COMPREHENSIVE LOSS CONTROL PROGRAM
Georgia’s goal is to become the best managed state in the country. One step towards achieving “best managed” status is to build a risk management culture. DOAS and its Risk Management Services Division are poised to help state entities achieve this change through the implementation of comprehensive loss control programs.
Risk Management Services annually processes over 10,000 claims and pays over $100 million in state funds a year for injured state workers, damaged vehicles and property, and claims from individuals and groups seeking monetary damages from the state and its agencies. Indirect costs including lost workplace productivity and additional administrative time in dealing with these events costs millions more. Deep change is needed to remove the root causes of these events from our systems – the policies, procedures and practices that govern our operations.
Incentives and deterrents are needed to ensure that these changes take effect in entities covered by state insurance programs. Recently, the Commission for a New Georgia’s Risk Management Task Force recommended that an equitable system be implemented so that entities bear the burden for the claims they experience, with each claim causing a financial impact on the agency. Building on these recommendations, Senate Bill 425 passed in 2008 gave DOAS the authority to implement these changes.
The vehicle to drive these changes is loss control. Its aim is to recognize, evaluate, control and anticipate risks and hazards that lead to losses. Developing a risk management culture will allow operational changes that eliminate hazards or minimize their impact
Senate Bill 425 authorizes DOAS to establish incentive programs that include setting insurance coverage premium rates and adjusting claim deductibles based upon participation in loss control programs. The Comprehensive Loss Control Program (CLCP) was implemented in October 2008. Since that time, DOAS has worked with entities covered by the various state insurance programs to define what loss control programs are necessary for their identified operational risks.