Public Risk August 2015

Published by the Public Risk Management Association

www.primacentral.org

AUGUST 2015

MEET BRETT DAHL PRIMA’S 2015 PUBLIC RISK MANAGER OF THE YEAR

PLUS

A WEARABLE TREND FOR INSURANCE MANAGING A LOCAL GOVERNMENT’S FLEET RISK

Further your public sector risk management education without leaving the office!

This Webinar series features top presenters delivering knowledge right to your desktop!

PRIMA’S RISK MANAGEMENT

WEBINAR SERIES PRIMA’S 2015 RISK MANAGEMENT SERIES IS FREE FOR MEMBERS! Visit www.primacentral.org/webinars today to register for individual webinars or for the entire program!

S E P T E M B E R 1 6 | 1 2 P M – 1 : 3 0 P M E ST

SOCIAL MEDIA HORROR STORIES: DON’T BECOME ONE! SPEAKER: Charles Leitch, JD, Principal, Patterson Buchanan, Fobes & Leitch, Inc. PS DESCRIPTION: Ever gotten a call or seen a video of one of your students getting hazed? Ever been asked to comment on an employee’s YouTube video?

Ever been asked to discipline an employee for conduct online? How about dealing with students bullying other students through Facebook?

Perhaps you have established a social media policy for use yet you still experience the unique risks associated with social media technology.

This Webinar will review ways to mitigate risks unique to ubiquitous social media through illustrative cases. The presenter will also discuss takeaways, including the best practices to protect students in schools, your employees from themselves and to safeguard your entity.

AT T E N D E E TA K E AWAYS :  Discuss how to avoid becoming a social media horror story  Review the essential elements of a social media policy  Understand the unique risks social media present to your public entity and how to mitigate them W H O S H O U L D AT T E N D :  Risk managers  Human resources professionals  Claims managers  Underwriters  Superintendents  City/county counsel

For more information, or to register, visit primacentral.org/webinars.

Volume 31, No. 7 | August 2015 | www.primacentral.org

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

PRESIDENT Dean Coughenour, ARM Risk Manager City of Flagstaff Flagstaff, AZ

CONTENTS

PAST PRESIDENT Regan Rychetsky, ABCP Director, HHS Enterprise Risk Management and Safety Texas Health and Human Services Commission Austin, TX PRESIDENT-ELECT Terri Evans Risk Manager City of Kingsport Kingsport, TN

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Jani J. Jennings, ARM Insurance & Safety Coordinator City of Bellevue Bellevue, NE

6 MEET BRETT DAHL

PRIMA’s 2015 Public Risk Manager of the Year

By Jennifer Ackerman, CAE

DIRECTORS Lori J. Gray Risk Manager County of Prince William Woodbridge, VA

Scott Kramer Risk Manager Montgomery County Commission Montgomery, AL Amy Larson, Esq. Risk and Litigation Manager City of Bloomington Bloomington, MN

11 A WEARABLE TREND FOR INSURANCE

Scott Moss, MPA, CPCU, ARM-E, ALCM P/C Trust Director CIS Salem, OR

By Jose Tribuzio

Tracy Seiler, ARM-P Director of Risk Management Services Texas Association of Counties Austin, TX

18 MANAGING A LOCAL GOVERNMENT’S FLEET RISK

NON-VOTING DIRECTOR Marshall Davies, PhD Executive Director Public Rick Management Association Alexandria, VA

By Kenny Smith, CSP

EDITOR Jennifer Ackerman, CAE Deputy Executive Director 703.253.1267 • jackerman@primacentral.org ADVERTISING Donna Stigler 888.814.0022 • donna@ahi-services.com

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Public Risk is published 10 times per year by the Public Risk Management Association, 700 S. Washington St., #218, 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.

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

POSTMASTER: Send address changes to PRIMA, 700 S. Washington St., #218, Alexandria, VA 22314.

Copyright 2015 Public Risk Management Association Reprints: Contact the Reprint Outsource at 717.394.7350.

AUGUST 2015 | PUBLIC RISK

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Everyone else is doing it. WHY AREN’T YOU?

Enterprise risk management is everywhere we turn these days.

Universities are using it. Corporations are using it. And now, more and more public entities are embracing ERM. PRIMA’s new training will teach you to implement an enterprise-wide approach to risk in your entity using the ISO 31000 standard. This three-part training will be held in cities across the United States.

For more information, visit primacentral.org/ermtraining.

Message from PRIMA President Dean Coughenour, ARM

NOT ALL RISK IS BAD

A

nother month has flown by and I hope the new ideas that you embraced at the Annual Conference have been both helpful and beneficial as you have begun the process of integrating them into your organization. I also hope that the new friendships you made, and the old ones rekindled will be with you for decades to come as mentors and comrades in risk management.

As the risk manager you are, by the very nature of the position, a leader in your organization. You are respected for your knowledge and the expertise that you bring to the table in protecting the assets of your entity. How do we continue to maintain or gain that edge? How do we continue to integrate the risk management decision matrix into the very fiber of the organization?

I learned a long time ago in litigation, “to give ground” and acknowledge flaws in a case very early on. In a similar vein, I learned that not all risk is bad for the organization. In fact, some risk is a good thing to help move the organization toward its goals and objectives in a cost effective manner. Of course, we need to recognize the exposures and risks that a particular activity or event brings. But, we need to be viewed as “Risk gets us safely to a YES” rather than “Risk always says NO.” Essentially I learned to not sweat the small stuff. Easier said than done, I know. By effectively engaging others, we integrate risk management even further into the organization, getting in the loop earlier rather than the “Oh, I didn’t even know we had an airplane let alone doing body heat scans over neighborhoods.” Oops—too late to practice risk management, now we are engaged in claims management.

We are the experts at evaluating the past and finding those golden opportunities to protect the organization moving forward. In order to be effective, we have to be accepted as the “go-to professional” when it comes to all things

risk-related. In building a culture of risk management, the mantra of, “Did you run this by risk management?” becomes common place.

We look for times and places to sell a culture of risk management. PRIMA educational opportunities and the relationships we develop from PRIMA interactions help us define and fine tune the difference between the big stuff and the small stuff, provide an inclusive perspective and become the sounding board for new ideas and innovations.

To help with this fine tuning process, please make sure you consider the unique educational opportunity that PRIMA Institute represents. This fall, we are in Albuquerque, New Mexico, at a small setting with big ideas. I encourage you to register on our PRIMA web site, attend and go back to your entity energized and recharged to meet your day-today challenges.

In closing, I want to thank you for all the things that you do each day to protect your assets, people and citizens from those things that are predictable. It is a balancing act to recognize that not all risk is bad and that some risk is necessary to propel our organization to their goals and objectives. You ARE making a difference.

Keep up the GREAT work.

As the risk manager you are, by the very nature of the position, you are a leader in your organization. You are respected for your knowledge and the expertise that you bring to the table in protecting the assets of your entity. How do we continue to maintain or gain that edge?

How do we continue to integrate the risk management

Dean Coughenour, ARM 2015–2016 PRIMA President Risk Manager City of Flagstaff Flagstaff, AZ

decision matrix into the very fiber of the organization?

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News Briefs

NEWS

BRIEFS DOCTORS WORKING TO MAKE AEDs MORE WIDELY AVAILABLE When Justin McQuillen died in 1994 after being hit by a pitched baseball, the technology for automated external defibrillators was not as sophisticated as it is today.

Today, the lightweight, portable devices can check a person’s heart rhythm, recognize when a shock is required and advise the rescuer when to administer it, reports the Reading Eagle.

Some AEDs use voice prompts, lights and even text messaging to tell the user what steps to take. Most range in cost from $1,500 to $2,000, according to the American Heart Association, though less expensive models can be found.

McQuillen, 9, of Honey Brook, Pa., died in May 1994 after being struck in the chest with a baseball in a Twin Valley youth league game. An AED was not immediately available at the field.

“People playing baseball, if they get hit in the chest, could go into sudden cardiac arrest,” said Dr. Michael Koslow, Reading Hospital’s chief of cardiology and a member of Cardiology Associates of West Reading. “Children, young athletes and older athletes are at risk.”

Dr. Gregory T. Wilson, also a cardiologist with Cardiology Associates of West Reading who practices in Reading Hospital, said he purchased two AEDs through HeartSAFE: one for the Exeter Township Little League, where his 8- and 12-year-old sons play, and another for BIG Vision Foundation, a youth sports program in Bern Township.

“As a parent, I would not want anything to happen to my kids,” Wilson said. “Having a defibrillator there is very important. For every minute that passes, the survival rate decreases by 10 percent.”

Such situations are not that frequent, Koslow noted, but they can happen.

Wilson said there have not been any incidents at the fields that have warranted use of the AEDs, but they are a good safeguard to have.

Koslow is a member of a steering committee for HeartSAFE Berks, a program supported by the Friends of Reading Hospital to place AEDs in locations throughout the community.

“There are so many kids that play in Little League,” he said. “From a heart standpoint and a safety standpoint, it makes sense to have one on the field. You should have one permanently there.”

Since 2010, $500,000 has been spent to buy 386 AEDs for police, high schools, middle schools, sports arenas and other high-traffic public areas in the community.

Koslow said that youth baseball leagues can purchase AEDs through HeartSAFE at a reduced rate.

“The technology today is user-friendly,” he said. “The AEDs are portable and battery-operated. The ultimate goal is to make AEDs as common as fire extinguishers.”

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CALIFORNIA MOVES TO ELIMINATE DELAYS IN 911 RESPONSE When Jordan Soto’s father called 911 from his cellphone while she was having a medical emergency, the call was routed to a dispatch center 30 miles away.

Soto lived within a quarter-mile from a Santa Barbara, Calif., fire station, but responders didn’t make it to her home in time, and the 24-year-old died from an accidental drug overdose.

“That shouldn’t have happened,” said Assemblyman Das Williams, D-Santa Barbara. “They got there when it was too late.”

A new California Assembly bill calls for a two-year study to improve accuracy in pinpointing locations of 911 calls made from cellphones. AB 510 seeks to explore ways to eliminate unnecessary delays in emergency care for people in need, reports the Ventura Star.

“We need to do a lot more to get ourselves and the 911 systems working better. Unfortunately, this is a life-or-death situation for a lot of people,” Williams said.

He said people should call 911 from a landline when possible because it is the most reliable way for an emergency responder to find their location.

He said communication with dispatchers improved after an Office of Emergency Services project that allowed cellphone 911 calls to be routed more accurately and for the appropriate agency to respond.

Ventura County greatly benefited from the Routing on Empirical Data project, which started locally in 2009. But a large percentage of the Central Coast, which Williams represents, would benefit from something similar, he said.

The primary answering points are at CSU Channel Islands; sheriff’s headquarters in Ventura; the Ventura, Oxnard, Santa Paula, Simi Valley and Port Hueneme police departments; and the CHP office in Ventura.

If needed, calls get transferred to the fire department’s communications center in Camarillo, the county’s secondary public safety answering point, Brockus said.

Brockus said she did some cellphone testing and found the location system was “extremely accurate.”

“I told a dispatcher to tell me exactly where I was, and it was stellar,” she said.

But it’s not always that way, especially when dealing with older phones that are not GPS-enabled.

While Williams concedes the bill isn’t going to completely solve the problem, he said it is a starting point.

“We want callers to take the time to tell us where they are, because we don’t want to depend on GPS coordinates,” Brockus said.

“I intend to work until we have a sound 911 system for residents of Santa Barbara and Ventura counties and the whole state,” he said.

Debra Zinskey, a supervising public safety dispatcher for the Ventura County Fire Department, said smartphones can give you a “ballpark location,” which is often beneficial but sometimes not at all.

Thanks to the 2009 project, Ventura County is at “the cutting edge” of 911 cellphone technology, said Erin Brockus, an assistant communications manager for the Ventura County Sheriff’s Office. Thanks to GPS and other improvements, when a cellphone caller here reports an emergency, the call is routed to the agency responsible, officials said.

Previously, many of the calls just went to the California Highway Patrol.

Now, for example, if a crime victim calls 911 from Moorpark, the call will be routed to the sheriff’s dispatch center in Ventura and the dispatcher will initiate the appropriate response. If the victim is injured and needs medical help, a Ventura County Fire Department dispatcher can join the line, gather information and send units.

“It ebbs and flows,” Zinskey said.

The more information the caller provides, the better, Zinskey said, especially if someone is calling from a large area like the Camarillo Premium Outlets. If a caller can tell a dispatcher which store they are near, the dispatcher can Google the store and learn exactly where the person is.

“We ask a lot of questions for 911-related calls,” Zinskey said. “It never delays the response, because we send units as soon as we’ve verified a location.”

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MEET BRETT DAHL PRIMA’S 2015 PUBLIC RISK MANAGER OF THE YEAR

By Jennifer Ackerman, CAE

M

ontana’s overwhelming size and low population density make it one of the most challenging states to oversee, from a risk management perspective.

Luckily, the state of more than 145,000 square miles

employs Brett Dahl as the administrator of its Risk Management and Tort Defense Division. Dahl has created some of the state’s most lucrative and money-saving risk management programs.

His success has earned him accolades from his peers. It has also earned him the title of PRIMA’s 2015 Public Risk Manager of the Year.

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RISK IN THE ROCKIES As administrator of the state’s risk management program, Dahl is responsible for the oversight and successful implementation of commercial and self-insured programs, claims adjudication, risk management services and loss prevention activities covering 4,700 properties, 6,000 vehicles and 23,000 state and university employees. He has a staff of nine risk management employees.

The state’s Risk Management and Tort Defense Division is a division of the Department of Administration, Montana State Government. The Department of Administration (DOA) employs more than 500 highly skilled employees with a wide variety of responsibilities.

When Dahl came to work for the Montana State Government as its risk manager in 1990, there were few systems, processes or technologies in place to identify, measure and control risk. The division had an unfunded liability of $33 million and the Montana legislature refused to provide additional funding because the division could not provide credible ‘loss cost’ information to justify charging state and university clients higher insurance premiums. The division’s staff consisted of tort litigation attorneys and a few other

employees who effectively managed claims. However, the division’s original name, ‘the Tort Claims Division,’ did not brand the division in a way that emphasized pro-active management of risks.

With the support of the Governor’s Office and the Montana legislature, Dahl changed the division’s name to Risk Management and Tort Defense in order to emphasize a more complete spectrum of services provided including loss prevention, insurance, claims and risk management. Dahl’s loss prevention staff has developed innovative and cuttingedge training programs and services for state and university clients including, but not limited to, defensive driving, van safety, violence-at-work prevention, cyber/information security, driver’s safety for university campuses, infrared and ultrasonic technologies, property loss management, student activities and university liability, winter driving, preventing distracted driving, and hold harmless and indemnity provisions in contracts.

A HELPING HAND FROM THE STATE In order to incentivize state departments to be proactive about risk mitigation, Dahl established the state Loss Mitigation Expense Assistance program. Through this

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Brett Dahl: PRIMA’s 2015 Public Risk Manager of the Year

To meet the challenge of reaching out to assure that risk management is firmly ‘embedded’ in the framework of his 57 agencies, boards/councils/commissions, and 10 universities in one of the largest states in the nation, Dahl organized his staff into teams that are responsible for delivering services to groups of clients within geographic areas of the state… “Each team consists of one loss prevention staff and one claims staff and each team is responsible for regular ‘client visits’ and outreach to approximately five institutions, four universities and 15 agencies,” said Dahl. “These client teams are responsible for evaluating losses, reviewing insurance coverage, answering questions, discussing opportunities for improvement and addressing service issues.”

program, financial awards are provided to state agencies and universities for projects, equipment and training that mitigate potential auto, aviation, general liability and property losses. Approximately $500,000 is provided each year for many worthwhile loss mitigation/prevention initiatives. For example, security cameras were purchased for the Montana Historical Society to protect the state’s vast collection of $300 million in western fine art treasures. State and university facility managers are given financial awards for additional security known as ‘cold weather patrols’ to patrol buildings during period of extreme freezing to shut off the water source from frozen and broken pipes and to aggressively dry those areas to prevent the formation of mold. Since the implementation of this program, there have been very few winter flood losses.

Dahl also created the state Risk Management Network in 2004, which consists of professionals from the public and private sector. The network’s members include representatives from the state of Montana, the Montana Municipal Insurance Authority, the Montana Association of Counties, Northwestern Energy, Montana Rail Link and the University of Montana. Dahl has used the Risk Management Network effectively as a ‘sounding board’ for new ideas. Network members share their successes and their failures and they learn from each other’s experiences.

“I have found the network to be very valuable in vetting my issues with the Montana Legislature, the Governor’s Office and other elected officials,” said Dahl. “The network provides external validation from parties outside of my organization that we are helping client agencies, universities and citizens to effectively manage risk and are, in brief, ‘on the right track.’”

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UNIQUE RISKS To meet the challenge of reaching out to assure that risk management is firmly ‘embedded’ in the framework of his 57 agencies, boards/councils/commissions, and 10 universities in one of the largest states in the nation, Dahl organized his staff into teams that are responsible for delivering services to groups of clients within geographic areas of the state.

“Each team consists of one loss prevention staff and one claims staff and each team is responsible for regular ‘client visits’ and outreach to approximately five institutions, four universities and 15 agencies,” said Dahl. “These client teams are responsible for evaluating losses, reviewing insurance coverage, answering questions, discussing opportunities for improvement and addressing service issues.”

A unique risk that Dahl oversees is the insuring of one of the largest collections of western fine art in the nation including paintings, statuaries, and drawings from renowned artists such as Russell, Remington, Scriver and Morgan.

“Due to the state’s favorable loss experience, our broker was able to negotiate a ‘no claims bonus’ at the last renewal, effectively reducing insurance costs by 10 percent, and saving the state approximately $9,000 at the last renewal,” said Dahl.

Montana is among the first states in the nation to establish a comprehensive cyber/information security insurance program. This program effectively responded to one of the largest HIPAA cyber/information security incidents in recent memory involving 1.3 million Montana citizens

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CALENDAR OF EVENTS PRIMA’s calendar of events is current at time of publication. For the most up-to-date schedule, visit www.primacentral.org.

WEBINARS 2015 • September 16 – Social Media Horror Stories: Don’t Become One! • November 18 – Employment Practices Liability: Mitigating Risks

and employees in 48 states and Canada. For his efforts in this area, Dahl received the prestigious AFIRM Award (Award for Innovative Risk Management) from the State Risk and Insurance Management Association (STRIMA) in September 2013.

SAVINGS SPREAD THROUGHOUT MONTANA Dahl’s office not only handles risk for the state, but also its university system. When Dahl realized that the system had 11 separate medical professional liability insurance policies for student interns, he consolidated them into one policy. By leveraging the collective purchasing power of one policy, Dahl was able to realize more than $20,000 of premiums savings.

Through competitive bidding processes, his office also assisted the University of Montana in its bid to obtain medical malpractice insurance at a low rate for up to 30 medical residents. This was one of the state’s first forays into a family medicine residency program.

The goal of the program is to help the state attract and retain physicians in underserved areas of Montana.

Dahl established the state’s property/casualty insurance premium discount programs, which provide auto and property insurance premium discounts of 5-to-20 percent for state agencies and universities who opt for higher insurance deductibles or who participate in loss prevention training and property loss management programs offered by the division’s loss prevention staff. The division offered approximately $500,000 in insurance premium discounts last fiscal for agencies who met pre-determined eligibility criteria such as attendance at loss prevention courses offered by the division and follow-up on recommendations identified during loss prevention site visits, inspections, and surveys by the division’s consultants and business partners. These discounts are a direct savings to state agencies and universities and ‘money in the pocket’ as a reward for participating in the division’s risk management programs.

For more than 25 years, Dahl has been making a difference in the state of Montana, with both his passion for risk management and his desire to help others.

PRIMA ANNUAL CONFERENCES June 5–8, 2016 PRIMA 2016 Annual Conference Atlanta, GA Hyatt Regency Atlanta June 4–7, 2017 PRIMA 2017 Annual Conference Phoenix, AZ Phoenix Convention Center June 3–8, 2018 PRIMA 2018 Annual Conference Indianapolis, IN Indiana Convention Center

ENTERPRISE RISK MANAGEMENT: APPLYING THE ISO 31000 STANDARD Intro Workshop Dates & Locations September 29 – Savannah, GA Implementation Workshop Dates & Location August 10 & 11 – Reno, NV November 18 & 19 – Savannah, GA

PRIMA INSTITUTE November 4–6, 2015 Albuquerque, NM

PRIMA congratulates Brett Dahl on his career of risk management excellence!

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Check www.primacentral.org for new Podcasts!

CURRENT PODCAST TOPICS INCLUDE: School Risk Management Workers' Comp Best Practices

AND MORE!

A WEARABLE TREND FOR INSURANCE

By Jose Tribuzio

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W

hat’s that on your wrist?”—Around your neck or on your hip?

These days, it seems as if everyone’s wearing one. Of course, we’re talking about wearable devices—gadgets accompanied by various apps—which by all estimates are anticipated to have far-reaching implications for risk and insurance management.

Public risk managers should keep an eye on this exciting, new area of technology, as these devices could potentially change the way we investigate accidents, prevent claims and minimize risk in the future. In this article, we take a look at some of the ways this emerging area of technology is being explored for the benefit of insurance programs.

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A Wearable Trend for Insurance

Although wearables first gained traction as fitness trackers, they’re quickly advancing in capabilities, and many experts forecast a transition in focus from fitness to healthcare. In the

WHAT ARE WEARABLES?

WEARABLE DATA SERVICES

future, wearables

Wearables are essentially computer-powered devices that can comfortably be worn by consumers, and are capable of collecting, storing and transmitting valuable data points.

Data services may arise around wearable information troves, such as medical consultation, fitness coaching and weight-loss training. Software companies may strive to automate insights—beyond just motivating a user to take more steps to reach a daily goal—and cloud-based software could consolidate various wearable data, making it available for deeper analysis. Here are some current to near-market scenarios to consider:

could predominantly be used to monitor

respiratory rate and

It’s difficult to pinpoint just when and where this trend began, but in the modern sense of the term, the first wearable was introduced in 2006 when Nike and Apple teamed up on the Nike+iPod Sport Kit. The Sport Kit used sensors in Nike shoes to track and transmit performance measures—such as distance, average speed, and calories burned—to Apple products. Sport Kit and other fitness trackers, such as Fitbit and Misfit, have become popular accessories for runners, athletes and fitness enthusiasts for several years now.

sun exposure.

BROADENING APPLICATIONS

vital statistics, such as blood pressure, body temperature, heart rate,

Although wearables first gained traction as fitness trackers, they’re quickly advancing in capabilities, and many experts forecast a transition in focus from fitness to healthcare.

In the future, wearables could predominantly be used to monitor vital statistics, such as blood pressure, body temperature, heart rate, respiratory rate and sun exposure.

Wearables could then be used to transmit a snapshot of health and fitness information to physicians, emergency response teams, hospitals and personal trainers. In fact, Apple is already making plans for such a scenario, extending its strategy beyond Apple Watch to include HealthKit, a centralized hub that will allow other devices and apps to share data in interesting ways. Apple has also partnered with the Mayo Clinic and leading health record company, Epic Systems, in the hopes of one day making this data available to doctors.

Technology giants like Samsung, Google and Microsoft have also entered the wearables market, investing significant research dollars and creating their own data hubs—such as SAMI, Google Fit and Microsoft Health, respectively.

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• Physicians are already beginning to see some impact with wearable data delivering insights into chronic conditions, such as high blood pressure. Patients commonly bring cell phones or printouts of blood pressure readings to share with their doctors, who can then see if the condition is under control or if patients require modifications to their medication.

• In the future, smart shirts may evolve to use sensors to track heart rate and respiration rate, alerting doctors if patients are about to have a heart attack or stroke.

• In a recent survey, Towers Watson and the National Business Group on Health found that 76 percent of employers surveyed were exploring the use of personalized digital health technologies, including mobile health applications, wearables and social media to encourage greater physical activity among employees.

It’s anticipated that a focus on becoming healthier will enable employers to realize gains in productivity, as well as lower healthcare costs.

• As a growing number of employers adopt work-site wellness programs that use and consolidate wearable data across employee and group health populations, information could one day illustrate an improved picture of risk, providing insights for underwriting and potentially leading to lower premiums.

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SMART EYEWEAR When we consider the inclusion of smart eyewear, like Google Glass, there is an even greater potential for innovation. Although Google Glass development was temporarily put on hold, it is anticipated to re-launch any day now.

Through its initial Explorer Program, Google Glass app development began and beta versions were made available at the hefty cost of $1,500 per Glass. Some applications in development included the following: • Field claims professionals are traditionally equipped with a laptop, digital camera and voice recorder.

Insurance companies are now beta testing Google Glass to capture myriad loss information required for personal and commercial lines. For example, Google Glass can take pictures, record audio and video, and instantaneously upload files to a claims system. This new scenario eliminates the need for a field adjuster to juggle multiple devices, as all these functions are consolidated on Google Glass. At the same time, adjusters will be enabled to have better interactions with customers, enhancing service levels.

• One firefighter in North Carolina’s Rocky Mount fire department developed a Google Glass app to assist in firefighting and life-saving activities. For instance, the Glass product can display incoming emergency dispatch calls, map where fires and other emergencies are occurring, and locate nearby fire hydrants. Using verbal commands, firefighters can call up building floor plans, as they’re about to enter a burning building, and access vehicle extraction diagrams to help free accident victims trapped inside a damaged car.

• DriveSafe has developed an app to alert drivers when their eyes begin to close. It’s still being fine-tuned, but it could significantly benefit drivers who may be on the road for long shifts of 12 hours or more a day.

There’s been lots of interest from insurance companies, as well as software and hardware developers for the transportation industry.

COMBINING EMERGING TECHNOLOGIES It’s anticipated that wearable devices also could be used along with other emerging technologies. For instance, Robert Wilson, president of WorkersCompensation. com, anticipates wearables could be enabled with Radio Frequency Identification (RFID), providing accident investigators with additional information.

With this type of integrated technology, an investigation might reveal that an employee was running when he slipped and fell, or an employee who claimed to have strained his back on the loading dock was actually sitting

idle in the break room at the alleged time of injury.

Wilson anticipates that biometric sensors could be crossreferenced for other vital statistics, such as the worker’s level of stress, to provide a broader picture of an accident than ever before.

WEARABLE GROWTH & CONCERNS If wearable technology offers a healthier and more productive workforce, adoption will continue to rise. By 2018, the wearable market could reach 130 million units sold with a market value of $6 billion, according to market researcher IDC. In the meantime, key concerns must also be addressed, including: • Privacy. The Health Insurance Portability and Accountability (HIPAA), which protects patient data and medical records, does not yet apply to data from wearable devices. The Privacy Act of 1974 also protects against invasion of personal information. As the volume of wearable data grows and applications expand, the industry will need to be mindful of privacy concerns.

• BYOD Policies. Similar to cell phones, employers will have to consider including wearables in their Bring-YourOwn-Device (BYOD) policies to address issues, such as security for the device data, as well as preservation and collection of electronically stored information, if a legal or regulatory request is issued.

• Abandonment. A recent poll by PricewaterhouseCoopers found that one-third of users who bought wearable devices abandoned them after six to 12 months. A key to ensuring ongoing use is to create a user experience and perception of ongoing value and benefits.

THE FUTURE OF WEARABLES Applications for wearable devices are still in the early phases of development. Many uses are yet to be discovered, especially as we consider the ways it can be integrated with other technologies. At the very least, public risk managers should monitor these devices and their applications, as the growing number of benefits may eventually lead to adoption within their own organizations.

As popularity of wearables continues to grow, companies may need to incorporate new policies regarding security of these devices, and privacy will also need to be considered.

In addition, business intelligence and data analysis will need to advance in order to process and provide relevant, real-world insights across newly available statistics. In the end, these devices have the potential to impact employee health, wellness, productivity, and insurance costs—as well as improve claims investigation and loss experience.

Jose Tribuzio is the founder and CEO of Systema Software.

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REGISTRATION NOW OPEN! Institute.primacentral.org

PI15 PRIMA INSTITUTE 2015

SMALL SETTING.

BIG IDEAS.

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November 4–6, 2015 Albuquerque, NM

Going Above and Beyond “Sometimes I have to go above and beyond—literally.

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“With Genesis, we can always count on safe landings no matter what risks cross our path.”

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Managing a Local Government’s

FLEET RISK

By Kenny Smith, CSP

A

ccording to the National Highway Traffic Safety Administration, an employee involved in an accident using a fleet vehicle costs an employer roughly $16,000. If that on-the-job accident results in an injury, the cost increases to about $70,000. Depending on various circumstances and injuries, those costs can continue to increase significantly.

When the employer is a government entity, with tight budgets and complex insurance risks, the situation can be much more challenging.

In fact, fleet management often poses the most frustration to risk managers as they try to balance the necessity of maintaining a fleet with the various risks. It goes much deeper than just checking records and inspecting vehicles, risk managers must consider an important variable: driver management. Poor driver behavior is one of the major contributing factors in the majority of auto accidents, underscoring the necessity to establish clear operational boundaries for driving entity vehicles and provide some level of training.

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A clear and defined set of rules should be established and communicated to all employees receiving the privilege of regularly operating a fleet vehicle. The overarching message should be clear that safe automobile operation is the rule and is management’s expectation, and therefore is the driver’s responsibility to carry out. It should be noted that vehicles need to be operated in a lawful manner, and that driving a company vehicle is a privilege that is constantly earned and annually reviewed. Of course, any union agreement will have to be negotiated, but safety issues are generally mutually agreed upon as important. Establish a culture of safety through active support and careful review of the rules, which will be documented to survive personnel changes and terms of office.

It is important to note that the general population has a wide and varied opinion as to what safe driving might entail so it is up to the entity to describe what that means to your organization. If it is not covered, drivers will make it up as they go along.

DUE DILIGENCE BEFORE YOU HIRE To avoid negligent hiring accusations, government entities should always check the driving record of anyone who drives for entity business and be sure they can operate their assigned equipment; don’t take their word for it. Every driving job has its unique demands and those should be considered for full-time drivers and especially for those vehicles requiring a commercial driver’s license and specialty vehicles. An entity will need to be able to show it evaluated their drivers’ capabilities prior to putting them behind the wheel. Hire safe drivers and your supervisory duties will be easier.

Studies show that there is a direct correlation between frequent violations on a driver’s record and the continuation of future violations. Keep this in mind as you review potential employee’s records. However, beyond what is written down in black and white, there are other personality traits a public entity may want to seek out in its drivers—patience.

In today’s increasing traffic conditions, hectic schedules and harried drivers, patience is a value that could prove highly beneficial to your long-term fleet management.

SEND NEW DRIVERS TO ORIENTATION Getting started on a positive note is critical with drivers because you have one chance to make a good first safety impression. Carefully select orientation leaders or employees who mentor or train new fleet operators, as their attitudes, habits and outlooks will likely shape the viewpoint of the new driver.

All trainees should receive documented operating rules and should be evaluated on their ability to safely operate the vehicle. Additionally, defensive driving training should be completed within a reasonable amount of time from hiring.

CONTINUE THE TRAINING According to the Insurance Information Institute, automotive crashes top the list of workplace fatalities. One would think that this number one position would create significant focus and training support from upper management. Unfortunately, this is not the case and regular training is sometimes overlooked.

Best practices call for at least annual training on defensive driving; be sure to also include whatever specific accident trends are affecting your organization, such as “hit vehicle ahead” and more specifically, while in or near intersections. Even experienced drivers can benefit from annual refresher conversations about safe driving and renewed conviction to meet the level of safety demanded from the organization. Remember, the message that safe driving is the rule and important to the entity should continually be reinforced for drivers.

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Studies show that there is a direct correlation between frequent violations on a driver’s record and the continuation of future violations. Keep this in mind as you review potential employee’s records. However, beyond what is written down in black and white, there are other personality traits a public entity may want to seek out in its drivers—patience.

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SET CLEAR VEHICLE OPERATING RULES

SUPERVISION How do you supervise drivers that are usually out of sight?

Assign responsibility and accountability. It is human nature to be motivated to meet or exceed expectations when we realize performance is being monitored. Beyond the methods put forward already, the following are some additional supervisory components for successful fleet safety programs: • Risky driving behavior should be quickly identified and remedies put in place. Utilize public complaints about traffic interactions to initiate discussions. If you suspect habitual risky behavior, then ride-alongs are always insightful. Use active coaching methods immediately when deficiencies are identified.

AUGUST 2015 | PUBLIC RISK

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Managing a Local Government’s Fleet Risk

As long as local governments own automobiles, they have the legal responsibility for driver management that goes far beyond just vehicle inspections. When a government entity can be proactive, establish a culture of safety through clear and defined rules, complete due diligence when hiring new drivers and thoroughly train, supervise and maintain their fleet of drivers and vehicles, they will go a long way to mitigating the risks that operating a fleet presents.

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• Monitor driver’s license expiration. You are responsible for the drivers of your vehicles so set up an accurate list for expiring licenses.

• Some organizations use telematics that utilize GPS and a plug-in device to record hard braking, excessive speeding, rapid acceleration, and other risky driving. Upon review of the data, managers can coach the driver on safe vehicle operation.

• Accident investigation should include supervisory involvement and a final report for next steps directed toward the driver and the entity. Since 95 percent of all accidents have two or more causes, the investigation should reveal several opportunities for strengthening safe driving habits.

• Annually perform a Motor Vehicle Record review and take proactive coaching action on any drivers that are getting close to the unacceptable driver record cutoff.

• Require drivers to go through additional training if the driver was contributory to an incident/accident.

• Use warnings/suspensions, safety incentives, bonuses and retraining so both positive and negative incentives are reinforced. Several studies show that it is more effective to have both rather than only one.

• Annual performance evaluations should include a section where you can evaluate the employee on operating the vehicle in a professional manner, adhering to the entity operating rules and recording the number of incidents/accidents.

• Vehicle inspection spot checks can help management identify training issues before they become one of the contributing causes to an accident and it reinforces the professional driver image that you want to instill.

PUBLIC RISK | AUGUST 2015

MAINTENANCE In court cases where the mechanical condition of a vehicle is alleged to be a contributory cause of an accident, all repair records and inspections become very important.

If you have good documentation you are likely to come out better than if your records are incomplete. Since we cannot know when a significant accident may take place, it is better to prepare for the worst and have good records available at any time they are needed. Of course, the documentation should reflect the maintenance that is suggested by the vehicle manufacturer.

Mechanical breakdowns can occur at any time, but a well maintained vehicle will have fewer catastrophic failures than a vehicle that is only repaired after it breaks. Therefore, local governments should have established maintenance schedules for each type of vehicle as well as monitors established for any delinquent maintenance.

As long as local governments own automobiles, they have the legal responsibility for driver management that goes far beyond just vehicle inspections. When a government entity can be proactive, establish a culture of safety through clear and defined rules, complete due diligence when hiring new drivers and thoroughly train, supervise and maintain their fleet of drivers and vehicles, they will go a long way to mitigating the risks that operating a fleet presents.

Kenny Smith, CSP, is a risk control manager for OneBeacon Government Risks.

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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 under-budget?

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.

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AUGUST 2015 | PUBLIC RISK

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Member Spotlight

TRAINING SAFETY OFFICERS KEEP 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

S

The TSO program is designed to improve the safety of police, fire, emergency management and other first responders while they are training. LMCIT recommends that public safety departments incorporate a safety officer into each training lesson plan to supplement the already present training instructor. While the training instructor focuses on tactics, the safety officer watches or oversees all training activities and stops actions that are unsafe.

“In the last few years, public safety training has evolved into being more realistic, more hand-on and more physical,” said Pete Tritz, LMCIT executive director. “Using a safety officer at all training activities can greatly reduce public safety training injuries.”

or 703.253.1267.

Tritz said that, while safety officers have been used sporadically for training sessions in the past, this program emphasizes the teamwork between the instructor and TSO during the training.

Tritz likens the role of the TSO to that of an airfield control tower.

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 Safety plan: this plan outlines specific safety concerns of the training and identifies ahead of time the areas that could potentially produce safety problems or injuries.  Site inspection and set up: the TSO inspects the training site for areas of safety concern, setting up protective training equipment and having emergency medical equipment available.  Safety briefing: the TSO briefs training participants on the specific safety guidelines for that training including an emergency medical plan and a check for pre-existing injuries.  Training session: the TSO observes the entire training session, provides overall situational awareness, watches for compliance with the safety plan, keeps an eye on the pre-identified areas and continually communicates with the instructor.  Clean up, check in and documentation: the TSO makes a final check-in with the trainees and instructor to address any injuries or “near misses,” and provides a report for review.

“Everyone knows that public safety professionals have dangerous jobs,” said Tritz. “However, TSO emphasizes that the training room should be the one safety environment they encounter.”

There are six major components to the TSO program:

LMCIT has developed a webinar, checklists, templates and related materials about the TSO program. They can be accessed at www.lmc.org.

 Planning meeting: the instructor and TSO integrate a risk assessment and safety plan into the training lesson plan.

LMCIT’s TSO program recently won a first place achievement award in the pool category from PRIMA.

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Each month, Public Risk

tatistics from the League of Minnesota Cities Insurance Trust (LMCIT) show that workers’ compensation costs related to training injuries for firefighters accounted for 17 percent of all losses and 22 percent for all law enforcement. To help public safety combat these types of losses, LMCIT developed that Training Safety Officer (TSO) initiative.

Using a safety officer at all training activities can greatly reduce public safety training injuries.

Pete Tritz, LMCIT executive director

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