Compliance Coffee Talk · May 2026
What makes a strong risk program, according to a TPA?
Tracy Berry supports five California public sector pools at Sedgwick. Here is what she sees separating strong risk programs from the rest, plus her advice on vendor pushback, special events, and nuclear verdicts.
Guest expert
Tracy Berry
Contracts Manager, Pooling, Sedgwick
John Rote
Host
The session
A TPA who has sat on both sides of the contract
Tracy Berry is a contracts manager in pooling at Sedgwick, a third party administrator. She supports five public sector pools in Northern California: three municipal pools, one vector control pool, and one transportation pool. The largest has 53 members.
Before Sedgwick, she worked in commercial construction for large subcontractors, and she was part of California's 2012 indemnification reform. In May she joined John Rote to answer questions from public sector risk managers.
Watch the full conversation, or read the takeaways below.
Key takeaways
16 takeaways from the session
Grouped by the questions attendees asked, from what strong programs do differently to why waivers carry less weight in court.
01–03
What strong programs do differently
The best risk managers plan for the worst case and keep their documents current.
- 01
Plan for what could go wrong
Tracy's weakest groups tell her something is never going to happen because it never has. Her answer: "It doesn't happen until it happens." Her strongest risk managers carry some natural cynicism and ask what the worst outcome could be when they evaluate anything new.
The takeaway: When you review a contract, event, or new activity, name the worst outcome and plan for it.
- 02
Keep contract templates current
Tracy often finds city documents that haven't been updated in a decade, mostly at smaller cities without the staff to do it. Vendors then struggle to meet requirements that aren't industry standard or in line with state law, and projects stall waiting for approval.
The takeaway: Review every contract template every three to five years, and ask your TPA or pool to take the first pass.
- 03
Clear the insurance section before legal sees it
Tracy asks for documents in Word and marks up the insurance section with tracked changes. She asks only for industry standard policies and reasonable limits that match the risk: "We wouldn't ask for five million for somebody that's coming in and changing light bulbs." Then the agency's attorney reviews it.
The takeaway: Update insurance requirements first, so the attorney can skip that section and focus on the law.
04–06
When vendors push back
Even large cities run into limited vendor pools. Balance being practical with being protective.
- 04
Accept more risk only on purpose
Tracy has seen limited vendor pools for some scopes even in Silicon Valley. Start from the position that you won't bend well-thought-out requirements. If your back is against the wall, the agency can consciously take on more responsibility, one case at a time: how risky is the work, how much are you taking on, can you do it this once, and can you keep a close eye on the vendor?
The takeaway: Treat each exception as a deliberate decision, and don't let it become a habit.
- 05
Put requirements in the RFP, every time
Vendors can only price an umbrella policy, higher limits, or a project-specific policy like builder's risk if they know before they bid. Tracy spent years on the subcontractor side and never wanted surprises at contract time. Answer vendors' requests for information so they can build the cost into the proposal.
The takeaway: Include your insurance requirements, and ideally the whole contract, in every RFP.
- 06
Help vendors reach the limits, not lower them
For higher-risk work like a high voltage project, the vendor needs to carry the right limits or buy an umbrella or excess policy. When vendors are scarce, Tracy has suggested agencies cover part of that first-year cost, such as 10% of the premium or 20% built into the bid. The vendor's other clients benefit from the policy too, and "you need them probably more than they need you."
The takeaway: If your vendor pool is thin, consider sharing first-year coverage costs instead of dropping limits.
“Consciously, you take on a higher level of responsibility as the city. But you don't make that a habit.”
Tracy BerryContracts Manager, Pooling, Sedgwick07–08
Getting more from your TPA or JPA
An attendee asked how to improve a partnership that feels just okay.
- 07
Name the gap, in writing
Not all TPAs are equal, and the JPA is the one that holds the TPA contract. As a paying member, voice the needs that aren't being met through the JPA's board and executive committee. Tracy suggests writing an outline of those needs and raising them professionally and kindly.
The takeaway: Bring a written list of unmet needs to your JPA board or executive committee.
- 08
Expect a conversation about price
Most pools Tracy supports have worked with Sedgwick since JPAs began in the 1980s, but relationships can change when members aren't supported. If a JPA looks for a TPA that does more, members may be asked to contribute more to pay for it.
The takeaway: Decide which services matter most to you before asking for more.
09–10
Teaching colleagues insurance basics
Procurement, finance, and engineering staff field vendor questions every day.
- 09
Policies don't cross over
The most common misconception Tracy hears is that one policy can cover another's risks, such as "Why do we need builder's risk if we're getting general liability?" Each policy covers specific perils. She explains it with homeowners or renters insurance next to auto insurance, and people see that different policies cover different things.
The takeaway: Use everyday examples to show colleagues that each policy type covers specific perils.
- 10
Vendors are often confused too
Many vendors ask their broker for "insurance" and get a standard package. When procurement and operations staff understand the basics, they can answer simple vendor questions themselves instead of passing every one to the risk manager.
The takeaway: Train the people who talk to vendors, so fewer questions wait in the risk manager's inbox.
11–13
Special events and new activities
New community events bring exposures your requirements may not cover yet.
- 11
Build the review team from the activities
An attendee listed the attorney's office, fire, police, parks and recreation, waste management, the health department, and public utilities. Tracy said that covers it, depending on the event. Street closures need traffic control, and pyrotechnics bring in fire.
The takeaway: Decide who reviews an event permit based on what will actually happen at the event.
- 12
Drone shows need different coverage
Three of the cities Tracy supports held their first drone shows last year instead of fireworks. Drone shows need aviation coverage, and she asks where the drones take off, where they fly, and whether they ever pass over the public or structures in case one loses its battery.
The takeaway: Ask for aviation coverage and a clear flight path before you approve a drone show.
- 13
Vet new attractions, and know when to say no
Tracy works with cities using polymer skating rinks that take regular ice skates and run all year. At one holiday rink she watched a skater stop just short of a child's fingers. When a city wanted an inflatable in a pool, litigation counsel said no because someone could get caught underneath.
The takeaway: Require robust insurance from attraction vendors, and drop ideas whose worst case you can't manage.
“Think ahead. Be preemptive. Use forethought, and don't be afraid of the hard stuff.”
Tracy BerryContracts Manager, Pooling, Sedgwick14–16
Nuclear verdicts and what the city should have known
Courts hold agencies responsible for hazards they should have seen coming.
- 14
Waivers carry less weight than you think
In California, participant waivers "don't do a whole lot of good," Tracy said, and there is case law where they haven't held up. Nuclear verdicts have been strong there for about 12 years, and some rule for plaintiffs without weighing the city's evidence. That pressure is part of why requirements keep rising.
The takeaway: Keep using waivers, but check that your limits can carry a large verdict.
- 15
Fix the cause, not just the hazard
Courts ask what the city should have known. With lifted sidewalks, the vendor grinding or replacing the sidewalk needs enough insurance, but if the tree roots aren't dealt with, the problem returns. Cities will keep offering open swim, so balance that risk with lifeguards.
The takeaway: When you fix a known hazard, deal with what caused it so it doesn't come back.
- 16
Know the difference between dead trees and sudden limb drop
Pine beetles have killed much of the Sierra Foothills' ponderosa pines, and once they're in, the only fix is removing the trees. Sudden limb drop is different: after a hot day and a cool night, a healthy limb full of water can simply let go. Arborists can't see inside trees, so Tracy calls this an act of God.
The takeaway: Remove infested trees from city property and rights of way, and keep up regular arborist care.
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