For Current Policies:
Policy Table of Contents


                     UNIVERSITY OF VIRGINIA  
The Department of Risk Management is charged with the
responsibility of administering the risk management programs for
the University, including procurement of insurance and
administering claims associated with the University's risk
management program.  
The University, 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 a part of its risk
management program.  Coverages include general and professional
liability, property damage, vandalism, theft, boiler and machinery,
watercraft, aircraft, automobile liability and physical damage,
telephone fraud, workers' compensation, and other specialized
coverages as may be necessary.  
This policy briefly outlines the coverages being maintained, but
because of the complexity of the various coverages, it does not
detail all of the exclusions and exceptions.  Please call the
Department of Risk Management (4-3055) for any inquiries concerning
insurance coverage, or to report any claims relative to bodily
injury or property damage as well as to report any incidents that
may result in financial loss to the University.  
As a State agency, the University participates in certain insurance
programs which are part of a State's Risk Management Plan.  The
University's Department of Risk Management has the responsibility
of procuring insurance or developing self-insurance programs that
are not provided by the State Plan.  
Employees are encouraged to call the Department of Risk Management
to discuss any perceived risks that they may encounter throughout
the University.  The University's Risk Management Program deals not
only with insurance and claims, but also with coordinating attempts
to prevent or reduce future losses.  

Whenever any type of loss occurs, except those dealing with
vehicles, an Incident Report Form should be completed and sent or
faxed (2-2635) to the Department of Risk Management in Carruthers
Hall.  For incidents dealing with vehicles, an Automobile Loss
Notice Form should be completed and sent to Risk Management.  
Reference Procedures:  

7-80 "Completing Insurance Incident Form"  

7-81 "Completing Automobile Loss Notice"  

7-82"Reimbursing Housing Resident Claims"  

Property Coverage  
The State Division of Risk Management (DRM) has developed a
Property Insurance Plan, which is comprised of self-insurance and
commercial insurance.  The Plan covers all State-owned buildings,
contents, and related contents and equipment on or off grounds,
loss of business-related income, and in certain cases, extra
expense incurred to expedite repairs.  The Property Insurance Plan
also includes coverage for Boiler and Machinery losses, which
represents a combined program of coverage that will reimburse State
agencies for repair or replacement of lost or damaged property from
the perils of fire, lightening, windstorm, theft, flooding, sudden
and accidental breakdown of machinery, and other causes. 
Employees, faculty, or students' personal property located on
grounds is not covered by State or University property insurance. 
It is strongly recommended that individuals having personal
property at the University contact an insurance agent for
appropriate insurance coverage, such as homeowners or renters
insurance, to protect their personal possessions.  
All State-owned buildings and contents are covered for repair or
replacement, but all losses are subject to a departmental $1000
deductible.  The department responsible for the property incurs the
deductible. When multiple departments are involved in one loss, the
deductible is shared by all departments involved, and must be paid
from departmental funds.  State and University procurement
guidelines must be followed after the department files a claim to
have property repaired or replaced.  When a single loss exceeds the
departmental deductible of $1,000, the University will pay up to
the next $99,000 for that loss.  If a loss exceeds $100,000, the
State insurance program begins to pay for the loss above the
$100,000 threshold.  
Insurance for Domestic or International Shipments  
The State's Property Insurance Plan also insures State property,
and in some cases the property of others, while located away from
the University or in transit anywhere in the world.  When shipping
State property or property belonging to others valued in excess of
$10,000 to an off-site location, the Dean or Department Head is
required to write a memorandum to the Director of the Department of
Risk Management, which authorizes the removal of the property from
the University's premises.  The memorandum must contain a complete
description of the equipment, its estimated replacement value, its
intended location, and the length of time it will be away from the
University as well as any other pertinent information relevant to
the shipping of equipment.                      

  Insurance for Objects of Art or Antiques  
The Department 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.  
Report all thefts to the University Police Department immediately. 
A completed insurance incident report form must be sent to the
Department of Risk Management within 48 hours of  discovering any
loss of state property when it is anticipated the loss will exceed
$1,000, or if the loss is caused by a third party.  
Reporting Losses  
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 Department of Risk Management
immediately upon discovery.  
Boiler and Machinery  
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
The Department 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.  

Liability Coverage  
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, which the
Commonwealth of Virginia, its departments, agencies, institutions,
boards, commissions, officers, agents, or employees . . . shall
become obligated to pay by reason of liability imposed by law for
damages resulting from any claims arising out of any 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, institutions,
. . . shall not exceed one hundred thousand dollars ($100,000) per
claim.  This limit shall not be applicable to any claim on causes
of action other than those established by Virginia law.  For claims
on 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 Commonwealth of Virginia officers, agents, or
employees . . . 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, or
(b) acts of intentional, malicious or willful and wanton misconduct
by the Covered Party.  Report any incidents, accidents, or unusual
occurrences to the Department of Risk Management immediately.  
Foreign Liability  
Comprehensive general liability coverage is provided to faculty,
staff, and students on overseas or other foreign assignments.  It
covers third party general liability claims for bodily injury
and/or property damage, professional liability, and automobile
liability.  Questions or reports of incidents should be directed to
the Department of Risk Management.                                 
Automobile Liability & Physical Damage Coverage  
Note:  Report any incident or accident involving State owned or
leased/rental vehicles used on University business to the State
Police immediately (call University Police if accident occurs on 
Grounds) and to Employers Insurance of Wausau (1-800-989-7845)--
identify yourself as an employee of the Commonwealth of Virginia 
and reference policy number 4700-00-000235. An Auto Loss Notice 
must also be submitted to Risk Management within 48 hours of an 
accident. Occupants' personal possessions are not covered by this 
insurance if lost or damaged in State vehicles.  
State-owned vehicles and their drivers are insured for up to $2
million per claim for liability coverage. With regard to physical
damage coverage, departments are responsible for their vehicles
with an actual cash value of less than $5,000.  For vehicles valued
at $5,000 and above, the University maintains a self- 
insurance program to pay for damages to these vehicles, although
the department having responsibility for the vehicle must pay the
first $1,000 of loss for each claim.  A description of accident
procedures should be located in each State vehicle.  
When an employee of the University is driving his or her personal
vehicle on University business, the State's automobile insurance
plan applies only after the limits of liability on the employee's
personal auto policy have been exhausted.  The State policy,
however, does not apply toward physical damage to personal
vehicles.  Individuals should have physical damage coverage, such
as comprehensive and collision, on their personal vehicles if they
want insurance coverage for damages they may incur.  
When an employee of the University is driving a rental car on
University business, the State's automobile insurance coverage
applies only after the rental agency's liability coverage is
exhausted.  The State's liability insurance program will respond to
physical damage incurred by leased vehicles. Employees should not buy
additional insurance offered by the car rental agency if on
University business, because its purchase is not reimbursable. 
However, this does not apply to leasing vehicles in a foreign
country.  When leasing vehicles in another country, except for
Canada, it is advisable to purchase liability and physical damage
insurance at the time the vehicle is rented.  Purchasing insurance
in the foreign country where the vehicle is to be used makes the
handling of automobile claims much easier.    
  If an accident occurs in a rental car, immediately call the police,
the rental firm, and Employers Insurance of Wausau
(1-800-989-7845).  The driver should indicate that he or she 
is an employee of the Commonwealth of Virginia (reference policy 
number 4720-00-000235). An Auto Loss Notice should be sent or 
faxed (2-2635) to the Department of Risk Management in Carruthers Hall.  
Contact the Department of Risk Management with coverage concerns when 
renting vehicles or driving state vehicles in a foreign country.  
Professional Liability  
Health care professionals, health care professional students,
residents and housestaff are provided medical malpractice coverage
for those acts or omissions arising out of the course of their
employment or authority.  The amount recoverable by any claimant
for claims involving an act or acts of medical malpractice shall be
limited to one million dollars ($1,000,000) for each medical
incident.  Coverage is not provided for non-University activities,
nor is coverage provided to faculty under contract with the
University through the Health Services Foundation.  Questions
concerning Professional Liability coverage should be directed to
the University Risk Management Department (4-3055).  
Report all medical incidents, claims, or potential medical
malpractice claims arising out of Medical Center Operations
immediately to Medical Center Risk Management (4-5595).  Please
reference Medical Center Policy 132 for further information on
reporting medical incidents.  

Workers' Compensation  
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 (4-4376).  
  Faithful Performance of Duty Bond  
The Faithful Performance of Duty Bond is a State insurance program. 
This program provides all State agencies with reimbursement for
loss of money or assets caused by an employee's failure to
faithfully perform assigned duties and to properly account for
money or property entrusted to the employee's position.  Computer
fraud caused by University employees is also covered under this
Bond.  University employees and agents are bonded in the amount of
five hundred thousand dollars ($500,000).           

Nuclear Energy Liability Insurance  
This policy covers the University for liability arising out of a
nuclear accident, incident, or occurrence at our facilities or in
the course of transporting nuclear material.  The limit of
liability for this insurance is currently set at $250,000.    
Comprehensive Crime Policy  
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 employee
dishonesty (covered under the Faithful Performance Bond) or
accounting errors.  There is a $1,000 deductible per claim, which
is the responsibility of the department incurring the loss.  The
limit of coverage provided by the State Plan is $300,000 per
occurrence.  The University maintains excess crime insurance above
the State's limit in the amount of $1,500,000.  Notify the
University Police, the University Audit Department, and Department
of Risk Management within 24 hours of discovering a loss.  
Remote Access Telephone Fraud  
The University maintains Telephone Fraud insurance coverage for
those situations where unauthorized individuals gain access to the
phone system, resulting 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 claims
immediately to the University Police and the Risk Management

ISSUED BY:                                         07/01/99  
Director of Risk Management