Risk Management Chapter 15

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Questions and Answers

Match the following terms with their definitions:

Negligent hiring = Hiring someone without adequate background checks Negligent retention = Keeping an employee despite known issues Criminal background check = A review of someone's criminal record Restitution = Compensation for loss or damage

Match the individuals with their consequences:

Jerry = No formal charges proven Sam = Spent three days in jail Greg = Explained the situation to tenants Tenants = Suffered losses from thefts

Match the following events with their timelines:

Sam's theft of services conviction = A year and a half ago The apartment thefts = Right after Sam was hired Sam's check fraud conviction = Three months ago Greg's background check on Sam = Two years after hiring Sam

Match the following workplace safety regulations with their descriptions:

<p>OSHA regulations = Require first aid kits in the workplace Safety inspection = Offered by a police agency or insurance company to spot issues Employee handbook = Covers discrimination and unacceptable behavior Building codes = Regulate remodeling activities</p> Signup and view all the answers

Match the following actions with their relevance to employee safety:

<p>Requesting a certificate of insurance = Ensures independent contractors have adequate coverage Training in first aid = At least one person must be trained in many workplaces Keeping track of repairs = Helps protect landlords from safety claim issues Retrofitting = Remodeling to withstand earthquakes</p> Signup and view all the answers

Match the following responsibilities of a manager:

<p>Hiring an independent contractor = Request a certificate of insurance Emergency procedures manual = Outlines steps to take in various emergencies Training for security staff = Involves instructions on detaining shoplifters Discrimination policy = Included in employee handbooks for safety</p> Signup and view all the answers

Match the following statements about employee injuries:

<p>A tenant not trained for fires = Should be informed of smoke detectors Injuring a coworker = Relates to known dangers at the time of hiring Liability concerns = Stemming from unaddressed safety issues Training fire extinguishers = Not necessary for every employee</p> Signup and view all the answers

Match the following concepts with their implications on safety:

<p>Different managers’ instructions = May vary on detaining suspected shoplifters OSHA regulations on first aid = Imply workplace safety standards Building codes = Directly regulate construction and remodeling Emergency procedures = Critical for managing workplace safety emergencies</p> Signup and view all the answers

Flashcards

Negligent Hiring

Occurs when an employer hires an individual without conducting proper background checks, leading to harm caused by the employee.

Negligent Retention

Occurs when an employer continues employing an individual despite knowledge of their misconduct, which leads to harm.

Importance of Background Checks

A thorough background check is crucial before hiring an employee to identify any potential risks.

Unfounded Belief affecting Investigation

A reasonable belief that someone is responsible for a crime, even if unfounded, might make an employer liable if it prevents further investigation.

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Employer Awareness in Negligent Retention

An employer's liability for negligent retention hinges on the question of whether they knew or should have known about the employee's misconduct.

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What is retrofitting?

The process of strengthening a building to increase its resistance to earthquakes.

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Why are safety inspections important for property managers?

A safety inspection by authorities or insurance companies can help property managers identify and fix potential hazards. Failing to address issues revealed by the inspection can lead to liability.

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What should an employee handbook for property management employees include?

It is important for businesses to include information about discrimination, sexual harassment, and unacceptable behavior in their employee handbooks to create a respectful and safe work environment.

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What should a property manager request from an independent contractor?

When hiring independent contractors, property managers should request a certificate of insurance to ensure the contractor has adequate coverage to protect the property and business.

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OSHA first aid requirements

OSHA regulations require workplaces to have first-aid kits and trained personnel, but not everyone needs to be trained in first aid.

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Study Notes

Risk Management Learning Objectives

  • Students should be able to explain negligent hiring and retention, and identify ways to reduce risk
  • Discuss employee handbooks and types of issues they should address
  • Discuss the role of inspections and repairs in risk reduction
  • Compare emergency plans and manuals
  • List common crimes of concern to property managers and discuss methods of addressing them
  • Compare general hazard insurance with special form insurance
  • List types of homeowner insurance policies
  • Contrast bonding and errors and omissions (E&O) insurance

Suggested Lesson Plan

  • Students will review the previous chapter on Federal, State, and Local Laws
  • Students will review learning objectives for Chapter 15 on Risk Management

Negligent Hiring and Retention

  • Negligent hiring is when an employer is liable for an employee harming others
  • Negligent retention is when an employer fails to remove an employee who is dangerous after learning about the danger.
  • To avoid negligent hiring, thoroughly screen applicants
  • Liability for negligent hiring/retention also applies to contractors
  • Ensure contractors have proper insurance

Reducing Risk from the Property

  • Inspect properties for safety issues immediately upon taking over management
  • Hire professionals to inspect specialized equipment such as elevators
  • Address necessary repairs promptly, but seek specialized help if needed
  • Examples of necessary repairs are boilers, elevators, pipes, and wiring
  • Create a maintenance work log with detailed information on issues discovered, repairs performed, and who performed the repairs.
  • This acts as evidence against accusations of unequal treatment of service requests
  • Take precautions to warn tenants and visitors of danger before and during repairs.

Emergency Preparedness

  • Establish an emergency plan in the emergency procedures manual.
  • Communicate important parts of the plan properly.
  • Include communication methods for emergencies, such as contact information for management, utilities, police, fire, and emergency services.
  • Create a map of the building to show the locations of utility shutoff valves and switches.
  • Hold regular drills to test and improve the plan.
  • The plan should contain information on evacuation routes and procedures to follow during various types of emergencies
  • Ensure staff safety during emergencies
  • Communicate essential aspects of the plan to tenants; include them in meetings, handbooks, and website disclosures
  • Make sure emergency plans are tailored to the specific property and relevant local ordinances

Security Issues

  • Comply with door and lock requirements (e.g., state/local ordinances)
  • Have proper security personnel and equipment, including personnel and alarm systems
  • Have security plans developed to address specific crimes (e.g., graffiti and vandalism, drug activity, computer crime, and identity theft)
  • Follow procedures to reduce the risk of crimes within the property including; lighting, landscaping, and surveillance.
  • Ensure the security and safety of tenants
  • Follow any state or local regulations about security issues

Insurance

  • Maintain insurance to address potential risks
  • The insured has to have an insurable interest, which is their ownership.
  • Policies may have different limits for the amount of insurance per incident and per year
  • There are multiple types of insurance (e.g., hazard, renters, liability and automobile); consult a broker for appropriate coverage to reduce the risk of liability toward the owner
  • Include cost of repairs, damage, and legal defense in policy evaluation

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