Implementation Summary

To achieve organizational changes, consistent methods are needed to ensure standards of best practice are employed in all operations. The Comprehensive Loss Control Program (CLCP) provides detailed information on eight simple programs (pg. 4) that can significantly impact the systems and processes associated with our operations.

Phase 1 - FY 2009
Covered state agencies will be given the plan including the eight loss control programs. Each agency will conduct an evaluation of their operations to determine which of the eight programs apply to their operations. Each agency will be asked to sign an agreement to implement those programs that apply. They will also be asked to develop action plans and implementation strategies for programs that are needed or demonstrate that a program is already in place. The DOAS Risk Management Services Division will consult with the agencies on their implementation plans and will use past claims data and professional observations to make program suggestions to the agencies. At the conclusion of FY 2009, the Risk Management Services Division will evaluate claim trends and establish loss prevention goals for each agency’s FY 2010 performance.

Phase 2 - FY 2010
Covered state agencies who have chosen not to participate in the comprehensive loss control program will be required to pay a 10% surcharge on all premiums for FY 2010. Participating state agencies are expected to fully implement the action plans developed in Phase 1. Participating state agencies shall provide written implementation plans and programs to the Risk Management Services Loss Control and Safety Officer no later than 7/1/2009. Agencies with programs in place will conduct regular reviews to ensure the program’s effectiveness and make modifications to or add programs as necessary. Participating agencies who fail to meet their loss prevention goals will pay additional deductibles for those losses that exceed the goals established at the beginning of the fiscal year.

Phase 3 - FY 2011 and Forward
Covered state agencies who have chosen not to participate in the comprehensive loss control program will be required to pay a 10% surcharge on all premiums for the current fiscal year. All participating agencies are expected to have functioning programs in place. Risk Management Services will evaluate the prior fiscal year’s losses to establish loss prevention goals in order to maintain a risk management culture. Annual insurance premiums are calculated with an emphasis on prior loss experience, so successful programs will lower the premium charged and continued participation in the program will avoid a premium surcharge. Participating agencies who fail to meet their loss prevention goals will pay additional deductibles for those losses that exceed the goals established at the beginning of the fiscal year.

DOAS Risk Management Services
This division will serve as an educational resource to state entities covered by the state’s self-insurance programs, will create scorecards to effectively communicate important metrics regarding risk exposures and loss experiences, create benchmarks for covered entities to compare their loss control programs results with similar programs, create awareness by communicating best practices, and provide loss control services to participating entities.