Insurance Program Overview

Transcription

1 Office f Financial Services Office f Risk Management Insurance Prgram Overview The Ohi Stadium 1961 Tuttle Park Place, 2nd Fl. Clumbus, Ohi I. Purpse T establish cnsistent and standard funding and use f the insurance pl fr the OSU cmmunity fr all lines f cverage and deductibles. II. Histry a. Prperty The university has cmmercial insurance cverage fr its prperty. This cverage is prvided n a blanket basis, and cvers all university prperty frm equipment t buildings. This prgram generally has a $1,000, per ccurrence deductible with the general fund financing mst f this, charging each department r cllege an internal deductible per ccurrence f $25, fr a bna-fide lss. Therefre, the university general fund insurance pl pays fr lsses between $25, and $1,000, b. Casualty The university has cmmercial insurance fr its casualty lsses. This cmmercial prduct cvers all current and past university persnnel and has a $5,000, per ccurrence deductible. An internal deductible f $100, is chargeable t the invlved department r cllege. Fr units that are unable t affrd the full amunt f the deductible, the university has a Financial Hardship prcess that may assist in payments. The prgram insures fr lsses that result frm the fllwing cvered acts: Bdily injury r prperty damage; Persnal and advertising injury; Schl leaders errrs and missins; r Prfessinal services errrs and missins. Autmbile liability c. Additinal Cverage The university has ther plicies f insurance that cver activities assciated with the peratins f an institutin f higher learning. These plicies invlve varius prvisins specific t the line f cverage and have individually set deductibles per plicy. The fllwing insurance prgrams are specialized and must be reviewed n a case by case basis when attempting t file a claim: Stadium (cverage fr a specified single act) Camps (excess accident, dismemberment, and death plicy) Special Accident (cverage fr a specified act r event)

2 Airprt General Liability Aviatin General Liability Aircraft Hull and Liability Fine Arts (includes art, cllectins and rare bks/manuscripts) Student malpractice and general liability Cnstructin (site and prject specific) Autmbile III. Standardizatin Guidelines a. If a surce, ther than the university s insurance, f reimbursement is available fr the claim, that surce must be accessed prir t submitting a claim fr insurance frm the university. N reimbursement shall be paid if anther surce paid fr the lss. (FEMA, Third Party Insurance) b. Prperty The university has cmmercial insurance cverage fr its prperty. This cverage is prvided n a blanket basis, and cvers all university prperty, (wned, leased, r brrwed), frm equipment t buildings. This prgram generally has a $1,000, per ccurrence deductible with the general fund financing mst f this, charging each department r cllege an internal deductible per ccurrence f $25, fr a bna-fide lss. Therefre, the university general fund insurance pl pays fr lsses between $25, and $1,000, The difference between the $25, internal deductible and the amunt cvered by the carrier will be cvered by the university and will nt be passed n t the cllege r department unless it is determined that the cllege r department had an fficer(s) r emplyee(s) act manifestly utside the scpe f emplyment r fficial respnsibilities, r act with malicius purpse, in bad faith, r in a wantn r reckless manner. The prperty prgram is dependent upn cmpliance with fire cde regulatins and fire safety practices. Failure t cmply with these regulatins and practices will be deemed a risk and in the event f incident attributed t lack f cmpliance, the university reduced deductible will nt apply. Prperty lsses are adjusted as fllws: Payment t a university cllege r department will be made nly after evidence f the lss has been reviewed and apprved by Risk Management. This may include ne r all f these methds: An adjuster sent by OSU Insurance is available t cllect infrmatin and assess fr damage; Plice Reprts; Pictures r vides f the scene; r Other similar evidence that an insurable lss has ccurred.

3 Reprt f an incident must ccur within 24 hurs f the qualifying event. The reprt shuld include an estimate f the mnetary lss. A Reprt can be made by calling Emergency Management at A Reprt may als be made by ing OSU Insurance at Insurance@su.edu. Lsses estimated t be $100, r mre will be subject t review by the internal r external adjuster. Damaged prperty r equipment may nt be remved prir t assessment by an adjuster, unless there is apprval frm the Directr fr Insurance and Risk Management. Failure t assist with independent verificatin f the type, extent and cause f damage may result in denial f claim. Mitigatin effrts must be perfrmed t prevent further damage f the area r equipment. Damaged Prperty and/r any Prperty t be claimed fr reimbursement must be held until released by Risk Management. The prperty may be remved frm the immediate site t assist with mitigatin f damage and t aid in the rapid recvery f the site. Hwever, the prperty must be available fr assessment fr viability and evaluatin fr salvage. Submissin f the claim must be thrugh the university Prperty Claim Frm. Back up data t evidence purchase, damage, and replacement must accmpany the claim frm. All claim frms must have the signature f the Cllege Dean r the VP fr the department apprving the requested reimbursement amunt. The initial Prperty Claim Frm must be filed within 90 days f the lss. Prperty must be repaired r replaced befre reimbursement will be made. Real prperty is adjusted n a replacement cst basis, subject t the applicable deductible. The replacement cst is determined t be the csts t perfrm necessary repairs, r t replace with a cmparable building. Any imprvements in size r quality are csts t be brne by the cllege r departmental unit. University cmputers and equipment in individuals hmes and vehicles are t be cvered by the individuals insurance cverage. T the extent the individuals cverage is insufficient t cver the lss; the university s cverage will apply, subject t the cllege r departmental unit s deductible. Wear and tear, and damage due t lack f maintenance r prper care is nt an insurable ccurrence. Frtuitus events may nt be reimbursed. Prperty belnging t an individual brught int the wrkplace is the respnsibility f that individual and is nt eligible fr university insurance reimbursement. A cllege r department may make a business decisin t pay individuals fr lss f persnal prperty. The business decisin t reimburse is separate and distinct frm insurance and shall nt be included in the claim fr reimbursement. Business lss r business interruptin claims will nt be accepted unless the claim is mre than ne millin dllars and qualifies fr reimbursement by the carrier. c. Casualty The university carries cmmercial insurance fr liability expsures. This prgram prvides cverage fr liability assciated with the fllwing:

4 Bdily Injury and Prperty Damage Persnal and Advertising Injury Schl Leaders E&O including: Wrngful Educatr Services Wrngful Emplyee Benefit Administratin Wrngful Emplyment Practices Prfessinal Services E&O (excluding medical malpractice) Autmbile use Named Peril/Time Element Pllutin Crisis Management Endrsements n the Casualty Insurance Plicies and the excess plicies. Prvides fr crisis respnse csts and crisis management lss in the event f a defined crisis. Additinal endrsement adds accident insurance t the plicy in the event f a defined crisis invlving dismemberment and/r death. The university s deductible is $5,000, There is an internal deductible f $100, fr clleges r departments that experience a casualty lss. The difference between the $100, internal deductible and the amunt cvered by the carrier will be cvered by the university and will nt be passed n t the cllege r department unless it is determined that the cllege r department had an fficer(s) r emplyee(s) act manifestly utside the scpe f emplyment r fficial respnsibilities, r act with malicius purpse, in bad faith, r in a wantn r reckless manner. The university has als established a $1,000, fund t cver the legal csts and settlements fr instances when the University will absrb thse csts centrally, as ppsed t a university cllege r department. The university will nly make this fund available in situatins where there is a verified financial need and it is determined that university plicy was fllwed unless it is determined that the cllege r department had an fficer(s) r emplyee(s) act manifestly utside the scpe f emplyment r fficial respnsibilities, r act with malicius purpse, in bad faith, r in a wantn r reckless manner. The financial need fund will nt be used fr settlements withut the apprval f the Insurance Cmmittee, Legal Affairs and/ Senir Management Cuncil. If granted, part r all the csts will be picked up centrally. If this is nt the case, the unit may be required t share in these csts, depending n the circumstances f the case. Claims assciated with the Casualty prgram are handled thrugh the Office f Legal Affairs. Fr infrmatin n access r use, cntact the Office f Legal Affairs at d. Student General Liability and Prfessinal Insurance

5 The university has insurance fr the students wh have studying requirements as part f their curriculum with the university. Each student has access t bth the malpractice and general liability cverage. This insurance applies t students f The Ohi State University while wrking ffsite in a curriculum required r Ohi State apprved internship, practicum r wrk study, and cntinuing field wrk dne in relatin t curse wrk. Medical Students are excluded frm this cverage. T be eligible fr cverage, a class must register with the university. Registratin requires: A curse title and number; A cpy f the syllabus and/r an electrnic link t where a syllabus may be fund; A cntact fr the curse with a supplied and phne number; and An estimate f the number f students per registered curse. Evidence f cverage is shwn n the mst current Memrandum f Insurance Cverage is fr at least $5 millin per ccurrence/$5 millin per aggregate. Access t the prf f insurance can be fund thrugh the web link: Fr thse wh need mre than $5 millin dllars f cverage fr a particular affiliatin agreement, please cntact OSU Insurance at Insurance@su.edu t have a mre specific certificate created. e. Additinal Cverage Additinal lines f insurance cverage are available fr specific activities and events assciated with the peratins f the university. Management f claims under these cverage lines is specific t the specific type f insurance and Cverage. i. Fine Arts The University has insurance that prvides cverage in the event there is a significant qualifying peril that causes damage. This cverage applies t the fllwing: Fine Art Rare Bks Special Cllectins Special Manuscripts This cverage has a $50, deductible per ccurrence. The cllege r department that is the custdian f the item is respnsible fr an internal deductible f $10, with the general fund financing the remainder f the claim up t the $50, Lsses are adjusted as fllws. All Art with a value exceeding $100, must be reprted t University Insurance and placed n the schedule. Failure t reprt the item may result in lss f cverage fr that item.

6 Any Item that needs t be added t the schedule with an estimated value exceeding $500, must be accmpanied by an appraisal frm an independent appraiser. Laned, traveling r temprary exhibit insurance cverage must be funded by the spnsring university unit when the estimated value f the exhibit exceeds $25,000, If an exhibit is anticipated t exceed an estimated value f $25,000,000.00, the spnsring unit shuld cntact Enterprise Risk Management fr assistance in determining premiums fr high value exhibits. This additinal cst will nt be assessed fr permanent cllectins wned by the university. Beginning July 1, 2011, the spnsring unit will be respnsible fr exhibits with an estimated value exceeding $50,000, Units that wish t spnsr an exhibit shuld cntact the Exhibitin Registrar at the Wexner Center fr assistance in drafting the apprpriate agreements. The Registrar will supply the apprpriate link t shw prf f insurance. The university reserves the right t require an appraisal prir t adding fine art, rare bks, special cllectins and special manuscripts t the schedule fr the insurance plicy. ii. Autmbile The university will prvide insurance cverage fr Cvered Vehicles and pay fr all sums fr which OSU is legally respnsible as damages because f bdily injury r prperty damage caused by an accident resulting frm the wnership, maintenance, r use f a cvered vehicle. Further, OSU will pay the minimum amunts and types f ther cverage, such as n-fault, required f ut-f-state vehicles by the jurisdictin where the cvered vehicle is being used. Prperty lsses are adjusted as fllws: A cvered vehicle under the OSU plicy is cnsidered a land mtr vehicle, trailer r semi-trailer wned, leased r brrwed by the University, licensed fr travel n public rads. It des nt include mbile equipment such as bulldzers, farm machinery, frklifts, glf carts r vehicles n crawler treads. The fllwing are insured while in a cvered vehicle under the OSU plicy: The Ohi State University and its Bard f Trustees; Emplyees and vlunteers f The Ohi State University while driving a cvered vehicle within the scpe f emplyment r activity f the university; Anyne traveling with ur permissin in a cvered vehicle; Any persn r rganizatin fr whm we are bligated t prvide aut liability prtectin as a result f a written cntract r agreement, but nly with respect t liability arising ut f ur peratins. Cverage des nt extend t autmbiles wned r leased by University emplyees.

7 In the event f an injury r accident, the University assumes primary liability fr persnal injury r prperty damage incurred in a University wned r leased vehicle subject t the department s $10, deductible per accident. The OSU wned vehicles cllisin damage is the financial respnsibility f the department t repair. Injuries t emplyees f the University wuld be cvered by Wrker s Cmpensatin. Injuries t ther parties wuld fall under the University s plicy subject t the casualty deductible. In the event f an injury r accident in a private vehicle (OSU nn-wned) the driver s insurance cmpany assumes primary liability fr persnal injury r prperty damage incurred in the accident. Injuries t emplyees may be cvered by Wrker s Cmpensatin. Injuries t ther parties wuld fall under the driver s insurance plicy r ther insurance such as health insurance f the individual injured. Of curse, any insurance used wuld have its wn deductibles. In Ohi, a cmmercial driver s license is required if an individual uses a vehicle that transprts 15 r mre peple including the driver r if the vehicle weighs mre than 26,000 punds grss. Additinally, the driver needs t reprt the increased liability risks t the driver s insurance cmpany. Increased cverage and premiums wuld be invlved. Accidents invlved in a vehicle that transprt 15 r mre peple r 26,000 r mre punds grss wuld apply the same as abve depending n the wner f the vehicle. The City f Clumbus requires a livery r taxi license fr thse individuals wh charge a fee fr transprt. As with the cmmercial driver s license, the driver needs t reprt the increased liability risks t the driver s insurance cmpany. Increased cverage and premiums wuld be invlved. The driver must als cmply with the standards set by the city regarding drivers fr hire. There are specific rules invlving hspitals and transprting patients t and frm the hspital frm their hmes. Cntact the ffice f Legal Affairs fr additinal cnsultatin if yu plan n perfrming this specific transprt functin. The use f vlunteers is discuraged. Departments must realize that minimal cntrls and cnsequences can be held against a vlunteer. Hwever, if a department uses a vlunteer t transprt r use a vehicle t accmplish a functin, the liability f the University is the same depending upn the vehicle used. The University will be liable fr University wned vehicles and nt liable fr University nn-wned vehicles. The department wuld be respnsible fr the applicable $10, deductible. If an individual is assigned the use f a university wned, leased r cntrlled vehicle and uses the vehicle fr persnal use, the individual is bligated t btain liability insurance fr the time f use nt assciated with the business f the university. IV. Financial Hardship The university will assist a cllege r department in meeting its bligatin fr the payment f a deductible if the cllege r department is experiencing a financial hardship. Financial hardship depends n a number f circumstances, but as a general rule, the fllwing may serve as a guideline:

8 Deans and Vice Presidents are respnsible fr addressing financial hardships facing their departments r ther cnstituent units. Deans and Vice Presidents are respnsible fr maintaining a level f reserves (between 5% and 10% f annual revenues f their cllege r VP area) t address mst financial risks faced by units that reprt t them. Deans and Vice Presidents may request supprt frm the insurance fund fr the cnditin apprpriate t the fund if an unexpected qualifying event ccurs that creates a financial hardship fr the cllege r VP area. Fr purpses f this prvisin, a financial hardship is defined as a single event r cmbinatin f unexpected events equal t 1% r mre f the cllege r VP area s annual revenues. V. Certificates f Insurance The Ohi State University prf f insurance is the Certificate f Insurance. Paper certificates are n lnger issued by the University since Octber f Third parties wh cntract with the university may access prf f insurance by reviewing the infrmatin at the fllwing URL: The certificate f insurance is a dcument that shws prf f insurance t a third party. It is a dcument issued by an insurance cmpany that certifies that an insurance plicy has been bught and shws an abstract f the mst imprtant prvisins f the insurance cntract. It is nt a substitute fr the actual insurance plicy and is a nn-negtiable dcument. A COI will nt be issued fr OSU unless all f the fllwing three cnditins exist: There is a written agreement r cntract between OSU and a third party; which guides insurance cverage. The cntract requests a certificate; and The cntract is signed by the fficial signatry f OSU. A third party may be named as an Additinal Insured n the plicy if by agreement OSU is bligated t d s. The University des nt supply insurance fr student rganizatins r clubs. Therefre n certificates can be issued fr student rganizatin r club activities. If language is needed fr a respnse t a request fr a certificate f insurance, use the fllwing: Thank yu fr requesting a certificate f insurance frm The Ohi State University. T expedite service, ur prcess has changed t an electrnic frmat. Yu may access ur insurance infrmatin using the internet and selecting the web link: If yu have any issues regarding ur insurance infrmatin please cntact, Insurance@su.edu.