Policy: Insurance Coverage
|Date: 04/01/04||Policy ID: FIN-006||Status: Final|
|Contact Office:||Risk Management|
|Oversight Executive:||Executive Vice President and Chief Operating Officer|
|Applies To:||Academic Division, the Medical Center, and the College at Wise.|
|Table of Contents:||
|Reason for Policy:||The University of Virginia, for its own protection and for the protection of its employees and agents as well as the general public, maintains an umbrella of insurance protection as part of its risk management program. This policy describes the general types of coverage provided and the responsibilities of University employees.|
|Definition of Terms in Statement:|
The Office of Risk Management will administer the risk management programs for the University, including procurement of insurance and administering claims associated with the University’s risk management program. Coverages include general and professional liability, property damage, vandalism, theft, equipment breakdown, watercraft, aircraft, automobile liability and physical damage, telephone fraud, and other specialized insurance as may be necessary.
As a state agency, the University participates in certain insurance programs that are part of the State’s Risk Management Plan. The University’s Office of Risk Management will procure insurance or develop self-insurance programs that are not provided by the State Plan.
Employees are encouraged to call the Office of Risk Management to discuss any perceived risks that they may encounter throughout the University. The Risk Management program deals not only with insurance and claims, but also with coordinating attempts to prevent or reduce future losses. Additionally, the risk management staff reviews University contracts and agreements for insurance issues and other risk management concerns, and provides risk management advice to the University community.
Whenever any type of loss occurs, except those involving vehicles or injuries to employees while on the job, an Incident Report Form should be completed and faxed to (434) 982-2635 to the Office of Risk Management, hand-delivered to 2400 Old Ivy Rd. Suite 181, emailed to ORM-FRM@virginia.edu. For incidents involving vehicles, an Automobile Loss Notice Form should be completed and sent to the Office of Risk Management. To report injuries to employees while on the job (Workers Compensation) contact the Human Resources Benefits Office. For vehicle incidents that involve employee injuries report to both the Office of Risk Management and Human Resources. [See procedures below.] For incidents involving Medical Center patients, contact the Medical Center’s Risk Management Office.
A brief outline of the coverages being maintained follows, but because of the complexity of the various coverages, it does not detail all of the exclusions and exceptions. To make inquiries concerning insurance coverage, to report any claims relative to bodily injury or property damage, or to report any other incidents that may result in financial loss to the University, contact the Office of Risk Management. BACK TO TOP
You may be contacted to discuss shipping and insurance issues for high value or sensitive equipment. Report all loss or damage of University property as soon as possible to the Office of Risk Management at (434) 924-3055 or (434) 924-3850. BACK TO TOP
The Office of Risk Management requires departments possessing objects of fine art or antiques to provide a full description of the object, its value with a valid appraisal when possible and the location of the item. Fine arts and antiques are covered at their appraised or stated value. Since a loss is more difficult to adjust with appraisals attempted after an article is damaged or stolen, it is strongly recommended that evidence of the replacement value of such items be obtained in advance and stored in an off-site location. BACK TO TOP
This is specialized coverage for the replacement or repair of such items as boilers; fired and unfired pressure vessels; refrigerating or air conditioning systems along with any piping and its accessory equipment; and any mechanical or electrical machine or apparatus used for the generation, transmission or utilization of mechanical or electrical power. There is coverage whenever there is a sudden and accidental breakdown of the items listed above or any parts of those items. At the time the breakdown occurs, it must manifest itself by physical damage to the object that necessitates repair or replacement.
The Office of Risk Management should be notified within 24 hours of damage or loss. Departments are responsible for paying the deductible, which is the first $1,000 per claim. The University is responsible for the next $99,000 of loss. The State’s program of insurance begins to pay when a loss exceeds $100,000. BACK TO TOP
A completed insurance Incident Report Form must be sent to the Office of Risk Management within 24 hours of discovering any loss or damage to state property when it is anticipated the loss will exceed $1,000, or if the loss is caused by a third party. Additionally, all thefts must be reported to the University Police Department immediately.
Prompt reporting and full documentation compliance will expedite recovery for losses incurred. Late reporting or delays in repair or replacement documentation can delay or forfeit reimbursement. Notice of loss must be made to the Office of Risk Management immediately upon discovery. BACK TO TOP
Under the State Risk Management Plan, the Division of Risk Management administers a self-insured liability program, providing tort insurance coverage for the State, its agencies, and its employees and agents. A brief description of the coverage is provided below:
The Plan will pay all sums, except as herein limited, or limited by the Code of Virginia, that covered parties shall be obligated to pay by reason of liability imposed by law for damages resulting from any claim arising out of acts or omissions of any nature while acting in an authorized governmental or proprietary capacity and in the course and scope of employment or authorization. The amount recoverable by any claimant with respect to the Commonwealth of Virginia, its departments, agencies, or any director, officer, employee or agent thereof, shall not exceed one hundred thousand dollars ($100,000) per claim. This limit shall not be applicable to any claim or causes of action other than those established by Virginia law. For claims or causes of action other than those established by Virginia law, the amount recoverable shall not exceed two million dollars ($2,000,000) per claim. The amount recoverable by any claimant with respect to officers, employees and agents of the Commonwealth of Virginia, including students while participating within the authorized scope of a clinical, internship, externship, or other educational program in order to meet pedagogical requirements … shall not exceed two million dollars ($2,000,000) per claim.
All University operations conducted on University property, in owned and leased buildings, or at sites located away from the University are covered for authorized University business. This coverage is usually to provide protection for acts of negligence for which the University and/or its employees and agents may be held legally liable. It should be noted, however, that there may be no coverage if it is determined that liability was incurred by reason of (a) acts of fraud or dishonesty by the Covered Party, (b) acts of intentional, malicious or willful and wanton misconduct by the Covered Party, or (c) criminal acts. Defense for claims, suits, actions or other proceedings covered by this plan is provided under 2.2-507 et al of the Code. Additionally, claims, demands or other actions seeking relief or redress in any form other than monetary damages, including, but not limited to injunctive relief are not covered. Liability assumed under any written contract or agreement is also not covered. Report any incidents, accidents or unusual occurrences to the Office of Risk Management immediately. BACK TO TOP
Health care professionals, residents, house staff and health care professional students are provided medical malpractice coverage for those acts or omissions arising out of the course of their employment or authority. Per the Virginia Code (Section 8.01-581.15), the medical malpractice cap on July 1, 2008 increased to $2,000,000, and on July 1, 2012 increased to $2,050,000 with annual increases of $50,000 ending with the July 1, 2031 increase to $3,000,000. The July 1, 2013 increase will be the medical malpractice cap, unless new legislation is passed in the future. Coverage is not provided for non-University activities, nor is coverage provided to medical faculty under contract with the University to bill for services through the University of Virginia Physicians Group.
Report all medical incidents or potential malpractice claims arising out of Medical Center Operations immediately to Medical Center Patient Safety & Risk Management (reference Medical Center Policy 132 for further information for reporting such incidents). BACK TO TOP
The University maintains aviation liability insurance on its owned aircraft to cover bodily injury and property damage for up to $25,000,000 per occurrence, including passengers (excluding employees covered by workers’ compensation), arising out of the ownership, maintenance or use of its aircraft. Owned aircraft are also insured for all risk physical damage coverage to the aircraft. BACK TO TOP
The University maintains marine insurance to provide hull and related equipment coverage to pay for physical damage to its owned watercraft over 26 ft. in length that are licensed to operate in open waters. BACK TO TOP
Workers’ compensation provides statutory coverage for employees’ injuries during the course of their employment. The Department of Human Resources administers the program and questions should be directed to that department’s Benefits Office. Questions regarding workers’ compensation for employees in the Medical Center should be directed to Medical Center Employee Relations. BACK TO TOP
The Blanket Fidelity/Crime Bond is a State insurance program. Employee dishonesty is considered to be a criminal act committed by an employee acting alone or in collusion with others. There must be a manifest intent by the employee (a) to cause the Commonwealth to sustain a loss and (b) to obtain a financial benefit for the employee or someone the employee seeks to benefit. Coverage protects against loss of money, securities and property other than money and securities. Coverage for dishonest acts applies to all officials and employees of the Commonwealth. The bond limit is $500,000 and the University maintains two million dollars ($2,000,000) of excess insurance. Notify the University Police, the University Internal Audit Department and the Office of Risk Management within 24 hours of discovering a loss. BACK TO TOP
The State program covers the University’s loss of money, securities or checks by actual destruction, disappearance, forgery or wrongful abstraction (robbery or theft), either on premises or in transit. The policy does not cover failure of employees to provide faithful performance or employee dishonesty (see section 8, Blanket Fidelity/Crime Bond). There is a $1,000 deductible per claim, which is the responsibility of the department incurring the loss. The limit of crime coverage provided by the State Plan is $300,000 per loss. The University maintains excess crime insurance in the amount of $2,000,000. Notify the University Police, the University Internal Audit Department and the Office of Risk Management within 24 hours of discovering a loss. BACK TO TOP
The University maintains Telephone Fraud insurance coverage for those situations where unauthorized individuals gain access to the phone system from a remote location in order to gain access to outgoing long distance telephone service, which results in a financial loss to the University. The maximum this policy will pay in any policy year is $300,000. There is a $10,000 per claim deductible with a maximum per year deductible of $30,000. Report all claims or potential clams immediately to the University Police, the University Internal Audit Department and the Office of Risk Management. BACK TO TOP
|Related Information:||Office of Fleet Management Services, OFMS Policies and Procedures, see Section 1: General|
|Major Category:||Finance and Business Operations|
|Category Cross Reference:|
|Next Scheduled Review:||05/03/13|
|Approved By, Date:||Policy Review Committee, 04/01/04|
|Revision History:||Updated 10/8/12, 4/8/11, 5/3/07, 8/25/06, 9/2/05, 5/15/05.|
|Supersedes (previous policy):||Risk Management Program VII.H.1|