The Municipal Excess Liability Joint Insurance Fund. Controlling Workers Compensation and Liability Costs

Transcription

1 The Municipal Excess Liability Joint Insurance Fund Controlling Workers Compensation and Liability Costs Draft Dated: October 4, 2010 (Elected Officials Municipal version)

2 Local Government Claims $ millions Workers Comp $200 Liability $150 Total $350

3 NJ Employee LT Accident Rates Lost Time Accidents by industry per 100 employees Industry LT Case Finance & Insurance 0.3 Wholesale, Retail Trade 2.3 MEL Members 2.6 Manufacturing 2.6 Mining 2.8 Construction 3.1 Transportation 4.0 State Government 4.3 Local Government 4.3 All NJ Employees 2.3

4 MEL Employee LT Accident Rates Lost Time Accidents per 100 employees

5 FATALITIES: Fire Fighters 4 Police Officers 2 Crossing Guard 1 DPW 1 Sanitation 1 Utility 1

6 Workers Compensation Claims Cost per Full-Time Employee Medical Indemnity SLI Excess Total 2009 $993 $968 $484 $75 $2, , , , ,867

7 Most Plaintiff Oriented Court Systems 1. New Jersey 2. New York 3. Florida 4. Illinois 5. Pennsylvania 6. Missouri 7. Montana 8. Michigan 9. Connecticut 10.California

8 Employment Practices Liability Ten-Year Closed Claim Study Covered Claims per Employee $400 $350 $354 $300 $250 $247 $200 $150 $126 $161 $132 $128 $100 $74 $113 $128 $112 $50 $0 $

9 The Legal Feeding Frenzy Even cases with marginal relevance are now being presented by plaintiffs counsel as having substantial settlement value. John J. Farmer Former NJ Attorney General Dean, Rutgers Law School

10 Recent Cases Nardello v. Voorhees Messina v. Fairlawn Lodato v. Evesham

11 Changing the Culture

12 PSE&G Employee LT Accident Rates Lost Time Accidents by industry per 100 employees

13 Changing the Culture Top Down Grass Roots Bottom Up

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15 Video: Changing the Way We Think About Safety

16 BEST PRACTICES Safety Committee New members Chair rotation Training for the Chair

17 BEST PRACTICES Monthly Report to the Governing Body Safety Statistics Safety Committee minutes Claim Status Accident Investigations

18 BEST PRACTICES Safety Training Training record audit On-line training management system

19 BEST PRACTICES Supervisory Leadership Advanced safety leadership training Daily safety discussion by supervisors and crew leaders

20 BEST PRACTICES Police Agencies Police agency accreditation Management succession planning

21 BEST PRACTICES Crossing Guards Medical examinations & training Traffic calming BOE involvement Public awareness campaign

22 BEST PRACTICES Fire Fighters Candidate Examinations Respirator Screening and Fit Testing Heart Attack Screening

23 BEST PRACTICES Claims Management Telephone notification to MCO Senior management involvement in accident investigations Frequent contact with the injured employee Transitional duty

24 BEST PRACTICES Litigation Risk Committee A system of regular inspections Training for employees to identify hazards Procedures for employees and citizens to report hazards Procedures to log all reports and record corrective action

25 BEST PRACTICES Citizen s Advisory Committee Pedestrian Safety School Crossing Guards Traffic Calming Traffic Hazards Playground Safety Bicycle Safety Organized Sports Safety for Seniors

26 BEST PRACTICES Employment Practices Update Personnel Policies & Procedures and Employee Handbook Distribute Letter to all Employees concerning Whistle Blower & Complaint Procedure Train managerial/supervisory personnel Offer anti-harassment training to all employees

27 BEST PRACTICES Promotions Retain outside agency to interview candidates If not civil service, also retain outside agency to conduct written test

28 LEGISLATION No man's life, liberty or property are safe while our legislature is in session. NY Judge Gideon J. Tucker: 1866

29 Legislation Sick Leave Injury (SLI) In early 2010, the legislature eliminated SLI for state employees SLI should be repealed for all levels of NJ government

30 Legislation Legal Fee Cap Awards of $50K or less, the maximum fee should be $50K Awards over $50K, the fee should not exceed the award

31 Legislation Sidewalks A municipality should not be liable for sidewalks if the community adopts an ordinance requiring the homeowner to maintain the sidewalk

32 Legislation Weather Immunity The immunity should be extended to all governmental property. The word solely should be changed to primarily.

33 Legislation Boardwalks A public entity should not be liable for a boardwalk defect if it has an ongoing maintenance program.

34 Changing the Culture Top Down Grass Roots Bottom Up

35 Best Practices Seek the advise of your Municipal Attorney before doing something Insist that the Attorney tell you what you should hear, not what you want to hear WATCH WHAT YOU SAY, ESPECIALLY IN EXECUTIVE SESSION AND IN S

36 QUESTIONS