|
PURPOSE OF RISK MANAGEMENT
Risk Management was established in 1976 to provide insurance coverage to state agencies and employees for property, liability and workers' compensation losses in accordance with the statutory provisions found in A.R.S Section 41-621 through Section 41-625.
Risk Management has the responsibility for making and carrying out decisions that will minimize the adverse effects of accidental losses that involve state government assets.
In order for Risk Management to fulfill the responsibility of preventing or reducing the potential severity of losses, it is essential to identify the type of assets exposed to loss; the perils or hazards that could cause loss; the state agency that could suffer the loss; and the potential financial consequence of the loss on the agency's operations.
INSURANCE
A.R.S. Section 41-621 through Section 41-625 provide for insurance or self-insurance of the following:
-
All state-owned buildings, including those of the three state universities
-
All property owned by the state
-
All officers, agents and employees of the state against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities, except as prescribed by statute
-
Workers' compensation injuries of state employees, and
-
Environmental damage and health threats associated with state-owned/operated property and facilities
A.A.C., Title 2, Chapter 10 of the Administrative Code supplements the statutes and provides guidelines for coverage and claims procedures, loss prevention programs, purchase of insurance, environmental losses, and the Provider Indemnity Program. Risk Management's responsibilities for insurance and self insurance include:
-
Evaluation of risk financing alternatives
-
Procurement of commercial insurance when appropriate, and
-
Allocation of costs for property, liability and worker's compensation among agencies
Liability Coverage's & Limitations
A.R.S. Section 41-621, provides coverage for all officers, agents and employees of the state and its departments, agencies, boards and commissions against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities and within the course and scope of employment or authorization.
Volunteers
Volunteers acting at the direction of state officials and within the course and scope of their state-authorized activities receive the same coverage as employees. Volunteers may be covered for workers' compensation if they meet the criteria set forth in A.R.S. Section 23-901.
Workers' Compensation (For more information see: Agency Information Workers' Compensation )
The state is self-insured for workers' compensation coverage.
Automobile Coverage
State vehicles: Coverage is provided to state employees when driving state vehicles within the course and scope of employment and authorization.
Private vehicles: Liability coverage is provided on an excess basis for private vehicles driven within the course and scope of employment and authorization. Physical damage is not covered.
Leased/rented vehicles: neither liability insurance coverage nor collision damage waivers should be purchased. Specific information defining the course and scope of employment while using a motor vehicle is provided in A.A.C., Title 2, Chapter 10, Article 1.
Employee Owned Property (Including Vehicles)
Employee-owned property is generally not covered.
Aircraft Coverage
All pilots should contact Risk Management for specific requirements before flying on authorized state business. Risk Management must approve each application to fly on state business before coverage will apply.
Travel Outside the United States
Prior to travel outside the United States while acting within the course and scope of employment, contact Risk Management for specific instructions and assistance.
Property Coverage & Limitations
A.R.S. Section 41-621, provides coverage for all state-owned buildings, contents and property. Certain restrictions on coverage are detailed in A.R.S. Section 41-622 and A.A.C., Title 2, Chapter 10, Article 1.
Certificates Of Insurance
Prior to approving a Certificate of Insurance, the Risk Management Insurance Analyst will need to review:
-
Your agency "Request for Certificate of Insurance", and
-
Written agreement, contract or other document requiring evidence of insurance. Approval of Certificate will require that this documentation not conflict with certain statutes and/or rules that prohibit indemnification.
PROPERTY & LIABILITY (for more information see: Agency Information Property & Liability)
The Property & Liability Claims Section investigates, evaluates, negotiates and settles claims for:
-
State property
-
State vehicles
-
Liability claims
Reporting Property And Liability Claims
All losses should be reported as soon as possible to Risk Management at (602) 542-2180. Agencies should report significant property damages within 1 day if damages are expected to exceed $10,000. All other losses should be reported as soon as possible, but no longer than 10 days after the incident occurs. No coverage will be provided for property losses reported to Risk Management more than 90 days after discovery of the incident.
Property losses that have been reported within 90 days of discovery, but lack proper documentation as to the cause and amount of the loss shall not be covered. If the loss to buildings or structures requires more than one year to repair or replace, the Director of the affected agency may request that the State Risk Manager grant an extension of time to complete the work.
Liability Claims Procedures
All losses should be reported as soon as possible to Risk Management at (602) 542-2180. Agencies should report all liability claims within 1 day if there is bodily injury or if damage is expected to exceed $10,000. All other liability claims are to be reported within 10 days.
Defense Of Liability Lawsuits
The majority of lawsuits covered under the Risk Management Program are defended by the Attorney's General Office. However, in certain circumstances, outside counsel will be hired to represent the interest of the state.
Charges Of Discrimination
A copy of all charges filed with the Equal Employment Opportunity Commission (EEOC) or the Arizona Civil Rights Division (ACRD) of the Attorneys' General Office , are to be forwarded to Risk Management.
LOSS PREVENTION (for more information see: Agency Information Loss Prevention )
The Arizona Revised Statutes require each agency to conduct risk identification and assessment, and implement a Loss Prevention Program to reduce the frequency and severity of losses in the following areas:
-
Employee safety in the work environment
-
Real and personal property protection
-
Federal and State standards for Industrial Hygiene and Environmental Protection
-
Negligent acts that cause third-party claims
Risk Management provides Loss Prevention Consultants, Industrial Hygienists, and Environmental Specialists to assist agencies in developing and implementing loss prevention programs. The consultant can also provide assistance in solving everyday loss prevention problems such as:
Risk Management regularly offers Training Classes to provide instruction in the above mentioned exposures. The Loss Prevention Safety Academy is designed for Agency Loss Prevention Coordinators and Supervisors as a training venue to address safety and loss prevention issues. A schedule is available by calling (602) 542-1419. Risk Management maintains a video lending library with an emphasis on safety-related topics.
Loss Prevention includes an established Grant Program to fund programs to provide prevention of loss exposures in state agencies.
WORKERS' COMPENSATION (For more information see: Agency Information Workers' Compensation )
Primary Workers' Compensation responsibilities include:
-
Pay timely medical, surgical, hospital and disability benefits as provided by law under the Arizona Workers' Compensation Act
-
Evaluate and initiate cost containment programs
-
Coordinate statewide Return-to-Work Programs
-
Pursue recoveries from parties contributing to or causing injury to covered persons
Who Is Covered
Workers' Compensation benefits are provided pursuant to Title 23 of the Arizona Revised Statutes. State employees cannot reject workers' compensation. This coverage is the exclusive remedy for state employees injured in the course and scope of their employment. The following individuals are entitled to workers' compensation coverage:
Questions concerning who is covered should be directed to the Insurance Department at Risk Management at (602) 542-5185.
To report an Industrial Injury call (602)542-WORK or (800)837-8583
-
All incidents of work-related injuries must be documented on a Supervisors Report of Industrial Injury form or the agency specified form for reporting injuries.
-
If the injured worker seeks medical treatment, an "Employer's Report of Industrial Injury" form must be filed with Risk Management within 10 days. Risk Management must receive report of the claim within 10 days of the supervisor becoming aware of the intention to seek medical treatment.
-
Injuries requiring medical treatment may also be reported to Risk Management through the Early Notification telephone line by dialing (602) 542-WORK or (800) 837-8583.
-
Any fatality must be reported immediately to the state OSHA Office and Risk Management.
-
An injured worker should complete the top portion of the "Worker's & Physicians Report of Industry (form 102)" made available by the initial provider of medical treatment. The medical provider is also required by law to file a copy of the form with the Industrial Commission and Risk Management.
-
All incidents must be recorded on the agency OSHA log.
Benefits
Wage loss benefits are payable at 66 2/3% of the injured worker's gross monthly salary, up to the maximum as set by the Legislature, per month, and is payable every 14 or 30 days, depending on the type of disability. No wage loss benefit is payable for the first 7 days, if total time lost is less than 13 calendar days. This waiting period occurs only once during a claim. If a claim has been accepted, authorized medical treatment is paid pursuant to the Arizona Fee Schedule with no out-of-pocket expenses on behalf of the employee.
If An Employee Is Injured
-
Attend to the injured worker immediately and arrange for necessary medical attention. If the injury is serious, call 911.
-
Call the Early Notification phone line at (602) 542-WORK or (800) 837-8583.
-
Accompany the injured worker to the doctor if he/she is unable to drive.
-
Obtain information about the incident or injury and fill out the Supervisor's Report of Industrial Injury or agency specified report of injury form.
-
List and interview all witnesses.
-
Examine the area of the accident, and secure any equipment, machines or vehicles, etc., for investigation and recovery purposes.
-
If there is any reason to doubt the validity of a claim, provide information to Risk Management.
-
If information disproving the validity of a claim or extent of the injury is discovered at a later date, report it immediately to Risk Management.
-
Maintain contact with the injured worker.
-
Contact Risk Management at 602-542-5218 or workers.comp@azdoa.gov with any questions.
-
Always look for ways to prevent this and other incidents from happening and advise your loss prevention coordinator.
When An Employee Returns To Work
-
Request a doctor's release before permitting a return to work.
-
Contact Risk Management at 602-542-5218 or workers.comp@azdoa.gov with the date the employee is to return. This is to prevent potential overpayment of benefits.
-
If the employee is released to modified work duties, review any limitations with the employee. Make certain you have specific work limitations from the employee's physician.
-
Be sure to review the agency modified duty policy. A copy can be obtained from the Human Resource division of your agency.
-
If you have any questions regarding limitations, accommodations, or the employee's work schedule, call Risk Management at 602-542-5218.
back to top
|
Printer Friendly Version
