Jamie Ferris1

COOPERATIVE EXTENSIONStaff Orientation

RISK MANAGEMENT BRIEFING

Jamie Ferris CIC, AAI, CPIA

P. W. Wood & Son, Inc.

Jamie Ferris2

The University andThe Associations

Cornell & Associations are affiliated for education & supervision

Cornell has oversight responsibility as agent for the State of New York by virtue of NYS County Law Article 5, 224(b)

Treated separately for risk management & insurance issues:

Therefore Cornell does not offer direct legal or insurance protection to the county Extension Associations

Jamie Ferris3

Extension Associations:A Scattered “University”

CCE owns and leases facilities CCE conducts a wide range of

programming Extensive youth programming Thousands of grants and contracts

processed every year

Jamie Ferris4

Wood Office Role

Extension Administration out sources the risk management services for Associations to The Wood Office

We monitor the insurance programsGeneral liabilityAuto liabilityWorkers compensation4H accident insurance

Jamie Ferris5

CCE Risk Management Process

A systematic program we have in place to prevent losses from happening or prepare to handle losses from unexpected, unintended or accidental events

Jamie Ferris6

Risk: Dave’s Definition

Any event or circumstance that presents the possibility of exposure to loss or danger to CCE as an organization, its Board, staff, volunteers, program participants, the general public or property

Risk may be from internal or external sources.

Jamie Ferris7

The Impact Of Risk

Risk creates an exposure for financial loss

Risk impacts people Risk impacts property Risk impacts operations Risk impacts revenues

Jamie Ferris8

Who Is At Risk Of Liability?

The Association Directors Employees Volunteers Participants

Jamie Ferris9

Liability Exposure Examples

Someone is injured on premises Someone injured during an activity or

program Vehicle accident causing injury or

damage to another party Liability from vendors/contractors Liability assumed from contracts Sexual abuse or molestation exposure

Jamie Ferris10

LEGAL SOURCES OF LIABILITY

COMMONLAW

STATUTORYLAW

JUDICIALINTERPRETATION

LIABILITY GENERATORS

Jamie Ferris11

STATUTORY LIABILITY

THE BIG THREE

CRIMINALLAW

TORTLAW

VicariousLiability

CONTRACTLAW

Jamie Ferris12

Tort Liability Chart

TORT

LAW

PRO D UC T SBL A S T ING

D A NG E RO USA NIM A L S

ST R IC TLIAB ILIT Y

E .P.L .L IBE L

S L A ND E RC O PYRIG HT

IN T EN T IO N ALT O R T S

NE G L IG E NC EPRE M IS E S

O PE RA T IO NSV E HIC L E S

U N IN T EN T IO N ALT O R T S

Jamie Ferris13

A Tort Is Not A Pastry!

A tort is created when you cause an injury to a person or damage to their property that results from your wrongful or negligent act

Usually a civil wrong Does not include breach of contract Four parts to a tort

Jamie Ferris14

#1: There is a Duty Owed

There must be some duty owed to another party i.e. They have a right to personal

safety on your premises or in your activities

Or they must have a protected right i.e. freedom from sexual abuse freedom from libel or slander

Jamie Ferris15

#2: A Breach Of The Duty

There must be a breach of the duty owed injury or damage by your negligence

An invasion of the protected right A person is sexually abused Damage of reputation as a result of

libel or slander

Jamie Ferris16

#3: Harm Results From Breach Of Duty

There must be actual harm as a result of the breach of duty or invasion of right physical injury or death property loss or damage mental anguish

Jamie Ferris17

#4: There is No Legal JustificationFor the Breach of Duty

There is no justification for the actions of the person or organization that caused the breach of duty or invasion of rights There is no legal privilege There is no immunity – good

Samaritan There is no intervening force

Jamie Ferris18

Duty Of Care Hierarchy

Highest duty of care is owed to children

Business inviteesYou are making money off them

Social guestsi.e. A guest in your home

Trespassers even have rights

Jamie Ferris19

Risk & Insurance Review

We review activities & programs We review grant requests We review Contracts We monitor use of CCE facilities by

outside groups

Jamie Ferris20

Why We Review Activities

Is the activity related to CCE’s educational mission?

Check for insurance coverage Check for any unusual risk exposures Recommend safety techniques Collaborative activities with other

organizations for shared liability.

Jamie Ferris21

Why We Review Grants

Is the contemplated program/activity related to CCE’s educational mission

Check for insurance coverage for proposed program or activity

Advise you if the program will generate additional insurance cost

Check for any contractual issues

Jamie Ferris22

Why We Review Contracts

Keep within scope of insurance coverage

Prevent signing of contracts that are outside of the insurance coverage

Negotiate change if necessary CCE should not assume liability by

contract it is protected from by law

Jamie Ferris23

Law Of Contracts

Contract law changes the normal rules of tort law

The contract language governs liability responsibility

New York strictly construes and enforces contract language

Jamie Ferris24

Contractual Liability Issues

HOLD HARMLESS An assumption of risk Limited form is what we want Broad form is what they ask for It is a binding legal obligation

Indemnification A contractual obligation to pay for damages Obligation exists even if there is no

insurance Even if not your fault

Jamie Ferris25

Our “Most Wanted” List

Government contracts Facilities use forms Waivers of liability & assumption of

another party’s liability Equipment leases

All types of equipment “Licenses”

Malls, schools, colleges

Jamie Ferris26

Certificates of Insurance

Certificates of Insurance provide evidence of required insurance coverage

New York insurance regulations strictly govern the issuance of certificates

We review and issue thousands of certificates every year for CCE

Jamie Ferris27

Types of liability insurance

Commercial general liabilityCovers CCE activities and premises

Business auto liability (next slide) Directors & Officers liability Umbrella or excess liability

Jamie Ferris28

Auto Liability

Extension owned vehicles Employee vehicles Volunteer vehicles Commercial driver license

requirements10 passenger vehicles hauling kids &

disabled

Jamie Ferris29

Background checking Staff

Motor vehicle record All new hire prospects must be checked after

offer of employment but before putting on payroll

Background checks Check any staff that will work with youths or

vulnerable populations This includes potential new hires

Background check Volunteers

Motor Vehicle check

Check volunteers who have driving in their volunteer responsibilities, who drive CCE vehicles, or who will drive on long trips over 100 miles,

Need 2 drivers

Background check All volunteers beyond

board members are required to be checked-no exceptions

Check any volunteer who will volunteer for CCE for more than one calendar day/date per year.

Jamie Ferris30

Jamie Ferris31

Risk Avoidance

If a risk cannot be controlled, insured or transferred there is no choice but to avoid the risk altogether

This is an extreme measure to handle risk but may be the only choice

Jamie Ferris32

F.O.R.M. CODE 1501

Guide to Risk management & insurance section

Resource to guide management and staff

Specimen forms List of approved and disapproved

activities

Submission for reviewNew Program

Use contract/grant submission form Submit for our Risk Management &

Insurance review in the earliest stages of the planning process

Do Not wait until the last minute to bring us in

Do Not assume if another association is doing it we have approved it

Jamie Ferris33

Submission for reviewcontract

Use contract/grant submission form Send complete copy of all documents Give us ample time for review in case

we require a change Nothing should be signed until we

approve Only Board President or ED can sign

Jamie Ferris34

Jamie Ferris35

Summary

The Wood Office provides risk management and insurance services to the county Extension Associations as part of the University’s oversight responsibilities to NYS

We are a resource to help you with risk management and insurance issues

Jamie Ferris36

Key Wood Office contacts

Jamie Ferris jamie@thewoodoffice.com

Karen Supek karen@thewoodoffice.com

Erin Shoemaker erins@thewoodoffice.com

Office phone: (607) 266-3303