By Chad Engle, Loss Prevention Manager and Safety Specialist
In the insurance industry, claims are presented all the time and insurance professionals know what to do and more importantly, what not to do. When someone comes to you, as a county official, and alleges they suffered some harm or property damage caused by the actions of a county employee, it is natural to want to help. You may feel obligated to give the citizen an immediate response, take responsibility by accepting fault, and commit to paying for the harm. But let us take a moment to consider the implications of immediately admitting liability or committing to paying damages.
Admitting liability or committing to pay damages before a thorough investigation has been completed is never a good idea. While a citizen may make a convincing argument that they are rightfully owed damages, a full investigation may reveal different facts that show otherwise. A reasonable response to a claimant’s demand is that you will gather information about the incident and submit it to NIRMA’s claims department for consideration. This allows you to show the claimant that you take their allegations seriously and that you will forward them through the proper channels for review of coverage, liability and damages. The coverage provided to
NIRMA members will pay for amounts that they are legally liable for. If the investigation determines that the member is not legally liable for the damages, the claimant will be notified. It is also important that the damages claimed are evaluated to determine whether they are reasonable. A member official does not want to put themselves in a position where they have committed to pay for damages that are not owed or are not reasonable. That would be a disservice to your constituents as a whole, and an inappropriate expenditure of their tax dollars.
NIRMA cannot be bound to make a payment to a claimant simply because a member county or agency official has admitted liability or committed to reimbursing them for their damages. In addition to the determination of coverage, liability, and damages, there are certain immunity protections and defenses granted to counties and county related agencies through the Nebraska Political Subdivisions Tort Claims Act (Tort Claims Act). The Tort Claims Act is a complex piece of legislation with specific rules and requirements that add another layer of difficulty to the claims process.
In the future, if you are contacted by someone that alleges the county is responsible for their injuries or damage to their property, please make no comments regarding fault or liability. Gather all the available information and document the facts surrounding the event. Notify your NIRMA contact person immediately so that they can report the incident and get the claims process started. If you have questions, you are always welcome to contact someone in the NIRMA claims or loss prevention departments at 1.800.642.6671.
To assist our members in investigating possible claims we have developed an Incident Investigation Checklist and a Non-employee Incident Report, both of which are available on the NIRMA website by clicking on Inspection Forms and Checklists under the Resources tab. As always, I can be reached at 1.800.642.6671 and chad@nirma.info.
