Public Risk November/December 2021

PUBLISHED BY THE PUBLIC RISK MANAGEMENT ASSOCIATION NOVEMBER/DECEMBER 2021

NAVIGATING WORKERS' COMP CLAIMS PAGE 7

ALSO IN THIS ISSUE

11 COMMON RFP PITFALLS PAGE 12

LIABILITY FOR PERSONAL INJURY

PAGE 16

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Exploring the Unique Challenges Faced by Injured Workers NOVEMBER 17 | 12:00 PM – 1:00 PM EST SPEAKERS: Alice Wells, CWCL, AIC, Director of TPA Operations, Johns Eastern Silvia Sacalis, BS, PharmD, Vice President, Clinical Services, Healthesystems Bill Mason, Risk Manager, City of Sunrise, FL When a worker is injured in the workplace, that individual faces a number of challenges on the road to recovery, not the least of which is their mental health.

Increasingly, employees have been shown to bear the burden of a generally negative view toward injured workers from multiple stakeholders, including providers, employers and claims professionals. This stigma puts the already fragile injured worker in an even worse mental state and includes feelings of guilt, regret and wrong-doing. This session will explore the challenges faced by the injured worker and the need for all stakeholders to be aware of it and work together to share information and treat the employee with compassion and empathy. We will also delve into the need for an empathetic and holistic approach to claims management.

ATTENDEE TAKEAWAYS: 1. Realize we all play a part in minimizing the stigma felt by injured workers 2. Work toward a solution where we are all part of an injured worker’s recovery 3. Address the mental and physical well-being of injured workers

Register at primacentral.org/education/webinars

NOVEMBER/DECEMBER 2021 | Volume 37, No. 6 | www.primacentral.org

CONTENTS

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

PRESIDENT Melissa R. Steger, MPA, CRM Asst. Dir., WCI & Unemployment Ins. University of Texas System Austin, TX PAST PRESIDENT Sheri D. Swain Director, Enterprise Risk Management Maricopa Community Colleges Tempe, AZ PRESIDENT-ELECT JamiAnn N. Hannah, RMPE Risk Manager City of Gallatin Gallatin, TN DIRECTORS Dana S. Henderson, CWCP Risk Manager Town of Mount Pleasant Mount of Pleasant, SC

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Nine Workers’ Comp Specialty Network Services You Should Know More About

By Ted Smith

Steve M. LePock, II Risk Manager Virginia Beach City Public Schools Virginia Beach, VA Ann-Marie A. Sharpe, ARM, RMPE Director, Risk Management City of Miami Miami, FL Laurie T. Olson Sr. Risk Management Consultant City/County Insurance Services Salem, OR Adam F. Maxwell, CLRP Director, Administrative Services City of Westerville Westerville, OH Michael S. Payne, ARM, HEM Risk Manager City of Reno Reno, NV NON-VOTING DIRECTOR Jennifer Ackerman, CAE Chief Executive Officer Public Risk Management Association Alexandria, VA EDITOR Claire Howard Manager of Marketing & Communications 703. 253.1262 | choward@primacentral.org ADVERTISING Claire Howard Manager of Marketing & Communications 703. 253.1262 | choward@primacentral.org

12 11 Common RFP Pitfalls

By Dororthy Gjerdrum, ARM-P

IN EVERY ISSUE

16 Liability for Personal Injury

By William F. Blake, CPP, CFE

| 4 NEWS BRIEFS | 20 ADVERTISER INDEX

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Copyright 2021 Public Risk Management Association

NOVEMBER /DECEMBER 2021 | PUBLIC RISK

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MESSAGE FROM PRIMA PRESIDENT MELISSA STEGER

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Protecting the Greatest Asset, Our Employees

e could probably all agree workers’ compensation insurance and its requirements are complicated. The insurance is costly, heavily regulated, and required in most states. Although workers’ compensation coverage can feel like a burden, employers understand the importance of protecting their employees.

Let’s step into the shoes of an employee. Take a moment to imagine you are the breadwinner of a family. You have a loving wife at home caring for your three young children when you are suddenly struck with a debilitating injury at work. How are you going to provide for your household if you can’t work? Stress and concern overtake your mind as you try navigating the convoluted workers’ compensation system.

A work-related injury can be devastating, and the associated process bewildering. Recovery may not be as simple as going to the doctor and taking a few days of sick leave. There are questions, and paperwork, and an adjuster who through support of medical professionals and medical records, deciphers the diagnoses associated with the mechanism of injury. It makes sense to those of us living in this world, but not to the injured employee. Here is the crossroad where employers make a positive impact.

Employers are commonly the first contact following an injury. Their influence far exceeds safety and prevention, and their involvement should be more than simply forwarding required forms to their carrier or third-party administrator (TPA) for handling. To their employee, the employer is the face of workers’ compensation. Those are big shoes to fill, and those big shoes should overflow with care and compassion. Following are some workers’ compensation key points for employers.

Empathy. Build a relationship of trust, respect, and empathy with the injured employee from the onset of their claim. Actively listen to the employee’s concerns and offer available guidance. Set realistic expectations with the injured employee in a caring and compassionate manner. Workers’ compensation is chocked with complicated jargon. Explain the process with simplicity to avoid unnecessary confusion.

Most conflict centers around miscommunication. Don’t let that complicate the process.

Be familiar with the workers’ compensation process. Employers should intimately understand the workers’ compensation process and patiently share their knowledge with their injured employees. Let the injured employee know what to expect, how to seek medical treatment and the purpose of forms they complete. Inform the employee that they may be contacted by a claims adjuster and express the purpose and importance of their conversation. A simple moment of setting expectations positively impacts the experience, recovery, and outcome for the injured employee and their claim.

Return to Work. Employers play an important role in keeping their employees active and engaged with their job and co-workers as they heal. The injured employee’s treating doctor generally communicates any restrictions with the carrier and employer. Upon receipt of assigned restrictions, employers should actively and innovatively search for ways to keep their employee at work through job modification or cross-sharing functions with another department. Injured employees who return to work heal faster, keep job-related benefits, reduce financial losses, stay employed, maintain physical and emotional health, and avoid long-term disability.

tion experience for their injured employees.

Awareness of the resources and partnering with associated departments can provide ease to the impacted employee as they recuperate.

For example, employer assistance programs (EAP) may have support available to your injured employee during difficult times. Use of this program can benefit an employee whose injury presents life issues that may be unrelated to the claim but may adversely impact the outcome.

Remind the employee of the available service.

Additionally, based on the final claim outcome, employers can help transition care to group health or vice versa as appropriate. This assistance may alleviate some of the hassle factor the employee may otherwise face.

In closing, employers should work with their claims handling team to build a culture of honest, empathetic communication focused on doing what’s right. This model does not mean every claim is accepted. The culture means that every employee will be treated with dignity and respect throughout the claims process.

This honest, empathetic communication will guide the injured employees to appropriate outcomes and resources as employers protect their employees as their greatest asset.

Sincerely,

Melissa R. Steger, MPA, CRM PRIMA President 2021–2022 University of Texas System Austin, TX

Employer Resources. Employers have many resources that enhance the workers’ compensa-

NOVEMBER /DECEMBER 2021 | PUBLIC RISK

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NEWS BRIEFS

NEWS Briefs

HOW EMPLOYERS CAN IMPROVE MENTAL HEALTH — AND PRODUCTIVITY — IN THE WORKPLACE

CANNABIS TO TREAT INJURED WORKERS APPEARS CLOSER TO ACCEPTANCE October 20, 2021 | Danielle Ling | Business Insurance

October 20, 2021 | Tracey Drury | Business First Anyone who has ever gone through a tough time in their personal life knows it can spill over onto the job. How a company responds — both before and after that period — can make the difference between someone staying, or leaving.

In other words: Does my employer care about me? Those that offer wellness and pre-emptive Employee Assistance Programs (EAP) often have far better luck recruiting and retaining employees, and see increased productivity.

“It’s a natural setting for these initiatives to be in workplace settings because this is where people spend a great deal of their time,” said Megan Andrews, assistant director of EAP programs at Child & Family Services. “We are absolutely seeing more companies that are taking on EAPs that have never done it before. … They are seeing this as a worthy investment.”

In addition to helping employees, investing in their mental health can also have a positive outcome on the company’s bottom line: A study from Deloitte found such investments in workplace mental health had a four to one return for every dollar spent. Moreover, 53% of employees at companies that support wellness said they felt more motivated, according to a separate study by the American Psychological Association.

Andrews said there’s a growing recognition by companies of all sizes that paying attention to mental health is important. Getting workers to use it is the trick.

She recommends a variety of methods, such as links to short videos, text messages or email wellness tips. Others might respond better to live webinars where they can interact or ask questions or sit back anonymously as a casual observer.

Read More: https://www.bizjournals.com/buffalo/news/2021/10/20/mental-health-andproductivity-in-the-workplace.html

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PUBLIC RISK | NOVEMBER /DECEMBER 2021

Recent litigation and proposed legislation in some eastern states may have opened the door to more widespread use of cannabis to treat injured workers, experts say.

Cases heard in courts in New York, Massachusetts, Maine, New Jersey and New Hampshire have helped progress cannabis as medical treatment in the eyes of the law and insurance, they say.

“For a long time, workers compensation did not consider medical marijuana a treatment option. But in the last few years, we’ve seen a lot of litigation and the interesting thing about these cases is they all come back to the issue of federal preemption,” said Jeremy Buchalski, a New York-based partner at Wilson Elser Moskowitz Edelman & Dicker LLP. He was speaking at the Business Insurance 2021 Virtual Cannabis & Hemp Conference last week.

While cannabis remains regulated federally as a schedule 1 substance, which means it is determined to have no medical value, state courts have been deciding whether it can be reimbursed as medical treatment in workers compensation cases.

In April, a New York appellate court ruled in Matter of Quigley v. Village of East Aurora that a workers comp insurer must reimburse a disabled police officer for the cost of his medical marijuana.

New York has continued to be a leader on cannabis reform throughout the year, announcing an updated drug formulary and the proposed launch of a web-based claims portal, OnBoard. The new formulary requests medical marijuana be a prior authorization medication, said Ronald Mazariegos, claim executive vendor manager at Arrowpoint Capital.

Read More: https://www.businessinsurance.com/article/20211020/NEWS08/912345322/ Cannabis-to-treat-injured-workers-appears-closer-to-acceptance-

HOW ARE WELLNESS PROGRAMS REGULATED? October 14, 2021 | Louise Norris | Very Well Health There is no doubt that workplace wellness programs are popular with employers and employees alike. As of 2019, 84% of employers with at least 200 employees were offering wellness programs for their workers.

These programs are designed to encourage healthy habits, such as walking more and learning effective stress management techniques, or discourage unhealthy habits, such as tobacco use.

Despite their popularity, there are concerns that wellness programs are not particularly effective in reducing costs for employers or improving employees’ overall health. But they do tend to improve employee satisfaction with the overall benefits package.

There are also concerns that wellness programs, even when thoughtfully designed, can potentially discriminate against people with disabilities or significant medical conditions.

Although the effectiveness and fairness of wellness programs continue to be a source of controversy, there are regulations in place to protect workers. These rules ensure that, as much as possible, wellness programs are nondiscriminatory.

This article explains the regulations that apply to wellness programs.

Laws That Apply to Wellness Programs A variety of federal laws and regulations are designed to protect employees and prevent discrimination in the workplace. They include: • Employee Retirement Income Security Act (ERISA) • Americans with Disabilities Act (ADA) and applicable guidance from the Equal Employment Opportunities Commission (EEOC) • Genetic Information Nondiscrimination Act (GINA) • Health Insurance Portability and Accountability Act (HIPAA) • Affordable Care Act (ACA) There was already a wide range of ERISA, ADA/EEOC, GINA, and HIPAA rules to prevent discrimination and protect employees’ privacy. But the ACA added additional regulations specific to wellness programs. And the rules have changed over time for certain wellness programs that are subject to ADA and GINA regulations.

Read More: https://www.verywellhealth.com/how-arewellness-programs-regulated-5202713

BEYOND THE HEADLINES: WORKPLACE VIOLENCE AND WORKERS’ COMPENSATION CLAIMS October 4, 2021 | Kathleen M. Bonczyk | Insurance Journal Whenever a legal dispute arises as to insurance coverage, the court will evaluate policy language to determine if a specific cause of loss constitutes a covered event under the terms of that policy.

When workers’ compensation and workplace violence intersect, it must generally be shown that the loss occurred in the scope of employment and while the employee was working.

Some claims, however, involve gray areas raising questions as to whether coverage is invoked.

This is particularly true in scenarios where the injured worker played a role in inciting, participating in or provoking the violence.

No cookie-cutter approach should be utilized in the investigation and adjustment of these losses, as they oftentimes involve complex fact patterns.

A thorough analysis should be conducted when workplace violence claims are reported so as to mitigate the risk of dreaded statutory or common law bad faith actions, amongst other concerns.

Workplace Violence, Defined There is plenty of room for plaintiff’s counsel to assert a rejected occupational violencerelated workers’ compensation claim was wrongfully denied by the insurer.

Workplace violence manifests in a broad range of activities beyond the deadly, highly publicized active shooter episodes some automatically think of while considering this topic. Unwanted physical contact is not necessary to make a showing that workplace violence has occurred.

Read More: https://www.insurancejournal.com/magazines/ mag-features/2021/10/04/635147.htm

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NINE WORKERS’ COMP SPECIALTY NETWORK SERVICES

YO U S H O U L D K N O W MORE ABOUT

N

BY TED SMITH

early half of workers’ comp claims result in medical expenses ranging from $10,000 – $500,000 with high-cost claims accounting for a larger share of spending.1 Specialty services represent 20% of this spend and are pivotal to any recovery.2 These specialty networks include products and services such as durable medical equipment, diagnostic imaging, physical medicine, home health, and transportation and translation, to name a few.

NOVEMBER /DECEMBER 2021 | PUBLIC RISK

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NINE WORKERS’ COMP SPECIALT Y NETWORK SERVICES YOU SHOULD KNOW MORE ABOUT

DME coordinators offer a single point of contact for all equipment and services, handle all fulfillment and billing, and work exclusively with dedicated, cost-conscious vendors nationwide to meet the needs for virtually any type of case.

These programs can also deliver outstanding results related to network penetration, savings, decreased out-of-network activity, and injured worker satisfaction.

Effective management of specialty networks is one area where we can make a significant impact, and must be managed for a variety of reasons, including outsourcing to an expert in that field, ensuring appropriate utilization, facilitating greater speed and efficiency to meet injured employees’ needs and controlling cost. Here are ten elements of these networks that can have major implications on patient recovery and an overall workers’ compensation program.

1. SPECIALTY NETWORKS WORK IN CONJUNCTION WITH TRADITIONAL NETWORKS

Specialty network services are often foundational to workers’ recoveries and combined with physician networks can add up to a more inclusive recovery experience for injured workers. When the network lens is expanded to include specialty services clients gain the benefit of an array of support through their existing network relationship. Providers of DME, diagnostics, physical therapy, home health, and other services within an extended network can further streamline patient care.

The better models offer a single point of contact for all specialty equipment & services,

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PUBLIC RISK | NOVEMBER /DECEMBER 2021

scheduling, and clinical oversight, resulting in greater injured worker satisfaction.

2. DURABLE MEDICAL EQUIPMENT (DME) REQUESTS CAN BE COMPLICATED Durable medical equipment, which can include anything from medical equipment and supplies to modification services, rehabilitation equipment, and electrotherapy units, can be complex. There is a wide range of equipment, and within each category, there are significant numbers of products that vary in nuanced ways, with many offering slightly different functions.

From an adjuster’s perspective, the inner workings of providing these services can be shrouded in mystery. Adjusters need to rely on knowledgeable specialty network coordinators to review orders on their behalf and bring any concerns to their attention. Successful specialty networks also tailor their service and delivery to help eliminate administrative hassles.

DME network coordinators work in close collaboration with nurse case managers to ensure clinical oversight is applied when

needed. Many times, injured workers require medical and specialty services together. As a result, a coordinated approach ensures better overall results, value, and savings.

DME coordinators offer a single point of contact for all equipment and services, handle all fulfillment and billing, and work exclusively with dedicated, cost-conscious vendors nationwide to meet the needs for virtually any type of case. These programs can also deliver outstanding results related to network penetration, savings, decreased out-of-network activity, and injured worker satisfaction.

3. HOME MODIFICATIONS MAKE INJURED WORKERS FEEL MORE AT HOME AFTER AN INJURY

Home modifications, which involve everything from installing railings, ramps, and high-seat toilets to widening doorways to accommodate wheelchairs, are just one aspect of the out of the box benefits a specialty network can deliver.

When planning home modifications, it’s essential to really understand the individual’s needs. A good specialty coordinator will start

by gathering high-level information from the injured worker and their family members to understand the worker’s needs for managing daily activities.

In addition, injured workers who feel they are a part of the process are more likely to believe the resulting alterations will enable their activities of daily living. That resulting sense of self-sufficiency can help drive better injury outcomes.

Adjusters can also place confidence in a specialty provider to coordinate the injured worker’s needs across various touchpoints, obtain several quotes, check references to ensure the quality of the work and estimated price, and work with several contractors to ensure an overall cost-effective modification is performed. It’s also important to realize that the payer’s role is to make modifications that accommodate the employee’s injury, but at a level comparable to what was in place before the modification.

4. AS PROSTHETIC DEVICES IMPROVE, SO CAN INJURED WORKER OUTCOMES

Amputations are the most costly type of injury in workers’ compensation, both in terms of lost time and long-term expense. Working with experienced prosthetic providers is therefore critical to control costs and achieve the best possible outcomes for each injured worker.

Each must receive complete, comprehensive evaluations to assess their unique needs, and to support not just their return to work but also their hobbies and lifestyles.

While orders for prosthetics are rare compared with other types of specialty devices their costs can range from a couple thousand dollars to well over $50,000 for the first prosthetic through replacements. Reliable providers will also offer maintenance and warranties, and a quality specialty vendor will routinely check in with the injured worker to make sure a prosthetic is in good repair and in compliance with its warranty.

The advancement in prosthetics over the years is nothing short of astonishing. For injured workers, seeing themselves with their

future prosthetic, resuming their everyday lives, can not only ameliorate the grieving process but also their chance of rejection.

In the future, the amazing developments in technology will provide even better solutions to the traumatic events of amputation and improvements to prosthetics.

5. ACCESS TO ACCURATE DIAGNOSTIC IMAGING AFFECTS NOT ONLY QUALITY OF CARE BUT CLAIM COSTS

Diagnostic imaging and radiology play a significant role in workers’ comp claims.

Diagnostic imaging such as an MRI, CT, or PET scan is often the first critical step to assess the severity of an injury and develop a treatment plan for prompt recovery and return to work. That’s why it’s imperative an imaging facility produces a quality image from the onset to ensure the best-possible outcomes for injured workers.

Today, obsolete imaging equipment has become an issue, and injured workers who require a scan could be sent to an imaging facility with old or outdated equipment, especially if that facility or equipment was not properly vetted. Treating physicians may not have detailed information to diagnose and properly treat injured employees, or a bad scan could cause them to miss important diagnostic information that would aide in recovery.

Despite this shortcoming, imaging advancements offer great promise. The latest equipment can enable health care providers to diagnose and treat patients with greater precision, giving them unprecedented visual and functional information on a patient’s condition.

Specialty networks provide vetting processes for diagnostic providers to ensure they have up-to-date equipment that is capable of producing quality scans. Coordinators work with adjusters to schedule imaging services within a network of reputable imaging facilities, which have undergone rigorous credentialing to ensure the practice and staff have the proper licensure, certifications, and insurance.

6. RELIABLE TRANSPORTATION FACILITATES OFFER BETTER INJURED WORKER OUTCOMES IN UNEXPECTED WAYS The importance of transportation in health care outcomes—sometimes an overlooked factor—has been drawing more attention in recent years. Services like Uber and Lyft have made it simple to summon transportation with a few taps to our phones. But for injured workers, getting from one place to another often remains daunting.

Injured workers often require more complex transportation, such as a scheduled ambulance, wheelchair, stretcher, basic life support, or advanced life support transportation. Without timely and reliable transportation, those in need of medical care can miss appointments, and jeopardize the pace of their recoveries, adding up to poorer health outcomes. That’s why it’s essential for injured workers to have access to a network of safe and effective transportation options.

Injured workers can benefit in perhaps surprising ways when they have access to professional transportation companies experienced in workers’ compensation. For example, many services allow injured workers to request drivers with whom they’ve ridden in the past. This extra comfort, though modest in the overall recovery, can carry outsized impact because we know the foundational role that trust plays in the trajectory of an injured worker’s recovery and in the associated costs.

7. TRANSLATION SERVICES ARE A FUNDAMENTAL ELEMENT TO MANAGING LANGUAGE BARRIERS

Translation is one of the most commonly requested and used services for injured workers, and specialty networks can provide certified translators and interpreters to facilitate communication in almost any language. These providers offer a means to easy communication that includes proven customer service to ensure a smooth process for the injured worker, while reducing costs for clients.

Translation is a necessary service for good reason and is often critical to workers’

NOVEMBER /DECEMBER 2021 | PUBLIC RISK

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NINE WORKERS’ COMP SPECIALT Y NETWORK SERVICES YOU SHOULD KNOW MORE ABOUT

recoveries. These requests require a fair amount of coordination, especially as more people are involved. There is often an essential time component with translation, because the injured worker’s treatment can depend on receiving services promptly. They need to be able to talk to their caregivers and vice versa.

Working with a qualified translation network ensures that these services are coordinated and provided with the interest of the injured worker in mind.

8. DESPITE SHORTAGES HOME HEALTH REMAINS A CRITICAL ELEMENT OF CARE FOR MANY INJURED WORKERS

When injured employees are struggling with a difficult transition home, they need compassionate health professionals, who are highly skilled and experienced in caring for those who have experienced a severe or life-altering injury.

Today, there are significant challenges, including persistent staffing shortages, facing home health, which could affect the industry’s ability to meet the needs of injured employees.

To proactively address such issues, payers should partner with a respected specialty network organization that has a broad national network of home health and home care agencies.

A specialty network will assist in matching the injured employee’s medical needs to the appropriate skill level required. They will assess and facilitate total home care, as well as specialty service requirements, in a comprehensive plan.

The specialty network will also ensure that the agencies it works with have a track record of dependability, consistency, and appropriate policies in place.

Across its many agency partnerships, a reliable specialty network will have access to a deep bench of expert home health professionals.

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PUBLIC RISK | NOVEMBER /DECEMBER 2021

9. HOSPITAL DISCHARGE PLANNING IS AN INTEGRAL PART OF THE TRANSITION TO A FACILITY OR HOME

Often specialty services, such as home health, transportation, DME, and prescription coordination, are needed on complex injury claims when an injured worker is to be discharged from a hospital or other medical facility.

Without a plan to support a successful transition home the injured worker may not be in a position to care for himself or herself at home, transportation to and from appointments might cause concerns, and injured workers could become frustrated with their situation.

In addition, safety could be compromised – possibly resulting in re-admission or delays in recovery and return-to-work.

Prior to discharge, the discharge planning coordinator will work with the case manager and hospital staff to determine the injured employee’s specialty service needs. The coordinator will know all the types of questions to ask to ensure the patient’s comprehensive situation is understood.

By providing a single point of contact for all planning, a dedicated coordinator can manage the specific needs outlined by the physician,

case manager, social worker, and/or hospital, and often has a pre-defined checklist of commonly ordered items.

TAKEAWAYS

Understanding the complexities surrounding specialty services enables organizations and claims staff to operate with greater understanding of the intricacies involved. An organization looking to initiate improvements in a specialty service program should assess the partnerships they currently have in place. Are the initial specialty services being planned and is ongoing communication and cost transparency being provided along the way?

Ensure that your specialty services provider has processes in place to deliver not only savings, but also superior service with a patient-centric approach. The service provider should also utilize digital strategies to streamline the specialty service process and provide full visibility to the actions being taken, facilitate oversight to ensure nothing falls through the cracks, and have an integrated clinical management approach to ensure optimal outcomes.

Ted Smith is senior vice president of national sales for Apricus.

SOURCES: National Council on Compensation Insurance.

Research Brief. “Medical Services by Size of Claim”; NCCI. Research Brief.

Source: NASI

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DAYS

55+

EDUCATION SESSIONS

80+

SPEAKERS

70+

EXHIBITORS

EXHIBIT AT THE PRIMA 2022 ANNUAL CONFERENCE JUNE 5-8 EXHIBITOR FACTS 50% of the attendees will attend ONLY the PRIMA Annual Conference 82% of PRIMA attendees have the purchasing power or a major influence in decision-making for their entities 70% of attendees have more than 20 years of experience in risk management

Conference.PRIMACentral.org

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NETWORKING EVENTS

TITLE

11 COMMON RFP PITFALLS

BY DORORTHY GJERDRUM, ARM-P

W

e know that organizations strive to meet ideals through the public bidding process, and that significant resources are expended to get the process right.

We don’t believe that organizations intentionally issue poor bid documents, but we’ve seen our share of them over the years.

You don’t need an RFP process to assure that you are purchasing the best brokerage services and the best insurance coverage at the best price. Many organizations use service plans, stewardship reports or broker service contracts to track service and responsiveness against their needs. The key issues of service, expertise, open and honest communication, full disclosure, and access to national resources are the building blocks for developing and maintaining good broker-client relations. For many, having those in place satisfies the need to test the marketplace.

insurance coverage. The more complex risk financing options were not understood by the RFP review committee, so they were ignored.

The simpler, cheaper insurance policy provided less coverage and had more exclusions. That is likely to result in coverage disputes, less control over the claims process and conflicts regarding claims settlements (all of which will be decided by the insurance company). Although the price was lower, it is likely that the entity’s overall cost of risk will increase. The organization’s risk manager didn’t agree with the outcome, but the purchasing specialist was happy.

However, if you need to issue an RFP, we hope that this list of potential pitfalls will help you avoid the mistakes of your peers. By the way, these examples? All true stories from actual bid processes.

Potential Solutions Risk management experts should participate in the creation of the RFP as well as the review and evaluation process. Advocate for your desired outcomes (e.g., improvements to your risk financing structure, ideas for creative solutions, ongoing access to professional advice, working with an experienced broker), and be sure the evaluation criteria reflect those outcomes. It may help if you provide your procurement officer with examples of RFPs and RFQs from peers, and consider engaging risk management peers in the review process if you do not have internal expertise.

PITFALL #1

The RFP process is controlled by the purchasing department with little or no input from risk management.

The Problem We have seen some purchasing departments intentionally exclude the input of the risk manager in order to keep the process “unbiased.” The problem is that the purchase of insurance is not the same as purchasing supplies or standardized services. Not all risk financing options are created equal. When self-insured entities are seeking creative risk financing alternatives, it is especially detrimental to exclude the people with risk financing expertise from the process.

As an example, in one organization, where purchasing controlled the RFP process, the end result was the selection of a broker with the lowest fee and the simplest option for

PITFALL #2

The RFP does not contain a clear scope of desired services.

The Problem A clear description of desired services will help respondents describe and price their RFP response. It takes many hours to create RFP responses and, if the description of services is vague or confusing, providers may take a pass on responding. Or they may craft a response that is too elaborate, falls short or misses the mark entirely. Vague or poorly written RFPs diminish the purpose and effectiveness of the

bid process. Finally, if services are not specifically outlined, an apples-to-apples comparison will be difficult for your evaluation team.

Potential Solutions There are many variations of brokerage services and insurance products. Before you describe the scope in your bid document, consider your organization’s capacity to manage risk and which activities are most important to reducing (or containing) the overall cost of risk. This is a good time to review your program needs.

Budget reductions and reductions in force may limit your ability to hire staff; could any of those functions be performed through an insurance services contract? Examples include assistance with contract review, proof-of-insurance certificate tracking, risk control services, training, claims oversight and loss analysis.

We’ve provided a variety of examples for your review and recommend that you customize them to your needs.

PITFALL #3

The RFP does not contain clear evaluation criteria.

The Problem Respondents need to understand what is most important to you, the buyer, and the evaluation criteria is where you make that known. If you have not spelled out the criteria and the weights that will be assigned to each, you may receive widely divergent RFP responses, which in turn makes the evaluation process more difficult and less objective. It may also result in receiving fewer bids, which defeats the purpose of the process. The use of criteria (beyond price) can help an entity select the best service and products at the best price.

Potential Solutions List the evaluation criteria and assign points (or percentages) to clarify your priorities.

Ideas for appropriate criteria: • The broker’s qualifications and specific experience in your sector, and identification of the team members who will service your account • The broker’s ability to deliver requested services

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11 COMMON RFP PITFALLS

• The ability to access markets, risk financing mechanisms, and market knowledge and leverage • The quality of the review of your existing insurance/risk management program and recommendations for improvement • The ability to access professionals for specific risk advice such as CAT property, ERM, environmental, cyber, student accident, medical malpractice, etc.

• The use of technology to improve and support your risk management program • The number (or dollar volume) of similar clients • Client references • Price

PITFALL #4

The evaluation criteria in the RFP weighs price too heavily— even to the exclusion of other considerations.

The Problem If an RFP is drafted in this way, it may force an entity to choose the lowest price, even if the proposed services and provider qualifications are inferior. Selecting the right broker and purchasing appropriate insurance coverages and limits has never been more important. The process needs to incorporate an assessment of the broker’s qualifications, experience, ability to provide services, access to insurance markets and ability to be creative when solving risk financing problems.

We also urge you to broaden your perspective.

If you consider all the costs of managing risk for your organization, the percentage or fee that you pay your broker is likely one of the smallest numbers. If you are truly concerned about lowering costs, focus on the big-dollar items, like reducing claims frequency and severity, containing claims attorneys’ fees, or spending money on preventing losses instead of paying claims.

Potential Solutions Seek a balance in your evaluation criteria. It may be helpful to use a cost-of-risk approach, where you consider the balance of all risk management-associated costs, and not just broker compensation or the cost of one

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PUBLIC RISK | NOVEMBER /DECEMBER 2021

insurance policy. Some forward-thinking entities consider pricing separately from other evaluation criteria, so they use a two-step evaluation process (first to qualify bidders, then to review price). That is often accompanied by a statement that final pricing is negotiable.

PITFALL #5

The RFP is issued as a formality, as required by law or rule, with a biased expectation about the outcome.

The Problem On your end, it takes a lot of time to design the right RFP, gather and rank the responses, interview respondents, check references, and make a decision. Any organization going to the trouble to conduct an exhaustive RFP process should be serious about the deliberation and openminded about the outcome. Otherwise it’s a phenomenal waste of productivity for all parties that can result in a reputation that your organization pre-decides the outcome and does not take the process seriously. If you develop such a reputation, you will likely find fewer and fewer respondents to your RFPs as time goes by. That begs the question of whether the public interest in your public entity’s purchasing process is being served.

Potential Solutions If your organization is not ready to evaluate responses using fair and clear criteria, review options for change or consider viable alternatives; perhaps it’s not the time to issue an RFP. Make sure you know the rules that apply to your entity or school. Some states require a thorough review of options without requiring a formal RFP process; other states make exceptions for pools or self-insured organizations.

PITFALL #6

The RFP is issued with a ridiculously short response time.

The Problem Here’s a perfect example of this: A K-12 school spends three months drafting the perfect RFP for their circumstances, the RFP gives service providers 10 days to respond, and the school’s insurance program renews next month. In

reality, it takes at least as much time to respond to an RFP as it does to draft it. RFPs are so specific about format and structure that each RFP response is very individualized. It takes time to do a good job on the response, and don’t you want to see the respondent’s best capabilities? An unreasonably tight time frame may put your renewal process in jeopardy, which is not something we recommend in the current insurance market conditions.

Potential Solutions When you are designing an RFP process, back up from your insurance renewal date at least six months, and start the RFP process at least 30 days before that. If you will be directing your broker to conduct a full market review (for insurance options), you might want to start the process even sooner.

PITFALL #7

An entity uses an RFP to fire their current service provider.

The Problem It’s uncomfortable for everyone to use the RFP process to air your grievances about your current service provider. If your broker isn’t performing, talk them about it directly. If you’ve outgrown your current broker, be honest about that. Broker and client relationships ought to be built upon open and honest communication throughout the process. The RFP process should be an open-minded review of options, not a griping process.

Potential Solutions Utilize a stewardship report or scorecard to stay current with your broker’s services and performance. Ideally, review this with your broker twice a year to assure ongoing compliance and good communication. Remember, too, that brokerage services and insurance placements are business transactions; periodic review of your business needs is better than allowing poor performance or dissatisfaction to drive the change.

PITFALL #8

The RFP is so tightly written that an inadvertent error will cause disqualification.

The Problem Does it really serve the public purpose to have a process that is so strict that it favors form over content? Attention to detail is important—that goes without saying—but it shouldn’t rule the day. We have seen RFP processes that disqualified responses if the wrong kind of paper is used.

Is that really a high priority for proving the ability to provide brokerage services?

Potential Solutions A clear description of the scope of services and evaluation criteria that are approved by risk management and procurement should help avoid this trap. (And for the record, we always use recycled paper.)

PITFALL #9

The RFP conjoins insurance procurement and brokerage services without understanding the implications or results of that structure.

The Problem This may be a result of borrowing the format of another entity’s RFP or relying on “how we’ve always done this.” Decades ago, all public entities purchased insurance through insurance agents. By definition, insurance agents are assigned to represent only one or a select few companies. RFPs were designed to reflect that agent-assignment approach, and entities would select an agent/broker and insurance company in one decision.

There are shortcomings to that setup, however.

Joining brokerage services and insurance together in the same RFP could create the following results: • Limiting the number and types of insurance markets that brokers can approach • Fewer insurance options (a straightforward insurance policy versus options such as creative risk financing structures; selfinsured mechanisms; captives, pools or risk-sharing organizations; or alternative risk transfer products) • Results that are focused on insurance products, instead of a combination of products, services, capabilities, resources and

predictive analytics • Restrictions on negotiations (with brokers, nearly everything is negotiable; with insurers, very little is negotiable) Potential Solutions To start, be clear about what you are trying to achieve. Are you satisfied with the level of service you receive from your agent or broker?

Would you like to verify that your entity’s insurance (or pool, or self-insured structure) is providing the best coverage available? Is there any other reason or purpose for the bid process? To whom will you be reporting results? Consideration of the purpose, desired outcomes and decision-makers will help you craft the best process.

We believe that you get the best expertise and access if you select a qualified broker, and then utilize their skills to make insurance markets compete for your business. Separating the purchase of insurance (or risk financing structure) from the selection of the broker enables you to consider a wider range of insurance and risk financing choices.

We have included examples of brokerage services RFQs to help you review some best-inclass bid processes.

PITFALL #10

The RFP does not control access to the insurance markets.

The Problem Some RFP processes allow the first broker to contact a market to lock the market for that RFP process, which effectively blocks the market from other brokers. That makes sense from a market point of view—it would be chaotic if markets were responding to the same RFP through multiple brokers. But if it is simply a matter of who is first to make a phone call, it does not assure that your organization will be getting the best price in the market, the best service or the best coverage.

Potential Solutions Ask yourself: Is my entity getting the brokerage services we need? Would it make more sense to select a broker first and then give them full access to all markets? Or assign specific

markets to brokers to control the process? A successful process can be built around either of these options, depending upon your preferences and needs, but don’t forget to focus on what is most important: the best coverage, the best service, the best price.

Be sure to check out the examples we have posted, which come from actual entities and have produced successful outcomes.

PITFALL #11

The RFP requires—or includes—a high score for having a local office.

The Problem Is this a problem, really? Shouldn’t an organization be able to express a preference for local businesses? Answering this question should refer to the level of service and expertise that you need. Local agents are important to your community, and have insight into local politics and culture, but if they cannot access a broader network of services and insurance markets, they might not be able to meet your evolving risk management needs. We are operating in a world of growing complexity and connectedness, and looking beyond local experience may help your risk management program manage a broader array of threats and solutions.

Potential Solutions If your organization is focused on local representation, ask yourself these questions: Whose interest is being served? Is that interest as important as meeting your risk management business needs? What does local really mean? If being local is about close contact or responsiveness, keep in mind all the ways that you can achieve that these days—through telephone, email, and face-to-face web or in-person meetings. As a compromise—and in order to achieve both local engagement and access to national resources—many of the national brokers are willing to partner with local agencies if local representation is important to your organization.

Dororthy Gjerdrum is the Senior Managing Director, Gallagher Public Sector.

Source: RFP Symposium on Insurance & Brokerage Service Bids

NOVEMBER /DECEMBER 2021 | PUBLIC RISK

15

LIABILITY FOR PERSONAL INJURY

BY WILLIAM F. BLAKE, CPP, CFE

Many business owners are not familiar with the premises liability laws that hold the owner responsible for injuries occurring on their property. As a result, if a person is injured or suffers a loss while on the property, the owner could become the defendant in a negligent security lawsuit. In all states, owners that occupy a property must make a reasonable, cost-effective, and appropriate effort to maintain a safe environment for individuals on the property.

What about injuries at apartment complexes and commercial property that is merely leased? Usually, a landlord is not responsible for the injuries of a tenant’s guest because the tenant is presumed to be in control of the condition of the property. However, there are exceptions, such as for latent defects, which are concealed and dangerous conditions already existing when the tenant takes possession of the property. Another exception occurs when a landlord undertakes repairs for a tenant. The repairs must be performed in a non-negligent manner.

Different states follow different rules about who may recover for premises liability and under which conditions. Some states focus on the status of the person visiting the property to determine whether liability is appropriate. The status of a visitor in those states is usually invitee, licensee, or trespasser.

An invitee is somebody invited onto a property for a commercial purpose, such as a customer at a mall. A social guest or licensee is also present on the property at the invitation or by permission of the property owner or occupant.

For invitees and licensees, the invitation is an implied promise that it is safe to be on the property. In some states, a different duty of care is owed depending on whether a visitor is an invitee or licensee, but in other states that recognize these distinctions, the highest duty

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PUBLIC RISK | NOVEMBER /DECEMBER 2021

of care is owed to both.

In many states that focus on the status of the visitor to evaluate liability, trespassers who are on the property without any right to be there and who are hurt are unable to recover at all. The owner or occupant must simply refrain from intentionally trying to hurt the trespasser, such as by setting traps. However, in some cases, when an owner knows it is likely there will be a trespasser, it is required to give reasonable warnings of non-obvious dangers, to trespassers. Usually, the exception to this rule is a child trespasser, who may get involved with an “attractive nuisance”, like a swimming pool, and thus is owed a higher duty of care.

In other states, courts focus on the state of the property and the owner’s and visitor’s actions.

Generally, property owners and occupants owe a duty to keep property reasonably safe and make repairs for all visitors except for trespassers. Factors that are considered when determining the duty are the circumstances under which the visitor came onto the property, the nature of the property, the reasonableness of the owner of occupant’s actions to repair or warn, and the foreseeability of the injury.

An owner or occupant must regularly inspect the property to find dangerous conditions and either repair them or put up a warning so that lawful visitors are not injured. Any owner that fails to meet this duty, such as by knowing of a dangerous condition and failing to warn visitors, can be held liable for visitors’ injuries that result from it.

LIMITATION ON RECOVERING FOR PREMISES LIABILITY Most states follow the principals of comparative fault in premises liability cases. This means an injured person who is partially or fully responsible for what happened cannot

recover for damages arising out of a dangerous property condition. A visitor has the duty to use reasonable care to keep himself or herself safe. To the extent the visitor fails to use reasonable care, the recovery can be reduced by his or her percentage of fault.

For example, in a state allowing comparative negligence, when an injured person is 10% responsible for an injury, the property owner is responsible for 90% of the injury, and the total damages are $100,000, the victim’s recovery will be only $90,000. In states that follow contributory negligence, the plaintiff may be unable to recover at all if he or she is found even slightly at fault.

LIABILITY OF THE PERSON/ BUSINESS OCCUPYING THE PROPERTY

An occupier of property will generally be held responsible for injuries occurring on the property, regardless of who the actual owner is.

The typical occupier, when it’s not the property owner, will be a residential or commercial tenant (Coulter Boeschen, Property Owner vs.

Occupier Liability for Personal Injury, Internet, downloaded August 16, 2021).

However, even someone who is occupying property without he owner’s permission or knowledge can be responsible under a premises liability fault theory if a judge or jury determines they were in control of the land at the time of the incident. A widely used test goes like this: 1. Whoever is occupying the property with an intent to control it is usually liable.

2. The last person to occupy abandoned property with an intent to control it is usually liable.

3. Whoever is legally entitled to occupy the property is liable when the first two tests above don’t apply.

So, a tenant or other occupier is not only potentially liable for injuries occurring on that part of the property they are legally renting out, but on any part of the property that they intentionally take control of.

OWNER LIABILITY FOR INJURIES ON THE PROPERTY

If a property is not rented out or otherwise occupied, the owner is a potentially liable party. However, even with a tenant or other occupier on the property, an owner can still be liable (in whole or in part) in several situations.

An owner can be liable for injuries occurring on any part of the property over which the owner has retained control. For example, common areas used by multiple tenants are legally considered under the control of the owner. To illustrate, if a tenant or other person invited onto the property is injured in a common area like a hallway or staircase, the owner, not the tenant, will probably be held liable.

An owner can also be held liable if he or she rents out the property in a dangerous condition without warning the tenant. In that case, even if the tenant is in total control of the property, any injuries stemming from the previously existing dangerous condition will be the owner’s responsibility. If the owner tells the tenant about the dangerous condition and notifies the tenant that he or she must repair the condition as part of the lease, responsibility shifts back to the tenant.

If a lease or ordinance doesn’t make an owner responsible for dangerous conditions that occur while the tenant is in control of the property, the tenant will be held responsible for any injuries caused by the condition. If a lease, ordinance, or other regulation requires the owner to repair certain conditions, or if the owner otherwise promises to fix a condition, but the condition causes an injury anyway, the owner will be liable for any injuries despite the tenant’s control of the property.

NEGLIGENT OR INADEQUATE SECURITY CAUSING INJURIES Criminal activity can affect any of us.

Negligent security is a species of premises

liability dealing with civil redress for crime and violent acts. It is the basis by which an individual injured by a third party tries to hold liable the owner or tenant of the property where a criminal injury is inflicted. The injury in a negligent security case may arise out of robbery, rape, assault, battery, or other criminal act.

An injured person is able to bring a negligent security suit based on the duty imposed on landowner and possessors of property to offer reasonable security measures and protect lawful visitors from foreseeable crimes of third parties.

Negligent security assumes that the crime could have been prevented or at least made less likely by using appropriate security measures.

Both commercial and residential landowners or possessors have been successfully sued for negligent security, but their duties may vary.

For example, a student at a college is not able to provide adequate security measures at his or her dormitory, and so the college has a substantial duty to provide adequate security measures. Similarly, a commercial tenant, such as a retail business at a mall, may have a duty to protect those that shop at the business from foreseeable criminal attacks. On the other hand, a residential tenant may have control of what happens to a guest inside his or her apartment but may not have a duty to take security measures to protect the guest in the apartment complex’s parking lot.

WHAT DOES A PLAINTIFF NEED TO PROVE?

Under the Restatement (Second) of Torts, a plaintiff suing for negligent security will need to show that the landowner or possessor failed to exercise reasonable care to discover similar prior criminal activities or failed to give adequate warnings so visitors could avoid injury. He or she will need to show that he or she was lawfully present on the defendant’s property, the defendant breached its duty to offer reasonable security, the plaintiff was hurt because of a third party’s acts that were reasonably foreseeable to the defendant, the plaintiff would not have been injured but for the defendant’s breached duty, and the plaintiff incurred actual damages.

Foreseeability is a critical issue in negligent security cases. In most states, courts will determine foreseeability primarily based on whether there were prior, similar crimes in the same location that the owner or possessor knew or should have known about. For example: There were five prior rapes in a mall parking lot before the injuries at issue in a particular lawsuit, it is like that the last rape would be considered foreseeable. On the other hand, if there were prior, nonviolent muggings but no rapes in the parking lot, a rape might not be found foreseeable. The court may also consider how frequently law enforcement has been called to a property, whether prior crimes were violent personal crimes or simply property crimes, and the closeness in time of the prior crimes to the injury at issue.

WHAT COUNTS AS ADEQUATE SECURITY

Adequate security for a particular property will vary from case to case. Some common security features for violent personal crimes area adequately trained security patrols during business hours or when guests are expected to be at the property, appropriate lighting, functioning security hardware such as locks, and restricting the ability to hand out duplicate keys to common areas of residential complexes.

In some states, there are statutes that create an inference of no negligence when a particular type of business takes certain security measures.

For example, in Florida, there is a presumption against liability for third party criminal attacks for convenience store owners that take certain security precaution identified in Florida statutes.

These precautions including installing a security camera system, putting a notice in the form of a sign that says the cash register contains less than $50, and using a drop safe.

Generally, a business should consult an attorney if there has been a crime on the premises to determine whether security measures should be increased. Among other things, an attorney can help evaluate the extent to which a certain security measure may actually reduce the risk of a particular crime, as well as less tangible benefits of installing certain security measures, such as favorable public relations.

NOVEMBER /DECEMBER 2021 | PUBLIC RISK

17

LIABILIT Y FOR PERSONAL INJURY

DEFINING A FORESEEABLE CRIMINAL ACT

You have a couple of different ways that make these crimes a foreseeable criminal act. For example, the business owner would have had to know that a crime had a high chance of occurring. This is known in the court system as, “constructive knowledge.” For a business to be fond guilty of negligent security, it must have evidence where past cases had occurred will often be essential in proving the business failed to take the right actions of security.

The significance becomes about making connections between past crime and showing how the same crime committed against the plaintiff has caused them harm. Many debates have arisen over how similar the crimes have to be to each other for it to turn into an issue of liability. For instance, the court system has said that past examples of vandalism and theft don’t make this into a foreseeable crime. At the same time, it normally needs to be a violent crime like battery or assault for the courts to rule in favor of the plaintiff.

•

•

•

•

EXAMPLES OF NEGLIGENT SECURITY

• Lack of training—if security personnel aren’t properly trained in how to monitor the property or use security equipment, they may not notice intruders. This makes the property more vulnerable to attack by an intruder.

• Inadequate staffing—larger properties may require more security staff to keep the premises safe. Property owners may not hire sufficient staff in order to save money or because they don’ believe it’s necessary. If you’re hurt as a result, you may be able to file a premises liability claim.

• Failure to perform background checks— property owners need to run background checks on all security personnel to make sure they’re trustworthy, reliable, and have no criminal records. Failing to do so can put everyone the premises at risk, especially since security guards have easy access to the entire grounds.

• Failure to secure the premises—property owners should ensure that all entrances and exits to the property are properly secured

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PUBLIC RISK | NOVEMBER /DECEMBER 2021

•

•

at all times. Additional security measures such as fences, gates, and surveillance cameras can also help keep everyone safe. If a property is not secure, especially at night, anyone on the premises could be in danger.

Broken locks—locks can be intentionally broken by trespassers or worn down over time. Property owners need to fix or replace broken locks to make sure the property is fully secure.

Non-working security cameras—some property owners install security cameras, but they may not actually work. Surveillance cameras don’t do a lot of good if they’re intentionally damaged or otherwise broken.

Keeping cameras in working order can serve as a deterrent to intruders and can help identify those who break into the property.

Poor lighting—poor lighting creates spots where it’s much easier for people to be attacked on a property. Property owners should make sure all areas of the premises are well-lit to minimize the opportunities for anyone to commit a crime.

Falling asleep—security guards falling asleep is a common cause of negligent security. This should not be allowed or tolerated under any circumstance, as a sleeping guard creates the opportunity for all kinds of mayhem at a property.

Leaving a station—security personnel should never leave their post without making sure that someone else is monitoring the area they were watching. Inadequate monitoring makes it much easier for someone to commit acts of violence, vandalism, or other crimes.

Failure to act—when security guards see something amiss on a property, it’s their responsibility to act. If they fail to do so, they may fail to prevent a crime.

COMPENSATION IN A NEGLIGENT SECURITY LAWSUIT

State laws allows the victims of negligent security to recover compensation for many different kinds of losses if they’ve been injured.

If you win a negligent security or premise liability lawsuit against a property owner, you could potentially be compensated for: • Your past and future medical bills, such as prescription drugs, doctor’s office

• •

• • •

visits, hospital stays, lab work, and related expenses.

Your lost wages if you had to miss work because of your injuries.

Your reduced ability to work in the future if you have a major disability due to your injuries.

The value of any of your property that was damaged or destroyed.

Your physical pain and suffering.

Your mental anguish.

A study conducted by Liability Consultants, Inc., shows that Defendants won 52% of the negligent security jury trials out of 1,086 cases studied. 21% of the time, the Plaintiff received a winning verdict. 19% of the cases were continued or sent back to be re-tried. 8% of the cases resulted in confidential settlements, which typically involves the defendant paying the plaintiff some amount of money. Of the 21% of trials that the plaintiff won: • 40% were amounts less than $250,000 • 16% fell in the $250,000 and $500,000 category • 13% were between $500,001 and $1 million • 13% landed verdicts between $1,00,001 and $200,000 • 10% were between $2 and $5 million, and • 8% obtained more that $5 million

SUMMARY

The wise business owner should become intricately familiar with their state’s premises liability laws. Because of the complexity of these laws, the business owner is encouraged to hire a knowledgeable attorney with experience in this area of law. Also, it is wise to engage a qualified security consultant with the same qualifications to assist in developing a comprehensive security program to enhance the safety and security of personnel on the property. If you fail to prevail in a negligent security lawsuit, it can be financially disastrous for your company and reputation. Being prepared is less costly than losing a negligent security lawsuit.

William F. Blake, CPP, CFE is the President of Blake and Associates, Inc.

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