Keeping Your Assets Covered: Good Risk Management Strategies Can Drive Better Decisions and Prevent Unforeseen Problems

By Zubko, Nick | Behavioral Healthcare, May-June 2011 | Go to article overview

Keeping Your Assets Covered: Good Risk Management Strategies Can Drive Better Decisions and Prevent Unforeseen Problems


Zubko, Nick, Behavioral Healthcare


Just like any organization, behavioral healthcare providers have assets they need to protect. When approaching risk management and liability coverage, common sense prevails. But it's also important to consult with your legal and insurance representatives to make sure one thing never changes: no matter what happens, you're covered.

According to Brad Storey, MSW, director of risk management for Irwin Siegel Agency Inc., the best way to do that is to enlist a proactive approach to risk management. Storey notes that facilities that are able to stay ahead of potential risks are "able to make better decisions, identify potential problems and implement controls up front."

While the primary task of insurance providers is to "mitigate the chances that an exposure to risk actually turns into a claim," they also must provide options when funding and resources are limited. When money is tight, Storey suggests that providers adopt a "total cost" view of their coverage. "When you're looking at an insurance program, it's not just a matter of comparing bottom line premiums," he says.

For example, providers may offer clients supplemental services like training and pre-employment screening, which will likely free up full-time staff and offer a valuable cost saving. However, such services could also generate liabilities, since the provider assumes responsibility for the quality and accuracy of the work.

This potential "needs to be understood as part of a total cost of risk calculation," Storey urges, "rather than focusing on coverage alone."

While managing risk relies heavily on common sense, there are also many factors of insurance coverage that have the potential to create problems if not properly understood. Ideally, the following suggestions will prompt valuable interaction with your insurance provider, ensuring that no repair, remodel or renovation in your facility introduces a level of risk that you didn't expect.

[ILLUSTRATION OMITTED]

1. Update coverage for "green" renovations. Green design elements (recyclable, earth-friendly roofs, energy saving materials and equipment) are increasingly popular design options for behavioral health facilities, since they trade a higher upfront cost for long-term energy and operations savings.

But according to Rich Willetts, CPCU, ARM, program director at NSM Insurance Group, insurance policies often do not cover the added replacement cost of green items if they are damaged. They promise only to replace damaged equipment or materials with items of "like kind and quality."

That means that if green materials are used in renovations (and no policy changes are made), any damaged property likely will be replaced with only what is regarded as "standard." "If you're going to upgrade or renovate with anything non-traditional, like solar panels or a new roof made of environmentally friendly material, it's definitely something to consider," Willetts says.

2. Double-check limits after an upgrade. After an upgrade or renovation, ask if your policy's coverage limits are still adequate, Willetts advises. "If they're not, you could be subject to a coinsurance penalty." All insurance policies have a clause requiring policy holders to maintain insurance that matches the value of the property, Willetts explains. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Keeping Your Assets Covered: Good Risk Management Strategies Can Drive Better Decisions and Prevent Unforeseen Problems
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.