IRMI Update—Issue #34

An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
February 5, 2002

In This Issue

Message from the Editor

Colleague,

I'd like to pay tribute to Gary Bird, a friend whose life was taken on September 11. Since he was author of The Wrap-up Guide, or the "blue book" as some in the industry call it, and a frequent speaker at the IRMI Construction Risk Conference, you may have learned from his words or perhaps you knew him. Gary was the consummate risk management professional.

Described by some as a corporate cowboy, Gary also loved horseback riding in his native Arizona, and he contributed to his community. Gary had been heavily involved with the local Boys and Girls Club for 25 years, serving as president in 1978, and most recently he combined his interests to introduce "horse therapy" to the kids. He is missed by many.

Gary's family set up a scholarship fund at the Boys and Girls Club in his memory. In case you have benefited from the knowledge he conveyed in his book or presentations and would like to make a donation, I've provided the address below. You'll be honoring a great guy and helping some kids grow up to be better citizens. Make your check payable to the Boys and Girls Club of the East Valley (be sure to note that it is for the Gary Bird Scholarship Fund).

Boys and Girls Club of the East Valley
Attn: Ramone Elias, Gary Bird Scholarship Fund
1405 East Guadalupe, Suite 4
Tempe, AZ 85283

Thank you for your trust, confidence, and support.

All the best,

Jack

Jack P. Gibson
President
IRMI

Risk Tip

Use Mediation To Reduce the Cost of Employment Disputes. Employment claims often have highly charged emotional dynamics that can be costly to ignore. Employment practices claims are different from most other insurable claims because of huge emotional investments by both employers and employees. Issues of identity, self-value, self-esteem and other relationship dynamics are often driving forces behind employment claims. Moreover the typical employment claim is prone to contain personal accusations.

As a result of these personal dynamics, employment claims tend to be about more than just money. Ignoring this fact will only prolong the dispute and increase the emotional and financial stake of everyone involved. Early intervention by an experienced employment law mediator can address these issues and resolve the claim before these dynamics escalate and make resolution more costly.

With mediation, a neutral third party acts as an intermediary during a structured settlement discussion and attempts to assist the parties in developing options for an amicable resolution. Most cases can be resolved for a fraction of the time and expense that would otherwise be dedicated to litigating the dispute.

Mediation allows the parties a safe and confidential arena in which to explore options to resolve a dispute on their own terms as opposed to handing that decision over to a judge or jury. It is non-binding unless the parties reach a mutually agreeable solution.

Mediation is so effective at resolving disputes that many courts now require mediation before trial, and the EEOC has established a mediation program to help relieve their expanding caseload. In short, it just makes good business sense for the parties involved in a dispute to attempt to voluntarily resolve the conflict on mutually agreeable terms before they hand it off to lawyers, judges, and juries.

Gregory T. Bourgeois
Attorney-Mediator
greg@gcbmediators.com

Suggest a Risk Tip. Future issues of IRMI Update will include more risk tips from our readers. Send us a practical tip (less than 300 words) for identifying and managing risks, buying insurance, managing claims, or filling gaps in insurance coverages. We'll give you credit for your contribution.

New Expert Commentary

There are now 253 articles on IRMI.com, and many more are in production. Below you'll find summaries of some recent additions with links to the articles.

  • Three Important Mantras for CEOs and Risk Managers in 2002—Jeanne Finegan examines three steps critical to mitigating the expense for potential product recall and class-action litigation that also help nurture corporate reputation.
  • Surety Credit Basics—In this article, Rolf Neuschaefer explains how the surety market is changing in light of September 11 and the downfall of Enron, and the essential elements to a good working relationship with your surety, particularly in such uncertain times.
  • The Emerging Role of the Chief Risk Officer—Jerry Miccolis and Chuck Lee discuss the CRO approach, profile, where to find one, and how this individual should fit into the structure of the organization to make ERM a living reality.
  • Some Final Thoughts on Completing Site Assessment—In this final installment of his 4-part series, Ron Prichard examines other important areas to focus on to ensure construction site safety: housekeeping, graffiti, fire protection, and temporary services.
  • California WC Self-Insured Bonds and the Principal's Bankruptcy—Many states allow employers to self-insure workers compensation as long as the employer supports that self-insurance with a surety bond or other security. Here, Marilyn Klinger discusses California WC self-insured bonds in the context of the employer's bankruptcy.

New IRMI Insights

Risk Management and Insurance Priorities 2002—With help from IRMI Update readers, IRMI President Jack Gibson adds to his list of priorities for risk and insurance professionals in 2002.

IRMI Construction Risk Conference

Reserve These Dates!—Mark your calendar for the 22nd IRMI Construction Risk Conference to be held November 11–14, 2002, in San Diego. Join 1,000 project owners and contractors, along with the risk, insurance, and legal professionals who advise them, for a unique symposium in a beautiful location. You'll experience a superior educational program, unparalleled networking opportunities, and take home many innovative ways to navigate the stormy insurance environment. Check out past years' speakers' handouts for examples of the types of topics covered. You don't want to miss this one! Go to this Web site for more information.

IRMI Products & Services

IRMI Workers Comp Provides Knowledge for Hard Market Survival—Workers comp prices are increasing nationwide, and it is time to consider all your alternatives. Whether you need to evaluate self-insuring your workers compensation exposure or improve your claims management or safety program, IRMI Workers Comp gives you the knowledge you need. Many publishers charge much more for less risk management information than you will find in this unique IRMI reference.

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