Providing service to our clients is the Division of Risk Management's reason for being. Whether we are restoring a school building destroyed by fire, defending a state employee who is sued for doing his job, or supporting an injured state employee until he can safely return to work, our goal is to help our client agencies quickly at the lowest possible cost to the taxpayers.

Of course, an ounce of prevention is worth a pound of cure. That is why the reduction or elimination of property losses and personal injuries is such an important part of our mission.

This web site has been designed to provide a wealth of information about our agency and access to important documents and forms. Of course, if you need more, we welcome your letters, telephone calls or E-mail.

Introduction

Effective risk management by state government is essential. Rising inflation, erosion of governmental immunity, constant increases in medical care costs, escalating insurance premiums, and a claims-conscious public all demand effective programs to both reduce exposure to loss and to control the cost of loss.

It is the responsibility of directors, managers, or supervisors of state programs, personnel and property to:

• Protect the state's assets;
• Ensure a safe environment for state employees and for the people who come into contact with state employees or property as services are provided;
• Minimize the possible interruption of vital public services;
• Assure that all exposures to financial loss are discovered and handled appropriately;
• Reduce the costs and consequences of accidents, including insurance premiums, through effective safety management.

The Division of Risk Management was created to assist in this endeavor (Enabling Legislation).

Background

The Division of Risk Management (DORM) was created by an act of the Legislature in 1990. The Division administers the State Insurance Fund, General Liability Trust Fund,  Educators Liability Trust Fund,  the State Employee Injury Compensation Trust Fund, the State Employee Assistance Program, and the Equipment Maintenance Program. DORM also manages insurance coverage of various departments of state government that require commercially provided insurance and provides risk management guidance on risk issues affecting the State of Alabama.

Managing insurance coverage includes assistance to agencies in securing, underwriting, pricing, billing, and claims handling. Coverage for various departments of state government may be authorized or required by statute, federal regulation or by lease agreements.

Within the context of the above, major functions of DORM are:

• Establishing adequate and secure coverage for exposure to loss at minimum cost.
• Administering equitable cost allocation for coverage for its clients.
• Assuring that claims are promptly and fairly paid.
• Promoting safe practices to protect life and property.