A Message from CEO Eric Lucas

Risk Management - Yesterday and Today

When we look at the historical nature of risk management, we realize – in its earliest form – the risk management process involved simply the spreading of the chance of loss to an entity.  We all recall how the syndicates at Lloyds of London came about, but prior to that type of risk management a merchant would send out three of his ships at once, all headed for the same faraway destination and loaded with the same goods.   It was his hope, fingers crossed, that word would come back that at least one of the three ships had made the journey intact and did not succumb to any of the perils of the sea such as storms, pirates, etc.  In the merchant’s version of risk management, “one out of three ain’t bad!”  When you look at it now, it was a very costly way to manage risk but those were the early merchant’s limited choices for doing business and guaranteeing that he stayed in business.  He recognized that the probability of loss was great, and he hedged his bets by deploying more than one ship – knowing the odds were in his favor that at least one would make it to port.

The merchant’s decision, in his world of risk management, was financial in nature.  That has not changed today.  Decisions on how much loss an entity can bear, i.e. retention and /or deductible, to how much coverage it needs, to what coverage limits it can afford are all parameters of the cost of risk management.

The issue of how much coverage is enough coverage is an interesting topic.  Certainly, no entity wants to experience the loss that tests or exceeds their available coverage limit. We can draw experience from our peers in seeing their losses and the dollars involved; especially on the losses that gain headlines.  We also know that someday, we could be in those same shoes and, much like the merchant of long ago, our fingers are crossed in hope it doesn’t happen to us.

To alleviate that finger crossing phenomenon, SELF offers an Optional Excess Liability (OEL) coverage that can add another $25m above your underlying $20m in SELF’s core coverage.  Many current SELF members have this OEL coverage as part of their risk management portfolio.  SELF encourages those members who are not participating in the OEL to take a look at this very affordable option.             

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Want to increase your Optional Excess Liability Coverage? Or add OELP to your coverage?

NEW INDUCTEE! Visit the SELF Risk Services Clearinghouse and check out this valuable resource available to SELF Members. Our newest inductee is InjureFREE Athletic Injury Reporting System.

Do you have a superior risk management solution that you would like to share with the membership? Contact our office with details.

SELF Resource Center - Has tons of free risk management resources and training tools for our members. Check out the recordings of our most recent Good Schools Workshop Webinars "Special Education Issues and School District Liability: Transportation Liability - Protecting Our Most Vulnerable Students"; Special Education and School District Liability: Litigation War Stores and the Lessons We Learn From Them"; "Protecting Our Children: Recognizing the Signs of 'Grooming"" and "Exploring Your SELF Resource Center". Don't have a log-in? Click here to learn how to make one!


ONLINE REGISTRATION NOW OPEN for the next Good Schools Workshop coming April 25th at 10 a.m. or a live repeat April 29th at 1:30 p.m. Don't miss out on this valuable training opportunity on the Prevention and Reporting of Student-on-Student Sexual Assault and Harassment in our schools with Erika Allen, JD, Ph.D.

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