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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

April 13, 2010
May 1, 2014
Risk Management

 

Part 19. Risk Management - Table of Contents


19.1.3. EQUIPMENT INSURANCE AND RELATED CLAIMS

A. Introduction

The equipment insurance policy provides coverage for direct physical loss or damage to scheduled property. The policy insures against all risks of physical loss or damage from any external cause, except as excluded within the policy. The policy provides worldwide coverage and includes coverage during over-ocean cargo shipments.

B. Rates

Equipment insurance for the current policy period (November 1, 2013 – October 31, 2014) can be purchased at a rate of $0.60 per $100 of equipment value for most items, and $1.39 per $100 of equipment value for airborne or waterborne use items.

C. Equipment Policy Details

  • Carrier: Travelers Lloyds Insurance Company
  • The policy renews annually on Nov. 1.
  • Covered Items
    Covered items include scheduled property that is owned or in the control or care of The University of Texas at Austin, including, but not limited to:
    • scientific equipment
    • medical equipment
    • geological equipment
    • computer equipment
    • software (report values for the media separate from any computer it might be used in)
    • radio-television-film equipment

    Note: Unless required by a lease agreement, insuring furniture and fixtures under this policy is not recommended. For more information, contact the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu.

  • Valuation
    Property of The University of Texas System campuses shall be valued up to the current market value of the property at the time of the loss. Property that is loaned to The University of Texas at Austin by other entities shall be valued at amounts agreed upon by the insured and owners and included as part of the loan contract or agreement.

  • Limits of Insurance

    $25,000,000

    Any one occurrence

    $5,000,000

    Flood, surface water, waves, mudslide, backup of sewers and drains annual aggregate outside of High Hazard Flood Zones.

    $1,000,000

    Flood, surface water, waves, mudslide, backup of sewers and drains annual aggregate within High Hazard Flood Zones.

    $1,000,000

    Earth movement within a High Hazard County or outside of the US.

    $5,000,000

    Earth movement within a Moderate Hazard County or entirely outside a High Hazard County.

    $3,000,000

    Any one occurrence while in transit.

    $3,000,000

    New acquisitions reported within 60 days.

    $3,000,000 

    Any one occurrence as to property loaned to insured on a temporary basis.

    $3,000,000

    Per occurrence and annual aggregate as to property while waterborne, underwater, or over the side of any one watercraft.

    $3,000,000 

    Any one occurrence as to property loaned/rented/leased to others.

     $250,000 

    Any one occurrence as to mechanical breakdown.



  • Deductibles

    (If a claim consists of more than one covered item having different deductibles, the higher deductible would apply)

    $2,500

    Per occurrence, except $1,000 as to laptop computers.

    $2,500

    Mechanical breakdown – due to crash, collision, upset or overturn as evidenced by external visible damage.

    $10,000

    Mobile cat labs.

    $10,000

    Towers and tower dishes.

    2%

    2% windstorm, subject to a minimum of $25,000 for US Tier 1 counties and outside the US.

    $25,000

    Per occurrence as to flood - Flood Zones C and/or X.

    $50,000

    Per occurrence as to flood – Flood Zones B, X500, Shaded X, XFUT.

    $100,000

    Per occurrence as to flood - Flood Zones A, D, V or outside the U.S.

    $25,000

    Earth movement – Low/Moderate Hazard Zones.

    $100,000

    Earth movement - High Hazard Zones.

    $25,000

    Per occurrence as to property while waterborne for equipment valued $250,000 or less.

    $50,000

    Per occurrence as to property while waterborne for equipment valued between $250,001 and $999,999.

    $100,000

    Per occurrence as to property while waterborne for equipment valued $1,000,000 and over.



  • Exclusions
    The equipment insurance policy excludes losses due to:
    • Governmental Action (seizure or destruction of property by order of governmental authority)
    • Nuclear Hazard
    • War and Military Action
    • Inventory Shortage
    • Pollution
    • Programming Errors
    • Hidden or Latent Defect, Mechanical Breakdown or Failure (does not apply to mechanical breakdown due to crash, collision, upset or overturn as evidenced by external visible damage)
    • Wear and Tear/Gradual Deterioration
    • Other exclusions as defined by the policy

D. Coverage

Each department has a designated inventory contact listed in the Organizational Hierarchy System (OHS) Contacts System. The Annual Equipment Insurance System (AEIS) is used to track and report insured equipment.

  1. How to Obtain or Drop Annual Equipment Insurance during Renewal Time

    During the annual renewal, which normally occurs in September for a policy effective date of Nov. 1, all equipment is reviewed by the department’s inventory contact to determine if insurance should be continued for each item. Equipment insurance must be renewed annually in AEIS to maintain coverage. Access to AEIS is granted through the *DEFINE NVE command authorization by the department’s electronic office manager. Training is provided annually by the Office of Accounting Risk Management section. For more information, see DE 438 Equipment Insurance or contact oa.riskmgt@austin.utexas.edu.

  2. How to Obtain or Drop Annual Equipment Insurance during Nonrenewal Time

    To request the purchase of equipment insurance, contact the department’s inventory contact. Premium expense will be charged for the remainder of the policy year.

  3. How to Obtain Temporary Equipment Insurance

    To obtain temporary equipment insurance, which is only available for items loaned or leased to the university, follow these procedures:
    1. Complete the Temporary Equipment Insurance Request Form.
    2. Send an email to the authorized signer (typically a dean, director, or chair) on the account to be charged for the premium expense.
    3. The account signer should forward the email to oa.riskmgt@austin.utexas.edu along with the spreadsheet from Step 1. The authorized signer may copy the requestor on the email.

  4. How to Obtain Waterborne or Airborne Equipment Insurance

    To obtain waterborne equipment insurance, which is available only on a year round basis for property to be used while waterborne, underwater, or over the side of watercraft, follow these procedures:
    1. Complete the Airborne/Waterborne Equipment Insurance Request Form.
    2. Send an email to the authorized signer (typically a dean, director, or chair) on the account to be charged for the premium expense.
    3. The account signer should forward the email to oa.riskmgt@austin.utexas.edu along with the spreadsheet from Step 1. The authorized signer may copy the requestor on the email.

E. Claims Procedures

  1. Theft or Loss of Insured Equipment

    • If the lost or stolen item was covered by the university’s equipment insurance policy:
      1. Report the incident to The University of Texas at Austin Police Department or local police (depending on whether the theft occurred on or off campus). Obtain a copy of the police report as soon as possible.
      2. Complete a Potential Claim Incident Report.
      3. Submit the Potential Claim Incident Report, along with the police report, to the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu.
      4. An estimate of the item’s replacement value should also be submitted as soon as possible.
    • If the lost or stolen item was university-owned, see 16.3 Removal of Equipment from the Inventory, section F. Lost or Stolen Property for additional steps that must be taken to remove the item from the university’s inventory.

  2. Damage to equipment due to malicious mischief

    1. Report the incident to The University of Texas at Austin Police Department or local police (depending on whether the theft occurred on or off campus). Obtain a copy of the police report as soon as possible.
    2. Take photos.
    3. Secure a repair estimate.
    4. If damaged beyond repair, notify Inventory Services of the loss for removal from inventory.
    5. Complete a Potential Claim Incident Report.
    6. Submit the Potential Claim Incident Report, police report, photos, and repair estimate to the Office of Risk Management at oa.riskmgt@austin.utexas.edu.

  3. Losses due to damage from water leaks, accidental damage, malfunction, or other causes.

    1. Take photos.
    2. Secure a repair estimate.
    3. If damaged beyond repair, notify Inventory Services of the loss for removal from inventory.
    4. Complete a Potential Claim Incident Report.
    5. Submit the Potential Claim Incident Report, photos, and repair estimate to the Office of Risk Management at oa.riskmgt@austin.utexas.edu.

For more information, contact the Office of Risk Management at oa.riskmgt@austin.utexas.edu

F. Resources

 

 

Part 19. Risk Management - Table of Contents