The University can be exposed to risk when using contractors, consultants, service providers, and/or vendors to provide goods or services or when outside organizations and individuals use University premises and/or facilities. The University requires contractors, consultants, service providers, and/or vendors doing business with the University, as well as outside organizations and individuals using University premises and/or facilities, to maintain liability insurance and other insurance as necessary to reasonably protect the University's financial interests, and in amounts deemed adequate by the University. The University may also be exposed to risk when units fail to follow University policies and procedures with respect to entering into contracts, leases, or other types of agreements, on behalf of the University. Contracts are to be signed only by those with delegated contract signature authority (formally delegated by the University President). Further, all contracts are to be reviewed and approved by ISU General Counsel prior to signature.
Insurance purchases are subject to the Illinois Procurement Code. Competitive bids are normally used in the procurement of insurance when the premium cost is estimated to exceed the dollar limits set forth in the Illinois Procurement Code. Strict adherence to the Illinois Procurement Code is followed at all times.
The University purchases commercial property insurance on its buildings (including boiler and machinery) and contents. Commercial property insurance is provided under a master property policy subject to a deductible. The deductible is charged to the unit sustaining the loss. Insured values are reviewed annually with the insurance carrier, and the buildings and contents are insured on a replacement cost basis. The University places its insurance coverage with commercial insurers who have strong financial ratings given by one or more financial rating companies such as A.M. Best Company, Standard and Poor's, or Moody's Investor Service.
Personal Property - Individuals who choose to bring personal property onto University premises should contact their insurance agent to be certain their property is properly insured. It may be desirable for personal property brought onto University premises to carry a sticker that is prominently displayed and identifies the owner. The University assumes no responsibility for any loss, theft, or damage to an individual's personal property brought onto University premises, or University-leased premises, even if the property is brought to the University to be used in connection with their work.
Automobile Liability - The State of Illinois provides Auto Liability limits of up to $2,000,000 per occurrence for automobile liability incurred while operating a vehicle in accordance with State of Illinois Central Management Services guidelines. (Reference Policy 5.4.2 Automobile Insurance) The State of Illinois coverage is primary (pays first) for any owned or leased automobile; the State of Illinois coverage is in excess of any other available coverage for non-owned vehicles. The University maintains commercial insurance on a limited number of vehicles. This commercial coverage is maintained for University-approved auto usage that is beyond the scope of the State of Illinois Auto Liability Plan.
Employees who frequently drive a state or University-owned vehicle may wish to verify with their automobile insurance agent that their personal auto liability coverage is available in the event the State of Illinois denies liability coverage on the basis that the auto usage was outside the scope of employment duties.
Crime Insurance (Employee Dishonesty)
The University purchases commercial insurance to protect against financial loss resulting from employee dishonesty. This insurance is sometimes referred to as crime insurance. The University retains a high deductible per loss. The deductible is charged to the unit sustaining the loss.
The University and the State of Illinois provide several group policies for Faculty and staff who qualify, such as:
Contact the campus Benefit Center at Human Resources for information regarding any of the faculty and staff group insurance plans.
Student Group Insurance
The University provides a group policy (Hospital-Medical-Surgical) to students. Contact the Student Insurance division of Student Health Services for information.
Workers' Compensation
As required by law, the University provides Workers' Compensation coverage via the State of Illinois Workers Compensation Plan. For information, or to file a claim, contact the campus Workers Compensation Office, 202 Nelson Smith Building (309)438-2007.
Unemployment Compensation
As provided by law, the University provides Unemployment Compensation coverage for those employees who qualify.
A variety of situations exist when a unit may be asked to provide evidence that the University and/or University employees are insured. Units that are asked to provide evidence of the University's liability insurance should contact the University Office of Risk Management (309)438-5915.
