Managing the risks of injury - camping injuries

Rules regarding coverage for campers and employees differ even though they are all exposed to the same hazards and risks of injury. When campers sustain injuries, they are usually covered under General Liability Insurance. However, when employees sustain injuries that develop out of or during the course of their employment, they are covered by the Worker's Compensation insurance policy.

Injuries to campers are evaluated under our system of tort and negligence, that is, what is expected of a reasonable and prudent person. Injuries to employees are processed under the Worker's Compensation system, which has evolved into a no-fault lottery, providing virtually unlimited medical coverage, compensation for lost wages, and rehabilitative services to injured staff.

Worker's Compensation

In a previous article, we outlined how the Americans with Disability Act, the Civil Rights Act of 1991, and other Federal laws have created new obligations for employers. Worker's Compensation statues have created an additional set of duties and responsibilities for camp owners and directors. Each state has enacted its own unique set of regulations as a mechanism to help employers meet their responsibilities to their employees. For this reason, camp directors are constantly challenged to manage the risk of injury to employees.

Generally speaking, the mechanisms for managing the process at the state level are cumbersome and complex. Some states control it to such a degree that they set minimum rates insurance companies are allowed to charge for Worker's Compensation coverage. Other states have an elaborate system of reporting claims and resolving disputes among parties. Because of the dynamics between labor and management and the concept of entitlement in our country, Worker's Compensation became a political football a few years ago.

Only recently has meaningful effort been focused on reform. The result has been improvement in certain states where the market for Worker's Compensation insurance had all but evaporated a few years before. While the environment and marketplace for Worker's Compensation insurance is showing improvement, there are still many problems.

One problem is the cost of this insurance to cover the risk of injury to employees. While the cost may be coming down in some states, we expect it will take time for this momentum to build in all states. Therefore camp directors should take a proactive approach to managing the risk of injury to employees. This action should have a positive effect on individual camps and help the camping industry as a whole.

Long-term strategy

Most Worker's Compensation claims from injuries at camps are minor. They involve sprains and strains of fingers and ankles. These do not usually cost more than a couple of hundred dollars to treat, but the Worker's Compensation system requires employers to notify the insurance company. Some states do not necessarily require the claim to be processed by the insurer.

If this claim is processed through the insurance company, there is a good chance it will cost more to process than will be paid out in medical expenses. Under these circumstances, and only if your state regulations permit, we recommend establishing a claim fund from which the camp director pays the cost of the medical bills from minor Worker's Compensation claims.

This practice does not eliminate your obligation to complete a claim report and notify your insurance company and state regulatory authority. You are obligated to put them on notice that an incident has occurred. Insurance companies generally refer to this as a "for records only" notice. If you decide to establish this claim fund and use it for minor medical bills, be certain to indicate this information clearly on your claim notice. You should also make your agent and insurer aware of your plans. It is important to give notice to your insurance company in a timely fashion. Occasionally a claim that appears minor becomes more complicated. This helps to avoid any problems if you have to open a more complicated claim at a later date.

Experience modification program

It is also important to realize how much minor claims impact your experience modification. Most camps have Worker's Compensation premiums large enough to be part of this program. States may differ slightly, but the main purpose of an experience modification program is to reward employers who operate safely and have fewer than expected losses by charging them lower premiums. Conversely, if you have worse than expected loss experience, your penalty is higher premiums.

Minor claims are calculated at full value in most states' experience modification formula. As a result, a large number of small dollar, minor medical claims will adversely impact your camp's experience modifier. By adopting a proactive approach to these claims, you help control your camp's individual experience modifier. Because setting up this small claim fund may not be acceptable in all states, we encourage you to discuss this with your insurance representative and insurer to be certain you are in compliance with your state's regulations.

Another way to reduce the impact of employee injuries on your experience modification is to encourage employees who have sustained more serious injuries to return to work as soon as possible. Once an employee has been released for light duty work by the doctor, camp directors should bring these employees back to work. As always, the insurance company should be notified of the circumstances. You will save lost wages.

Fraudulent claims

Worker's Compensation provides almost unlimited medical coverage and payments for lost wages. Therefore, fraudulent claims can impact Worker's Compensation insurance costs to camps. If you have ever felt that an employee's injury or claim was suspicious, you are not alone. Some states have declared war on fraud. California has had some solid success, and Massachusetts has established a separate Fraud Bureau and is making great progress in its fight against fraudulent claims. Other states are making similar efforts. You should communicate with your insurance company and insurance agent about any claims you think are suspicious. You can be part of the process to help.

Managing risks

As a camp director and employer, you can first have your attorney review your job application to ensure that it is in compliance with state and federal laws. You can restructure your interview questions to include appropriate questions about physical abilities that are bonafide job requirements. Before making a decision to hire someone, carefully review health histories for insight into preexisting conditions that could become a problem during the camp season. Insist that counselors wear protective devices, such as knee braces, when required. Document all conversations in which you have requested a change in behavior or the use of safety equipment. This should be done as soon as possible and kept in a file.

Another area that causes concern is overly aggressive behavior by counselors. Unfortunately, when counselors stop being supervisors and coaches and get too involved in the game, the risk of injury to campers and counselors increases. This can result in injuries that cost thousands of dollars and can cause negative public relations with parents. Counselors should be reminded periodically that they are there to protect the campers, and what this responsibility entails.

Camp directors should also establish rules of behavior for off duty hours. Injuries can occur during times when counselors engage in recreational activities with each other, or during free times when they engage in activities with campers. These injuries are sometimes covered because some states insist that coverage apply regardless of the activity. The only criteria is that the injury occurred on the camp premises. Counselors should be instructed not to engage in aggressive play, and camp management must be vigilant and remind counselors who go beyond reasonable behavior.

Staff training with an emphasis on safe practices continues to be one of the most effective tools directors have for managing the risk of injury to employees. Uniform enforcement of the safety rules and the use of protective equipment makes sense for everyone, counselors and campers alike. Getting your employees involved and thinking about safety can bring you huge returns. One method to use to do this is to form a Safety Committee that includes staff members. Some states have started requiring these committees as part of Worker's Compensation reform. An investment in safety training for camp staff can pay big dividends by eliminating costly and time consuming Worker's Compensation claims while allowing everyone to have an enjoyable summer at camp.

For more information about establishing a Safety Committee, send requests to: Ed Schirick, Markel Insurance Company, 4600 Cox Road, Glen Allen, VA 23060.

Ed Schirick is senior vice president of the Markel Insurance Company camp and youth recreation division. He is a charted property casualty underwriter and a certified insurance counselor. Send your risk management inquiries to: Ed Schirick, c/o Markel Insurance Company, 4600 Cox Road, Glen Allen, VA 23060.

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