University of Washington
Administrative Policy Statements		 Rev/May 1998 14.1.3

Table of Contents

1. Introduction

2. The Office of Risk Management

3. Liability Coverage

4. Workers' Compensation Program

5. Accident Reporting

6. Legal Actions Against the University

7. Property Insurance

8. Health and Accident Programs
      

University Risk Management and Insurance Programs

(Approved by the Executive Vice President by authority of Executive Order No. 5)


3.   Liability Coverage

a.   General Policy

The objective of the University's liability coverage is to protect the University and its authorized agents against liability for claims and expenses for bodily injury, personal injury, or property damage to third parties arising out of the performance of duties on behalf of the University. Protection against personal liability is provided under the policy on "Indemnification of University Personnel" as set forth in the University Handbook, Volume 1, Chapter 5, and in Volume 2, Part I, Chapter 12, Section 12–27. "Acts taken in bad faith" are not covered by the University's indemnification policy and are discussed in the University Handbook, Volume 1, Chapter 5. Additional areas not covered by the University's liability programs are: payments for damages for which other coverage is in effect, acts of God, acts of war or civil disturbance, and payments for damages not due to University negligence. Questions regarding the indemnification policy should be directed to the Office of Risk Management.

The University partially self-insures its major liability programs by prefunding its anticipated losses through reserves deposited in a revolving fund (RCW 28B.20.253). These reserves can only be used for payment of claims costs and related expenses. When necessary, arrangements for confirmation of the University's liability coverage with respect to a particular program can be obtained through the Office of Risk Management.

Major types of coverage in the liability program include: general liability (faculty, staff, students acting under the direction of departmentally sponsored programs), hospital professional liability, and individual professional liability (physicians, dentists, psychologists, nurses, etc.). Three additional programs—automobile liability, aircraft liability, and adverse effects to human subjects—will be discussed in detail. Any further questions about liability coverage should be directed to the Office of Risk Management, 206–543–3420.

b.   Automobile Liability and Physical Damage Insurance

The University of Washington is self-insured for automobile liability, and all University-authorized drivers are covered under this program.

The intent of the program is to provide protection to the University, its officers, authorized agents, students, and employees when acting on behalf of the University from claims of third parties for damages due to bodily injury or property damage arising from the operation of vehicles used in the course and scope of University business. The program is not equivalent to commercial policies and does not include personal injury protection (PIP), un/underinsured motorist (UUM), duration of coverage (DOC), or medical payments coverage.

Vehicles are also exposed to the risk of physical damage including miscellaneous causes such as fire and theft, as well as collision. The following information addresses liability, physical damage, and injury coverage for University- and non-University-owned vehicles. Further information and specific interpretation of the coverage is available through the Office of Risk Management, 206–543–3420.

1)   Motor Pool Vehicles—
a) Damage to the Vehicle—Physical damage repair costs to vehicles owned and operated by the Motor Pool are incorporated into the rates charged to users in order to spread the costs of repairs. However, the Motor Pool may charge a department directly for extraordinary costs. Contact the Motor Pool Office, 206–685–1566, for details.
b) Injury to Third Parties—The University's automobile liability coverage extends to all University officers, employees, agents, and students authorized to drive by Motor Pool regulations (see Administrative Policy Statement 53.2).
2)   Other University-Owned Vehicles—
a) Damage to the Vehicle—Non-Motor Pool vehicles are not automatically covered for physical damage (i.e., comprehensive and collision) insurance. Application for physical damage insurance must be made through the Office of Risk Management at least one week prior to the time coverage is needed. The application must include:

  • Pertinent vehicle description information;

  • Purchase price, when new;

  • Description of how the vehicle will be used;

  • Owner's or lessor's name and address;

  • Where the vehicle is garaged (by city);

  • List of authorized drivers with driver's license numbers and birthdates; and

  • Department budget information for recharge of premium, if coverage is approved.
  If the vehicle meets the requirements and criteria for commercial insurance, coverage is obtained and the premiums charged to the department. If any changes of vehicles, uses, or ownership take place, the Office of Risk Management must be notified. In the event of an accident, the insured department must notify the Office of Risk Management in addition to all other required accident reports. The Office of Risk Management will provide instructions on obtaining estimates and filing claims.
b) Injuries to Third Parties—With rare exceptions, the University's liability coverage extends to non-Motor Pool vehicles (departmentally owned or on-loan vehicles) driven by authorized University officers, employees, agents, and students while on University business.
3)   Rental Vehicles —
a) Damage to the Vehicle—Unless coverage is provided under the State Automobile Rental Agreement, the University officer, employee, agent, or student renting the vehicle must accept the collision damage waiver (CDW or LDW) offered by the rental company.
  All costs of the CDW, deductibles (if any), and non-covered losses to the rental vehicle are either the responsibility of the University officer, employee, agent, or student renting the vehicle, or their employing department. Departments may, however, reimburse employees for rental vehicle damage expenses only from discretionary accounts.

b) Injuries to Third Parties—University liability coverage for injury or damage to third parties extends to rental vehicles as excess coverage over and above any liability coverage provided by the rental company. Liability coverage is provided only to University officers, employees, agents, and students as described in University Handbook, Volume 1, Chapter 5.
  If a driver is not eligible for the University's liability coverage (e.g., the employee of another state agency), either an indemnification agreement from the driver's employer, or additional liability insurance is needed. Contact the Office of Risk Management, 206–543–3420, for assistance with an indemnification agreement. Additional insurance can be arranged by purchasing a rental company liability policy, or may be available automatically through some credit cards or personal automobile insurance policies. Check with your insurance agent or credit card company for information regarding coverage for rental vehicles.

4)   Privately Owned Vehicles—
a)

Damage to the Vehicle—There is no University insurance or self-insurance coverage for privately owned vehicles that are damaged while being used on University business. Instead, the car mileage rates paid to University travelers are structured to include an amount for insurance costs and deductibles. Therefore, the personal automobile liability coverage carried by the University officer, employee, agent, or student is the exclusive coverage for losses to privately owned vehicles. It is advisable for the University driver to confirm with their insurance agent that comprehensive or collision coverage will apply to business uses before using their personal vehicle on University business.
b) Injuries to Third Parties—The University's liability coverage is secondary to any personal automobile liability coverage carried by the University officer, employee, agent, or student even if the vehicle is being used on University business. The University's program serves as a backup and would apply to a claim only if the personal automobile liability insurance does not apply to the accident or is insufficient to cover the loss.
5)  

Coverage for Injuries to Drivers and Passengers—Drivers and passengers of University-owned or rented vehicles who are University employees or volunteers are covered by workers' compensation for any work-related injuries. Drivers and passengers who are University students are covered by their personal health insurance, if any. Authorized drivers and passengers not affiliated with the University are responsible for their own injury insurance, and should check with their institution or employer regarding applicable coverage.

Drivers and passengers of privately owned vehicles used for University business have the same injury coverage as described above. However, in some cases, the personal automobile insurance policy covering the vehicle may provide additional personal injury or property coverage. Check with your insurance agent, or call the Office of Risk Management, 206–543–3420, with questions.

c.   Aircraft Liability

Authorized pilots are covered by the University's aircraft liability policy except when operating a personally owned or leased aircraft. In this situation, the authorized pilot should provide personal liability coverage with adequate limits for business-related use.

d.   Adverse Effects to Human Subjects

An individual who participates in a University-sponsored research project and suffers an adverse effect as a direct result of the study procedures may be compensated under certain limited circumstances according to the policy and procedures found in the University Handbook, Volume 1, Chapter 6, "Policy on Compensation for Adverse Effects to Human Subjects." "Adverse effect" is defined to mean bodily injury. Except in special circumstances, the term does not include impairment of mental processes or emotional distress, nor does it encompass effects resulting from:

  • Diagnostic or therapeutic procedures, both standard and experimental, performed as part of patient management;

  • The normal course of a disease or condition; or

  • The subject's lack of compliance with study procedures.

The program operates on a "no-fault" basis; that is, the claimant does not need to establish University negligence in order to receive compensation. The research project must be approved by the Human Subjects Review Committee in advance in order for individuals to be covered. In the event of an adverse effect, a report must be filed as soon as the researcher becomes aware of the event with the Human Subjects Division and the Office of Risk Management. Generally, incidents arising out of University-sponsored research projects, other than adverse effects as defined above, are covered by the University's comprehensive liability program. Further information about adverse effects coverage is available through the Human Subjects Division of Grant and Contract Services, 206–543–0098.



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