1050 Risk Management/Insurance Policies & Procedures
|SUBJECT:||RISK MANAGEMENT/INSURANCE POLICIES & PROCEDURES|
|AUTHORIZING BODY:||FINANCE & ADMINISTRATION DIVISION|
|RESPONSIBLE OFFICE:||RISK MANAGEMENT DEPARTMENT|
|DATE ISSUED:||JUNE 2010|
|LAST UPDATE:||JUNE 2010|
RATIONALE: All organizations experience certain risks that are inherent in their endeavors such as strategic risks, operational risks, financial risks, compliance risks and reputational risks. This policy offers guidance for managing University risk and insurance issues including the distribution of the related financial responsibilities.
POLICY: While the University as a whole is responsible for managing and mitigating the risks of the University, it is the Risk Management Department’s responsibility to develop and implement an overall strategy for managing and insuring those risks that have the potential to impact the University in a negative way. Any purchase of insurance will be accomplished through the Risk Management Department and all insurance reserves will be managed by the Risk Management Department.
SCOPE AND APPLICABILITY: This policy applies to all University faculty, staff, students and volunteers.
Claims - General
1. Claims – Auto
This policy applies to all faculty, staff, students and volunteers who are authorized to drive a University owned, leased or rented vehicle. University employees, students, volunteers driving their own personal vehicles on University business must carry sufficient personal auto coverage. The University does not cover physical damage or loss to employees’ vehicles; any claims must be filed directly with the employee’s personal insurance policy.
2. Claims – Property
Oakland University’s property insurance covers only Oakland University owned property. If property (equipment, machinery, art work, valuables) is borrowed or on loan to the University, or if the University’s property is sent off-site, arrangements should be made with the Risk Management Department to arrange coverage under the University’s property insurance policy.
3. Claims – Liability
If an individual has not filed a lawsuit against the University, but feels that they have a claim, the Risk Management Department should be contacted to resolve the issue. If a lawsuit has been filed the Office of Legal Affairs should be contacted directly.
4. Claims – Cyber
Any theft of or tampering with hardware, software or stored data including on laptops, desktops, electronic storage devices or servers must be reported immediately to the Chief Information Officer and the Risk Management Department. (See also OU AP&P #860 Information Security).
5. Premium, Deductible and Retention Allocations
The Risk Management Department is charged with selecting and purchasing all University insurance. Premium, retention and deductible charges will be allocated annually to the operating funds. Allocations of premiums, Deductibles and retentions will typically be completed by the 2nd quarter of the fiscal year, once all billing has been received from the commercial insurers.
6. Year End Release of Funds
If the University has favorable claims experience during the fiscal year, it may reimburse operating funds for General Liability and Errors & Omissions.
Dividends received from insurance carriers are retained by the Risk Management Department and may be used to fund unfunded Deductibles, retentions or uninsured claims, loss control and life safety projects on campus.
The University discourages the organization or use of car pools when engaged in any University activity. The University does not review, nor is responsible for checking the auto insurance limits and policies of our faculty, staff, students or volunteers.
9. Personal Vehicles
Oakland University reimburses a mileage rate to employees who use their own vehicles on University business. The reimbursement rate is intended to reimburse for expenses including mileage, wear and tear, insurance and fuel. The University does not insure, repair or reimburse Deductibles for employee vehicles damaged while on University business. Also, see OU AP&P #1200 Travel Expense Reimbursement Section 5.02.
10. Foreign Travel
The University provides liability insurance coverage for faculty, staff and students who are traveling overseas either on an Oakland University work-related trip or as part of a study abroad class or program.
If participating in higher risk activities, a waiver of liability may be required.
11. Charter Buses
When renting buses the following standards are required:
SafeStat scores can be found on the following website for Passenger Carrier Safety.
12. University Driver Approval
Anyone driving a University owned, leased or rented vehicle must be pre-approved by Risk Management. Drivers’ records that show consistent violations and yet do not exceed the standards established may still have authorization denied. The Risk Management Department may in its discretion, grant or deny authorization to drive. Each year the Risk Management Department will review the driving records of the University’s authorized drivers. Employees driving University leased, owned or rented vehicles must notify their supervisor within 7 business days if any of the following occur:
An employee, student or volunteer who has a valid driver’s license from another state may be requested to submit a certified copy of their driving record, obtained from the respective State’s Motor Vehicle Department. The expense of securing an out-of- state driving record is the individual’s responsibility. Minimum Eligibility Standards: All drivers must
Standards: Authorization to drive University owned, leased or rented vehicles will not be granted to any employee, graduate assistant, student employee, non-employee having:
General Violations means violations or infractions recorded on a driving record that have no points attached to them. General Safety Procedures: It is the driver’s responsibility to familiarize themselves with the University’s policies, rules and regulations and to operate the vehicle in a safe and responsible manner. The following are general safety procedures, which must be followed when using University vehicles or personal vehicles on University business. These are not all-inclusive and should not be construed as such.
13. Fifteen-Passenger Vans
Rental of 15-passenger vans is no longer permitted by the University. Any exceptions to this policy must be handled through Risk Management Department. Any 15-passenger vans currently owned by the University must limit the number of passengers to a maximum of 9; the drivers must be at least 21 years of age and have completed the National Safety Council approved Van Driver Training Course.
14. Certificates of Insurance
All University contracts have a proof of insurance requirement, and it is the responsibility of the contract administrator in the Operating Department to ensure that a valid copy of a Certificate of Insurance is requested and on file with the contract. Contractual insurance requirements can be changed or waived only by the Risk Management Department.
RELATED POLICIES AND FORMS:
OU AP&P #860 Information Security