007-1999 DMCITY OF PvflAN,'lt BEACH
CIT',/ HALL 1700 CONVENTION CENTER DRIx~E MIAMI BE,-~CH FLGRIC, A 33 139
OFFIC~= OF THE CITY ,~IANAGI=R
DEPARTMENT MEMORANDUM NO.
7-1999
TELE?HONE: (305) 873-7010
FAX: {305) ,~73-7732
TO:
FROM:
SUBJECT:
All Department DirectomlDivision Heads DATE:
Sergio Rodriguez
City Manager
ell
G eral Liability and Vehicle Claims Reduction Procedures
February 9, 1999
The City of Miami Beach self-insures for general liability and vehicle claims. Risk Management budgets
approximately $2,500,000 for payment of these claims. The budgeted amount is based on actuarial
recommendations and claim payment history.
Frequency of claims, severity of claims (damages), legal liability (negligence/failure to correct hazards),
the increased cost of medical treatment, and the current claims/litigation climate are atl elements that
establish the value of a claim. The reduction of any one or all of these elements decreases the value of a
claim. The City, through accountability of the Departments, Divisions and employees, can reduce those
elements of frequency, severity, and legal liability.
Effective risk management of liability claims requires high level emphasis on these elements if it is to be
considered "important" and not merely "part of the cost of doing business". To that end, the following
procedures have been established:
a)
For any injury claim costing $50,000 or more, or any property damage claim costing $5,000 or
more, the Department Head will report to the City Manager precisely what actions will be taken to
preclude a repeat of the incident that created the claim. (Risk Management will advise the
Manager's Office/Department when this occurs.)
b)
Performance Based Budgeting Goals are to include criteria for the reduction of claim frequency.
Department Heads will be assessed in their merit evaluation on claim frequency, cost, and efforts
at proactive claim avoidance.
c)
Disciplinary action should be taken against employees whose carelessness or neglect is more
than 50% responsible for a particular claim loss.
Please emphasize to your employees that we all have an important responsibility to perform all aspects of
our duties in such a way that exposure to liability claims is curtailed.
SR:R~B:C~'~
a:\COMM-MEMO-98/deptmem1.99\GENLIABPRC
CC:
Mayra Diaz-Buttacavoli, Assistant City Manager
Janet Gavarrete, Assistant City Manager
Christina CueNo, Assistant City Manager
Richard Bender, Executive Assistant ~o ~he City Manager/Labor Reiations
Ronnie Singer, Executive Assistant to the City Manager