a. The City of Carson with respect to the management of all risks of accidental loss shall have as its objectives:

1. The protection of the city against the financial consequences of accidental losses which are catastrophic in nature

2. The minimization of the total long-term cost to the state of all activities related to the identification, prevention, and control of accidental losses and their consequences

3. The creation of a system of internal procedures providing a periodic assessment of fluctuating exposure to loss, loss-bearing capacity, and available financial resources, including insurance

4. The establishment to the extent possible of an exposure-free work and service environment in which the city employees as well as the public can enjoy safety and security in the course of their daily pursuits

2. Risk Management Functions

a. The risk management office shall have authority for:

1. Identification and measurement of risks of accidental loss

2. Selection of appropriate risk management techniques for resolving exposure problems: risk assumption, risk reduction, risk transfer, other systems, as appropriate, including the purchase of insurance

3. Development and maintenance of a risk information system in coordination with existing systems for the timely and accurate recording of losses, claims, premiums, and other risk-related costs and information

4. Allocation of insurance premiums, uninsured losses, and other risk costs and information

5. Risk management consultation to the city manager and all senior management personnel

3. Risk Retention

a. With regard to risk of accidental loss, it shall be the city’s policy to self-insure all losses:

1. Which occur with predictable frequency, and

2. Which will not have a significant impact on the city’s financial position, and

3. Will be in compliance with the laws and statutes of the city and State of California Tort Claims Act.

b. The intention of the city as a general guideline is to self-insure aggressively and to maintain high standards of claims handling and risk management capabilities. Exceptions to these guidelines should be allowed:

1. Whenever certain necessary services can be obtained only through the purchase of insurance

2. When the city is obligated by contract or law to purchase insurance and no alternate method is available

3. When deductibles, non-insurance, and self-insurance do not result in long-term economies

4. Purchase of Insurance

a. The procurement of all property/casualty and workers’ compensation insurance in the city will be coordinated through the division of risk management.

b. Insurance shall be purchased from any source determined to be in the best interest of the city.

c. Whenever possible, the remuneration of agents and brokers providing services to the city shall be made on a fee basis.