Policies and Procedures
Policy 1405 – Insurance Charges to Campus Departments
August 1, 2003
October 7, 2014
October 7, 2014
Director of Risk Management Services
Risk Management Services
Campus departments are charged for insurance coverages utilized for their operations. Other costs of risk such as policy deductibles and uninsured losses are also the responsibility of the department with which the loss was incurred.
Reason for Policy
Allocating the University's Total Cost of Risk back to each campus department provides more accountability and financial incentive for them to avoid losses. A department's financial planning and budgeting is easier and more accurate when its cost of risk is known.
Certain insurance coverages are purchased on behalf of the University without all, or a portion of the charge allocated back to departments. Risk Management Services pays these insurance premiums. Examples of insurance coverages not entirely charged back include the following:
- Boiler and Machinery Insurance
- Fine Arts Insurance
- Employee Dishonesty Insurance
- Crime Insurance
- Employee Excess Liability Insurance
With regard to campus-wide property insurance, the University distinguishes between completely receipt-supported operations and those which receive funds from other sources. A certain portion of property insurance is not charged back to departments which receive state funds.
Frequently Asked Questions
Q: Why are insurance costs charged back to my department?
A: It is not unusual for any organization to allocate insurance costs back to the end user. Allocating the University's “cost of risk” back to each campus department provides more accountability and financial incentive to avoid losses.
Q: How are these insurance charges allocated back to departments?
A: Risk Management Services utilizes ConnectCarolina to electronically charge departments with the cost of their insurance coverages. For insurance policies shared by numerous departments, an equitable formula is used to appropriately allocate costs based on each department's exposure.
Q: Some insurance costs never show up in my department's ConnectCarolina reports. Does this mean we are not covered by that insurance?
A: The University pays certain insurance costs centrally without charging an amount back to departments. So, just because your department doesn't incur an insurance expense doesn't necessarily mean you're not covered. Contact Risk Management Services for those centrally paid insurance coverages that may be applicable to your department.
|Insurance Charges||Risk Management Servicesfirstname.lastname@example.org|
October 1, 2014: Updated names of financial system and reports.
June 12, 2009