SUBJECT: INSURANCE

APPLICABILITY: TOTAL UNIVERSITY

I. Insurance
Iinsurance is a risk financing technique basic for managing risk. The University purchases insurance to manage certain risk exposures to personnel and property.

II. General Appropriations Act
The General Appropriations Act does not allow general appropriations to be expended for purchasing insurance to cover claims that may arise under the Texas Tort Claims Act. However, the Act provides that "...a state agency may purchase director’s or officer’s liability insurance with appropriated funds for the agency’s appointed commission or board members and executive management staff." The State of Texas generally is considered "self-insured" for most risk exposures. However, the University may use funding sources other than general appropriations to purchase insurance.

III. University Auto Liability Insurance
Chapter 612 of the Government Code, Vernon’s Texas Civil Statutes, allows liability insurance coverage to be purchased for University officers and employees covering liability arising from the use and operation of University-owned motor vehicles. Premiums for autoinsurance coverage may be paid from State funds.

IV. State Employee Workers’ Compensation Program
Chapter 501 of the Labor Code, Vernon’s Texas Civil Statutes, specifies "the state is self-insuring with respect to injuries sustained by employees in the course of their employment." State employees who sustain a compensable injury or occupational disease arising out of and in the course and scope of their employment are provided with workers’ compensation coverage through the State Office of Risk Management. (See University Policy 1.5.4 for additional information on workers’ compensation insurance.)

V. Other Insurance
The University may purchase insurance, in accordance with state law, for various exposures to loss. The insurance may be purchased to meet contractual obligations, satisfy bond requirements, or provide other risk financing or risk transfer needs of the University.

VI. Responsibility
The Risk Manager has the responsibility for advising the University regarding insurance, centralizing all insurance contracts purchased by the University and managing the workers’ compensation and other major insurance programs. Insurance purchased for University exposures should be reviewed by the University’s Risk Manager. The Risk Manager continually assesses risks associated with University operations to determine appropriate coverages, limits of liability, deductible and insurance carriers. The Risk Manager works with the agency providing insurance services to the University for underwriting data including the following: loss history; valuation of property and contents; business interruption and extra expense valuations; machinery breakdown coverage; crime coverage; director’s and officer’s coverage; medical malpractice coverage; EDP coverage; events coverage; business automobile and RVcoverage, medical/accident coverage for athletes and cheerleaders, coverage for towers and antennas, Elm Fork Education Center coverage, and other coverage including: camps, various equipment floaters, etc.