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Business and Financial Policies and Procedures



1. When I use a University vehicle how much insurance coverage does the University provide?

The State of Illinois provides automobile liability limits of up to $2,000,000 per occurrence incurred while operating a vehicle in accordance with State of Illinois Central Management Services guidelines. For more information about vehicle use, see Section 15, Travel.

2. If I have an accident in a University vehicle am I covered?

It depends. If you're using a vehicle for unauthorized purposes, you are not covered. If you frequently drive a state or University-owned vehicle, you may also want to verify with your automobile insurance agent that your personal auto liability coverage applies in these situations.

3. How do I report a vehicle accident?

Drivers of University vehicles must regard vehicle accidents with the same sense of responsibility as if the accident involved their own vehicle. Follow the procedures for reporting an accident in Section 15, Travel. If you believe the vehicle you are driving may be commercially insured through the Office of Risk Management, contact their office for instructions regarding claim reporting procedures. If you are unsure how the vehicle is insured, contact your unit business manager.

4. I get confused about certificates of insurance. Is this something the University gives to others, or something we require of others?

Both. Agreements and contracts that the University enters into generally require both the University and the other party to have insurance and provide evidence of that insurance. The University and the contractor/vendor may both issue certificates of insurance or self-insurance to meet the contract requirements and provide evidence of financial responsibility should a loss or claim arise out of the agreement or contract. If you are asked for proof of the University's insurance, submit a Proof of Insurance form. How to Determine which Proof of Insurance Form to Use

Liability Insurance

5. Our unit is having a department picnic. If we want to serve alcohol what do we need to do?

Consult your campus policies on the use of alcohol before planning your event. If campus policies are followed, the University provides liability coverage for University-sponsored events.

6. What is the University's policy on allowing others to use University premises?

Each campus has policies for outside users interested in using campus facilities. These cite not only the rules and regulations regarding such usage, but also provide helpful information for event planners. UIUC Campus Policies, UIC Campus Policies, UIS Campus Policies.

7. Are Registered Student Organizations covered by the University's insurance?

No. For information on short-term insurance RSOs can purchase, consult the Office of Risk Management Website information on Tenants and Users Liability Insurance Policies (TULIP). The transaction is strictly between the RSO and the insurance company providing the coverage.

8. Does the University use waivers of liability?

Yes. Waivers or releases of liability are instruments designed to protect the University and its employees from legal liability for injuries that may occur to students or other individuals who participate in both voluntary and required activities on and off campus. The frequency of lawsuits has increased as our society has become more litigious, subjecting the University and its employees to more liability exposure. Although some people hold the misconception that waivers are worthless, in fact they are valid and reliable legal tools.

The University Office of Risk Management can provide you with waiver forms. Enter the information about your activity in the blank field. If you change other parts of the waiver you will invalidate the waiver.

9. We recently had an employee steal University assets. Does our insurance cover this?

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, which is charged to the unit sustaining the loss.

Property Insurance

10. Why do you carry property insurance on some things and not on others?

The University carries property insurance when:

  • Required by a contract to which the University is a party
  • An expressed or implied trust is involved that places an obligation upon the University to carry insurance as a legal requirement of good trusteeship
  • The rental or usage fees established for the use of University property include an amount used to pay insurance coverage premiums on that property
  • The funds provided voluntarily from outside sources are used to pay insurance premiums
  • The cost of commercial insurance is less expensive than an uninsured loss

11. What is the property insurance deductible "buy-down" that is available?

The University's master commercial property policy has a $500,000 deductible. Units may "buy-down" this deductible by paying a commercial insurance premium. The rate varies from year to year so contact the Office of Risk Management for the up-to-date cost. If a unit buys down the property deductible on their office contents they will be responsible for a $25,000 deductible. If a unit decides to purchase insurance on their computers, there is a separate property program for computer and electronic equipment. Contact the Office of Risk Management for more information on Property Insurance.

Forms Used in This Process

How to Determine which Proof of Insurance Form to Use

Related Policies and Procedures

Section 15, Travel

Additional Resources

UIUC Campus Policies
UIC Campus Policies
UIS Campus Policies
Tenants and Users Liability Insurance Policies (TULIP)
Property Insurance

Last Updated: October 11, 2021 | Approved: Senior Associate Vice President for Business and Finance | Effective: November 2010

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