Archives: Programs

Liability Protection

The California JPIA provides liability coverage that offers members two program options: the primary liability program and the excess liability program. Coverage in both programs includes bodily injury, personal injury, or property damage to a third party resulting from a member activity, including automobile liability. Employment practices liability is also a covered exposure. Claims for these programs are managed through a collaborative process with member communication and consultation. The California JPIA uses a third-party administrator to investigate and respond to all claims.

 

Liability Program

CJPIA Primary Liability-Program Graph

Primary Liability Program

The primary liability program provides first-dollar coverage with no deductibles or member-retained limits. The program offers $50 million of coverage per occurrence and is funded at the 70% – 80% confidence level. Although claims are managed through a collaborative process, the Authority retains ultimate settlement authority. The program is funded by annual contributions that represent an “all-inclusive” charge that covers the pool’s retained layer, excess and reinsurance premiums, claims administration fees, operating expenses, and most training and risk management program expenses.

 

Excess Liability Program

The excess liability program provides for optional member-retained limits of $150k, $250k, $500k, $750k, or $1 million. This program has a coverage limit of $50 million per occurrence, and is funded at the 70% – 80% confidence level. Members retain settlement authority over claims within their layer, except for certain defined claim types that have catastrophic potential. Members use the Authority’s designated claims administrator and their own trust account for claim payments. In the excess liability program, members retain the right to select defense counsel from the Authority’s pre-approved panel. The program is funded by annual contributions from members that cover the pooled layer of losses, operating expenses, and most training and risk management program expenses. Member-retained losses and claims administration costs are paid directly by the members.

For both programs, the California JPIA handles claims from inception to closing through a partnership with Carl Warren & Company. Members need not worry about the details of handling claims, thereby allowing agency staff and resources to instead focus on risk management and preventing the occurrence of claims in the first place.

Claim Delegation

There are two options for the handling of liability claims filed against members. These options, explained below, allow a member to either delegate the claims handling responsibility to a staff member, or delegate the entire process to the Authority, which eliminates the need for the agency’s legislative body to take action or send letters to claimants.

Typical Claim Delegation Procedure

Under a non-delegated claims process, claims are presented to the clerk of the member agency. Carl Warren & Company then reviews each claim for its merits and contacts the member with a requested action based upon the review’s findings. When the determination is made that the claim should be rejected, there are two courses of action, depending upon the claim and prior actions of the legislative body:

  1. The legislative body of the member agency can take no action. The claim will then be deemed rejected by course of law 45 days after it was first presented to the clerk. Under this scenario, the time period in which a lawsuit may be filed is two years from the date of the occurrence; or
  2. The legislative body may choose to reject the claim at a public meeting and then send written notice of the rejection. Under this scenario, the time period in which a claimant may file a lawsuit is reduced to six months following the rejection.

Option 1: Staff Member Claims Delegation

As an alternative to the above non-delegated claims procedure, the legislative body may, by resolution, delegate the claims handling responsibility to a member of staff. That staff member then rejects the claim, shortening the time period in which to file a lawsuit to six months.

Option 2: Full Claims Delegation

A second option allows further streamlining of the process, whereby the legislative body may, by resolution, delegate the claims handling responsibility, in its entirety, to the Authority. This action allows the Authority, through Carl Warren & Company, to send notice of the rejection and shortens the time period in which to file a lawsuit to six months.

If your agency would like to utilize either of these two options, please see the information in the documents section of this page. The response form and certified copy of the adopted resolution must be mailed or emailed to the attention of Edith Aviña at the California JPIA.

Workers’ Compensation

The California JPIA provides workers’ compensation coverage that offers members two options: the primary workers’ compensation program and the excess workers’ compensation program. Coverage in both programs includes benefits to employees who are injured or become ill as a result of work-related activities. Benefits include medical treatment, indemnity payments, and other statutory requirements. All employers must provide workers’ compensation protection for their employees.

Claims for these programs are managed through a collaborative process with member communication and consultation.

Workers’ Compensation Program

Primary Workers' Compensation Program Graph

 

Primary Workers’ Compensation Program

The primary workers’ compensation program provides first-dollar coverage with no deductibles or member-retained limits. The program offers coverage up to statutory limits and is funded at a confidence level of 70%-80%. Several cost containment programs are in place to reduce the severity of claims and expedite the return of employees to work. These include nurse triage of injuries, a medical provider network, pharmacy management, and a return-to-work program customized for each member and injured worker. The program is funded by annual contributions that represent all costs for the pool’s retained layer, excess and reinsurance premiums, claims administration fees, operating expenses, and most training and risk management program expenses. The day-to-day handling of claims is managed by a third-party administrator with Authority oversight, thereby allowing member staff to focus more on loss control, risk management, and prevention of claims.

Excess Workers’ Compensation Program

The excess workers’ compensation allows members to choose from retained limits of $150k, $250k, $500k, $750k, or $1 million with a pooled retention of $2 million. The program has statutory coverage limits and is funded at a confidence level of 75%-85%. Members of the excess workers’ compensation program have full access to the Authority’s innovative risk management and training programs, have a dedicated claims management team, and utilize defense counsel from the Authority’s pre-approved panel of attorneys. The program is funded by members’ annual contributions that cover the pooled layer of losses, operating expenses, and most training and risk management program expenses. Members are responsible for self-owned trust accounts for member-retained claim payments and California state assessments.

Property Program

The California JPIA uses third-party administrator Sedgwick, led by Tracy Aylor, to investigate and respond to all claims. Once a claim is reported, members are encouraged to contact Sedgwick with any claims matters.

Property

The property program includes all-risk coverage for real and personal property, including buildings, furniture and equipment, fine art, contractor’s equipment, mobile and unlicensed equipment, vehicles, the property of others while in the member’s care, and buildings under construction.

Optional coverage is available for earthquake and flood, high-value emergency vehicles such as fire apparatus and ambulances, and mechanical breakdown. Please see the documents section for additional information on each of the property program elements.

Rates are competitively priced based upon member exposures and experience.

Property Program

Primary Workers' Compensation Program Graphs

Property Schedules

All participants in the property program are asked to keep their schedules current and to maintain their accuracy. Since property schedules determine member premiums for property coverage, updates should add or delete buildings, equipment, and vehicles acquired or divested since the schedule was last updated. This is critically important as coverage terms may be different for property that is scheduled properly from property that is not. Additionally, the Authority requires all members to review current values listed for both property and vehicle schedules each year. The Authority has all buildings valued at $1,000,000 or more appraised every five to seven years by a professional appraiser to ensure they are properly valued.

Members may access their property schedules on Alliant Insurance Services’ online AlliantConnect system by clicking here. Please contact Donald Caskey for any assistance with AlliantConnect, including passwords or technical difficulties. Donald may be reached at (949) 527-9641 or [email protected].

Mechanical Breakdown

The mechanical breakdown program is optional and members are offered inspections of certain pressurized vessels, which are mandated by the State of California. The insurance carrier will conduct these inspections at no cost to the member and will help identify ways to prevent losses to valuable equipment. Members are contacted directly by the insurance carrier prior to the expiration of a vessel’s certificate.

Pollution Program

Coverage is for both first- and third-party damages, including certain types of cleanups, non-owned disposal sites, and above-ground and underground storage tanks. Members work directly with the insurance carrier to investigate and respond to claims.

If you believe a claim should be reported immediately, use the link on this page, even if you do not have all the information listed above.

Hazardous Materials Incident

  • In the event of a fuel spill or hazmat incident, approach the scene cautiously, and avoid rushing in or taking action beyond your level of training or expertise
  • Identify the hazard by consulting placards, labels, MSDS or other available sources of information
  • Secure the area to prevent unauthorized access
  • Contact local emergency response organizations

Underground Storage Tanks

The State of California mandates that all Underground Storage Tanks meet Financial Assurance requirements. Members have the option to obtain coverage through this program that meets this requirement. See the Pollution Program documents for additional information and details.

Cyber Liability Program

The cyber liability program provides coverage for both first- and third-party claims. Members work directly with a cyber incident coach to investigate and respond to incidents.

If an Incident or Breach Occurs

If a member becomes aware of an incident or breach, immediately call the Crisis Hotline at (877) 209-2009 or email [email protected]. If possible, please have the following information available when contacting the Crisis Hotline. Once a member contacts the Hotline, an incident coach will be notified and contact the member.

  • Person most knowledgeable about the claim/incident with phone, alternate phone, and email
  • Best time to reach contact
  • Does the claim/incident involve services provided to anyone outside California?

Does the incident involve any of the following:

  • Lost or stolen laptop or wireless device (BlackBerry, iPhone, smartphone)
  • Other lost or stolen data storage device (thumb drive, portable hard drive, memory card)
  • Use of / access to confidential information by someone who works for you
  • Use of / access to confidential information by someone who does not work for you

For assistance with this program, contact Paul Zeglovitch by email or at (562) 467-8786.

Crime Insurance Program

The California JPIA contracts with Alliant Insurance Services for administration of this program. Coverage is provided for the following exposures.

  • Faithful Performance
    Employee dishonesty, including theft, and failure of any employee to faithfully perform their duties. Includes all employees, the agency treasurer, agency clerk and/or tax collector and any employee required by law to be individually bonded.
  • Depositor’s Forgery
    Loss by forgery or alteration of, on or in any check, draft, promissory note or similar written promise, order or direction to pay money that is made or drawn upon the member’s accounts, including credit, debit, or charge cards, by someone acting as the member’s agent or that are purported to have been so made or drawn. This coverage protects you against forgery or alteration losses caused by a person other than an employee.
  • Crime – money and securities
    Covers loss of your money or securities by theft, disappearance or destruction while they are on your premises or on banking premises, or while your money or securities are outside your premises in the possession of a messenger. This coverage protects you from theft, robbery and safe burglary caused by persons other than an employee.
  • Computer Fraud
    Theft directly related to the use of any computer to fraudulently cause a transfer of money, securities or other property from inside the premises or banking premises to a person or place outside those premises.

Special Event Program

Coverage provides liability insurance when member-owned premises are used for special events or short-term activities. Examples include weddings, art festivals, parades, block parties, yoga classes, and member-sponsored events such as job fairs, carnivals, and swap meets. Members administer the program, accept funds, and issue certificates of insurance online with Alliant Insurance Services, with whom the California JPIA contracts for this program. There is no deductible, and the member is added as an additional insured, if entered on the certificate. Because it is automatic, members do not need to obtain an additional insured endorsement. Liability limits are purchased in $1,000,000 per occurrence increments. Medical payments are also available with limits of $5,000.

To use the program, access the Alliant website here. Instructions on how to use Alliant’s Special Events online system can be found here. Any necessary documents, including the program manual, can be found using the links on the right side of this webpage.

Vendors/Contractors Program

This program was developed to meet the needs of the public entity in assuring that there is insurance coverage in place for those situations where members enter into a contract with a contractor or vendor. By offering this coverage, the member will have the advantage of being able to contract with qualified bidders. Previously, these contractors could not participate as they often could not meet the member’s minimum insurance requirements. Coverage is provided for general liability only.

Railroad Quiet Zone Liability Program

The Railroad Quiet Zone liability program provides coverage for bodily injury and property damage claims arising out of the acts or omissions of the insured at the Designated Quiet Zone noted in the declarations or by endorsement. Provides indemnification to the railroad when required by written contract. There is also limited pollution coverage when caused by a railroad accident. There is a $100,000 self-insured retention per occurrence and a $2,000,000 limit per occurrence with a $2,000,000 program aggregate for all claims by all members.

In 2005, the Federal Railroad Administration (FRA) adopted the “Train Horn” rule which required that locomotive horns be sounded at public highway-rail crossings and provided flexibility to localities to silence horns through the establishment of “Quiet Zones.” The rule went into effect on June 24, 2005, at which time existing state and local whistle ban laws were preempted. Subsequently, several Authority members began the process of establishing “Quiet Zones.”

Under the MOCs for the primary and excess liability programs, the Authority does not provide coverage for railroad exposures, including “Quiet Zones” as approved by the FRA, or any liability members assume in contracts related to “Quiet Zones.” The MOCs do permit Authority staff to approve “Protected Contracts” with indemnity agreements pertaining to “Quiet Zones.” If the “Protected Contract” is approved, coverage is bound with the insurance carrier. Premiums are paid by the Authority and reimbursed by members.

Because the insurance carrier will not name operating railroads as Additional Insureds, members retain this exposure if they have agreed to it in a written agreement or contract. This results in a coverage gap for members, who will retain the full exposure for their contractual indemnification of an operating railroad.

The California JPIA contracts with Arthur J. Gallagher & Co. to administer this program. Members can contact Christopher Gray by email or (562) 467-8783 with any questions or to purchase this optional coverage.

Property Damage Recovery Program

When a member suffers damage to property and the claim is either not covered or the damage is below the deductible amount if participating in the California JPIA property program, the Authority has partnered with claim administrator Carl Warren & Company to assist members who wish to recover these monies from those parties responsible for the damage.

The claim administrator works directly with members to investigate and pursue recovery. This often makes sense for the member and provides a way to hire professionals who have the expertise to determine fault, work with insurance adjustors, navigate the negotiation process, and obtain a collection of monetary losses.

Carl Warren has a unit of recovery management specialists who evaluate all new assignments for recovery potential and complete full investigations. The fee for all recoveries is 20%, with most expenses included. All expenses related to the recovery efforts, including, but not limited to, legal costs, private investigators, court records research, service of process, appraisals, etc., will be billed at actual cost. Fees are on a contingency basis: if there is no recovery, no fee will be charged.

Foreign Travel Program

Travel to foreign countries brings with it a number of challenges, including unfamiliar laws, languages and customs, corrupt officials, and crime.  Some risks are greater than others and will vary based on the destination country, the number and age of travelers, the types of activities they will be participating in, and length of stay, among other things. The Authority’s liability program does not cover members for legal expenses and lawsuits brought in courts outside the United States. To offset those risks, a foreign liability policy is available to protect all members when foreign trips are reported to the Authority prior to travel using the Foreign Travel Log.

Coverage Details

These are the coverages provided under this program.

  • Foreign Commercial General Liability
    Foreign commercial general liability insurance for premises and products outside of the U.S., including foreign occurrences resulting in U.S. suits
  • Foreign Automobile Liability
    Foreign business automobile liability insurance for owned, hired or non-owned vehicles that is Difference in Conditions/Difference in Limits over any compulsory local coverage
  • Foreign Voluntary Compensation
    Foreign voluntary compensation and employer’s liability insurance for all classifications of employees, including 24-hour coverage on a primary, first-response basis (when domestic workers’ compensation coverage does not apply)
  • Travel Accident and Sickness
    Business travel accident and sickness coverage that provides 24-hour injury benefits for employees – and their spouses and children – on a primary basis while traveling overseas on a business trip, including 14 days of non-business-related personal travel
  • Corporate Kidnap and Ransom/Extortion
    (K&R) K&R insurance covers the perils of kidnap, extortion, wrongful detention, and hijacking

Travel Assistance App

Members have access to a travel assistance mobile app through Apple and Android devices. Whether it’s prior to travel, during the trip, or after the return home, this secure, member-only assistance app provides travelers with convenient access to in-depth travel, security and health information 24/7/365.

You must be a registered user of AIG’s travel assistance website to access the mobile app. If you are a registered user, the same username and password will apply. See below for new user registration instructions.

Registration Instructions for New Users on Desktop or Mobile

Emergency Assistance

In the event of a crisis or emergency, immediately call the AIG 24-Hour Crisis Center:Toll-Free: (877) 743-7669 (from U.S./Canada)

Collect: (713) 260-5500

International Collect: (817) 826-7008
                                  (817) 826-7034

Instructor Insurance Program

When contract instructors need a general liability certificate, Authority members can assist these instructors by taking part in the Southern California Municipal Athletic Federation’s (SCMAF) Class Insurance Program. Coverage offers general liability insurance for third-party instructors for virtual or in-person classes or programs promoted, organized, conducted, and supervised by the member agency.

Coverage protects against claims related to damage or injury caused by negligence or oversight by the insured (instructor).

In addition to the $1,000,000 per occurrence and $5,000,000 general aggregate general liability coverage, the program provides $5,000 excess accident medical coverage for all instructors and students with a $0 deductible per claim. Sexual abuse and molestation coverage ($1,000,000 per occurrence, $2,000,000 aggregate) is available contingent upon meeting certain terms and conditions. Additional benefits of the program are recognized on the certificate of insurance.

For questions, additional information, and to use the program, access the SCMAF website.

California JPIA