Division of State Risk and Insurance Services provides and procures cost effective insurance for state owned property, vehicles, mobile equipment, and liability risk exposures. Additionally, this division provides state-wide risk management services and procures Public Official Bonds, Commercial Liability, Sickness/Accident insurance policies, Aviation policies and various liability policies to state agencies, universities, and Kentucky Community and Technical College Systems. The division also provides underwriting, appraisal services of state owned structures and utilizes a third party claims adjuster to assist in processing your claims faster. State Risk evaluates the various state agencies’ insurance needs and acts as the insurance liaison between state agencies, the Finance Cabinet and the commercial insurance market.
- The State Fire and Tornado Insurance Fund (F&T), an essential focus of the division, is a self-insured, commercial property insurance program established in 1936. The F&T provides insurance protection for all state owned buildings and business personal property (contents), pursuant to KRS 56.070. The fund provides property insurance coverage on an “all risk” basis, including losses caused by floods and earthquakes, subject to specified exclusions, for approximately 8,200 state owned structures. The current FY policy may be found under Related Information below.
- The Kentucky Self-Insured Auto Program (KSAP), is a self-insured, state owned vehicle insurance program established in 2011. The KSAP staff audits and records all vehicle additions and deletions per agency, issues the annual renewal billing and collects the premium due. KSAP is responsible for insuring in excess of 13,000 vehicles.
The Division is comprised of five key areas:
Appraisal: Performs field appraisals and annual appraisal updates for approximately 8,200 structures owned by the Commonwealth. The appraisers determine the replacement cost value by using industry standard appraisal software with an emphasis on square footage, perimeter, construction methods and cost of materials. These values are then utilized by the underwriting staff to determine the insurance premium for all state owned structures.
Underwriting: Issues approximately 310 insurance certificates to insured state agencies, universities, and the Kentucky Community and Technical College Systems. To ensure proper insurance coverage, the underwriters counsel with state entities to determine the acquisition or surplus of buildings, business personal property (contents), fine arts and scheduled business continuation coverage, throughout the state. For the current FY, $25 billion in assets are insured, through the Fire and Tornado Fund.
Sprinkler: administers the KRS 56.170 mandated inspection program for all state owned and insured facilities. They coordinate the quarterly, annual, and five-year sprinkler inspections for the state facilities.
Claims: Administers all property damage claims for the Commonwealth of Kentucky within the Fire and Tornado Fund (F&T) for insured properties. As part of a claim, they are also responsible for setting up the claim, investigating, assigning to a third party property claim adjuster when needed, and making settlement payments to the insured agency for covered damages. For auto claims with the Kentucky Self-Insured Auto Program (KSAP), the claims staff sets up a claim, receives photos and police reports to confirm vehicle coverage prior to sending the claim to a third party claims adjuster, who will handle the claim until settlement is determined for closure. Claim packets and claim forms are under Related Information below.
Risk Management: One of the largest misconceptions about risk is that you are at its mercy. The truth is…..YOU possess more power over risk than you think! Risk management is defined as a process of managing uncertainty and potential exposures that affect your agency’s assets. A risk management plan is an active process that provides valuable insights to an agency to avoid or alert potential risks. By minimizing or mitigating these risks (hazards), an agency can reduce or eliminate disasters before they occur. It starts with identifying and evaluating risk, followed by correcting and eliminating risk to prevent potential losses.
At State Risk, we provide statewide risk management services at no additional cost. The state’s Risk Manager and our excess insurer, FM Global, will assist your agency with a risk management plan. As risk managers, we are responsible for managing hazards posed to agencies all while protecting state assets, income, and employees.
The first step in creating an effective risk management plan, is to understand the distinctions among the types of risks that an agency may face. A risk event (hazard) from any source has the potential to be fatal to an agency’s strategic plan or even to their employees and visitors. Having a risk management plan is an important part of maintaining a successful and responsible agency. It will not only help protect people, but avoid costly and often unbudgeted repairs. Interested in having a viable risk management plan at your agency?
You can start by following these simple steps:
Step 1: Identify Risk
Step 2: Analyze the Risk
Step 3: Evaluate or Rank the Risk
Step 4: Treat the Risk
Step 5: Monitor and Review the Risk
If you are interested in more information, we welcome the opportunity to speak with you about avoiding risk. Contact us to schedule your free risk management assessment at 502-782-5444.
State Risk & Insurance Services Training:
Our division offers a variety of complimentary training opportunities to state agencies. These include a wide variety of insurance topics including, but not limited to the following:
- A General Overview of the Fire & Tornado Fund and KY Self-Insured Auto Program (includes form completion assistance).
- The Property and Auto Claims Process
- The KY Self-Insured Auto Program Audit Process
- The Sprinkler Inspection Program (Includes a hands on experience, if facilities are available.)
For more information, please review the Training Request Form (CTR-1).
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