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Understanding Risk Management, Insurance and Legal Issues
Chapter 14
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Rewards• Intrinsic rewards• Extrinsic rewards
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Risk Management• Identifying potential hazards and creating a safety
and health program to prevent their occurrence• 5 elements of effective safety & health program:
1. Management leadership and employee participation
2. Workplace analysis3. Hazard prevention and control4. Safety and health training and education5. Program evaluation
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Hazards• Sharp objects• Machinery and
equipment• Slips, trips and falls• Hot surfaces and
liquids• Chemicals• Overexertion
• Muscular skeletal hazards
• Electrical hazards• Motor vehicle accidents• Infectious diseases• Workplace violence• Unpredictable work
environments
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Safety Committees• Responsible for:
– Hazard identification and inspections– Hazard control– Training– Accident investigations
• Considerations:– Group must receive clear guidance.– Group cannot be dominated by management.
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Insurance Program• Identify and analyze the exposures or potential
causes of loss.• Know the options to address the exposures, and
choose the best alternative for the group.• Monitor the insurance program and make
incremental adjustments to the package.
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Addressing Risk• Avoid• Reduce• Transfer
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Informed Consumer• Property insurance• Liability insurance• Personal and advertising injury liability• Fire damage liability• Medical expense coverage• Automobile insurance• Employment practice liability
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Selection of Insurance• A caterer must have the right coverage to fit the
business needs at a competitive rate.• To keep costs down:
– Higher deductibles– Higher coinsurance clauses– Low losses– Competitive quotes
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Contracts• Binding agreements between two or more parties
that create an obligation– Caterer is obliged to provide food and service.– Client is obligated to pay for food and service.
• Must cover a standard set of basic stipulations• Before entering into a contract, an attorney should
review its specific contents.