Peralta Community College District
Board Policy 6.38
Policy 6.38 Risk Management
Because the District is exposed to risks of financial loss from damage to District property, liability
claims arising from negligent acts or operations, reduction of revenue available to the District or
injury to or death of District personnel, the following Risk Management Policy has been adopted to
manage these risks of loss:
1.
The District shall systematically identify and analyze all risks of loss, to implement sound
risk control, loss prevention and risk transfer techniques to reduce the frequency and
severity of these exposures, and to develop alternate sources of risk financing to manage the
risks facing the District.
2.
The District shall retain financial risks of loss wherever the potential amount of loss will not
significantly affect the District's operations or financial position. "Significant" loss shall be
defined as a loss exceeding $100,000 for any one occurrence, or $250,000 in the aggregate
for any one fiscal year. The District shall maintain a restricted self-insurance loss reserve,
established with an amount of $50,000 and to be increased by an equal amount at the
beginning of each fiscal year until a reserve of $250,000 or 1% of budget is reached.
It is understood that exceptions to this policy may be made when
a.
b.
c.
3.
the purchase of insurance is required by law, statute or contract, or
the purchase of insurance is economically desirable as compared to the degree of
risk which would be undertaken in the retention level, or
the purchase of insurance is desirable to obtain a favorable insurance market, special
services such as loss engineering, claims handling, etc., or legal services.
The District shall transfer the risk through the purchase of insurance or through other
acceptable alternatives such as pooling when it is determined that the probable amount of
loss would exceed the acceptable retention levels. It is understood that exceptions to this
policy may be made when
a.
b.
insurance is not available at any cost, or
the cost of the insurance is prohibitive.
Source of Law:
Approved by Board of Trustees: January 2, 1980
Revised: May 14, 1991