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Risk Management – Insurance Coverage

The Risk Management Department seeks Risk Transfer for a great majority of our exposures to Legal Liability.  Here is a list of our major coverage, and the forms associated with adding, deleting, or changing coverage for anything related to the campuses.   Additionally, claims forms and general information are included.  Additional information regarding claims can be found at the Incident Reporting page.  Charge-Backs assume that the deductible is met.  For instance,  take this example:

A university owned vehicle causes an accident and damages a third-party vehicle.  The vehicle was badly damaged, and it was the fault of our driver.  The total cost of repair to the third-party vehicle is $4,500.oo.  The charge-back would be $4,500.00.   Let’s take another example.  Assume this time that the vehicle of the third-party was a Ferrari.   Now the vehicle damage was $45,000.00.   At this point, the department responsible for the incident would be charged-back $10,000.00, and Risk Management would fund the additional $35,000.00.

All Risk Property Insurance

Current Deductible:                $100,000                                   Current Charge-Back to Campus:       $ 10,000

  • All real property (buildings) owned by the University System are insured for their replacement cost for most causes of loss.  Personal property (contents) are similarly insured.
  • Because of our large deductible, Risk Management does offer an optional coverage funded by additional premium to buy down the deductible as low as $500 for smaller items that a department may wish to insure specially (such as electronics, library books, bookstore contents, etc.)  This special contents program is totally self-insured by the system. Risk Management requires that any non-fixed assets must be scheduled and sent to us as a condition of coverage                     ——Required form: Special Contents Insurance——
  • We also carry specialty coverage for inland and ocean marine equipment which can be obtained for an additional premium based upon the value of the items.  This is a fully insured program.

New Buildings:                                  Required form: C.O.P.E. Form

Buildings in Construction:        Guidelines for Securing Builder’s Risk Insurance

General Liability

Current Deductible:                $400,000                         Current Charge-Back  to Campus:       $ 10,000

This coverage provides protection to the University and its trustees, officers, appointees, employees and volunteers against claims from third parties for bodily injury, property damage or personal injury (libel, slander, invasion of privacy, etc.). Coverage applies to occurrences both on University premises and in connection with University operations conducted elsewhere. In order to be covered, a person must be acting at the direction of and within the scope of his or her duties for the University of Maine System. Coverage is included for University-sponsored student organizations (including their officers and members while acting within the scope of their duties) so long as the activity has received the appropriate University approval.

Educators Legal Liability

Current Deductible:                $150,000                        Current Charge-Back  to Campus:       $ 150,000

The Educators Legal Liability policy insures trustees, employees, students and volunteers conducting University-related business for wrongful acts. Wrongful acts can include actual or alleged errors, omissions, acts, misstatements, neglect or breach in the discharge of duties to or on behalf of the University.

Vehicle Liability Insurance

Current Deductible:                $400,000                        Current Charge-Back  to Campus:       $ 10,000

Liability insurance coverage for owned, leased, and rented vehicles is provided on a blanket basis for all vehicles used in the course and scope of University business.

Required form: Vehicle Incident Report

Physical Damage Vehicle Insurance

Current Deductible:  Depends of Vehicle Values        Current Charge-Back  to Campus:       Depends on Vehicle Values

The University also covers all owned vehicles for Physical Damage.  Yearly, Risk Management charges a premium for each vehicle, unless specifically asked to exclude a particular vehicle.   Based on the values of the vehicle, Risk Management determines an appropriate premium.  All vehicles with a value over $35,000.00 are placed with a commercial insurer with a current deductible of $1,000.00

Required form: Add New/Change Vehicle

Fine Arts and Special Collections Insurance
Arts Insurance Program Guidelines

Current Deductible:  $1,000                                                                        Minimum Charged to Campus:       $1,000

The University, given our special antiquities and other fine arts on loan, have arranged Art Insurance up to $50,000,000 in the event of a covered peril.   All special collections, and anything of extreme value should be reported to Risk Management to ensure that the University System has the required reported values to our insurer.   The program is administered in the USA, and has accessed the Lloyd’s of London market to meet our coverage needs.  Please use the below forms for reporting.


Worker’s Compensation

Current Deductible: Self-Insured                  Charge-Back: Dependent on Adherence to the Return-to-Work Program

The University Self-Insures its exposure to Worker’s Compensation laws in the State of Maine.   Out of State Exposures are covered by a Commercial Insurance Policy.   The Risk Management works in tandem with CCMSI, our Third Party Administrator, to ensure the best treatment for the injured worker.

Forms:   Incident Form