Risk management during a crisis: Richard Rabs, ST Management

As the coronavirus pandemic upends normal operations for numerous organizations, Business Insurance is running daily profiles of risk managers who are adapting to the crisis.

When the pandemic closed schools, work life changed drastically for most at ST Management Inc., a mid-sized provider of student transportation to a number of school districts in Illinois and Connecticut. For Richard Rabs, the company’s Downers Grove, Illinois-based vice president of safety and risk management, the pandemic meant shifting his workspace from the office to his home and making calls to insurers about how the crisis is affecting the company’s employees and payroll.

“Our workforce is our biggest concern,” Mr. Rabs said. “The reality is, we’re trying to keep in touch with our employees because we have been affected.”

Right now, the company’s driver workforce is on a temporary layoff until schools resume. Although in Illinois, a stimulus bill passed in late March mandating that school districts pay contractors, including student transportation companies, Mr. Rabs said that funding has not yet materialized.

“But we’re remaining positive and doing what we can,” he said. “We’re hoping to get revenue from our districts so we can pay our drivers.”

The company does still have mechanics continuing to work at the appropriate social distance to ensure that when schools reopen, the company is 100% back in business, he said. The company is also taking steps to sanitize all vehicles and buses, also known as “rolling petri dishes,” joked Mr. Rabs.

“There’s no such thing as too much precaution,” he said. “Who wants to be the one to tell their school that they’re the ones who brought the virus is?”

Despite all of the challenges the pandemic has brought, there are some bright spots, such as the fact that more than three weeks after driver layoffs he has not received a single workers compensation claim.

“I was expecting a spike,” he said. “I’m actually very proud of our workforce for seeing none of that.”

And the company’s safety statistics “are through the roof right now,” Mr. Rabs said. “It’s going to be an interesting time come renewal for us because underwriters are going to be looking at incredible results — there’s no exposure.”

The insurers are recognizing this reduction in exposure and providing relief right now, he said, noting that the company’s workers compensation insurer adjusted premiums to accommodate the reduction in payroll, and its primary auto program allowed the company to suspend coverage on vehicles that are not moving.

“I’m the one department in the company that can say our partners are stepping up with us,” Mr. Rabs said. “The insurance industry has stepped up to help this economy.”

For more Risk Management During a Crisis profiles, click here.

More insurance and risk management news on the coronavirus crisis here.