(Approved by the Executive Vice President by authority of Executive Order No. 5)
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 Board of Regents Governance, Standing Orders, Chapter 5, and in Executive Order No. 19. "Acts taken in bad faith" are not covered by the University's indemnification policy and are discussed in the Board of Regents Governance, Standing Orders, 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, 206–543–3659.
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, 206–543–3659.
| 1) | Motor Pool Vehicles— |
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| 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. |
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| 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). |
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| 2) | Other
University-Owned Vehicles— |
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| 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:
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| 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. |
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| 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. |
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| 3) | Rental Vehicles — |
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| 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. |
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| 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 the Board of Regents Governance,
Standing Orders, 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, 206-543-3659, 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. |
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| 4) | Privately
Owned Vehicles— |
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| 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. |
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| 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. |
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| 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, 206–543–3659, with questions. |
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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.
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 Board of Regents Governance, Standing Orders, 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:
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.