Insurance Coverage Policy - Northern Michigan University

Detailed information can be obtained from the Risk Manager at 906-227-2745. What follows is the general procedure for:

• Insurance Claims
• Lawsuit papers or pleadings received
• Requests for a Certificate of Insurance

Insurance Claims: To submit an insurance claim, contact the Risk and Insurance Department. The basic claim procedure is as follows: 

1. Loss or Damage Involving University Property
   1. Claims for loss or damage to University property are to be immediately reported to the Risk and Insurance Manager who will arrange for processing the claim in accordance with the University’s Property Insurance Program and will work with the department in arranging for the repair or replacement of the property.
       
   2. The maximum amount to be included in any loss is the lesser of either the cost to repair the damaged property to its condition prior to the loss or replace it with comparable property.
       
   3. The department responsible for the lost or damaged property will pay for the first $250.00 of each loss in the following circumstances:
      1. Theft of property under the control of the department.
      2. The total amount of the loss is less than $250.00
          
2. Loss or Damage Involving University Owned, Leased or Rented Vehicles
   1. Accidents involving University vehicles are to be immediately reported to the nearest police agency in accordance with State law.
       
   2. For accidents involving University owned or leased vehicles, the driver of the vehicle must complete a Northern Michigan University Motor Vehicle Accident Report Form and forward it to the Risk and Insurance Manager. These forms are available from the Risk and Insurance Management Office.
       
   3. For accidents involving rental car company vehicles, the driver must complete accidents forms and documents as required by the rental car company and provide copies to the Risk and Insurance Manager as soon as possible. Inform the rental car company that the Risk and Insurance Manager is the University contact for any claim resulting from the accident.
       
   4. The Risk and Insurance Manager will arrange for processing claims in accordance with the University’s Vehicle Insurance Program.
       
3. Personal Injury to Students and Visitors
   1. Personal injuries resulting from accidents or incidents occurring on property owned or under the control of Northern Michigan University must be reported to the NMU Police Department in accordance with the Incident Reporting Policy. The Risk Manager receives a copy of all Incident Reports from the NMU Policy Department.
       
   2. Any claim for reimbursement or payment for medical bills or other damages must be immediately referred to the Risk and Insurance Manager who will process the claim in accordance with the University’s Liability Insurance Program. Do not volunteer on behalf of the University to make payment for any claims.

Lawsuits

1. Lawsuits naming the University, Board of Trustees individually or collectively, faculty, staff, students or volunteers, for any claim in connection with University business must be immediately reported to the Risk and Insurance Manager. The original papers or pleadings served, including any envelopes, should be forwarded to the Risk and Insurance Manager as soon as they are received.
    
2. The University will provide legal defense for any individuals named in such suits in accordance with the University’s Indemnification Policy. The Risk and Insurance Manager will arrange for legal counsel to provide defense in accordance with the University’s Liability Insurance Program.

Requests for Certificates of Insurance – Occasionally the University will be required to provide evidence of insurance coverage to an outside entity or company. This may happen when we rent facilities or vehicles, place students in internship or practicum courses off campus, or engage in contractual relationships for a variety of other reasons. The Risk and Insurance Manager will arrange for these certificates. To request a certificate you will need to provide the Risk and Insurance Manager with:

1. The reason the certificate is required.
2. A copy of the contract or agreement requiring the certificate.
3. Name and complete mailing address of the entity or company requiring the certificate.
4. The type and limits of insurance required.
5. The dates for which the insurance is required.
6. The name and phone number of the University department and individual requesting the certificate.

Property Insurance - The University maintains a combination insurance/self insurance program to protect itself from “all risks” of physical loss to University owned real and personal property. Coverage is provided on a blanket replacement cost basis. The University does not provide insurance coverage for property of employees or students.

Liability Insurance – The University maintains a combination insurance/self insurance program of legal liability insurance coverage providing protection from legal liability for the University. The Board of Trustees, faculty, staff, students and volunteers are also covered while acting on behalf of, or under the direction of the University during the performance of their duties as such. Refer to the University’s Indemnification Policy.

Motor Vehicle Insurance - The University maintains a combination insurance/self insurance program providing coverage for University owned and long term lease vehicles. This includes coverage for vehicle physical damage and vehicle liability.

1. Personally owned vehicles used on University Business - The University’s insurance program provides liability insurance protection for personally owned vehicles used while conducting University business. These vehicles must have liability insurance in accordance with State law and the University’s insurance is secondary to this insurance. The University provides no vehicle physical damage insurance for personally owned vehicles.
    
2. Rental Car Vehicles – The University’s insurance program provides insurance protection for rental car vehicles rented for University business, however, this coverage varies from state to state and also depends on the language of the rental car agreement.
   
   All terms and conditions of the rental car agreement should be read and followed. Violations of the agreement may leave the University or renter responsible for additional damages or expense.

   Most rental car companies hold the renter responsible for all damages to the vehicle, regardless of fault. They usually offer a collision damage waiver for an additional daily fee. This is usually very expensive and should be declined. Coverage for damage to rental vehicles while being used to conduct University business is provided by the University. In addition, you may also have coverage for this damage provided by your personal automobile insurance. Check with your insurance agent.

   The rental car company may also offer insurance providing accident/medical and death benefits or coverage for property in the vehicle. The University already provides accident/medical and death benefits for University employees. If you want additional coverage and accept this insurance, it is at your expense. University owned property is covered under the University’s property insurance program. If you want to cover your personal property, it is at your expenses.

Insurance for International Travel – The University maintains an insurance program providing coverage for faculty, staff and students traveling on University business outside of the United States, its possessions, and Canada excluding countries or jurisdictions subject to U.S. trade or economic sanctions.

Coverage includes general liability, contingent automobile liability, accidental death and dismemberment, repatriation and medical evacuation, and 24 hour travel assistance for personal, medical, legal or security needs.

Details for this coverage can be obtained by contacting the Risk and Insurance Manager or the Office of International Affairs.