| Insurance

Insurance

Insurance Overview

The University of Alaska is self-insured for major types of coverage (auto, liability, property, workers’ compensation, etc.) through a pool of funds maintained by the System Office of Risk Services. Self-insurance means that, rather than paying premiums to an insurance company to cover the cost of claims that might arise, the University has decided to retain that risk and to self-fund those claims. The University has decided what level it feels comfortable and is able to self-insure, and has then purchased insurance coverage for claims that exceed those high self-insured retentions (deductibles). As a result, we rarely have claims that exceed our self-insured retentions and seldom have to file claims with insurance carriers. This process of self-insuring saves the University money in the long run.

Throughout the year, claims are paid from the risk pool, which is replenished annually by assessments to each MAU based on various exposure bases (property values, number of employees and vehicles, etc.) and claims history. The assessment is taken off the top of the MAUs’ initial budget. Therefore, a cost increase at a campus results in less trickle-down of funds to the department level. It is in everyone’s best interest to keep claim costs to a minimum by proactively working to prevent losses.

Following are some frequently asked questions about what is and isn’t covered under the University’s self-insurance program:

COVERED ITEMS:

TYPE	DESCRIPTION	DEPARTMENT DEDUCTIBLE
AUTO	Physical damage for UA owned, leased, and rented vehicles Liability for owned, leased and rented vehicles	Yes No
PROPERTY	University owned buildings and permanent structures University owned property (excluding buildings)	No Yes
PROFESSIONAL LIABILITY	Includes medical malpractice	No
EMPLOYMENT PRACTICE LIABILITIES	Grievances, lawsuits, settlements, etc.	Yes
CONTRACTS AND AGREEMENTS	Because we are self-insured, we cannot, under any conditions, name additional insureds or waive subrogation on contracts.	No
FIDUCIARY TRUST, CRIME	Embezzlement, forgery, theft	Yes

EXCLUDED ITEMS:

PROPERTY	Personal property of any kind, unless authorized for use by a supervisor or director for University business. Coverage is not provided to departments where property has been stolen and there is no evidence of forced entry.
Acts outside of the course and scope of University employment	Includes the results of criminal behavior.
AUTO	Some campuses exclude coverage for physical damage to University owned, rented, or leased vehicles . (Liability is covered.) See deductible information below for specifics at your campus. Physical damage to personally owned vehicles unless University negligence caused the damage. Damage to University vehicles (incidental use of owned or use of rental vehicles) during personal use .
Liability arising out of the activities of student clubs, Greek organizations, and other student social groups	These organizations are responsible for their own liability exposures arising out of their activities. University liability for involvement in these activities is covered.
Losses arising out of failure of a department administrator to follow guidance and direction provided by General Council, Risk Management, Environmental, Health and Safety, Human Resources, Procurement, or other involved expert resources.	Losses arising out of failure of a department administrator to follow guidance and direction provided by General Council, Risk Management, Environmental, Health and Safety, Human Resources, Procurement, or other involved expert resources.