability. Apply to the editor for permission to reprint any part of the magazine. Periodical postage paid at Alexandria, VA, and additional mailing offices. POSTMASTER: Send address changes to PRIMA, 500 Montgomery Street, #750, Alexandria, VA 22314. Copyright 2011 Public Risk Management Association Reprints: Contact the Reprint Outsource at 717.394.7350.

FEBRUARY 2011 | PUBLIC RISK

PRIMA 2011

WEBINAR SERIES AVAILABLE FREE TO PRIMA MEMBERS!* PRIMA members enjoy a wealth of benefits and PRIMA just added one more! Thanks to generous funding from Genesis Underwriting Management Company, the 2011 PRIMA Webinar Series will be offered to PRIMA members at no charge!

JOIN US FOR THE NEXT WEBINAR OF 2011: MARCH 23 | 12 P.M. – 1:30 P.M. EST Intricacies of 1983 Civil Rights Claims Presenters: Steven M. Puiszis Hinshaw & Culbertson

Richard A. Spiers CPCU, ARe, ARM Genesis Underwriting Management Company

Public entities across the country are facing an ever-increasing number of federal lawsuits claiming a violation of an individual’s civil rights. There are a number of unique liability issues and defenses to Section 1983 Civil Rights claims. This Webinar will help identify those issues so they are not overlooked during the initial investigation or analysis of a civil rights claim. Unlike state law claims, neither municipalities nor supervisory personnel can be held vicariously liable under 1983, and this Webinar will address under what circumstances and theories municipalities, public officials and supervisory personnel can be held liable for a civil rights claim. This Webinar will also provide a basis to evaluate any type of Section 1983 claim that can be brought against a state or local unit of government or its employees.

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Visit www.primacentral.org for more information on all of PRIMA’s 2011 Webinars or to register. * PRIMA members receive one complimentary registration per Webinar.

Message from PRIMA President Laura Peterson

A TEAM APPROACH

s I write this, Wyoming and much of the country is experiencing a significant amount of snow. This brings to mind the saying, “A snowflake is one of the most fragile creations, but look what they can do when they stick together.” If you are lucky enough to be in a part of the country spared snowfall, maybe you relate better to Ryunosuke Satoro’s statement: “Individually, we are one drop. Together, we are an ocean.” Whatever your geographic location or organization type, there is no doubt you are a unique, individual member of many teams. You are part of a family team, a work team, a PRIMA team, etc. But how much thought do we give to the teams that are critical to our happiness and success? How much work do we do to ensure those teams are as successful as possible? Many “experts” who talk about how to make a successful team talk about the need to forget individual goals and desires in favor of the group’s goals and ambitions. They talk about the need to identify and improve the weaknesses and shortcomings of any individual members of the group, so the group is stronger. In my opinion, this approach to building a strong team is all wrong. Earlier in my career, I was fortunate enough to study leadership at Gallup University. What I was most fascinated by was the focus at Gallup on identifying individual strengths and weaknesses and then working to magnify those strengths and focus them on organizational objectives, while not attempting to eliminate or overcome the weaknesses. Rather, the goal was to understand them, compensate for them or design around them so that they do not inhibit individual or organizational accomplishment. It was the first time anyone ever said to me, it is ok for you or members of your team to have weaknesses and

things at which you cannot excel. Everybody has these and they are impossible to completely overcome. What’s important is to identify your weaknesses and those areas where your team members are weak and find a way to minimize their impact so as a group, you can succeed.

As you go about your daily work,

One of my most important teams this year is PRIMA. Every member of the PRIMA board of directors brings strong professional credentials, varied individual strengths and weaknesses and a unique perspective to the matters that come before us. By focusing on our individual skills and acknowledging any areas where we lack individual expertise, we have learned to delegate to committees and ad hoc work groups, improved our efficiency, developed an amazingly cohesive board and accomplished much organizationally, despite challenges like the current economic climate. I am so appreciative of the daily contributions of the PRIMA board and each of you, the PRIMA members, to improve public risk management and make PRIMA the great organization and high-performing team that it is.

I hope you will

As you go about your daily work, I hope you will give a little more consideration to the teams in which you operate. Embrace your strengths and your weaknesses as well as those of your team members. In doing so, you will inevitably create a stronger team. In the words of Helen Keller, “Alone we can do so little; together we can do so much.”

your team members.

give a little more consideration to the teams in which you operate. Embrace your strengths and your weaknesses as well as those of

In doing so, you will inevitably create a stronger team.

Sincerely,

Laura Peterson, JD, MPA 2010–2011 PRIMA President Director of Risk and Insurance University of Wyoming

FEBRUARY 2011 | PUBLIC RISK

News Briefs

NEWS

BRIEFS WORKERS’ COMP COSTS RISING FOR WASHINGTON COUNTY, MD. FIRE AND RESCUE The premium for workers’ compensation insurance for Washington County, Md.’s volunteer fire and rescue companies will more than double in 2011, due, in part, to a claims history that is more than twice the national average, according to a report by the county’s risk management administrator. The Herald-Mail reports that the Washington County Commissioners agreed in December to pay the higher premium, but they also mandated that the Washington County Fire and Rescue Association attempt to rein in claims with mandatory physicals and other risk management controls. The county has paid the insurance premiums for the volunteer companies since the early 1990s. The 2011 workers’ compensation insurance premium for fire and rescue companies are $555,000, a 128 percent increase over the 2010 premium of $243,731, the risk management administrator said. The insurance package for commercial property, auto and casualty insurance for fire and rescue companies also will increase for 2011. That premium will be $410,000, up about 14 percent from the 2010 premium of $353,293. And that rate, though higher, requires higher deductibles than in 2010, she said. The commissioners voted unanimously to approve those quotes to be paid on a quarterly basis and to implement recommended risk-management practices in hopes of reducing premiums in the future.

MILWAUKEE LAW ENFORCEMENT MAY SEE CUTS, REPORT SAYS Shrinking federal support and other budget pressures are making it tougher to protect local law enforcement agencies from future cuts, according to a report by the nonpartisan Public Policy Forum. The Journal-Sentinel reports that the Milwaukee police department and county sheriff’s office have been able to largely maintain service levels in recent years through efficiency upgrades and using crime data to better pinpoint where to assign officers, the report says. That could change, especially if crime rates rise, the report says. Discretionary programs could face some risk, it says. “As overall city and county budget pressures grow, federal stimulus funds expire and staffing efficiencies are exhausted, both the city and county may have difficulty shielding public safety operations from cuts,” the report says. Both departments account for a major share of the city and county budgets. The police budget of $217 million and sheriff’s budget of $142 million have grown slightly since 2006, the period studied by the report. During the same period, violent crime has significantly declined.

PUBLIC RISK | FEBRUARY 2011

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DYERSBURG, TENN., APPROVES $2 MILLION FOR NEW EMERGENCY RADIOS The city of Dyersburg, Tenn., took a step toward improving emergency communications with local and state agencies by approving more than $2 million to replace its current emergency radio system, reports the Dyersburg State Gazette. Dyersburg’s emergency operations manager told aldermen that the city’s current system is “dead in the water” at a recently called meeting of the public safety committee. The meeting was the first of two steps taken to implement the new system. It is a system that will make it easier to communicate with county emergency responders should the county choose to cooperate, city officials say. A Motorola senior account executive said the city’s current system is too old to be repaired should it go down, with not even Motorola having the appropriate parts on hand to get the system running again should it fail. “The backbone of our system goes out of support in 2011,” said the emergency operations manager, who said the remainder of the system went out of support last year. “They are not just radios. It is a giant computer system with a life cycle just like a home computer has. Unfortunately, this is how the industry works. We are at the end of that life cycle. Our candle is just about to burn out on this system. We don’t want to drag our feet on this. It takes a year to build out that system.”

MISSING MONEY INVESTIGATION TAKES TIME, POLICE SAY After the colossal disappearance of approximately $635,000 from Bartow, Fla.’s, bank account in late November, things are getting back to “business as usual,” according to City Manager Judy Delmar. Since the city’s insurance company will cover the loss, the city’s part in the investigation is pretty much “done,” Delmar notes. In early December, Delmar pegged the loss to the city at about $465,000, which should be covered by insurance. About $171,000 was reported as “recovered.” The rest now is up to police. And the police are waiting, though it requires patience. They’re waiting on documents subpoenaed through the State Attorney’s Office. Once they receive those, they’ll be able to take their investigation to the next level. Sgt. Mark Stroup, head of the Lakes Wales Police Department criminal investigations unit, is in charge of the local investigation. Police would not comment as to current leads or details about the theft, but spoke in terms of the “process” involved with such crimes. Stroup notes that “generally” speaking “with this type” of crime, investigation includes the gathering of all data and “everything” captured when the crime occurred including audio, video and computer data. Once that data is assembled, the investigation can move to the “interview” stage, where law enforcement talks to anyone who might have any information regarding the crime or any connection to the crime. “There’s a lot of time,” he said regarding the subpoena process. “You’re dealing with a lot of different procedures that have to be met ... due to laws and policies put in place.”

FEBRUARY 2011 | PUBLIC RISK

PRIMA 2011 ANNUAL CONFERENCE

Blazing the Trails of Risk JUNE 5–8, 2011 Portland, OR Oregon Convention Center Plan now to attend the industry’s ONLY conference dedicated to risk management in the public sector! At the 2011 Annual Conference, you will have more than 50 educational sessions in nine tracks from which to choose, including an employee benefits track, school risk management, pooling and risk control. We’ve all heard that these topics are going to effect us sooner or later. Find out how your peers are addressing these new responsibilities!

PUBLIC RISK | FEBRUARY 2011

www.primacentral.org

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Digital Dilemma

DIGITAL DILEMMA

TAKING ADVANTAGE OF TECHNOLOGY WITHOUT TRIPPING OVER CYBER PITFALLS By Robin Leal

The days when a government agency accepted a paper check at the front counter, meticulously recorded the amount on a paper ledger and then carefully stored it in a cabinet stuffed with paper files are long behind us. Today, public entities interact with their constituents online, store their information electronically in large databases and accept payment through credit cards and electronic fund transfers. As public entities know, the digital age makes many aspects of providing information and services much easier. But it also brings with it a surprising degree of liability risk. To manage the risk, public entities must first understand the broad range of potential exposures and then design procedures to thoughtfully address the areas of concern. With insight and planning, potentially costly exposure risks can be substantially mitigated.

CYBER PITFALLS There are many current examples where public entities are being sued for alleged missteps relating to problems in the electronic space. What follows are just a few of the cyber pitfalls that can arise. Breach of Privacy Allowing personal information to fall into the wrong hands not only exposes citizens to potential fraud, but also puts the public agency at risk for damages, penalties and costs. Almost all states have laws requiring the protection of private information and many states have specific mandates for mitigation when a breach of privacy occurs. Despite heightened awareness about the issue and widespread news coverage when breaches occur, there has been no slowdown in the public sector. According to statistics captured by the Privacy Rights Clearinghouse,

FEBRUARY 2011 | PUBLIC RISK

Digital Dilemma

Allowing personal information to fall into the wrong hands not only exposes citizens to potential fraud, but also puts the public agency at risk for damages, penalties and costs. Almost all states have laws requiring the protection of private information and many states have specific mandates for mitigation when a breach of privacy occurs.

which keeps a national registry of breaches of privacy, public entities (government and military) were on track for an 88 percent increase in frequency of privacy breaches for 2010. Among the types of breaches to be aware of are internal theft by employees, stolen laptops, lost portable storage devices, mailings with Social Security numbers exposed, inadvertent online access to information and much more. Transmission of Malware An email is opened with an attachment that looks like it comes from an acquaintance. The virus it contains infects the entity’s computer system—and then inadvertently is transmitted to third parties through email. When the third parties can document repair costs and financial losses from their systems shutting down, the entity can face liability claims as well as incur defense costs.

discrimination if, by reviewing social media, a candidate from a legally protected class is eliminated from consideration. In another example, a clinic employee gossiped about private medical information on a social networking site, exposing the employer to a lawsuit for invasion of privacy. Infringement of Copyright Someone else’s property can be inadvertently taken without permission—and sometimes without that person even being aware of it. For instance, New York City has long been known as the Big Apple—but that didn’t stop Apple Inc. from raising a fuss when the city used an apple logo for an environmental initiative. The company argued the logo was an infringement of its own famous bittenapple symbol.

The possibility of a malware attack—viruses, Trojan horses and worms—has multiplied over the years. In 1990, experts estimated there were between 200 and 500 viruses. By 2008, virus-fighter Symantec noted that its anti-virus programs could detect more than 1.1 million viruses.

Another example is an employee who downloads a copyrighted picture, diagram or narrative from a Web site and uses it in a public entity brochure. While these kinds of exposures existed in the past, they are much more common today because the Internet makes it simple to download materials in a digital form that can be incorporated into documents.

Social Media Issues There are several areas of potential liability when a public entity or its employees use social media—Facebook, YouTube, Twitter—to communicate with others. These include liability for defamation or harassment; damages from leaking of private information; and misuse of information found through Internet searches.

Plagiarism Similar to copyright infringement, plagiarism can be committed when material is not attributed to its original source. For example, someone might admire the way a vendor presents materials during an information seminar—but to borrow that material to produce their own presentation would be plagiarism.

A human resources or hiring manager that uses social networking sites to screen applicants or conduct background investigations could inadvertently invite a claim of

PUBLIC RISK | FEBRUARY 2011

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HOW DOES DATA ESCAPE? LET US COUNT THE WAYS Many people think hackers are the biggest threat to data security. But public agencies have been embarrassed to lose information in a number of other ways. 1. An inside job—A temp employee for a county has been convicted of ID theft after his assignment in the HR department gave him access to steal personal information for more than 30 employees and commit fraud in their names. 2. Cat burglar—While on vacation, a county employee’s work laptop was stolen. More than 35,000 residents had their names and Social Security numbers jeopardized by the theft.

TAKING PROACTIVE STEPS The best defense against cyber-liability is to have procedures and processes in place that encourage the careful handling of information and data. Steps to take include: 1. Create and implement an effective data management plan. The foundation of a good data management plan is an understanding of the types of information it will contain. Private information may be protected by law; other information may be subject to open-records requests; still other data may be important for running operations but have little impact if it is exposed to the public. Once the different types of information are identified, a plan can include differing levels of security and protection. 2. Build and maintain a strong technology infrastructure and an institutional culture of data protection. Besides just using firewalls to keep hackers out, other strong measures need to be in place to control how employees use information. The plan should cover building, maintaining and updating secure networks, implementing strong access control measures, regularly monitoring access to network resources and maintaining an information security training and compliance policy that is applied to all employees.

3. Dumpster diving—A woman was sentenced to 34 years in prison for using teacher data to open credit accounts, purchase goods and steal items shipped to homes. She found information for thousands of teachers in a school district Dumpster. 4. Careless handling—Personnel records, law enforcement reports and other documents that were scheduled to be burned were found stored in office furniture being auctioned by a city. When potential buyers called the paperwork to the attention of the city, the documents were retrieved. In another example, a town’s cancelled payroll checks, with Social Security numbers and bank account information, were discovered beside a road. The wind had knocked a box off a truck carrying them to a recycling station. 5. Online glitch—An assessor set up an online process for victims of a natural disaster to request property tax relief. The site required canceled checks, tax returns and other data to be uploaded. To make the process easier for applicants, staff removed the password requirement, unaware that the data was then accessible to anyone who clicked on the site. 6. It’s on/in the mail—A mailing from one state agency that used an outside vendor had Social Security numbers printed below the addresses when the envelopes went out. In another case, a state official inadvertently sent the names, Social Security numbers and other personal information for 139,000 people to an investment industry publication.

3. Control access to data. Encryption is the gold standard for storing personal data so it does not go astray. In many cases, state laws that include onerous mitigation measures exempt organizations that have lost encrypted data. In addition, the danger of data being breached can be lessened by restricting who can access it, restricting the use of portable drives (including

FEBRUARY 2011 | PUBLIC RISK

Digital Dilemma

The best defense against cyber-liability is to have procedures and processes in place that encourage the careful handling of information and data.

laptops and thumb drives) and actively monitoring who opens, copies or moves files that need a high level of protection. 4. E nforce employee technology policies consistently. Policies should be in place that address how and when employees can use social media and other technology tools on the job. In addition, employees should be educated about the potential for damaging the entity’s reputation or exposing it to liability if they make statements in chat rooms or on social networking sites that reflect poorly on the public entity. Once policies are in place, make sure they are consistently enforced so they are taken seriously and become a part of the entity’s ingrained culture. 5. Look beyond digital data. Although cyber liability emphasizes electronic transmission of information, the fact is that data is often breached when paper records are exposed. Effective paper record retention policies are needed, including guidelines for disposing of information no longer needed by shredding, recycling or some other acceptable method.

6. H ave the right coverage. Even the best policies and procedures cannot always eliminate human error. After a mistake happens is the wrong time to find out that the entity’s general liability coverage excludes cyber risks. Instead, public entities should work with their insurance agent to determine the best cyber liability coverage for the entity’s needs. Not all public sector liability insurance policies offer the same level of coverage for cyber risks. Technology has opened the door for public entities to provide their constituents with faster, more convenient services. At the same time, it has allowed the stockpiling of information that can be damaging if it is diverted to the wrong hands and it has enabled much easier access to copyrighted and trademarked materials. These and other factors have greatly increased the potential for liability. By taking steps to manage these new risks, a public agency can avoid many cyber pitfalls. Robin Leal is the director of professional lines for Travelers Public Sector Services.

Additional Resources Readers who want more detailed information can check out the following Web sites and white papers: Potential Vulnerabilities in Municipal Communications Networks, a US-CERT Informational Focus Paper: www.us-cert.gov/control_systems/csarchive.html. The Web site for TRUSTe, a leading organization promoting privacy, www.truste.org. Resources include a privacy policy white paper, a Forrester Report titled, Privacy Seals: Opt In or Opt Out? and security guidelines. The Web site for SANS Institute, a leading organization in computer security training, www.sans.org. Click on “free resources” for A Short Primer for Developing Security Policies and templates for various types of policies. Protecting Personal Information—A Guide for Business, a white paper available at www.ftc.gov/infosecurity. Information Compromise and the Risk of Identity Theft: Guidance for Your Business, a white paper available at www.ftc.gov/bcp/edu/pubs/business/idtheft/bus59.shtm

PUBLIC RISK | FEBRUARY 2011

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SPREAD THE WORD AND WIN!

PRIMA’s Member Get a Member Campaign PRIMA’s Member Get a Member Campaign lets you earn valuable incentives while you spread the word about PRIMA’s great member benefits. Help us recruit other public entities to join the ONLY association devoted to risk management in the public sector and you could receive: • Recruit one new member and receive 30% off your next year’s membership dues. • Recruit two new members and receive 50% off your next year’s membership dues. • Recruit three new members and receive complimentary next year’s membership. • Recruit four or more new members and receive one complimentary registration to PRIMA’s 2011 Annual Conference in Portland, Oregon.

If you recruit four or more members, you also will be entered into a drawing for an all-expenses paid trip to Portland for PRIMA’s 2011 Annual Conference, including transportation and hotel accommodations!

HOW DO YOU GET STARTED? Visit www.primacentral.org and click on the Membership link under About PRIMA. Find the special Member Get a Member application and distribute to your fellow public entity peers. When they enter your name in the referral box, you get the credit and the discount! In addition, each new member recruited through this campaign will receive a 10% discount off of their first year’s membership dues!

CALENDAR OF EVENTS The Public Risk Management Association (PRIMA) hosts or sponsors a wide variety of educational programs for public risk practitioners. These meetings and events provide an optimum forum for public risk professionals to acquire new knowledge or skills, exchange ideas and expand peer networks. PRIMA’s calendar of events is current at time of publication. For the most up-to-date schedule, visit www.primacentral.org.

WEBINARS 2011 March 23: FREE for Members! Intricacies of 1983 Civil Rights Claims April 13: FREE for Members! A Recipe for Risk Management July 20: FREE for Members! Managing Volunteer Risks October 19: FREE for Members! Risk Management Alphabet Soup November 16: FREE for Members! Winning Strategies for Contractual Risk Transfer

PRIMA ANNUAL CONFERENCES June 5–8, 2011 PRIMA 2011 Annual Conference Portland, OR Portland Convention Center June 3–6, 2012 PRIMA 2012 Annual Conference Nashville, TN Opryland Hotel

DON’T DELAY! To qualify for the campaign incentives and the Grand Prize, new members must join PRIMA by March 31, 2011!

Help us grow your Association…spread the word and win!

June 2–5, 2013 PRIMA 2013 Annual Conference Tampa, FL Tampa Convention Center

Healthy School Teams, Healthy Students

HEALTHY SCHOOL TEAMS,

HEALTHY STUDENTS By Ryan Foley

Furniture, books and classroom supplies block ventilation units, limiting air circulation. Throw rugs, fabric furniture and pillows go unwashed, serving as a breeding ground for dust mites and mold. Pets and plants take up residence in classrooms, their dander and spores often triggering asthma symptoms. Student art and decorations remain on walls longer than necessary, becoming dust collectors and impairing janitorial staff during cleaning. Scenes such as these are frequently found in public school classrooms across the country and only exacerbate what’s become a growing health problem: poor indoor air quality (IAQ). According to a report issued by the United States Environmental Protection Agency (EPA), 50 percent of our country’s approximately 115,000 schools have problems linked to IAQ. And with nearly 55 million people, or 20 percent of the U.S. population, spending their days inside elementary and secondary schools, unsatisfactory IAQ in schools is a significant public health concern. In recent years, comparative risk studies performed by the EPA and its Science Advisory Board have consistently ranked poor IAQ among the top five environmental risks to public health. Failure to prevent or respond promptly to poor IAQ can increase long- and short-term health problems for students and staff (such as coughing, eye irritation, headache and allergic reactions), as well as aggravate asthma and other respiratory illnesses. (Nearly one in 13 U.S. children of school-age has asthma, which is the leading cause of school absenteeism due to chronic illness.) Poor IAQ can also negatively impact the learning environment as a whole, reducing the performance of teachers and staff due to discomfort, sickness and absenteeism. Similarly dire is the effect it can have outside the classroom in generating negative publicity for the school and school district, impacting community distrust—even creating liability issues.

PUBLIC RISK | FEBRUARY 2011

What risk and safety managers across the country are learning is that straightforward, effective planning can dramatically improve IAQ in their schools. Without a doubt, good IAQ is an integral component of a healthy indoor environment and an important factor in a child’s education experience.

HEALTHY SCHOOL TEAMS Creating a healthy school team in your schools is one of the most effective ways to initiate better IAQ practices. An effective healthy school team will feature in-house staff with an appropriate range of skills: risk management and safety officers, who can provide a safety perspective; teachers and administrators, who can serve as the “eyes and ears” of the school and are thus invaluable in identifying and monitoring persistent IAQ issues; facility operators who have knowledge of ventilation systems; custodians, who oversee the day-to-day condition of a facility; and health officers/school nurses, who can monitor and recognize trends in reported illnesses. It’s also important to include students themselves, as they can be a valuable tool in helping identify problems. For example, in one U.S. school, students helped research the negative impact of various floor coverings on IAQ. The students then raised funds to purchase high-performance carpet and linoleum for their classrooms—interior elements that helped improve IAQ. Also, any individuals from the community a school serves should be encouraged to join the healthy schools team, including: local environmental or health department staff; volunteers from local businesses who have IAQ-related skills, such as commercial building engineers; or organizations that have a strong interest in securing proper IAQ in the school system.

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It’s also important to include students themselves, as they can be a valuable tool in helping identify problems. For example, in one U.S. school, students helped LEAPING INTO ACTION A healthy school team is officially in place; what is the next step? For starters, the healthy school team can begin to identify those potential indoor environmental contaminants that may have an impact on IAQ. It can achieve this by gathering baseline data through the implementation of: • Occupant comfort surveys, which give an idea of how the school environment is perceived by staff. They also help identify which parts of the building may be more problematic than others. • I AQ questionnaires, which are designed to assess the health impact of the school indoor air quality on employees. Information from these surveys will be used to determine what kind of interventions and changes will be needed to improve the school’s IAQ. A healthy school team can then conduct a building walkthrough to ascertain what conditions are leading to poor IAQ. Schools buildings present a unique situation for those conducting the walkthrough. Occupants are close together, with the typical school having approximately four times as many occupants as office buildings over the same amount of floor space. A large number of heating, ventilating and air-conditioning equipment exists. And school districts oftentimes use rooms, portable classrooms or buildings that were not originally designed to service the unique requirements of a school. All these elements should be considered when a healthy school team conducts a walkthrough. It’s also recommended that an individual familiar with the layout and operation of the building (such as a custodian) be included as well. During the building walkthrough, participants are urged to utilize their senses. They should:

• L ook for potential pollutant sources (i.e., mold, improperly stored chemicals or dirty air filters and ducts), books or papers on top of unit ventilators and any signs of water damage. • Smell for objectionable odors (mold, mildew or “chemical” smells), as well as the potential sources of these smells. • Feel for uncomfortable air temperatures, drafts and high or low humidity, as well as air flowing into and out of grilles and air vents. • Listen for unusual equipment noises that may indicate potential problems.

research the negative impact of various floor coverings on IAQ. The students then raised funds to purchase highperformance carpet and linoleum for their classrooms—interior elements that helped improve IAQ.

The walkthrough should include an inspection of the exterior school grounds, where participants are advised to look for anything that affects IAQ (i.e., ventilation inlets, the placement of Dumpsters, the presence of pesticides, site drainage, the condition of the building’s roof, etc.). Also, they should identify those areas where vehicles may idle, as exhaust emissions can penetrate school buildings through doors, windows and ventilation systems and contribute to poor IAQ. After conducting walkthroughs of both the building’s interior and exterior, the healthy school team’s next step is to create and distribute checklists to classroom teachers. The checklists should focus on topics such as general cleanliness (i.e., how often rooms are dusted and vacuumed, how much rooms are free of clutter, etc.), the presence of animals in the classroom, the occurrence of excess moisture and how well a room is ventilated and temperature controlled.

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Healthy School Teams, Healthy Students

FOR ADDITIONAL INFORMATION: The Council for Children and Adolescents with Chronic Health Conditions is a New Hampshire organization that advises state health care agencies and the legislature on chronic health care issues impacting children and adolescents. For more information, visit www. ccachc.org.

Students can also be included in this step. Involving them in fun activities that focus on cleaning (such as playing a song at the end of the school day during which students can tidy up) will help teach them that maintaining a neat classroom is their responsibility as well.

GETTING EVERYONE INVOLVED Effectively improving IAQ also means working with school safety and education staff to create an IAQ resource center, where those individuals not involved with the healthy school team can access information related to IAQ, read important reminders and communicate with team members. Also, because indoor air problems can jeopardize the health of students and staff, parents and other members of the community may react strongly to reports of bad indoor air quality in a school. Thus, it’s strongly recommended that a healthy school team develop a communications program led by a media coordinator who can answer all questions from members of the community. This way, no one will become alarmed by conflicting or wrong information. Effective communications planning can help educate and raise awareness among the community as a whole, give a consistent and complete source of information regarding indoor IAQ and strengthen the commitment toward the cause.

SIMPLE CHANGES Many communities lack the time, organization, coordination and expertise to establish a healthy school team. With that in mind, it’s important to note that improving indoor IAQ doesn’t have to be a complex process.

• Minimizing the amount of fleecy materials (i.e., curtain and fabric partitions) and papers and boxes, which collect and release pollutants. • Ensuring that furniture, supplies and books aren’t blocking ventilation units. • Limiting the amount of throw rugs, pillows and stuffed animals, which serve as a breeding ground for dust mites and mold. • Utilizing “green” cleaning products, which can decrease airborne dust, volatile organic chemical concentrations, bacteria and fungi colony-forming units. Also, parents and caregivers of children and adolescents in school can urge their state legislature and local organizations to address the factors and substances that contribute to environmental health problems in schools.

A PROACTIVE APPROACH Implementing an IAQ management program is an on-going process; success won’t be achieved overnight. Risk managers, along with school administrators, are urged to be patient, consistent, organized and never forget that they are doing something that will create a better environment for both staff and students in their school systems. Taking a proactive approach to managing IAQ will not only have a positive impact on a child’s health and learning ability, but will save time and money by minimizing absenteeism, crisis intervention, energy use and liability. Ryan Foley is responsible for communications for the Council for Children and Adolescents with Chronic Health Conditions.

As many schools throughout the country have learned, simple changes can make a big difference. These changes include:

PUBLIC RISK | FEBRUARY 2011

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FEBRUARY 2011 | PUBLIC RISK

Workers’ Comp Top Ten: How to Cut Costs in 2011

WORKERS’ COMP

TOP TEN:

HOW TO CUT COSTS IN 2011 By Debbie S. Champion, Brandy Johnson and Megan M. Usovsky

THE PROBLEM: WORKERS’ COMPENSATION CASES ARE COSTLY In theory, the practice of administrative law is less expensive than civil litigation, but in reality this is not necessarily true. While workers’ compensation cases are not heard before juries, the costs of defending these claims before administrative law judges or arbitrators can be as high as those in civil courts. It is not uncommon for a single case to proceed for years. All of these things combine to make pre-trial preparation costly.

THE SOLUTION: TIPS TO SAVE MONEY ON WORKERS’ COMPENSATION CLAIMS AND DEFENSES Industries across the country are facing the harsh reality of rising costs—and the administrative law sector is no exception. Fortunately, there are several options that may aid in decreasing costs without cutting corners when defending a workers’ compensation claim. Consider the following tips as a guide to sparing costs in an administrative law proceeding. Tip #1: Utilize a Nurse Case Manager Today there are agencies that specialize in nurse case management. Nurse case managers are often hired and paid by insurance companies to guide the employee through the medical aspect of a workers’ compensation claim. These specialists coordinate doctor examinations, accompany the employee to these appointments, arrange referrals and prepare comprehensive reviews. The nurse case manager’s involvement with the employee’s progress essentially develops into a working relationship with the employee. While this benefits the employee, it may also benefit you. For public entities, nurse case managers are a great source for information about treatment records, what was discussed at the doctor appointment and the progress of the patient. A nurse case manager may obtain information about the employee that you normally would not have the chance to discover on your own. The nurse case manager may be able to give you information about the employee, such as his tendency to malinger or magnify symptoms. Since the primary interest is getting the employee back to work, the nurse case manager will likely give you honest observations and

PUBLIC RISK | FEBRUARY 2011

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Industries across the country are facing the harsh reality of rising costs—and the administrative law sector is no exception. Fortunately, there are several options that may aid in decreasing costs without cutting corners when defending a workers’ compensation claim. Consider the following tips as a guide to sparing costs in an administrative law proceeding.

recommendations about the employee. Moreover, because the nurse case manager has an independent incentive to move the case along, a quicker resolution means less cost for you as time goes by. Tip #2: Cut Back on Unnecessary Depositions While it is important to gather all necessary evidence and relevant facts in a workers’ compensation case, not every witness or employee needs to be questioned under oath before the hearing. Depositions are an expensive and timeconsuming process. The need to depose parties varies from case to case but many times you will not need to depose everyone affiliated with the incident. Generally, deposing a witness is only necessary when facts are needed to help determine compensability and/or information concerning treatment or permanency or other issues necessary for trial. There can be a downside to foregoing a deposition. You may lose the opportunity to gauge the witness or employee’s credibility. Depositions often reveal helpful information such as an admission that the employee has collected unemployment, which may (in some states) decrease the workers’ compensation benefits. Also, deponents may testify untruthfully, thus exposing a lie and further bringing to light credibility issues. Not all states permit employee or witness depositions, but in states that do, think about what information you hope to gain before you dive into the deposition pool.

Tip #3: Combine Costs for Medical Records As they say, it is a small world. You may find yourself defending claims filed by the same attorneys or hiring an attorney to represent you on multiple workers’ compensation cases. Building good working relationships with the players in this arena will strengthen your workers’ compensation team. Discuss with your attorney at the outset of a case what you each will need; when you receive reports from the treating health care providers, immediately forward copies of these records to your attorney. Not only does this keep all parties informed, it also allows you to prevent attorney bills for letters or calls made questioning the employee’s records. Make sure the attorney is not obtaining additional copies of the same records you obtained. If he or she is, find out what he needs and obtain that information from your own request to avoid duplication of effort and cost.

FEBRUARY 2011 | PUBLIC RISK

Workers’ Comp Top Ten: How to Cut Costs in 2011

Attorneys are under pressure to update their client on a frequent basis, every 30-90 days, or more frequently when something of significance occurs. However, such frequent updates may not be necessary.

Another way to cut the costs of medical records is to avoid the need for record certification. For records to be admitted at trial, they must be certified as business records. However, certified records are not needed in many cases, as the majority of cases settle. On the surface, it appears that certified records are not expensive. For example, the basic copy fee for a doctor’s certified records may only be $2. Once handling, retrieval and notary fees are added to this cost you may be charged more than $22 in fees just to obtain these documents. To skirt this problem, help the opposition save money as well! Have your attorney inquire as to whether the two sides can stipulate to the admissibility of non-certified records, or split the cost of certified records. Tip #4: Consider Updating the Status of the Case Less Frequently Attorneys are under pressure to update their client on a frequent basis, every 30-90 days, or more frequently when something of significance occurs. However, such frequent updates may not be necessary. For example, when an employee is undergoing treatment, one to three months may lapse between doctor appointments. If there are no other active issues in the case, a status letter from the attorney will not provide you with new recommendations or information. Consequently, in such cases, costs can be saved by requesting that the attorney report every 120 to 180 days. If a case is more complex or faster paced, decreasing the frequency of status updates from your attorney is not always an option. This is especially true when a case is approaching a trial date. Thus, you should consider asking your attorney to update the case status only when something of significance has occurred, but not less than a date certain (120 days) to cut needless attorney costs.

PUBLIC RISK | FEBRUARY 2011

Tip #5: Utilize Electronic Updates to Save Time and Money In states that provide you with the choice of receiving notices of settings electronically, taking advantage of such an option could result in cost savings. Electronic notices can be cut and pasted or copied into claims notes. This prevents paper from filling files. In paperless systems, receiving electronic notices saves the cost and manpower of scanning documents into a computer system. If you receive electronic notices of settings, further consider whether it is worth your time and money to receive letters from your attorney regarding upcoming settings. This should be considered especially if the case is at a point where they are not providing any new advice or fresh recommendations. For example, if the employee is in the process of ongoing treatment and the setting will be continued, foregoing a letter from the attorney advising you of that conclusion will save you attorney fees. The fees saved will thus prevent unnecessary correspondence, which will quickly add up. Tip #6: Consider Whether You Can Settle a Workers’ Compensation Case without Obtaining Ratings Some states consider ratings of permanency to help assess an employee’s degree of disability. If your state uses this practice, consider whether the case can be resolved before a rating is required. Ratings can be costly; obtaining a percentage of disability rating can range from a couple hundred dollars to well over $1,000. Contemplate negotiating with the opposing party first before requesting an employee rating. By negotiating first, the parties may successfully resolve the dispute without having to request ratings. This is especially effective when the injury is one commonly seen, like carpel tunnel syndrome and has a well-known settlement range. If settlement negotiations fail, the parties are still free to seek ratings.

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Has your entity launched a successful program? An innovative solution to a common problem? A money-saving idea that kept a program underbudget? Each month, Public Risk features articles from practitioners like you. Share your successes with your colleagues by writing for Public Risk magazine! For more information, or to submit an article, contact Jennifer Ackerman at jackerman@primacentral.org or 703.253.1267.

Tip #7: Become Familiar with What Doctors Charge Doctors who commonly devote time to workers’ compensation cases by providing independent medical evaluations and depositions often have set charges for these services. Remember to ask these treating specialists up front what they charge for supplemental reports, depositions and ratings before the employee’s treatment is set to begin. This prevents over payment of benefits and allows you to keep a case steadily moving toward resolution. Become familiar with the standard costs for specific procedures and tests that doctors perform on workers’ compensation patients. With this knowledge, you will know if a provider’s charges are high. If there is a possibility you may utilize a particular doctor frequently, consider negotiating for a special rate. Tip #8: Set Up a Timetable Heavy workloads and complex cases are time-consuming. Stay informed on the progress of a case and any new developments in employee health or admittance to the workforce through a calendaring system. Your calendaring system should note when doctor appointments take place— you will want to obtain a work status report after each appointment. From this system you can advise your attorney when the employee returned to work and reached maximum medical improvement. Tip #9: Identify Any Third Party who Owes Workers’ Compensation Subrogation Cutting costs in a workers’ compensation case is not the only way you can make every dollar count—you can also recover what is owed to you through subrogation. Subrogation is a legal concept that allows you to recoup money that you have paid on another’s behalf. For example, if an employee is injured while working due to the negligence of another, you may be able to recover some of the funds paid from the negligent third

party. In most states, the employer’s insurance company has the right to step into the employer’s shoes and bring a civil lawsuit against the non co-worker tortfeasor. (In some cases, you may be able to even bring a case against a liable co-worker.) Frequently, an employee will pursue a third-party claim on their own. You must identify claims with third- party liability and ascertain whether the employee pursues the civil suit or if you need to independently pursue recovery. If the employee pursues separate recovery, you must take steps to protect your right to recover the allowable reimbursement or credit on the workers’ compensation benefits. If the employee does not file suit, consider moving forward to independently pursue recovery. Be aware of the statute of limitations and remain cognizant of whether the amount you stand to recover justifies the litigation costs. Tip #10: Understand the Big Picture Finally, to cut unnecessary costs and get the most value for what you have to spend on a claim, endeavor to gain a complete understanding of the workers’ compensation process. Utilize your attorney and participate in continuing legal education that focuses on aspects of workers’ compensation. Try to understand the treatments for common work injuries. This will help you identify unnecessary tests and treatments. Learn the aspects of and the standard costs associated with the medical treatments. Most importantly, administrative law and especially the workers’ compensation sector, is a place where you will repeatedly deal with the same people on a daily basis. Develop positive relationships with your colleagues in this area; you never know who can help you cut costs and reach successful resolutions. Debbie Champion is a partner at the firm of Rynearson Suess Schnurbusch & Champion LLC. Brandy Johnson is an associate and Megan Usovsky was a legal intern at the law firm of Rynearson Suess Schnurbusch & Champion LLC.

FEBRUARY 2011 | PUBLIC RISK

Member Spotlight

PRIMA MEMBER APPOINTED TO OSHA ADVISORY COMMITTEE Each month, Public Risk features a member who has gone above and beyond in a feature column titled “Member Spotlight.” Do you know someone who deserves recognition, has made a contribution or excelled in their profession? If so, we’d like to hear from you for this exciting column, as PRIMA shines the spotlight on its members. To be considered for the Member Spotlight column, contact Jennifer Ackerman at jackerman@primacentral.org or 703.253.1267.

n December, Secretary of Labor Hilda L. Solis announced the appointment of five new members to the National Advisory Committee on Occupational Safety and Health, including PRIMA Member Gary R. Rosenblum, MS, CIH, ARM, risk manager for the City of Palm Desert, Calif. The department’s emphasis on worker safety and health was enhanced by these new appointees, who will serve two-year terms, and are leaders in the fields of medicine, academia and safety program development. “The new NACOSH members possess a wealth of knowledge and real-world experience on a wide range of worker health and safety matters,” said Secretary of Labor Solis. “I am confident these new members, representing the interests of labor, management, safety and health professionals, and the public, will use their expertise to provide valuable advice and recommendations on important workplace safety and health issues. We share the goal of good, safe jobs for all American workers.” NACOSH has advised the secretaries of labor and health and human services for nearly 40 years on worker safety issues. “I am very honored and excited to work with OSHA officials at the highest level in trying to improve the health and safety of all workers in the U.S.,” said Rosenblum. “I have an extraordinary opportunity to bring fresh and useful risk management-based ideas to the occupational

PUBLIC RISK | FEBRUARY 2011

safety and health arena. As a risk manager and a government employee, I can see now how a partnership of the public with a risk management-based approach can shape corporate decisions about human capital in ways that the regulation and enforcement paradigm that OSHA traditionally relies upon cannot.” Rosenblum’s name was submitted to OSHA for consideration by the American Industrial Hygiene Association, an organization he knew from his previous career. Before working for the City of Palm Desert, Rosenblum spent 17 years working in corporate environmental health and safety for ARCO, including 10 years as the company’s federal OSHA manager. “This had me going to D.C. often to work as a company and sometimes industry representative during the OSHA regulation promulgation process,” he said. “I also worked with trade organizations and several think tanks and consulting firms in D.C., all related to OSHA and occupational safety and health.” “I hope to bring my risk management experience into the mix at the Labor Department in hopes that it can move the agency forward to greater success in their mission protecting the safety of U.S. workers,” said Rosenblum. Congratulations, Gary!

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