UNIVERSITY RISK MANAGEMENT INSURANCE GUIDE FOR Denver RELOCATION

This information has been prepared to provide you with information that pertains to risk management and insurance matters as related to your department relocation to Denver.

CONTACT INFORMATION:

University Risk Management

Web Address: http://urm.cusys.edu

Facilities Contact Information

Web Address: http://www.uchsc.edu/instplan/4Move/Transition.htm

Health and Safety Information

Web Address: http://www.uchsc.edu/safety

1. TRANSIT PROPERTY INSURANCE PERTAINING TO USE OF PRIVATELY OWNED VEHICLES

A. USE OF PRIVATELY OWNED VEHICLES - Damages or loss to vehicle(s) and injured parties.

University of Colorado's Commercial Automobile Liability and Commercial Property Insurance policy does not provide coverage for any personal owned property, which includes privately owned vehicles. The University of Colorado's Commercial Automobile Liability Insurance policy only provides coverage for University owned property. In Colorado a good rule of thumb is "liability follows the vehicle" which means the vehicle owner is liable for damages caused to another party in the event of an accident that is deemed to have been caused by the vehicle owner's actions. This also includes any and all damages that may have occurred to their own personal vehicle. The University of Colorado's Workers' Compensation Insurance policy will provide coverage to the University employee only if they were conducting official University business and considered to be acting within the course and scope of employment when the accident/incident occurred.

B. USE OF PRIVATELY OWNED VEHICLES - Damages or loss to property contents of vehicle.

University of Colorado's Commercial Automobile Liability and Commercial Property Insurance policy does not provide coverage for any personal owned property. There are also transit property insurance exclusions that can deny coverage for University owned, rented, or leased property when transported in an employee’s privately owned vehicle. This will result in a loss for which the department responsible for the property will also be responsible for replacing it. Please see transit exclusions below. It is strongly suggested that departments utilize the professional movers and transfer the potential coverage risks.

C. USE OF PRIVATELY OWNED VEHICLES - Transportation of Hazardous Materials.

A professional qualified chemical lab-packing and hazardous materials contractor will package and transport all identified hazardous and non-hazardous chemical reagents. The contractor will not be permitted to move any lab equipment or hazardous materials unless they have been property identified and included in the laboratory inventories. The United States Department of Transportation (DOT) has strict packaging, labeling, marking, and paperwork requirements for shipping hazardous materials (chemicals, isotopes, and infectious agents) on public roads. Radiological and biosafety materials will be moved by the Denver Health and Safety Division. Moving hazardous materials without following stringent regulatory requirements is both dangerous and illegal and will not be permitted. The only exception for allowing the use of a privately owned vehicle is to move a controlled substance by a Private Investigator that holds a DEA registration for those materials. Please contact Health and Safety Division for further information regarding the transport of controlled substances. Ultimate responsibility for hazardous materials management lies with each department.

2. TRANSIT PROPERTY INSURANCE EXCLUSIONS PERTAINING TO COVERAGE AGAINST LOSS OR DAMAGE:

A. Caused by theft from a vehicle operated by the Insured while such vehicle is unattended, unless the portion of the vehicle containing the University owned property is of entirely closed construction (automobile passenger compartment or trunk) and, at the time of the loss, the doors are securely locked and the windows firmly closed, and the loss is a direct result of forcible entry to the vehicle and there is physical evidence. If there is no physical evidence of forced entry, the loss will not be covered by transit property insurance.

B. Caused by or resulting from inadequate packing or improper preparation for shipment, or from insecure stowage when not stowed by the carrier. It is suggested that the department take special precautions to pack and prepare equipment for shipping. The department may also consider documenting their general packing/preparation method and incorporating this requirement into a department memo. This may help provide proof to the insurance carrier, in the event of a loss, of the efforts made by the department to avoid and reduce the probability of a loss as well as to heighten awareness of this exclusion.

C. Caused by neglect of the Insured to use all reasonable means to save and preserve the property at and after the occurrence of the loss or damage. In the event of damage or loss to department property, it is important that the damaged property be saved and preserved so that an evaluation of damages and scope of repair can be conducted by the insurance claims adjuster.

D. Caused by any fraudulent, dishonest or criminal act or omission by the Insured or any partner of the Insured; or by theft by any employee of the Insured, while working or otherwise, or by any person to whom the property is entrusted other than a carrier for hire.

II. OTHER INSURANCE RELATED MATTERS PERTAINING TO YOUR DEPARTMENT RELOCATION

SENSITIVE EQUIPMENT

1. Generally cargo and property insurance will not provide coverage for a claim made due to loss of calibration to the piece of equipment unless there is evidence of physical damage. It is recommended that equipment that is considered to be very sensitive and possibly still under warranty, be packed, transported, and reinstalled by the equipment service provider or manufacturer, otherwise the warranty may be voided. If your department has equipment that is considered highly sensitive or valuable (replacement value in excess of $100,000.00 per single item), and special relocation arrangements with the manufacturer or equipment service provider has not been made, please make sure to contact the RC-1 Move Managers, Mollie Anchustegui or Don Taipalus, as soon as possible prior to packing, so that special identification and handling arrangements can be made.

EQUIPMENT VALUES

2. When coordinating your department relocation, please consider the aggregate value of your equipment and the schedule of how they should be shipped. It is wise to practice good loss reduction techniques such as “segregation by separation” which basically means to avoid “putting all of your eggs into one basket”. In the event of a total loss in a single occurrence, the department will have effectively reduced their losses and ability to quickly return to regular operations. Also the cargo liability insurance and transit property insurance has an insurance coverage limit per conveyance or truckload, therefore it is recommended that the department’s high dollar value equipment be distributed amongst more than a single conveyance.

DEDUCTIBLES

3. Once the hired movers have transported and relocated your department equipment, the University owned, leased, or rented property and equipment will be considered back within the care, custody, and control of the University. If there is a loss to any University property, due to theft or mysterious disappearance, a $2,500.00 deductible per occurrence will be applied to the department for which there is no physical evidence of forced entry. Otherwise, there are no other property deductibles.

INSURANCE COVERAGE AND LIMITS

4. The professional mover’s cargo liability insurance has a $2,000,000.00 (Two Million) limit per conveyance (truckload) or occurrence for damage or loss to equipment that is the result of their negligence. The University of Colorado’s transit property insurance has a limit of $10,000,000.00 (Ten Million) per conveyance for damage or loss to University owned equipment. Losses of this type are covered at “Actual Cash Value” which means replacement value less depreciation. Property is considered to be in “transit” after the property has been prepared for shipment and has been lifted, carried, and/or placed on a dolly for the purposes of loading or unloading and relocating from and to the destination. Once equipment is no longer within the care, custody, and control of the hired professional movers and therefore no longer considered in “transit”, the University of Colorado’s Commercial Property insurance will be in effect and subject to the usual exclusions that would have been in effect regardless of the relocation. There is no need for a department to purchase additional insurance relating to the Denver moves.

CLAIMS

6. It is important that, upon your department’s relocation to the new building, all department equipment be inventoried and accounted for as soon as possible. This will ensure that any items damaged or lost during the relocation can be identified and a claim can be submitted immediately. For any damaged or lost items, please contact Mollie Anchustegui or Don Taipalus immediately. It is important that any damaged items be placed into a secure area in the original package so that the insurance company can inspect and assess the damage to determine value and repair or replacement method. If the damaged item is inadvertently thrown away or misplaced and therefore unavailable for inspection by the insurance claims adjuster, insurance coverage may be denied.

If there is internal/electronic damage to equipment due to the move, department should obtain a written estimate of repair cost (including justification of how the move caused the damage) and give to Mollie Anchustegui. DO NOT have the item repaired. Repairs must be approved by the insurance adjuster.

Any property that is replaced through insurance must be turned over to University Risk Management.

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