1. NAU’s Insurance and Claims Unit of Contracting and Purchasing Service

2. Why does the University ask for insurance? To protect the University’s property and minimize the losses to Northern Arizona University When and from whom does the University ask for insurance? Vendors, Contractors, Third-parties, Users, Tenants –Basically anyone providing a service to the University or anyone using the University’s resources (like football fields or rooms) –Examples are charter buses, childcare services, labor, construction, soccer field rentals, concerts, plumbing or restoration services Before the service or facility rental occurs insurance should be approved

3. How much insurance does the University require? Depends on the amount of risk including the type of activity –Bounce House, Charter Buses, Elevator Maintenance –Arizona Department of Administration Risk Management Division has guidelines on the web @ staterisk.az.gov/insurance/modules What are the University’s Minimum Insurance requirements: –General Liability of $1 million each occ. and $2 million general agg. –Automobile Liability of $1 million combined single limit (CSL) –CSL - a single dollar limit that applies to any combination of bodily injury and property damage liability claims –Workers Compensation of $1 million each for accident, disease (each employee and policy limit) –Others depending on activity: Professional Liability, etc.

4. Insurance and Contracting Scope of work or activity in the contract drives the insurance requirements The contract (including purchase orders) bind those insurance requirements –New language on COIs specify, “when there is a written contract that requires…” –Without a contract, the insurance requirements are not enforceable Indemnity beyond insurance –Protection against a loss even if there is insufficient insurance –NAU does not want to limit a Vendor’s liability Example –Third-Party sues NAU for damage caused by Vendor, Vendor defends and pays third- party, NAU was covered from the loss. Requiring insurance protected our assets.

5. Insurance (other duties) Volunteer Registration Forms Requests for Certificates of Insurance Review Certificates of Insurance Independent Contractor Agreement/Sole Proprietor Form –Forms from the State waiving Workers Compensation coverage Assumption of Risk Forms A resource for Insurance Requirements for Contracts and Purchase Orders Loss Prevention Coordinator

6. Claims - What is covered? Arizona Revised Statute 41-621, et. seq. states University’s officers, agents, and employees are covered against liability for acts or omissions while acting in authorized governmental or proprietary capacities and in the course and scope of employment or authorization. Commercial General Liability Commercial Auto Liability Workers Compensation Professional Liability All Risk Real Property (Replacement Cost) All Risk Personal Property (Actual Cash Value)

7. Exclusions from ARS 41-622(B) Employee infidelity Inventory shortages Mysterious disappearance Normal wear and tear Obsolescence Non-serviceability Mechanical or electrical breakdown Property losses less than $100 in value Nuclear reaction or radiation Warlike action Other common exclusions including personally owned property

8. Who covers the claim & for how much? Arizona Department of Administration Risk Management Division (ADOA RMD) administers the State’s insurance program on behalf of the University Depending on the type of property –Real Property is buildings, land, fixtures permanently attached –Personal Property is moveable and easily transportable; University owned like computers, furniture, etc. –Real Property at Repair/Replacement Cost or Personal Property at Actual Cash Value Notice of Claim form for third-party claims must be initiated within 180 days. –Submitted to Risk Management Division and Attorney General University claims need to be initiated with ADOA RMD within 90 days of an incident, then 1 year to finalize claim. –One day for physical injury or damage/loss over $10,000

9. Claims process Fill out online Damage Report Damage Memo to Department; Loss Report to ADOA RMD Documentation: Photos, estimates, repairs costs, work orders, invoices Department pays for the repairs Reimbursement from ADOA RMD - Funds are deposited into Departments Account

10. Online Report of Injury (ROI) for Third-Party* Incidents or Injuries Department Self Service under LOUIE –Detailed instructions on how to complete the ROI are located here as well *Third Party applies to students, affiliates, guests visiting NAU Campus, and employees not on work status attending a function after working hours Employees who traditionally filled out the paper version of the Incident Injury Report should now fill out Online Report of Injury –We receive the completed ROIs for liability reporting purposes Does not take the place of calling 911, completed after emergency care Contact (928) 523-2009 or NAU-PropLiability@nau.edu

11. Any Questions? Insurance & Claims Unit of Contracting and Purchasing Service (928) 523-2009 nau-insurance@nau.edu nau-PropLiability@nau.edu nau-insurance@nau.edu nau-PropLiability@nau.edu