How the University Insures Itself
For most of its history, the University of California purchased coverage for its insurance needs. In the mid-1980s, the University found the cost of insurance so high that it chose to establish in-house, self-financed insurance programs. Those self-insurance programs remain the backbone of the University's overall insurance portfolio, but since then the University has added a number of commercial insurance programs.
General Liability Self-Insurance Program
The General Liability Self-Insurance Program covers employees acting in the course and scope of their University employment. Subject to proof, it pays for losses incurred by outside parties resulting from the negligent performance of University operations. Such losses include:
- Bodily Injuries
- Personal Injuries (e.g. emotional distress)
- Property Damage
- Advertising Injuries (e.g. trademark infringement, libel, slander, defamation)
- Products/Completed Operations Losses (e.g. manufacturing defects)
- Errors and Omissions Losses (e.g. erroneous professional advice)
This is not a complete list of covered losses. However, the General Liability Self-Insurance Program specifically does NOT cover:
- Breach of Contract Allegations
- Land Use Disputes
Automobile Liability Self-Insurance Program
The Automobile Liability Self-Program covers University-owned and -leased vehicles. Under certain circumstances, it also covers rental or personal vehicles. The program consists of two components:
1) Automobile Liability covers bodily injury or property damage caused by someone driving a University-owned or -leased vehicle.
2) Automobile Physical Damage covers damage to or loss of a University-owned or -leased vehicle.
The program also covers vehicles the University has agreed to insure under written contract prior to a loss, or for which the University is legally liable -- this is how rental or personal vehicles may be covered. For more information about driving on University business, including RENTAL CAR CONTRACT NUMBERS, click here.
Losses under this program carry a $500 deductible.
EMPLOYMENT PRACTICES LIABILITY SELF-INSURANCE PROGRAM
This self-insurance program covers the University and its employees against allegations that another employee was harassed, discriminated against, retaliated against, or wrongfully terminated. There is an important exception, however: if an employee is accused of sexual harassment, and the University's subsequent investigation determines that the employee more likely than not violated University policy by committing sexual harassment, the employee will not be covered.
There is no deductible for this program. However, if evidence reveals that the department knowingly violated applicable federal or state law or University policy, or that the department made a strategic decision to externalize its costs by provoking a lawsuit, Risk Services may charge a co-pay of $50,000 or more.
PROPERTY SELF-INSURANCE PROGRAM
This self-insurance program covers University-owned property. It also covers privately-owned property that (1) the University has contractually agreed to cover and (2) is in the University's care, custody, and control.
Covered perils include:
- Water (as long as the damage is sudden, accidental, and not from a flood)
- Transportation from one site to another
- Building collapse
- Pollution (in certain circumstances)
Coverage is worldwide, meaning the property need not be on University grounds to be insured. Lost or damaged goods are replaced or repaired with property of like kind and quality.
This program carries a deductible (the amount you pay before insurance kicks in) of $1,000 for all perils with the following exceptions:
- Water Damage - $5000 per occurrence (or 10% of total loss when in excess of $50,000)
- Fire - $5,000 per occurrence
- Forced-Entry Theft - $1000 per occurrence
- Non-Forced Entry Theft - $5,000 per occurrence
FINE ARTS SELF-INSURANCE PROGRAM
An offshoot of the Property Self-Insurance Program, this self-insurance program covers paintings, sculpture, and other works of fine art, subject to policy exclusions. Coverage is optional, but we strongly recommend that artworks of high value or importance to the campus be scheduled for coverage under this policy.
Departments may also secure coverage for exhibits of University-owned artwork at off-campus locations or for exhibits of non-owned artwork held on-campus. To secure coverage for exhibits, contact Risk Services at least ten days prior to the date coverage is required.
The University also purchases a Library Collection and Unscheduled Fine Arts Policy that covers library books and collections.
PROFESSIONAL MEDICAL & HOSPITAL LIABILITY SELF-INSURANCE PROGRAM
Better known as medical malpractice coverage, this self-insurance program covers the liability of medical professionals acting in the course and scope of their University employment. At the Berkeley campus, this coverage is primarily of interest to employees of the Tang Center and Optometry Clinic.
CYBER SELF-INSURANCE PROGRAM
This self-insurance program covers the loss of information technology hardware and data provided adherence to security protocols outlined in Regents Business & Finance Bulletin IS-3 (or local procedures not in conflict with BFB IS-3) have been implemented for critical systems.
Commercial Insurance Programs
TENANT USER LIABILITY INSURANCE PROGRAM (TULIP) (non-campus hosts and vendors using campus space for events)
VENDOR/CONTRACTORS (for vendors providing an ongoing service to a campus unit)
VENDOR/EXHIBITORS (for vendors supporting campus events or staging temporary displays)
Other Insurance Programs
Please call 510-643-9318 for more information about the following insurance programs:
- Aviation (University pilots flying on University business)
- Boiler & Machinery (machinery that generates power)
- Employee Dishonesty (employee theft of University assets)
- Watercraft (University-owned boats and ships)