05.113 University Property Insurance Programs

Vice Chancellor of Business Affairs

Updated March 17, 2009; Updated January 1, 2008; Updated July 1, 2006; Updated June 1, 2003; Updated June 1, 1988; Effective May 1, 1985; supersedes former Administration Policy No. ACG 2.10, “University Property Insurance Programs”

North Carolina General Statutes Sections 58-194.1 and 58-194.2

 N/A

Risk Management Office

Policy Details:

1. Purpose

   Explains the university property insurance programs.

2. Scope

   Applies to all university departments and activities.

3. Policy

   1. General Policy

      Both acquisition of, and loss claims for, this group of insurance are handled by the Risk Management Office in Business Affairs. General Statute 58-194.2 requires that all insurance for state agencies be placed by the NC Department of Insurance. Therefore, state agencies cannot obtain insurance directly through private companies. If a particular type of insurance coverage is not available through the NC Department of Insurance, the coverage request will be referred to the state’s broker. Risk Management shall serve as the University’s point of contact for coverage request made to either the Fund or our insurance broker. 

   2. University Properties covered by Insurance

      1. Self-Propelled Motor Vehicles

         By North Carolina Statute G.S. 58-331-50, Liability insurance is required for state-owned vehicles. Every department, agency, or institution shall acquire motor vehicle liability insurance on all state-owned motor vehicles under its control. The Risk Management Office annually provides the North Carolina Insurance Commissioner, in full detail, with a count of all motorized vehicles owned by UNCW. (See Policy 05.114 Licensing of Motor Vehicles and Trailers) The coverage extends to all university vehicles, including riding lawn mowers, sweepers, trailers and Cushman-type vehicles. Coverage also extends to University rented, leased or courtesy cars when used for official business purposes.

         Liability coverage is provided by Travelers Insurance Company under a master policy for all state vehicles. Policy limits are $1,000,000 BI/PD per person $5,000,000 per accident.

         Comprehensive coverage is also automatically provided for all vehicles and is based on replacement value.

         Collision coverage for self-propelled vehicles will only be purchased if requested by the department head/director.

      2. Buildings and Building Contents

         Fire (fire and lightning losses) and extended coverage (windstorm, hail, explosion, smoke, aircraft or vehicles, riot or civil commotion) is provided for each university building and contents through the State Property Fire Insurance Fund. The applicable deductible is $5,000 per occurrence.

         By North Carolina Statute G.S. 58-192, it is the duty of the Risk Management Office to annually inform the North Carolina Insurance Commissioner, in full detail, of the value of the university buildings and their contents. The State Property Insurance Fund will not be responsible for any contents loss in any building exceeding $50,000 unless they have been notified in writing of such value. Therefore, any changes in property or its location or surroundings must be reported immediately by the department head to the Risk Management Office.

      3. Boiler and Machinery

         Boiler and Machinery coverage is afforded for boilers and other fire pressure vessels. The limit of coverage is $5,000,000 with an applicable deductible of $5,000.

      4. Musical Instruments, Film Studies Equipment and Other

         Coverage will be put in place when annual request and update of inventory is received from the department. Only covers items on the schedule at replacement value. The applicable deductible is $1,000 per occurrence.

      5. Oceanographic Equipment

         Coverage will be put in place when annual request and update of inventory is received from the department. Only covers items on the schedule at replacement value. The applicable deductible is $2,500.

      6. Fine Arts

         Fine arts are defined as: “paintings, etchings, drawings, rare books, manuscripts, rugs, tapestries, statuary, and other bona fide works of art, or rarity, historic value, or artistic merit”. Limits of coverage are $200,000,000 per occurrence and $25,000,000 while in transit. The applicable deductible is $2,500. The policy also has an endorsement to cover fine art on loan with certain policy restrictions and limits. (See policy 05.115) There is no deductible for items on loan.

      7. Boat/Vessel

         Departments should contact the Risk Management Office in the initial stages of purchasing any boat, vessel, or sailboat. Liability insurance is purchased for all vessels over 27’. The State Tort claim process covers all vessels up to 27’. Hull and equipment insurance is purchased for all vessels at the request of the departments. Limits for liability are $1,000,000 PI/PD, Hull and equipment is insured based on annual valuation received from the departments. Pollution coverage can also be purchased at the request of the departments.

      8. All-Risk Insurance

         All-risk insurance is available through the State Property Fire Insurance Fund for additional coverage to university property above and beyond the fire and extended coverage on buildings and building contents. Protection afforded under this policy includes damage caused by water, fire, vandalism, malicious mischief, riot, smoke, explosion, aircraft, vehicles, etc. but does not cover flood damage or theft and is subject to a $500 deductible per loss. Departments should contact the Risk Management Office to obtain a quote.

      9. Theft Insurance
         
         Theft insurance may be purchased for any equipment belonging to the university and is subject to a $1,000 deductible per loss. Departments should contact the Risk Management Office to obtain a quote.