Administrative Policies and Procedures Manual - Policy 6150: Casualty and Liability Insurance and Claims

Date Originally Issued: 10-15-1995
Revised: 03-21-1997, 05-08-1998, 12-08-1999, 08-01-2006, 06-01-2007, 09-05-2008, 12-17-2015, 07-11-2024

Authorized by RPM 7.14 ("Risk Management and Insurance")

Process Owner: Director, Risk Services

1. General

This policy describes procedures for reporting personal or property losses and provides general information on the University's insurance coverage. Nothing in this policy shall impose or limit legal requirements or requirements of the State of New Mexico Risk Management Division.

With respect to personal or property losses, the University Environmental Health and Safety Department is responsible for:

• Monitoring the financial risk to the University incurred in the day-to-day activities of doing business.
• Managing financial risk through a variety of methods including, but not limited to, the procurement of insurance.
• Receiving and processing claims against the University by forwarding a claim to an insurer or resolving a loss internally.

The University is primarily insured through the New Mexico Risk Management Division. The UNM Risk Services Department must approve the purchase of other insurance to protect the University or as required contractually to protect others before the University Purchasing Department will approve the purchase. Departments should contact Risk Services for help in obtaining a certificate of insurance.

2. Liability Claims

All claims against the University resulting from personal injury or damage to property not belonging to the University should be reported to Risk Services by completing Exhibit A. Notice of Claim - Personal Injury or Property Damage. All the known facts of the event resulting in the injury or damage should be included. Statements from all witnesses and/or University employees should be obtained in writing and sent as soon as possible to Risk Services.

New Mexico statute requires a claimant against the University to send written notice to the University that includes information about how and when the event occurred, why the claimant feels the University is responsible, and the damages the individual is claiming including any costs they have incurred. This notice should be sent to the Risk Services.

3. Casualty Claims

Loss of University property by theft, vandalism, fire, windstorm, hail, or other accidental loss must be reported to the Environmental Health and Safety Department as soon as practical after the loss is discovered, using the Notice of Claim - Loss or Damage to University Property form (Exhibit B). Automobile accidents and property losses are reported to the Risk Services by using the Notice of Claim - Automobile/Equipment Accident Report form (Exhibit C). If these losses involve criminal activity, including theft or vandalism, they must also be reported to the UNM Police Department, along with the serial numbers and UNM tag numbers of the items. If a theft or loss of money or securities has occurred, the loss must be reported immediately to the University Internal Audit Department (refer to UAP 7205 ("Dishonest or Fraudulent Activities")) and Risk Services.

To report a casualty loss to Risk Services, a department must:

• complete either Exhibit B. Notice of Claim-Loss or Damage to University Property or Exhibit C. Notice of Claim-Automobile/Equipment Accident Report;
• attach a copy of the police report, if applicable;
• attach a copy of the purchase document as proof of ownership, purchase, and value; and
• attach an estimate of the loss, listing the vendor and replacement or repair cost of each item.

The department must also submit an Request for Deletion of Assets form with a copy of the police report to the office of Inventory Control. Refer to UAP 7710 ("Property Management and Control") for this form. The office of Inventory Control will delete the lost or stolen property from the inventory records.

4. Notice of Incident

A Notice of Incident form (Exhibit D.) should be completed when a claim is not expected to be filed. This form is for record only, and must be submitted to Risk Services.

5. Insurance

This section provides general information on the University's insurance coverage. Departments can obtain more detailed information from Risk Services.

5.1. Insured Losses

With some specific exclusions, University property is insured against loss due to:

• Fire.
• Theft.
• Vandalism.
• Other perils such as accidents, weather occurrences, explosions, and vehicle damage.
• Failure by a University employee to faithfully perform duties or to properly account for money or property received.

5.1.1. Definitions for Insurance Purposes

• Loss refers to all damage to, destruction of, theft of, or loss of property.
• An occurrence is an event that results in a loss of property.
• Theft includes any absence of property from a location where it is known to have been, under circumstances where a probability of theft exists. But theft does not include the wholly unexplained or mysterious disappearance of property.
• Replacement cost is the dollar amount required to replace or repair any property in the same condition as when acquired by the University.

5.1.2. Exclusions

University insurance does not cover losses caused by or resulting from certain types of occurrences, including, but not limited to the following:

• Any dishonest act committed by a University employee when the University has knowledge that the employee had previously committed a fraudulent or dishonest act, whether the act was committed before or after the date of employment by the University. For bonding purposes, "employee" includes both University employees and persons acting on behalf of or in service to the University in any official capacity, whether with or without compensation, excluding independent contractors.

• Any unexplained loss or mysterious disappearance of property. When an inventory report or audit shows unexplained shortages or losses, the office of Inventory Control will report these items as unlocated. For property management information, refer to UAP 7710 ("Property Management and Control").

• Theft of building materials.

5.2. Insured Property

With some exceptions, all property on University premises may be insured against loss, including property that does not belong to the University. Insured property includes:

• All property owned by the University that is on University premises at the time a loss occurs.
• Property on loan to the University that is in the custody of the University.
• The loss of money or securities while being conveyed by a messenger or armored motor vehicle company.
• University property taken off campus may be insured depending on the circumstances, subject to a deductible discussed in Section 5.3. This includes equipment stolen from an employee's home. A University department must have authorized the employee to take equipment off campus by completing the Employee Equipment Checkout form. Refer to UAP 7730 ("Taking University Property Off Campus") for this form. The department authorizing the employee to take the property off campus is responsible for all losses not covered by insurance. Negligence by the employee would negate coverage and the employee would be responsible for any losses.

5.2.1. Exclusions

Certain types of property are not covered by University insurance, including, but not limited to the following:

• Blueprints and designs.
• Live animals.
• Certain machinery and equipment, such as spraying, welding, and building-cleaning equipment.

5.3. Amount Paid by Insurance

When a loss occurs, the University insurance may pay the replacement cost subject to the following adjustments:

• The replacement cost of an item is adjusted to reflect the actual cost of replacement based on the current market.
• There is a $5,000 deductible amount per occurrence for covered theft losses and a $2,500 deductible amount for all other covered losses.

5.3.1. Amount Paid by Department

Any difference between the amount paid by University insurance and the actual expense of replacing or repairing property is the responsibility of the department that sustained the loss. If University property is lost or stolen while at an off campus location, the department authorizing the off campus use of the property is responsible for all costs not covered by the University's insurance.

5.3.2. Personal Property

Personal property is not covered by the University insurer.

6. Attachments

Exhibit A. - Notice of Claim-Personal Injury or Property Damage 
Exhibit B. - Notice of Claim-Loss or Damage to University Property 
Exhibit C. - Notice of Claim-Automobile/Equipment Accident Report 
Exhibit D. - Notice of Incident