Risk Management Overview

Overview

Mission Statement

To provide comprehensive property, liability, and worker's compensation programs that minimize the impact of the State's human, physical and financial damages by identifying, evaluating, controlling, and mitigating exposures to loss; and by managing post-loss claims.

Administrative Services

Risk Management Administration is dedicated to enhancing external and internal risk management customers' ability to conduct their business.

Support services include:

Personnel
Purchasing
Reception
Facility management
Strategic planning
Reporting Library of claim files
Information technology

Statutory Responsibilities

Risk Management is a division of the Arizona Department of Administration. Risk Management was established in 1976 to provide insurance coverage to state agencies and employees for property, liability and workers compensation losses in accordance with the statutory provisions found in Arizona Revised Statutes Section 41-621 through Section 41-625. Risk Management's statutory responsibilities are to: Adjust claims associated with property loss or damage, liability lawsuits alleging negligence, and workers' compensation injuries to state employees. Self-insure these various types of losses, and/or purchase commercial insurance to offset them whenever advantageous to do so. Employ safety measures to pro-actively prevent accidents/incidents which could give rise to property, liability and workers' compensation claims.

Purpose of Risk Management

Risk Management was established in 1976 to provide insurance coverage to state agencies and employees for property, liability and workers' compensation losses in accordance with the statutory provisions found in A.R.S Section 41-621 through Section 41-625.

Risk Management has the responsibility for making and carrying out decisions that will minimize the adverse effects of accidental losses that involve state government assets.

In order for Risk Management to fulfill the responsibility of preventing or reducing the potential severity of losses, it is essential to identify the type of assets exposed to loss; the perils or hazards that could cause loss; the state agency that could suffer the loss; and the potential financial consequence of the loss on the agency's operations.

Insurance

A.R.S. Section 41-621 through Section 41-625 provide for insurance or self-insurance of the following:

All state-owned buildings, including those of the three state universities.
All property owned by the state.
All officers, agents and employees of the state against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities, except as prescribed by statute.
Workers' compensation injuries of state employees.
Environmental damage and health threats associated with state-owned/operated property and facilities.

A.A.C., Title 2, Chapter 10 of the Administrative Code supplements the statutes and provides guidelines for coverage and claims procedures, loss prevention programs, purchase of insurance, environmental losses, and the Provider Indemnity Program. Risk Management's responsibilities for insurance and self insurance include:

Evaluation of risk financing alternatives.
Procurement of commercial insurance when appropriate.
Allocation of costs for property, liability and worker's compensation among agencies.

Liability Coverage's & Limitations

A.R.S. Section 41-621, provides coverage for all officers, agents and employees of the state and its departments, agencies, boards and commissions against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities and within the course and scope of employment or authorization.

Volunteers

Volunteers acting at the direction of state officials and within the course and scope of their state-authorized activities receive the same coverage as employees. Volunteers may be covered for workers' compensation if they meet the criteria set forth in A.R.S. Section 23-901.

Workers' Compensation (For more information see: Agency Information Workers' Compensation)

The state is self-insured for workers' compensation coverage.

Automobile Coverage

State vehicles: Coverage is provided to state employees when driving state vehicles within the course and scope of employment and authorization.

Private vehicles: Liability coverage is provided on an excess basis for private vehicles driven within the course and scope of employment and authorization. Physical damage is not covered.

Employee Owned Property (Including Vehicles)

Employee-owned property is generally not covered.

Aircraft Coverage

All pilots should contact Risk Management for specific requirements before flying on authorized state business. Risk Management must approve each application to fly on state business before coverage will apply.

Travel Outside the United States

Prior to travel outside the United States while acting within the course and scope of employment, contact Risk Management for specific instructions and assistance.

Property Coverage & Limitations

A.R.S. Section 41-621, provides coverage for all state-owned buildings, contents and property. Certain restrictions on coverage are detailed in A.R.S. Section 41-622 and A.A.C., Title 2, Chapter 10, Article 1.

Certificates Of Insurance

Prior to approving a Certificate of Insurance, the Risk Management Insurance Analyst will need to review:

Your agency "Request for Certificate of Insurance", and
Written agreement, contract or other document requiring evidence of insurance. Approval of Certificate will require that this documentation not conflict with certain statutes and/or rules that prohibit indemnification.

Loss Prevention

For more information see: Agency Information Loss Prevention

The Arizona Revised Statutes require each agency to conduct risk identification and assessment, and implement a Loss Prevention Program to reduce the frequency and severity of losses in the following areas:

Employee safety in the work environment
Real and personal property protection
Federal and State standards for Industrial Hygiene and Environmental Protection
Negligent acts that cause third-party claims

Risk Management provides Loss Prevention Consultants, Industrial Hygienists, and Environmental Specialists to assist agencies in developing and implementing loss prevention programs. The consultant can also provide assistance in solving everyday loss prevention problems such as:

Fire Protection
Security
Motor Vehicle Safety
Construction Safety
Industrial Hygiene
Occupational Safety and Health
Air and Water Quality
Personal Protective Equipment
Office Ergonomics
Hazard Communication

Risk Management regularly offers Training Classes to provide instruction in the above mentioned exposures. Risk Management also maintains a video lending library with an emphasis on safety-related topics. Please call (602) 542-2175 for additional information.

Workers' Compensation

For more information, see: Agency Information Workers' Compensation

Primary Workers' Compensation responsibilities include:

Pay timely medical, surgical, hospital and disability benefits as provided by law under the Arizona Workers' Compensation Act
Evaluate and initiate cost containment programs
Coordinate statewide Return-to-Work Programs
Pursue recoveries from parties contributing to or causing injury to covered persons

Who Is Covered?

Workers' Compensation benefits are provided pursuant to Title 23 of the Arizona Revised Statutes. State employees cannot reject workers' compensation. This coverage is the exclusive remedy for state employees injured in the course and scope of their employment. The following individuals are entitled to workers' compensation coverage:

Employees
Volunteers specifically referenced in A.R.S. Section 23-901
Employees of Superior Courts of all Arizona counties except Maricopa

Questions concerning who is covered should be directed to the Insurance Department at Risk Management at (602) 542-5185.

To report an Industrial Injury call (800)837-8583

Injuries requiring medical treatment may also be reported to Risk Management through the Early Notification telephone line by dialing (800) 837-8583.

Any fatality must be reported immediately to the state OSHA Office and Risk Management.

An injured worker should complete the top portion of the "Worker's & Physicians Report of Industry (form 102)" made available by the initial provider of medical treatment. The medical provider is also required by law to file a copy of the form with the Industrial Commission and Risk Management.

Benefits

Wage loss benefits are payable at 66 2/3% of the injured worker's gross monthly salary, up to the maximum as set by the Legislature, per month, and is payable every 14 or 30 days, depending on the type of disability. No wage loss benefit is payable for the first 7 days, if total time lost is less than 13 calendar days. This waiting period occurs only once during a claim. If a claim has been accepted, authorized medical treatment is paid pursuant to the Arizona Fee Schedule with no out-of-pocket expenses on behalf of the employee.

If An Employee Is Injured

Attend to the injured worker immediately and arrange for necessary medical attention. If the injury is serious, call 911.
Call the Early Notification phone line at (800) 837-8583.
Accompany the injured worker to the doctor if he/she is unable to drive.
Obtain information about the incident or injury and fill out the agency specified report of injury form.
List and interview all witnesses.
Examine the area of the accident, and secure any equipment, machines or vehicles, etc., for investigation and recovery purposes.
If there is any reason to doubt the validity of a claim, provide information to Risk Management.
If information disproving the validity of a claim or the extent of the injury is discovered at a later date, report it immediately to Risk Management.
Maintain contact with the injured worker.
Contact Risk Management at 602-542-5218 or email with any questions.
Always look for ways to prevent this and other incidents from happening and advise your loss prevention coordinator.

When An Employee Returns To Work

Request a doctor's release before permitting a return to work.
Contact Risk Management at 602-542-5218 or email with the date the employee is to return. This is to prevent potential overpayment of benefits.
If the employee is released to modified work duties, review any limitations with the employee. Make certain you have specific work limitations from the employee's physician.
Be sure to review the agency modified duty policy. A copy can be obtained from the Human Resource division of your agency.
If you have any questions regarding limitations, accommodations, or the employee's work schedule, call Risk Management at 602-542-5218.

Policies and Procedures