Risk Insider: Jack Hampton

Pet the Police Dogs — Bring in the Drones

By: | August 19, 2016 • 2 min read
Jack Hampton is a Professor of Business at St. Peter’s University in New Jersey and a former Executive Director of the Risk and Insurance Management Society (RIMS). He was named a Risk Innovator in 2008 by Risk and Insurance®. He can be reached at [email protected]

An automobile runs a red light on a dark street shortly after midnight and a police car pulls it over. Before approaching the car, the officer takes specific risk management actions.

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They turn on a spotlight and dashboard camera to see and record what happens next. They verify that the license plate matches a properly-registered vehicle not reported missing or stolen. Then they Inform a police dispatcher about their location and the infraction.

If everything checks out, the officer approaches the vehicle from the driver’s side, stops just behind any occupants, and observes. He makes sure no occupant can thrust the door open and knock him down. Also, by staying somewhat behind the occupants, he can observe hands and body language for any suspicious behavior that might indicate a weapon or intent to resist questioning. That way, he can react quickly to any hostile act.

These are good risk management practices but we can do more. What has changed? The availability of drones — all right, unmanned aerial vehicles (UAVs) — to enhance law enforcement and protect officers in dangerous situations. North Dakota became the first state to provide guidelines for using them. Why is the use of drones in law enforcement moving so slowly elsewhere?

No need to barricade a road to stop an errant vehicle. In this day and age, the drone electronics can simply shut down the engine. When the occupants try to flee on foot, the drone follows them until they are apprehended.

We know they work. Security teams use them along with advanced technology such as robots that explode packages that might contain bombs. Other advanced technology helps find drugs and weapons. Bob Closkey, a retired insurance company executive, recently asked me, “Why are the police not doing more with drones?”

He suggests outfitting police cars with a drone capability that can be controlled by a dispatcher. Released after a stop, it can fly close to a vehicle to observe occupants and provide a clearer view of any danger.

Suppose the violator takes off rather than stopping. The drone can track the vehicle in situations where a high speed chase would endanger police and innocent parties. No need to barricade a road to stop an errant vehicle. In this day and age, the drone electronics can simply shut down the engine. When the occupants try to flee on foot, the drone follows them until they are apprehended.

Traffic stops are the tip of the iceberg. When allowed, drones already help in riot control where police on the ground are the targets of rocks and even gunshots. Individuals hiding in the anonymity of the mob would think twice if they know they are on camera and can be arrested separately from the event. Drones can be particularly effective when rocks are thrown from behind a sea of fellow protesters. Properly equipped, a drone can engage and take down perpetrators.

Drones can even help restore order when lives are not in danger. It may be too dangerous to risk police lives to stop looting but smashing windows and theft will diminish when the word gets out that looters are being videotaped and will be prosecuted at a later time.

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Another use of drones is to equip them with GPS technology and arm them. Snipers often intervene in hostage and other situations with limited ability to close in, particularly from above. Drones face no such shortcoming.

The evidence is compelling. Why is it going so slowly? Perhaps the use of drones gets mixed up in media rhetoric about privacy, police misbehavior, and gun control laws. Whatever. We made peace with animal lovers so dogs can be reliable partners with law enforcement. Why don’t we do the same thing for drones?

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Risk Insider: Marilyn Rivers

Enforcing Safety Rules in Summer is Challenging

By: | July 22, 2016 • 2 min read
Marilyn Rivers is director of risk and safety for the City of Saratoga Springs. She chairs the PRIMA Institute for the Public Risk Management Association and is chairperson of the RIMS Standards and Practice Council. She was named Public Risk Manager of the Year by PRIMA in 2007. She can be reached at [email protected]

Summer is the “high season” for construction and maintenance. It’s time to pave our roadways, stripe them, install crosswalks, pour sidewalks and take a stringent approach to building and property maintenance.

Inevitably, public risk professionals deal with public works departments who choose to go it alone to “get the job done.” More often than not, risk managers hear the complaints of limited funding and resources, and of a lack of understanding by risk professionals that corners have to be cut wherever possible in order to meet deadlines.

I’m particularly fond of the hot sultry days that are perfect for roof repair. We all get that priceless phone call from the community called “Man on the Roof.”

The phone rings and a lady on the phone commends me for the bare-shirted muscular employee on a city building roof enjoying the sun. “Dear … your employee is in fantastic shape and lovely to look at, but shouldn’t you be out there reminding him to wear his safety gear?”

Risk professionals need to personalize their safety message to a level of understanding that each employee can rationalize, understand and make part of their persona.

“Yes, Madam. Might you tell me the location of my employee?”

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As you get to the job site you find your employee shirtless, barefooted, in shorts and sitting on the edge of the roof’s eves … throwing OSHA to the wind and every other safety talk you ever gave.

Patience is a virtue … sometimes.

Paving you ask? Shorts, T-shirts wrapped around heads and not a safety vest in sight … they’re too hot in the summer and interfere with tan lines as a matter of practicality, we are told.

And those “flags and signs” you recently purchased to inform the public to be wary, to keep a distance and to stay out of the construction zone? They are often considered trivial because they are too difficult to remember on a hot summer day.

As safety professionals, we all strive to promote and enforce lifesaving “Rules of the Road” before, during and after our projects. Our law enforcement folks try and intercede when they pass by or receive complaints when we can’t get there fast enough.

A poignant and effective sign promoted by the National Work Zone Safety Information Clearinghouse I often see in roadwork is Slow Down – My Mommy (Daddy) Works Here. It serves a reminder to the general public and more importantly our public works professionals that their lives are important.

You’ll note, I’ve identified folks as “public works professionals.” It’s an argument I often have with employees who are out on the road maintaining highways, fixing buildings and improving infrastructure.

I advocate respect and a recognition that public works is difficult work. It’s often dirty and messy and well, it’s work that requires perseverance in the worst of weather when we need them the most.

Safety is personal because it belongs not only to the employee, but to their partners, spouses, extended families and their dogs and … even their tarantulas.

Risk professionals need to personalize their safety message to a level of understanding that each employee can rationalize, understand and make part of their persona.

Safety needs to be a language unto itself that is universally accepted as the norm.

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Sponsored: Lexington Insurance

Handling Heavy Equipment Risk with Expertise

Large and complex risks require a sophisticated claims approach. Partner with an insurer who has the underwriting and claims expertise to handle such large claims.
By: | August 4, 2016 • 5 min read
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What happens to a construction project when a crane gets damaged?

Everything comes to a halt. Cranes are critical tools on the job site, and such heavy equipment is not quickly or easily replaceable. If one goes out of commission, it imperils the project’s timeline and potentially its budget.

Crane values can range from less than $1 million to more than $10 million. Insuring them is challenging not just because of their value, but because of the risks associated with transporting them to the job site.

“Cranes travel on a flatbed truck, and anything can happen on the road, so the exposure is very broad. This complicates coverage for cranes and other pieces of heavy equipment,” said Rich Clarke, Assistant Vice President, Marine Heavy Equipment, Lexington Insurance, a member of AIG.

On the jobsite, operator error is the most common cause of a loss. While employee training is the best way to minimize the risk, all the training in the world can’t prevent every accident.

“Simple mistakes like forgetting to put the outrigger down or setting the load capacity incorrectly can lead to a lot of damage,” Clarke said.

Crane losses can easily top $1 million in physical damage alone, not including the costs of lost business income.

“Many insurers are not comfortable covering a single piece of equipment valued over $1 million,” Clarke said.

A large and complex risk requires a sophisticated claims approach. Lexington Insurance, backed by the resources and capabilities of AIG, has the underwriting and claims expertise to handle such large claims.

SponsoredContent_Lex_0816“Cranes travel on a flatbed truck, and anything can happen on the road, so the exposure is very broad. This complicates coverage for cranes and other pieces of heavy equipment. Simple mistakes like forgetting to put the outrigger down or setting the load capacity incorrectly can lead to a lot of damage.”
— Rich Clarke, Assistant Vice President, Marine Heavy Equipment, Lexington Insurance

Flexibility in Underwriting and Claims

Treating insureds as partners in the policy-building and claims process helps to fine-tune coverage to fit the risk and gets all parties on the same page.

Internally, a close relationship between underwriting and claims teams facilitates that partnership and results in a smoother claims process for both insurer and insured.

“Our underwriters and claims examiners work together with the broker and insured to gain a better understanding of their risk and their coverage expectations before we even issue a policy,” said Michelle Sipple, Senior Vice President, Property, Lexington Insurance. “This helps us tailor our policies or claims handling to suit their needs.”

“The shared goals and commonality between underwriting and claims help us provide the most for our clients,” Clarke said.

Establishing familiarity and trust between client, claims, and underwriting helps to ensure that policy wording is clear and reflects the expectations of all parties — and that insureds know who to contact in the event of a loss.

Lexington’s claims and underwriting experts who specialize in heavy equipment will meet with a client before they buy coverage, during a claim, or any time in between. It is important for both claims and underwriting to have face time with insured so that everyone is working toward the same goals.

When there is a loss, designated adjusters stay in contact throughout the life of a claim.

Maintaining consistent communication not only meets a high standard of customer service, but also ensures speed and efficiency when a claim arises.

“We try to educate our clients from the get-go about what we will need from them after a loss, so we can initiate the claim and get the ball rolling right away,” Clarke said. “They are much more comfortable knowing who is helping them when they are trying to recover from a loss, and when it comes to heavy equipment, there’s no time to spare.”

SponsoredContent_Lex_0816“Our underwriters and claims examiners work together with the broker and insured to gain a better understanding of their risk and their coverage expectations before we even issue a policy. This helps us tailor our policies or claims handling to suit their needs.”
— Michelle Sipple, Senior Vice President, Property, Lexington Insurance

Leveraging Industry Expertise

When a claim occurs, independent adjusters and engineers arrive on the scene as quickly as possible to conduct physical inspections of damaged cranes, bringing years of experience and many industry relationships with them.

Lexington has three claims examiners specializing in cranes and heavy equipment. To accommodate time differences among clients’ sites, Lexington’s inland marine operations work out of two central locations on the East and West Coasts – Atlanta, Georgia and Portland, Oregon.

No matter the time zone, examiners can arrive on site quickly.

“Our clients know they need us out there immediately. They know our expertise,” Clarke said. “Our examiners are known as leaders in the industry.”

When a barge crane sustained damage while dismantling an old bridge in the San Francisco Bay that had been cracked by an earthquake, for example, “I got the call at 6 a.m. and we had experts on site by 12 p.m.,” Clarke said.SponsoredContent_Lex_0816

Auxiliary Services

In addition to educating insureds about the claims process and maintaining open lines of communication, Lexington further facilitates the process through AIG’s IntelliRisk® services – a suite of online tools to help policyholders understand their losses and track their claim’s progress.

“Brokers and clients can log in and see status of their claim and find information on their losses and reserves,” Sipple said.

In some situations, Lexington can also come to the rescue for clients in the form of advance payments. If a crane gets damaged, an examiner can conduct a quick inspection and provide a rough estimate of what the total value of the claim might be.

Lexington can then issue 50 percent of that estimate to the insured immediately to help them get moving on repairs or find a replacement. This helps to mitigate business interruption losses, as it normally takes a few weeks to determine the full and final value of the claim and disburse payment.

Again, the skill of the examiners in projecting accurate loss costs makes this possible.

“This is done on a case-by-case basis,” Clarke said. “There’s no guarantee, but if the circumstances are right, we will always try to get that advance payment out to our insureds to ease their financial burden.”

For project managers stymied by an out-of-service crane, these services help to bring halted work back up to speed.

For more information about Lexington’s inland marine services, interested brokers should visit http://www.lexingtoninsurance.com/home.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Lexington Insurance. The editorial staff of Risk & Insurance had no role in its preparation.Advertisement




Lexington Insurance Company, an AIG Company, is the leading U.S.-based surplus lines insurer.
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