Risk Management announces University insurance rate reductions, loss sharing plan
July 1, 2013
Risk Management is instituting changes to its insurance program to encourage good loss identification practices and loss prevention habits in line with Enterprise Risk Management practices.
Internal recharge rates for the following programs will be reduced effective July 1:
Strong financial management of the insurance program and negotiation of annual policy renewals positioned the University to pass savings on to departmental areas through these rate reductions as well as a one-time premium rebate of $750,000. New coverage rates are available on the Rates/Deductible page on the Risk Management website.
In addition, Risk Management, in conjunction with University leadership, is establishing a loss sharing plan to encourage good loss control and encourage loss prevention habits University-wide. This plan includes:
* Changes to internal deductibles for property, liability and fidelity, and auto coverage that will align internal deductibles and loss sharing with peer institutions. New deductibles are listed by category on the Risk Management Rates/Deductible page.
* Incentives for departments (as defined by the first seven digits of the Cost Center) that practice good loss control:
-- Deductibles are waived if no claims have been filed during the preceding 24 months in the respective coverage area (all lines except employment-related claims).
-- A deductible waiver program for employment-related claims has been created, which includes a unit-based Supporting Supervisors in the Workplace education program and manager-based good faith due diligence component.
The changes to the University insurance plan are estimated to result in more than $3 million in net savings. Risk Management is also creating a $300,000 Risk Mitigation Investment Grant Program. For more details about rates and deductibles and the grant program, visit the Risk Management website.
This program has been assembled with the feedback and support of University leadership, which includes chancellors and college deans.