Loss Control

What is it?

In 2008, Georgia Legislature passed Senate Bill 425.

Senate Bill 425 authorizes DOAS to establish incentive programs that include setting insurance coverage premium rates and adjusting claim deductibles based upon participation in loss control programs.

Implementation Timeline

Phase 1 – FY 2009

  • Agency will evaluate operations and plan implementation of all 8 components.

Phase 2 – FY 2010

  • Agency will provide written implementation plans and conduct reviews to ensure program’s effectiveness. Modify or add programs. Meet DOAS set loss goals.

Phase 3 – FY 2011 and Forward

  • Agency will have functioning plans in place. Premium surcharges of 10% plus increased deductibles for non-participating agencies will be charged. Participating Agencies not fully compliant with CLCP will be considered a non-participant and surcharged accordingly.
  • Annual inspections will be conducted by a DOAS Loss Control Officer to assure compliance.

KSU Agreed to participate in this program in 2009.  As such, KSU agreed to comply with all the terms and conditions within the CLCP.

What is the cost for NOT complying with the CLCP requirements?

Penalties Include:

  • Premium Surcharges
  • Co-Pays on ALL CLAIMS
  • Possible denial of claims

Keep in mind these numbers are IF DOAS covers the claim at all.

10% premium surcharge across all lines of DOAS insurance;  In FY2017, this would equal $201,468.23

Based on our claims experience as of 2/28/17 additional penalties would include:

  1. Workers Compensation co-pay of $21,600
  2. Property Claim deductibles of $3,000
  3. Automobile Claim Liability co-pays + Auto Physical damage deductible of $1,500; FY2017 - $18,000
  4. TOTAL COST FOR NON-COMPLIANCE AS OF 2/28/17 WOULD = $244,068.23

8 CLCP Components of CLCP Agreement

  1. Employee Education & Training
  2. Employee Accident Prevention Plan
  3. Fidelity Losses (Employee Theft)
  4. General Liability
  5. Workers Compensation – Return to Work
  6. Property
  7. Auto Liability and Physical Damage
  8. Fleet Management 

If you are interested in learning more about the program, DOAS has a series of videos posted on their site for your viewing. For detailed information click here.

What is Your Role in the CLCP?

We all have a role in this program because we are all responsible for safety and risk management. 

Everyone is a Risk Manager

To review the requirements of the CLCP, download the document here

KSU established a CLCP Compliance Committee in 2013.

As you all are aware, many changes have occurred over the past couple of years with consolidation and administration changes.  This committee meets quarterly immediately following each quarterly University Safety Council meeting. 

The Driver Qualification Program is a requirement of the CLCP and we are working with the campus to bring KSU into compliance, as well as introduce departments to new tools available to assist them in monitoring their compliance with the program.

Auto Liability and Physical Damage 

Each year, every State agency is subject to a CLCP Review and evaluation by DOAS.  

Penalty for Non-Compliance

(In addition to the 10% surcharge on all lines):

“If DOAS determines that an unqualified driver caused a preventable accident that resulted in a claim payment to a third party for either property damage or bodily injury, the agency will be charged a per accident co-payment of up to $1,500. If the loss amount does not exceed $1,500, the entity will be charged the total amount as a co- payment up to $1,500.” This amount is charged back to your department.

And this is where everyone can help us be Compliant with State policy and help us Control Loss and Costs.