March 27, 2023 | CSD Team

You ask, we answer! Don’t see your question on the list? Contact us with any additional questions at info@csdpool.org!

What Is The Board’s Role In Erm And Developing A Safety Committee With Their District?

ERM, or Enterprise Risk Management, is the discipline, culture and control structure an organization has in place to continuously improve its risk management capabilities in a changing business environment. Enterprise risk management is everything a company has and does to actively manage risk. ERM is important in acknowledging that risk is more than just what you can immediately control, but it can include external factors such as environment, customer experience, and governmental/industry regulators. ERM will help Board Members meet their fiduciary responsibility to protect district assets by defining every known risk to the organization as well as a plan toward resolution.

For members interested in implementing ERM into their district’s operations, the CSD Pool offers the decision-making and project management software, Powernoodle. Learn more about it on our website, and request a demo from our team today.

A Board has a fiduciary responsibility to protect the district’s assets. The Board should perform an annual review of all risks, what is being done to manage the risks, and what is needed to take protection to the next level. A safety committee acts as a bridge between employees and the district’s safety culture. It brings together employees and supervisors across the organization to discuss safety concerns and solutions. These committees are highly important to unite as one towards the goal of a safer workplace.

A Board’s role in the progress of the safety committee is critical so everyone stays involved, is knowledgeable of safety concerns and procedures, and is able to provide support to the team.

Why Should I Review My Business Income / Extra Expense Limit?

Business Income coverage will pay for continuing expenses during the suspension of operations and net income that would usually be earned from normal operations had there not been a loss. Extra Expense coverage pays for many of the additional costs your district may incur as the result of a loss, to avoid or minimize the suspension of operations. This can be the cost of a mobile office rental, porta potty rental, vending machines, and more.

To keep these coverages straight, just remember that Business Income coverage is used to replace the lost income from sales and/or fees and to cover continuous expenses such as loan payments and ordinary payroll. Extra Expense coverage funds your contingency plan to stay operational while your property is being repaired.

The CSD Pool’s property coverage form includes a basic sublimit of $250,000 for Business Income/Extra Expense coverage. Higher limits are available to members whose needs exceed the $250,000 limit. Members can calculate their own loss of income and additional operational costs. This can be done by completing a Business Income Worksheet to determine if a higher limit should be considered. For a copy of this worksheet, reach out to us directly by emailing pc@csdpool.org.

Why Is Business Continuity Planning Necessary?

A business continuity plan is a system of prevention and recovery from potential threats to a company. The purpose of having one is to be sure there is a plan in place that ensures that personnel and assets are protected and able to function quickly in the event of a disaster. Having a plan reduces stress levels and you don’t have to rely on external help or specialists. It also avoids downtime and allows for quick recovery so as not to lose business. Lastly, it minimizes chances of data loss.

Why Do I Have To Send Contracts On Certificates That Ask For Additional Covered Third Party (Aka Additional Insured) Status?

We can add another party as an Additional Covered Member under Public Entity Liability (PEL) coverage to protect that third party from bodily injury and property damage claims that could arise out of the member’s own negligence, where the member has a contractual agreement to indemnify the third party for such occurrences.

Contracts outline the agreement made between the parties. This includes the risks and liability each party has accepted (indemnification) and the insurance requirements to cover those exposures. Additional Covered Member status is provided via an endorsement to the PEL coverage.

The endorsement grants coverage to the third party based on what was agreed to under the contract (which must have been executed prior to a loss), so it is clear what liability is intended to be covered. The Additional Covered Member endorsement does not cover the third party for its own negligence.

What Is My Safety Grant Balance?

Our Safety & Loss Prevention Grant program reimburses up to 50% of the cost of purchases that help reduce the risk of a loss or improve the safety of your facilities, subject to approval. Eligible districts receive additional funds each March.

If your district submits a Safety Grant application and there are no funds currently available, just check in with us again in April to find out your new grant balance.

Districts start receiving Safety Grant funds once minimum annual contribution reaches $3,000.

To find out more, visit csdpool.org/safety-grants

COVID-19 Grants: For a limited time, qualifying members can receive up to 100% reimbursement on COVID-19-related safety and loss prevention purchases.

Contact info@csdpool.org to receive your current Safety Grant balance, or with any questions.

What Is A Workers’ Compensation Emod, And Why Does It Matter?

EMOD stands for Experience Modification. Your EMOD affects your annual contribution, although not all members qualify for an EMOD.

To be eligible, the raw manual contribution must average either $4,750 the last three (3) experience rating periods or $9,500 in the last two (2) experience rating periods.

An EMOD is based on expected losses versus actual losses. Expected losses are based on your class codes and your payroll.

Each EMOD period ends June 30. The analysis itself is based on three years of data, beginning with data from four years prior. For example, in 2022 your EMOD will be based on experience for the years 2018, 2019 and 2020.

If your EMOD is rated at 1.0, this means your actual losses are in line with what is expected and there will be no modification to your contribution. If your claims experience is better than expected losses, your EMOD will be below 1.0, which means you will receive a credit to your contribution.

Conversely, if your claims experience is worse than expected losses, your EMOD will be higher than a 1.0, and you will pay an additional contribution.

It is important to protect your EMOD. For ideas on how to do so, to request an EMOD analysis, or if you have any questions, please contact us.

What’s The Relationship Between The Csd Pool, Sda And Mcgriff?

The Special District Association of Colorado was founded in 1975 with a mission to serve the special districts of Colorado. Currently, the SDA has over 2,150 special district members and over 300 associate members. In addition to educating districts, the SDA offers legislative representation and input, advocating before the Colorado General Assembly in the interest of special districts.

The Colorado Special Districts Property & Liability Pool is a member-owned governmental entity pool founded in 1988. It offers coverage and risk management services to help serve and support the safety needs and preserve operations of Colorado Special Districts. The CSD Pool offers a variety of safety programs under our risk management services. We offer help and organization with everything from driver safety to safety consulting to discounts on safety gear.

The Colorado Special Districts Pool is governed by nine special district board members and has no employees. Insurance professionals at McGriff Insurance Services, Inc. administer the Colorado Special Districts Property & Liability Pool.

Do You Know What You’re Self-insuring?

Self-insuring is what happens with a risk that has not been transferred to insurance. It can also apply to your deductible, when you are sharing the risk with the CSD Pool.

Self-insuring is beneficial to special districts. It provides options such as taking a higher deductible or deciding not to insure certain property or equipment. However, it can be an unwelcome surprise when you find out that something you thought was covered is not.

This may occur when not all of a district’s assets are listed on the Property and/or Inland Marine schedules.

Commonly missed scheduled property includes:

• Fences
• Light poles
• Fire hydrants
• Monuments
• Signs

Another coverage gap can arise if a district’s Business Income/Extra Expense limit is not sufficient for the district’s specific needs. The CSD Pool Property coverage includes a $250,000 sublimit for loss of business income to pay continuing expenses, such as staff payroll, and/or extra expenses that the district incurs in the event of a shutdown due to a covered loss at a scheduled location. However, depending on the district, this sublimit may not be enough to cover all extra expenses, loss of fees, etc. If you believe your district may need a higher limit for Business Income/Extra Expense, please contact us.

During renewal season, it’s a good idea to review your schedules and complete a Business Income worksheet, so you know what is covered by the CSD Pool and what is self-insured.

What Is Equipment Breakdown Coverage, And Do I Need It?

Equipment Breakdown provides coverage when covered property or equipment is damaged because of an accidental mechanical breakdown, artificial electrical current, or the explosion or bursting of a boiler.*

Coverage may include incurred expenses such as:

• Cost to repair or replace damaged equipment
• The additional cost to upgrade to equipment that is safer for the environment
• Loss of business income, rental income, and extra expenses incurred
• Cost to restore lost data
• Expenses incurred to expedite equipment repairs or replacement
• Additional costs to repair or replace property contaminated by hazardous substances

So what kind of property is included under Equipment Breakdown coverage? Property or equipment at a scheduled location that generates, transmits or utilizes energy or, during normal usage, operates under vacuum or pressure, other than the weight of its contents.  Examples include HVAC systems, computer equipment, pumps, control systems such as SCADA, boilers, turbine generators, engine generators and transformers.

Some examples of possible Equipment Breakdown claims include:

• Motor breakdown due to electric arcing
• Compressor failure related to a power surge
• Electrical equipment failure resulting from a burned out underground feeder cable
• Steam boiler explosion due to a water pump malfunction
• Motor/pump/valves overheating or failure due to unknown causes

*Exclusions apply; please contact us for more details.

What Electronic Data Processing (Edp) Equipment And Media Coverage Limit Would You Recommend? 

Electronic Data Processing refers to any computer-based equipment serving as a computer. This includes, but is not limited to, computers (desktop and laptop), tablets, servers, printers, SCADA, and fire protection equipment that utilizes computer hardware.

Media refers to the materials upon which your data is stored. This includes, but is not limited to, paper, tapes, cards, and electronic memory.

Your Colorado Special Districts Property & Liability Property coverage includes a sublimit of $250,000 per EDP occurrence unless another limit is scheduled. If $250,000 is not enough to cover your district’s data processing equipment and media, we can schedule an EDP limit for each location at which a higher limit is needed.

With additional questions, or for assistance reviewing your coverage, contact us at info@csdpool.org.

Read more about the CSD Pool here!