Research Policy Analysis and Coordination
Chapter 21-300: University Insurance Coverage
The University’s risk management coverage includes a variety of insurance programs, with various retentions. Coverage may include the University’s self-insurance or purchased primary insurance and purchased excess insurance. Because excess insurance and any primary purchased insurance are renewed annually, the retentions, terms and conditions, and exclusions are subject to change. Thus, it is important to review the current coverages for circumstances specific to a sponsored project with the Campus Risk Manager in advance.
Each insurance program is designed to address different University needs. Business and Finance Bulletin BUS-81, Insurance Programs, “provides an overview of the insurance programs managed by the Office Risk Services that extend coverage for University operations and activities and related exposures.” As BUS-81 states, it is not intended to be a comprehensive list or a complete guide to the University’s insurance coverages.
Campus Risk Manager should be consulted when there are any questions about the coverage available or the need to purchase additional coverage beyond that provided by the University's insurance programs for a specific sponsored project. The cost of additional insurance "required or approved, and maintained, pursuant to the sponsored agreement" is an allowable direct charge. (2 CFR Part 220, Appendix A. C. 25, formerly Office of Management and Budget (OMB) Circular A-21, Cost Principles for Educational Institutions, Section J.21.a.)
21-310 BUS-81 Major Insurance Programs
The University’s major insurance programs described in BUS-81 are:
- Workers’ Compensation Coverage
- General Liability Coverage
- Foreign Liability Coverage
- Employment Practices Liability Coverage
- Professional Medical and Hospital Liability Coverage
- Automobile Coverage
- Property, Fine Arts, Library Materials, and Boiler and Machinery Coverage
- Marine and Aviation Coverage
21-320 Coverage and Covered Parties and Property
The levels of coverage and the parties and property covered by each of the University insurance programs named above as listed in BUS-81 are further defined by specific Program Managers in the Office of Risk Services or documents provided on the OP Risk Services homepage.
Workers’ Compensation Coverage is a self-insured program is designed to provide coverage to employees for benefits prescribed by the State due to a job related injury resulting from an accident or occupational disease. Management of this program, fiduciary activity, and provision of contracted claims administration are the responsibility of the OP Office of Risk Services. Local program activities and performance are the responsibility of campus, hospital, and the
LBNL Workers' Compensation Managers. Workers' compensation premium is included in the benefit rates direct charged to sponsored agreements.
For employees permanently residing and working out of State, special arrangements must be made for coverage. Arrangements for this coverage must be made through an employee's site Workers' Compensation Manager prior to a University employee commencing work out of State.
21-322 General, Foreign, Employment Practices, and Professional Medical and Hospital Liability Coverages
General liability self-insurance coverage is specific to:
- bodily injury or property damage caused by an occurrence or accident;
- personal injury, or advertising injury caused by specified offenses;
- liability imposed in the administration of the University’s employee benefits program; and
- liability in rendering or failing to render consultancy or advisory service, or any other service of a professional nature.
Foreign liability purchased insurance covers University operations outside the United States, such as research projects and University sites and facilities in foreign countries as well as University employees working abroad.
Employment Practices Liability Coverage is specific to liability arising from employment practices, wrongful acts such as wrongful termination, discrimination, harassment, retaliation, or workplace tort.
Professional Medical and Hospital Liability is specific to healthcare employees for liability arising in the course and scope of employment, including claims against healthcare employees related to patient care.
21-323 Automobile Coverage
Automobile Self-Insurance Coverage includes liability and physical damage when operating a vehicle in the course and scope of University employment. In addition to the automobile coverage described in BUS-81, G-28, Policy and Regulations Governing Travel and BUS-74, Business Travel Accident Insurance, both described below in 21-334, provide additional information regarding the University’s insurance coverage for employees traveling on University business.
21-324 Property, Fine Arts, Library Materials, and Boiler and Machinery Coverage
Property, Fine Arts, Library Materials, and Boiler and Machinery Coverage is for risks of physical loss or damage to real and personal property owned by the University or in which the University has an insurable interest or in the care, custody or control of the University.
The University’s property insurance program should be consulted for a current list of perils not covered. It is a policy of The Regents not to purchase earthquake or flood insurance. Therefore, such coverage is generally not purchased for a particular individual sponsored project. The campus Risk Manager must be consulted if a sponsor requires such coverage.
21-325 Marine and Aviation Coverage
These two coverages are specific to operation of marine and aviation vehicles owned by the University, in which the University has an insurable interest, in the care, custody or control of the University; for which the University has agreed to insure under written contract prior to a loss; or for which the University is legally liable. These programs are designed to provide coverage for:
- risks of physical loss or damage to University marine or aviation vehicles;
- liabilities arising from the University’s marine and aviation operations that result in bodily injury and/or property damage to third party(ies); and
- foreign shipments of University property.
21-330 Other Related Business and Finance Bulletins
Guidelines for other University insurance programs not included in BUS-81 are as follows:
When students travel to participate in off-campus activities sponsored and supervised by the University, they are covered 24 hours a day, worldwide, for a wide variety of accidents and incidents while away from the campus. However, students must register all out-of-state and foreign country travel at www.uctrips-insurance.org to ensure coverage for each covered off-campus activity.
BUS-39 sets forth the University's responsibility for loss of or damage to property of individuals, including employees, faculty, and students.
BUS-63 outlines University insurance requirements and describes assignment of responsibilities within the University Risk Services Program for Certificates of Insurance issued on behalf of or to the University. Certificates of Insurance and BUS-63 as applicable to extramural awards is outlined below in 21-410.
Insurance requirements and coverage applicable to University employees’ travel on University business are discussed in both G-28 and BUS-74. Employees must register all out-of-state and foreign country travel at http://www.uctrips-insurance.org/ to ensure coverage for each such business trip under the University’s business accident insurance described in BUS-74.
This Bulletin provides an overview of the insurance programs managed by the Office of Risk Services that extend coverage for Information Technology Systems and related exposures. These include programs for the physical loss or damage to hardware or data and for damages and claims expenses that the University is obligated to pay because of an actual or alleged privacy breach, confidentiality breach, security breach or online media activity.