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Specialty Lines
We are now half way into the first year after commissioner elections, with many new commissioners and some changes in county staff. From my perspective things are going well. From the kickoff of the CCAP Newly Elected Officials portion of the 2015 Fall Conference, to meetings and workshops and more, it is clear the new class of commissioners is working hard. I've been pleased that many of you have been contacting us for information, to review ideas, ask questions and seek advice. That's what we are here for! Consider us an extension of your county staff. If we can find a way to help you, we will.
I've often said that the most difficult task of my job is when I run into an elected official who doesn't know what they don't know. At every level of county government, things are complicated. There are federal and state laws, court decisions, union contracts and several thousand acronyms which all seem designed to make decision making and action harder to do. Then there's that sometimes difficult math of a commissioner needing one more vote (or in home rule counties several votes) to get approval. This can all get frustrating and confusing, and yet so many CCAP members accomplish so much during their time in office.
It really does take a great working relationship with others, patience and an understanding of all the parts which make up the whole of county government. I know risk management is just one part of the mix, albeit an important one, and I appreciate the time and effort you all put into making your county a safe place for your employees and the public. Each step, every thought you put towards safety and care of your properties, makes not only a short term difference, but a significant one long term in the culture of your county workplace.
So, keep asking us for help. That's why CCAP was created. And as I close my column each month, I will once again remind you:
Make sure you contact us when you need help with something, John Sallade |
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U.S. COMMUNITIES
Specialty Vehicle Solutions at the BEST Government Pricing
We are excited to announce that Farber Specialty Vehicles has been awarded a multi-year contract to provide specialty vehicles, equipment and accessories and related supplies and services to U.S. Communities participants. The contract was awarded through a competitive solicitation process conducted by lead public agency Port of Portland, Oregon. The contract term is for three years beginning June 1, 2016, with the option to extend the contract for two additional periods of one year each.
Through this contract, agencies will have access to top-notch engineering and construction personnel and an elite service department that provides:
- Mobile police & fire command centers, crime scene, SWAT, HAZMAT, bomb units, DUI-BAT
- Mobile medical, dental screening, mammography screening, audiology
- Mobile Classrooms, STEM Labs, Laboratories, Computer Labs
- Bookmobiles
- Custom design
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Nationwide Economics:
Oil back in the black
Weekly Economic Review and Outlook
Crude oil, which dipped below $30 per barrel earlier this year, topped $50 per barrel last week for the first time since last summer. The steady rise in price over the past few months is a shot in the arm for oil production, which has fallen by nearly a million barrels per day over the past year. There are already early signs that output is stabilizing in response to the recent price gains, as the number of rigs actively drilling for oil has risen for two straight weeks after plummeting to less than a fifth of its 2014 peak earlier this spring.
Rising oil prices have coincided with higher equity prices, continuing the long-running positive correlation between the two. The S&P 500 stock index has increased for three consecutive months with modest gains so far in June as well.
Oil company losses have dragged down earnings and stock prices for some time. The prospect of sustained higher oil prices has raised earnings expectations for the second half of 2016.
Higher oil prices may provide a boost to parts of the real economy, too. Business investment spending has been sluggish in the oil production and services areas since prices began falling sharply. A modest gain in oil production as more oil rigs become profitable would help support a pickup in economic growth over the second half of 2016. Job losses in the oil sector have also been a drag on goods-producing employment, particularly in localized areas of energy-intensive states. Any reversal of these job cuts will be a boost to economic growth.
Importantly, crude oil prices are still extremely cheap even after their recent gains. The boost to consumer incomes from lower energy costs should continue to drive a faster pace of consumer spending. While gasoline prices are up modestly, they remain well below the levels of just a couple of years ago and are unlikely to approach those peaks anytime soon.
Against the backdrop of better growth in the second quarter, the Federal Open Market Committee (FOMC) will meet this week. The surprisingly weak jobs report for May and ongoing uncertainty surrounding the Brexit vote next week, however, should keep the Fed on the sidelines for at least another month. Market expectations place a near zero probability of a rate hike this week, as the Fed is expected to wait for some confirmation that May's sluggish job growth was an anomaly and any financial market dislocations from the U.K. vote to subside.
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Upcoming Events
2016 CCAP Annual Conference
August 7 - 10, 2016
COMCARE PRO Subscribers Advisory Committee Meeting August 24, 2016 Hotel Vermont, Burlington, VT
PELICAN Subscribers Advisory Committee Meeting
August 22-23, 2016 Hotel Vermont, Burlington, VT |
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HOT TOPIC: Certificates of Insurance (COI's) and Additional Insureds
Of all the insurance documents, the Certificate of Insurance (COI) is probably the most misunderstood and misused. We get a lot of requests for certificates of insurance for PCoRP and PComp members. In many cases the person asking for the COI has no idea what they need it for and they have just been told to get one from us.
The COI is basically a way to show another party that the county has insurance coverage, specifically what kind and what the limits are. The simplest example would be when the county hires a contractor to fix something, and requires the contractor to have liability insurance in case they make an error on your project, and also workers' compensation insurance for their employees. The COI is how the contractor shows the county they have coverage. You should be able to tell who their insurer is, and what limits they have. The COI should be prepared by their insurance broker or local producer, or could be prepared by their insurance company. It is rare for it to be prepared by the contractor or company itself.
Some counties ask us to reauthorize their COI's each year. This is not necessarily needed, unless the relationship with the contractor is ongoing. Sending us all your COI's from last year makes no sense, especially when some of them were for single day activities.
Those single day activities probably are the main reason for COI requests. The county is using someone's property, and the property owner wants to be sure the county has coverage. When we prepare your COI, we will note the event, and that the COI pertains only to that event on that date.
It is smart to manage your COI's well. Don't give one to a company or a property owner with no beginning or end date, and when possible be specific about the event or reason for the COI. This makes it clear that the county's grant of its coverage is ONLY for that event or time period.
When you request a COI from someone doing work for the county, and it does not look right to you, have your local insurance producer review it to make sure it is what you need. CCAP insurance staff can also provide advice.
If you need a COI to prove you have coverages offered by PCoRP, PComp or PELICAN, you can now send us the request using our website - see the Insurance section of the CCAP website and click on the "Request a COI" link under the Essential Links listing. That will give you a form to complete and email to Tona Faust who can then prepare your COI.
Additional Insureds
I have attended four hour CE sessions on additional insureds. It is a complicated topic, and in my mind is one of those requests we get where the person or entity seeking to be made an additional insured usually does not know why they are asking for it. But they've always done it. Tied to COI's, this is really adding someone else to your county's insurance by listing them as an additional insured on your COI. Be very careful about giving your coverage away (usually for free). We only add additional insureds for general liability and property coverage and only if there is an insurable interest. If someone asks you to add it for all lines of coverage, that's a red flag. And we will only add the additional insured if the request comes from the county or the county's local producer - not from a lender or another entity seeking this. We will only do this if the member knows about it.
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| Quote of the Month
"Walking with a friend in the dark is better than walking alone in the light."
-Helen Keller
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