University Property and Liabilty Insurance
OP-G-10.2
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Table of Contents

Purpose

To identify property and liability insurance available within the University and to specify the methods for obtaining coverage and reporting claims.

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Forms

The following forms are used in this procedure and may be obtained from Office Services:

  • Unencumbered Disbursement - ID Transfers (FSU Form GP-16A SAMAS Version Rev 2/86)
  • Inter-Intra Fund Unencumbered Disbursements (FSU Form GP16B)
  • Expenditures Transfer Request (FSU Form ET-51)
  • First Report of Injury (EHS 11-1)
  • FSU Supervisor's Report of Occupational Injury or Illness (FSU Form OI 339)
  • FSU Form 9

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Definitions

Insurance - Insurance is the protection against financial loss provided by an insurer. It is also a means by which the risks of two or more entities are combined through contributions to a fund out of which claimants are paid.

Bonds - Bonds are not strictly insurance although they are transacted within the structure of insurance. Insurance is a method of indemnifying for losses, with two parties involved, insurer and insured. A surety bond is a guarantee involving three parties: (1) the Principal, one who undertakes to perform, to fulfill a contract; (2) the Obligee, the one who is to be guaranteed that the principal will perform; and (3) the Surety, the one who guarantees the performance of the Principal to the Obligee.

Exposure - Exposure, as it relates to this procedure, is an area where there is potential for loss to the University.

Indemnity - Indemnity is the compensation for loss.

Subrogation - Subrogation is the right of the insurer to be reimbursed should the insured collect, as in tort, from another source for loss suffered.

Risk - Risk is the possibility of loss or injury.

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Administration

The Board of Regents, through Chancellor's Memorandum CM-79-03.3, mandates that each university in the State University System shall delegate certain individual(s) the responsibility for administration of the university's insurance program. At The Florida State University this responsibility has been delegated to the Coordinator, Insurance and Risk, Department of Environmental Health and Safety. This individual performs all duties relating to the procurement and administration of the University's insurance needs, and will respond to all questions generated within the University on coverages provided or available. The Coordinator, Insurance and Risk coordinates policy administration with the Regents' Office of Business and Financial Services and coordinates acquisitions of all University insurance with the Department of General Services or the Department of Insurance. All acquisitions of University insurance and claims to recover damages must be filed through the Coordinator, Insurance and Risk in The Department of Environmental Health and Safety.

Any occurrence which may result in a loss or claim under any category of insurance/self-insurance shall be reported by the involved person(s) immediately to the Coordinator, Insurance and Risk, Department of Environmental Health and Safety. The Coordinator, Insurance and Risk, will complete and submit all claims which shall include police reports, investigation reports and/or audit reports, as applicable. All checks reimbursing the University for losses for which a claim has been filed must be channelled through this office to ensure a proper audit trail and that all funds due the University are collected and deposited as appropriate. Should an insurance recovery check be received in a University department, it should be immediately hand carried to the Coordinator, Insurance and Risk.

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Types of Property and Liability Coverage Available

This procedure addresses only University property and liability insurance. Personal insurance is arranged through the University Personnel Relations Department. (See References 1 and 2.) All University property and liability insurance must be arranged through the Coordinator, Insurance and Risk, Department of Environmental Health and Safety. All insurance matters must be properly channeled through the Coordinator. Premiums on any insurance coverage secured other than through the Coordinator will not be paid from State funds. (References 1, 2, and 3.)

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All Risks (Inland Marine) Insurance

Inland Marine insurance derived its name historically as an outgrowth of "ocean" marine insurance which had a basic function of covering ships and goods on open sea and inland waters. The function of Inland Marine Insurance is that of covering property in transit, property which is mobile by nature, or related to instrumentalities of transportation and communication. Inland Marine Insurance provides all risks coverage.

Insurance coverage may be provided for protection from financial loss in the event of loss or damage to property that is a responsibility of the University by loan or lease, if the use agreement specifically requires that insurance be provided.

Employees and visitors should be advised that there are no provisions for insuring their personal property while used or located within the University's facilities. The use of personal property to accomplish University work responsibilities should be discouraged. In those instances where an employee is required to use personal property in performance of duty, responsibility for reimbursement for financial loss in the event of loss or damage should be clearly established in advance. The University may provide insurance coverage for such property only if insurance coverage is a specific requirement of a written agreement between the property owner and the University.

Insurable exposures are generally of the following types:

  • Fine Arts -- Includes scheduled paintings, etchings, pictures, tapestries, art glass windows, and other bona fide works of art (such as valuable rugs, statuary, marbles, bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass and bric-a-brac of rarity, historical value or artistic merit while in transit to the University, while in possession of the University and while in transit from the University.
  • Theatrical Property -- Includes scheduled property for use in theatrical productions.
  • Miscellaneous Equipment -- Includes various scheduled equipment, furniture and furnishings on lease or loan to the University.

To Obtain Coverage

To obtain coverage, certain information must be provided to the Coordinator, Insurance and Risk, Department of Environmental Health and Safety. As soon as it is known that coverage will be required, but no later than Noon of the 25th day of the month prior to the commencement of exposure, submit the following information: (See Exhibit I for suggested format.)

  • Copy of signed agreement requiring coverage
  • Period of coverage (actual inclusive dates)
  • Number of days of coverage requested
  • Number of items to be covered
  • Itemized and valued schedule of objects covered
  • Location of exposure

Premium

The University purchases Inland Marine Insurance on the commercial market through the Department of General Services, and is billed periodically by the carrier. The Department of Environmental Health and Safety will pay the premium from a clearing account, and when the invoice is vouchered, departments will be billed by Expenditure Transfer Request (FSU Form No. ET-51).

Claims Processing

In the event of loss or damage to items covered by Inland Marine Insurance, immediately notify, in writing, the Coordinator, Insurance and Risk, Department of Environmental Health and Safety. Provide all pertinent information, such as: When the loss or damage occurred or when it was first noticed; the value of the item; any police or security reports pertaining to the loss or damage; the name and address of the owner. The Coordinator, Insurance and Risk will file the claim directly with the insurance company. The check for payment of the claim will come to the Coordinator, Insurance and Risk and will be forwarded to the department for delivery to the owner.

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Automobile Insurance

The Board of Regents is authorized under Florida Statutes Chapter 240.191, to provide financial protection for bodily injury and property damage liability for University-owned or leased automobiles. This protection is provided through the Florida Casualty Insurance Risk Management Fund, created by the 1972 Legislature of Florida (Reference 3).

The coverage under this plan is limited to $100,000 per claim, $200,000 per accident combined for:

  • Bodily Injury Liability: Such coverage provides financial protection against any claim for bodily injury to others arising from accidents involving University automobiles. Bodily injury protection for University employees is provided by workers' compensation.
  • Property Damage Liability: Such coverage provides financial protection against any claim for damage to property of others arising from accidents involving University automobiles.

The Board of Regents is not authorized to provide medical payments coverage (voluntary settlement of medical expenses) for non-employees who are driving or occupying University-owned automobiles. Non-employees traveling in University vehicles should be made aware of this prior to any travel. It is suggested that signed waivers holding the University and the Florida Board of Regents harmless in the event of accident be obtained from any non-employee who may have occasion to travel in a University vehicle. Waivers for minors should be executed by parents or guardians. A standard waiver form may be obtained from the University Attorney.

The providing of protection for physical damage to University owned automobiles licensed for use and operating on the public highways of Florida is prohibited under Florida Statutes 287.025 (Reference 4). Thus, such losses must be self-assumed. Physical damage coverage, including comprehensive (fire, theft, vandalism) may be provided on leased or loaned automobiles if specifically required by written agreement.

Drivers Of University Vehicles

All drivers of University vehicles must have a valid, unrestricted drivers' license. Individuals responsible for University vehicles must visually inspect the drivers' license of a prospective driver before allowing him/her to operate the vehicle. While it is not required by Florida law that drivers of vans have chauffeur's licenses, unless the van is transporting passengers who pay for the transportation, this requirement is highly recommended for drivers of University vans. Department heads may make the determination as to whether to impose this restriction on vans assigned to their department, but it is advised as sound policy by the Department of Environmental Health and Safety.

To Obtain Coverage

When a department obtains an automobile, the Coordinator, Insurance and Risk, Department of Environmental Health and Safety should be notified immediately, in writing, giving the following information:

  • Department Name
  • Department Account Number
  • Year, Make and Model of Motor Vehicle
  • Serial Number of Motor Vehicle
  • Cost of vehicle (if known)
  • FSU Number assigned to Motor Vehicle (by Property Records)

Coverage begins upon the notification being received by the Coordinator, Insurance and Risk, Department of Environmental Health and Safety. A vehicle insurance card will be supplied to the department to be retained in the glove compartment of the vehicle. If the card should be lost, Environmental Health and Safety will provide a duplicate.

Premium Payment

An annual advance premium assessment is charged, weighted by the University loss experience, to each department having a motor vehicle. This premium will be charged to departments by the Coordinator, Insurance and Risk, through use of a GP-16A form. Questions concerning premiums may be directed to the Coordinator.

Use Of Private Automobiles On University Business

While it would be desirable to provide that all University business requiring use of vehicular transportation be conducted in University equipment, it is clearly not possible to make such a provision viable in normal University operation. Therefore, it is necessary to establish limitations on the use of personal or rental vehicles compatible with the University's objectives.

It should be made clear that in consideration of the payment to an employee or student by the University of a mileage charge (or other reimbursement as set from time to time) for the use of a personal vehicle that:

  • The vehicle is to be used on University business only with permission and knowledge of the University.
  • At all times when on University business, minimum statutory insurance requirements must be carried.
  • The Director, Environmental Health and Safety, will be advised of any accident occurring while on University business.
  • The financial loss for damage to the vehicle shall not be reimbursed by the University in the event of an accident while on University business.

Claims Processing

In the event of an accident in a University vehicle, the Coordinator, Insurance and Risk, Department of Environmental Health and Safety must be notified immediately. S/he will assist in completing the necessary paperwork to be submitted to the Department of Insurance in order to file a claim for recovery of damage to the property of others. In the event that the accident results in injury or death of an employee, a Notice of Injury must be completed and submitted to the Department of Environmental Health and Safety within 24 hours following the department's knowledge of the accident. See Reference 2 for further instructions.

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Boiler and Machinery Insurance

Boiler and machinery insurance provides financial protection for loss resulting from damage to State-owned property, including extraordinary expenses resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery or apparatus. The University's boiler and machinery insurance has a deductible of $10,000, therefore, losses less than that amount cannot be recovered.

To Obtain Coverage

Any boiler, any fired or unfired vessel (valued at greater than $10,000) subject to a vacuum or internal pressure other than static pressure of contents; any refrigeration system, any piping with its accessory equipment; any mechanical or electrical machine or electrical apparatus generating, controlling, transmitting, transforming or utilizing mechanical or electrical power should be listed with the Coordinator, Insurance and Risk, Department of Environmental Health and Safety in order to obtain coverage.

Premium Payment

An annual audit of covered objects is conducted and the annual premium is based on the audit. The Coordinator, Insurance and Risk, will coordinate the audit, shall disburse the University premium, and by use of Expenditure Transfer (FSU Form No. ET-51), bill departments for coverage.

Claims Processing

The Coordinator, Insurance and Risk, Department of Environmental Health and Safety, should be immediately notified in the event of accident. S/he will have the damage inspected and will file a claim with the insurer, notifying the Board of Regents and the Department of General Services.

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Bonds-Dishonesty Insurance

Dishonesty insurance resembles other types of insurance in that employer losses suffered through dishonesty of the employee are reimbursed by the insurance company. The surety or insurance company then has the right to bring action against the dishonest employee.

All University employees are covered by this blanket bond insurance, no special application is required.

Premium Payment

The premium for Employee Dishonesty (Bond) Insurance for E&G departments shall be disbursed by the Coordinator, Insurance and Risk, from a general University budget established for this purpose. There is no direct cost to individual departments.

Claims Processing

When it is determined that a loss has resulted from dishonest acts, such as fraud in whatever form, or the theft of cash, by an employee, the following departments should be notified immediately in writing: Public Safety, the Office of Inspector General, and the Coordinator of Insurance and Risk in Environmental Health and Safety.

To establish an insurance claim for reimbursement, the following departments or persons must take action or provide the following information:

  • Reporting Department or Person:

    Provide available information to the notified parties above, such as when the loss was first discovered, estimated loss dollar amount, and who the contact person will be including phone number.

  • Public Safety:

    As soon as available, provide a copy of probable cause(s) to the Coordinator of Insurance and Risk.

    As soon as available, provide the final amount of tangible property loss, in writing, to the Coordinator of Insurance and Risk, Coordinator of Accounting, or to their designee(s).

  • Office of Inspector General:

    As soon as available, provide the final tangible financial loss, in writing, to the Coordinator of Insurance and Risk, the Coordinator of Accounting, or their designees.

  • Coordinator of Insurance and Risk:

    At the time of notification, the Coordinator of Insurance and Risk will complete a Proof of Loss form and send it to the appropriate insurance company following their established procedures.

    Insurance and restitution payments received by the Department of Environmental Health & Safety will be taken within five days or placed in a lock box if this is not possible, to the Coordinator of Accounting, or designee, to be deposited.

  • Coordinator of Accounting Office:

    This office, in conjunction with the Coordinator of Insurance and Risk and the Office of the Inspector General's Office will determine if all payments have been received and how any funds should be distributed. Once this has been accomplished, a summary report for any open employee dishonesty claims will be sent to each of the parties indicated in this section.

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Crime Insurance

Crime insurance is written to protect against direct loss through armed robbery or burglary and mysterious disappearances of money or securities (resulting from other than employee dishonesty). Florida Statutes 287.025 prohibit the purchase of primary crime insurance on property, other than money and securities, titled in the name of the State or one of its agencies.

Employees and visitors should be advised that there are no provisions for insuring their personal property while used or located within the University's facilities. The use of personal property to accomplish University work responsibilities should be discouraged. In those instances where an employee is required to use personal property in performance of duty, responsibility for reimbursement for financial loss in the event of loss or damage should be clearly established in advance.

Money And Securities

The University maintains coverage for financial protection from the felonious removal of money and securities by robbery or burglary, which results from armed holdup, forcible entry, or mysterious disappearance. This is a blanket policy covering all known exposures and individual departments are not required to request special coverage. However, if a department anticipates having an unusually large sum of money on hand at any one time, a memorandum to the Coordinator, Insurance and Risk, Department of Environmental Health and Safety, will assure protection under the policy.

Premium

The premium for the Money and Securities Insurance is paid by the Coordinator, Insurance and Risk, Department of Environmental Health and Safety from a special account established for this purpose.

Claims Processing

The loss of money or securities by a University department should be immediately reported to the Department of Public Safety. The Director, Internal Auditing Department, will be requested to conduct a complete audit in order to determine the extent of the loss. The Coordinator, Insurance and Risk, Department of Environmental Health and Safety, will file a preliminary claim when the loss is discovered and when the results of the audit are available, a final claim will be filed by that individual. S/he will receive all recovery checks and ensure that they are accounted for and deposited as appropriate. Although all losses must be reported, there is a deductible of $500 for this coverage; therefore, losses of less than $500 cannot be recovered.

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Fire and Extended Coverage

Losses to buildings and contents owned by the University, or required under the terms of an existing lease, are covered for the perils of fire, lightning, windstorm, hail, explosion, riot, aircraft and vehicle damage, smoke, and flood. This coverage is through the Florida Fire Insurance Trust Fund administered by the Division of Risk Management. There is a $100 disappearing deductible, in that, for losses valued at between $100 and $500, the insurance will pay 125% of any amount over $100. Therefore, no claim should made when the loss is $100 or less.

Premium

The University is invoiced each July for this coverage. The premium for E&G buildings is paid from a general account by the Coordinator, Insurance and Risk. Other budget entities will be billed for this coverage by use of FSU Form GP-16A (SAMAS Version Rev 2/86).

To Obtain Coverage

The Coordinator, Insurance and Risk, adds new University buildings to this insurance upon notification of acceptance by the Director of Physical Plant.

If a department leases property, it is the department's responsibility to notify the Coordinator, Insurance and Risk, to add the contents housed in the leased space to the insurance coverage. To add contents housed in leased property, it is necessary to provide the Coordinator, Insurance and Risk, certain information: (1) Complete address of leased property including street address, city, and zip code; the building name, and the building number assigned by Facilities Management; gross number of square feet; whether the building is equipped with a sprinkler system; the responding fire department; material used in constructing exterior walls, roof supports and roof material; the value of the contents housed there; and a contact person in the department who will be able to answer additional questions about the leased property. There is a minimal value of $500 for contents to be insured under the Fund.

Contents coverage is determined by Property Records inventory records. If a department has a number of items not included on the Property Records inventory (items valued at less that $200), it is the department's responsibility to notify the Coordinator, Insurance and Risk, Department of Environmental Health and Safety, so those items may be insured against loss by the named perils.

Claims Processing

In the event of a fire, loss by hurricane, lightning or other covered peril, the department should notify the Coordinator, Insurance and Risk, immediately by telephone. S/he will notify the Fire Fund, so that, if necessary, the damage may be inspected.

The department should compile an inventory of all destroyed and damaged property, giving actual cash value and age of property. Property may be depreciated, but never more than 50 per cent. The Coordinator, Insurance and Risk will work closely with the department suffering the loss to coordinate all claims.

Recovery funds from the Fire Fund will be transferred to an account managed by the Coordinator, Insurance and Risk, and will immediately be transferred to the department suffering the loss. Such transfer will be by memorandum to auxiliary and local accounts, and by ET-51 to E&G departments.

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General Liability

The Florida State University employees and facilities are covered under the State's General Liability Insurance Trust Fund. This insurance offers broad coverage to insure that no officer, employee, or agent of the University shall be held personally liable in tort for any injuries or damages suffered as a result of any act, event or omission of such action in the scope of his employment or function.

This coverage does not extend to instances where the person(s) acted in bad faith or with malicious intent or in a manner exhibiting wanton and willful disregard of human rights, safety or property.

The most common types of action under this coverage are listed below:

  • Bodily Injury

    Injury to person(s) arising out of negligence, or poor maintenance, of University property. This could include failure to provide proper lighting, proper warning or security measures designed to prevent accidents. Such action does not excuse an individual from failure to exercise appropriate care when hazards are obvious, but does imply an obligation for University employees to notify Project Control, Grounds, or other responsible departments when obvious hazards, which may lead to loss, are identified.

  • Property Damage

    Responsibility for property damage incurred in such incidents may be associated with liability actions. Where responsibility for loss is established, legal liability follows, and a claim for recovery of the loss may be expected.

  • Personal Injury

    There is a current trend toward requiring settlement in an increasing number of incidents involving injury to persons ranging from actual bodily injury to such intangibles as reputation, income or professional expectations; injury also may be alleged from copyright or patent infringement, and false arrest. Financial liability for costs of personal injuries as a result of malpractice, professional judgment, slander, deprivation of privacy, etc., is of growing significance to universities. As the courts extend the areas in which personal injury can be established, the potential is further magnified.

  • Federal Civil Rights

    Endorsement No. 1, dated July 1979 extends coverage to all claims in Federal Courts under 42 U.S.C., S. 1983, or similar federal statutes.

Coverage

The 1974 Legislature of Florida waived the defense of governmental immunity, effective July 1, 1974. The Department of Insurance was charged to administer a program of self-insurance to protect against financial loss arising from the agencies of the State, with the exception of Professional Medical Liability at Medical Schools under the Board of Regents and Nuclear Energy Liability. Student Health Centers were not excluded, therefore, the Student Health Center, its employees and facilities, are included under coverage through the State of Florida General Liability Self-Insurance Trust Fund. All employees of the University are covered, provided they act in good faith in the performance of their duties.

The limits of coverage under this insurance are $100,000 per person per claim and $200,000 per occurrence, as established by Chapter 768.28, Florida Statutes.

Claims Processing

When an employee is contacted by a prospective claimant, or when an employee observes an incident which may result in a claim, s/he should immediately notify the Coordinator, Insurance and Risk, Department of Environmental Health and Safety.

The following information should be noted for future reference:

  • Name of Claimant(s), Address(es), and Age(s)
  • Nature of Potential Claim (Damage to Property or Bodily Injury)
  • Date of Accident and Exact Location
  • Description of the Circumstances of the Accident; and
  • Names of any witnesses to the accident or event.

Notes should be made of any other information which may be of value to the Coordinator, Insurance and Risk, or to an insurance adjustor.

The Coordinator, Insurance and Risk, will assist all claimants in completing a General Liability Loss Report (claim form), and will submit it to the Department of Insurance for action.

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Worker's Compensation

The University's Workers' Compensation program will pay all medical expenses for injuries arising from or in the course of employment. An employee is covered by workers' compensation while traveling on official business. Compensation covers physician, hospital and pharmaceutical charges, and any other medical treatment necessary to the recovery of the employee. For complete information on workers' compensation, see Reference 2.

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Workshop, Camp, Institute, Seminar Insurance

Accident and health insurance may be provided for workshops, camps, institutes or seminars held on campus or at University sponsored activities which involve other students or non-students. Such insurance may be twenty-four hour insurance protection for accident and health, preexisting conditions excluded, or it may be for accident coverage only. The cost will depend on the coverage desired and the length of the activity, and will pay all medical expenses up to $3,000. Costs over $3,000 must be borne by the participant's private insurance, their parents' insurance, or from sponsors' funds.

If the participant to be covered by this insurance is a minor, parental consent for medical treatment must be obtained prior to commencement of the sponsored activity. Parental consent forms may be obtained from the University Attorney.

To Obtain Coverage

As soon as it is known that coverage will be required, at least 30 days prior to the beginning date of the activity, the sponsor should provide, by memorandum, the following information to the Coordinator, Insurance and Risk, Department of Environmental Health and Safety.

  • Name of workshop, seminar or camp
  • Number of participants
  • Inclusive dates of activity
  • Type of insurance required; accident-only, or accident and health.

A copy of the memorandum should be directed to the Student Health Services if that facility will be used for treatment.

Premium Payment

The Coordinator, Insurance and Risk, Department of Environmental Health and Safety, will receive the invoice from the insurance company and will obtain a Rate Approval from the Insurance Commissioner for this insurance. The invoice and Rate Approval will be forwarded to the sponsoring department for payment by use of a Form 9. Under Florida Statutes 215.422(3)(b) and 215.422(9) their invoices must be paid upon receipt by the department requesting the coverage.

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Special Insurance

Other types of insurance are available to the University community, but because of their limited scope, they are not listed here. If a department has any questions concerning insurance not specifically mentioned in this procedure, a department representative should contact the Coordinator, Insurance and Risk, Department of Environmental Health and Safety.

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Appendix

MEMORANDUM

TO: Coordinator, Insurance and Risk Department of Environmental Health and Safety

FROM:

SUBJECT: All-Risks Insurance

 

I,_____________________(1) agree to lend The Florida State University _____________________(2) the following item(s) with the agreement that they be insured against theft and damage. This coverage should be in effect from_________________(3) to_______________(4).

ITEM___________________ VALUE_______________________

 

(1) Signature of Lender (if illegible, type name under)

(2) FSU Department Name

(3) Beginning Date

(4) Ending Date

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References

  1. Employee Benefits
  2. Workers' Compensation (OP-G-1.5.1)
  3. Florida Statutes Chapter 284, Part II
  4. Florida Statutes Chapter 287.025
  5. Florida Statutes Chapter 268.28
  6. Florida Statutes Chapter 215.422(3)(b)
  7. Florida Statutes Chapter 215.422(9)
  8. Collections Security

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