Policy 4670-1

Compensation

Risk Management

Reviewed and affirmed by the Board:  8/25/2020
Last Revision: 
Original publish date: 01/27/2015
Related policies & regulations:  
Legal references:  

 

The Associate Superintendent for Human Resources, through the Risk Management Department, shall install and implement programs protecting the District against accidental and criminal losses which would significantly affect the District’s personnel, property or budget. The District will emphasize the management of risk and overall cost reductions through the analysis of insurance premiums and retained losses. The District will purchase insurance for only those exposures to loss that cannot be better handled by other less costly means.

 

The District will, to the maximum extent possible, adhere to the following risk management precepts:

• Identification of Exposures. The risk management process includes a systematic and continuous identification of exposures, analysis of identified exposures in terms of frequency and severity probabilities and the application of sound risk control and financing techniques consistent with the District’s financial resources and the overall ability to retain loss. Ultimate goals of this policy include the conservation of assets, non-interruption of cash flow, environment for employees, students and the general public.
• Risk Avoidance. The District will weigh the rewards for risk taking against the exposures to accidental or criminal loss. The District will avoid incurring disproportionate risks in contractual agreements. Risk elements of all new undertakings shall be evaluated carefully and those already existing shall be re-evaluated periodically to determine if any exposures can be avoided.
• Risk Retention. The District will retain the maximum amount of risk possible, consistent with its financial condition and overall capabilities.
• Non-Insurance Transfer. In all contractual relationships, the District will transfer to others all risks of loss from chance events appropriate to the transaction and appropriate to the relationship of the parties. The District will consider the other parties’ ability to assume the risk, ability to control the loss and the customs and traditions of the parties and the industries involved. In the absence of adequate net worth of the parties, contractual transfers of risk shall be supported by insurance of the indemnitor and evidence of this insurance is required.
• Insurance Transfer. The District will purchase insurance when it is required by law or contract, when the amount of potential loss is too large to be absorbed as a normal operating expense, when the probable annual cost variation is unacceptable and insurance is available on acceptable terms and when insurance can best provide for ancillary services such as inspections, claims handling, legal qualifications and loss prevention.
• Joint Transfer and Retention. The District will combine insurance transfer and retention through the use of deductibles, excess insurance and retrospectively rated insurance plans in instances when a portion of the total exposure can safely be retained.
• Safety. The Lincoln Public Schools shall comply with all state safety and fire regulations as well as the safety regulations of all other agencies having jurisdiction. The District will have a program of safety, including appropriate instruction for all staff, routine safety checks and adequate safety records.