Insurance Definitions
Liability Insurance
Liability insurance provides the insured entity protection from the risk of damage claims for which the insured entity is held legally liable. After payment of a deductible, a liability insurance policy will cover the payment of damages that the insured would have to pay if found legally responsible for the damages. Liability insurance coverage also provides legal representation and coverage of legal costs in situations where a claim goes to court.
USU has liability insurance coverage through the Utah Division of Risk Management. This coverage extends to employees and officially registered volunteers acting in the course and scope of their employment or volunteer assignment with USU. USU maintains this coverage to protect USU from liability that USU may incur; it is not a coverage specifically intended to protect employees. The following examples illustrate this concept:
- If a USU grounds crew employee is mowing a lawn on the USU campus and the lawn mower accidentally throws a rock through someone else’s car window, USU would be responsible for the damage and the liability insurance policy would pay for the damages.
- If that same USU employee is mowing his or her own lawn and the mower throws a rock through the neighbor’s car window, USU’s liability insurance would not be involved.
Workers Compensation
Workers compensation insurance covers medical expenses incurred by employees who are injured in the course and scope of their employment. USU has a workers compensation policy through the Workers Compensation Fund.
USU procures this coverage for all USU employees and officially registered volunteers. Should an employee or registered volunteer be injured while performing duties for and on behalf of USU, workers compensation insurance will cover the cost of getting him or her well again so he or she can return to work. It is important to note that workers compensation insurance is aimed solely at workplace injuries and workplace-related conditions. Workers compensation insurance is not health insurance.
- Workers compensation only covers workplace injuries. In some cases, an employee may have preexisting conditions that may cause or exacerbate a workplace injury. In these cases, while workers compensation claims adjusters may acknowledge that there are preexisting conditions, they are only obligated to cover the costs of the workplace injury.
Property Insurance
Property insurance provides coverage for USU property that is damaged or otherwise lost. USU’s property insurance is provided by the Utah Division of Risk Management. It is an “all risk” policy meaning that all risks are covered except those that have been specifically excluded.
All property that is owned by or in the care and custody of USU as well as all buildings owned by USU are covered by this policy. Buildings leased by USU are not covered. USU Risk Management reports building and contents values to the Utah Division of Risk Management each year. It is important for USU units to have a current inventory of the contents and the value of the contents in their respective buildings so USU Risk Management can ensure that the insurance is maintained at an appropriate level.
- A good rule of thumb is to have a good idea at any given time of what it would cost to replace everything you have in a building in case there was a total loss, like from a fire.
- The policy will only cover property owned or in the care and custody of USU. Personal property is not covered.
- There is a $5,000.00 deductible on property claims.
Automobile Insurance
USU has automobile liability and physical damage insurance coverage through the Utah Division of Risk Management. The general rule of thumb is that the insurance covers vehicles owned by USU and used by USU permissive drivers during the course and scope of their employment.
- To be a permissive driver, a person needs to have permission from USU to drive the vehicle and he or she needs to have passed the State of Utah Online Driver’s Training Course and submitted his or her certificate of completion to USU Parking and Transportation. This training may be accessed at the following webpage: https://parking.usu.edu/htm/parking-information/drivers-representation-form/.
- If a USU employee or registered volunteer is injured while riding in a USU vehicle, medical expenses would be paid by the Workers Compensation Fund, not through the Utah Division of Risk Management.
- There is very limited coverage for personal injuries suffered by non-USU third parties and non-registered volunteers riding as passengers in a USU vehicle.
- There is a $1,500.00 deductible for automobile physical damage claims.
- When using a rental vehicle, USU employees and registered volunteers must use a rental company with a State Contract. A claim involving a rental vehicle not rented through a State Contract may be covered and can have a $10,000.00 deductible.
- Insurance follows the vehicle. An employee’s personal insurance is primary for their own vehicle, even if he or she is using that vehicle for work purposes.
Health Insurance
The Utah Division of Risk Management does not provide health insurance. USU Risk Management does not provide health insurance covering medical costs to any student or participant in a USU-related activity. Student and/or participant medical bills will only be considered where the student/participant is a plaintiff filing a lawsuit against USU.
International Travel Assistance and Insurance
USU has contracted with International SOS and ACE/Chubb Insurance to provide travel assistance and accident/sickness insurance coverage for travelers participating in international USU related travel. The cost is $3.00/day for students and costs between $75.00 and $400.00/trip for faculty and staff. It is mandatory for all travelers participating in international USU related travel.
The insurance program covers unforeseen accidents and illnesses while traveling that are deemed medically necessary; it does not cover routine medical care. When deemed necessary by International SOS, this insurance will also cover medical/security evacuations and repatriation of remains.
International SOS will also provide medical, security, and travel consultation to all USU administrators, faculty, staff, and students at any time before, during, or after a trip. This consultation can include itinerary specific medical and security advice.