Management: Loss Control & The County

The Wisconsin County Mutual Insurance Corporation is dedicated to providing a comprehensive approach to all areas of public liability risk management.

Many insurance companies stress the importance of loss prevention and control, providing field support services to their policyholders. For many incurance companies individual policyholder loss control efforts are important, however, when individual policyholders do not acheive the desired result of an active loss control program, the insurance company has several alternatives to remedy the problem. These solutions range from underwriting sanctions (coverage reduction, increased deductibles or rate increases) to non-renewal.

The Wisconsin County Mutual represents the INTERESTS of a close group of policyholders, Wisconsin counties. In other articles and seminars, we have presented the importance of active loss control as the key to the success of the Mutual. This important point can not be stressed enough. While we have the underwriting sanctions at our disposal as well, we refrain from exercising them, but rather work with the County to resolve and address the problem at hand.

The message contained in this article is on a more positive note rather than talking about underwriting sanctions. The next several years are crucial for the success of the Mutual, and really for all Wisconsin counties. These years will be devoted to the creation of an active loss control organization for each member county. An organization that will be responsive to the demands of prevention and control of public liability losses.

Now, getting to the positive aspect of this article. The Board of Directors of the Wisconsin County Mutual has approved an incentive based point system that rewards the member counties for the creation and maintenance of an active loss control program. Credits to premium may be earned by implementing an approved loss control program, following the policy and procedures introduced and maintaing acceptable levels of training and education.

Initially, the incentive system will address the creation phase of the loss control organization. For this reason, I would like to spend some time commenting on the importance of top management's involvement in such an endeavor. Regardless of each counties structure, the primary responsiblity for the loss control effort must begin with the County Board of Supervisors. This is necessary in order to achieve proper administrative, economic and moral support for the program.

The loss control organization and effort does not stop with top management however. The successful risk management program is one that has been formulated to involve each level of county government. This facilitates the maximum exchange of ideas between employees, department supervisors or directors, administration and elected officials.

Department heads or supervisory personnel have the knowledge, training and skills to see that proper work procedures and facilities are maintained. It is critical that the employee must know, by proper leadership and training, what is truly expected of him or her.

If employees are trained and know what is expected of them, they will assume much of the responsibility for conducting themselves with regard for public liability concerns. Lack of training and a clear understanding of what is expected can needlessly expose the employees and the county to a public liability loss.

The most common problem experienced by any loss control program is apathy. Many publications address the need to overcome employee apathy, however, each level of the organization must battle the tendency to abandon the effort once it is in place. This is extremely important for supervisory, administrative or the elected official. Proper motivation, supervisory interest and conduct are necessary components in setting the example for employees to follow.

Involvement of individual employees in the organization is critical. The operation of the organization effects each level. However, involving the employee demonstrates concern for their interests and promotes the exchange of ideas that will keep the program on the path to success. Use of the procedures developed by this exchange of ideas, will become personalized. This generally will result in greater awareness and acceptance of procedure.