Facilities Management Claims
Covered by Insurance
A Claim must meet all of these criteria:
- Something that happens by chance (for example - must be sudden and accidental)
- Something unexpected rather than something that, according to the usual course of things, should have been expected (for example - something that wears out because it has reached the end of its "expected useful life")
- Something that occurs on a specific date with specific damages resulting (for example - gas line ruptured by tent stake)
Not covered by Insurance
- Wear and tear, maintenance, deterioration, depletion, rust, corrosion or erosion, mold, inherent vice or latent defect
- Insect, animal or vermin damage
- A known condition/existing problem. Once Facilities Management is aware that a problem exists, repairs to fix that problem or resulting clean up are not covered by insurance ( for example - service order calls for an on-going leaky ceiling, insurance will not cover continued carpet extraction)
- A delay in repair or clean up that results in further damage ( for example - a recurring leak that is not repaired results in a carpet becoming moldy and in need of replacement)
- Preventative repairs/measures (for example - Facilities Management personnel respond to a water main leak to help prevent water from entering a building)
These are examples of damages that are not covered by insurance. Each claim is examined for coverage on an individual basis. Damages due to the conditions above are examples of damage that should not be submitted as insurance claims.
Facilities Management theft claims are handled in the same manner as other University Departments.
The department deductible for claims is $5,000 per incident and must have a DPS report number associated with the loss.
Please refer to the Insurance Office's website for Property Claims for more detailed information.
- To put you back in the 'same condition' as before the loss occurred
- To reimburse for resulting damage, not to repair the defective equipment even if it caused the loss (for example - water tank leak resulting from wear and tear causes water to flood basement. The repair of the water tank is not covered, but the resulting water damage to the basement is covered)
When Loss Occurs
- Emergency repairs and other reasonable steps should be taken to protect the property from further loss.
Facilities Management may contract for and make emergency repairs without prior approval or notice to the Insurance Office. Examples of such work are:
- Board up any broken windows, doors, or openings
- Remove debris, water or other materials that could cause further damage
- Move undamaged contents to secure location
- Secure the location until repairs can be started
- A formal written notice of the loss must be completed within two weeks, via the on-line claim form. Failure to report a loss in a timely manner may result in the claim being denied.
- Please note, the reporting of a claim and assignment of a claim number does not necessarily mean the expense is eligible for reimbursement. Upon review of the circumstances, the claim will be reimbursed if it falls within the guidelines of the Covered by Insurance section above.
Facilities Management Claims Procedure
If an insurance claim is suspected, a sold service, service order should be established as soon as possible and all charges related to the claim should be recorded against the service order (labor - all divisions, materials and purchase orders, etc.) The Director of Contracted Services or the Supervisor of Service Response will make the final determination as to whether it is submitted as an insurance claim. Copies of all such service orders will be sent to the Executive Assistant, Maintenance Services to process.
The Executive Assistant, Maintenance Services will complete an insurance claim report through the Insurance Office.
The Insurance Office will email an acknowledgement with each claim that is filed, and a claim number will be assigned.
The trades person assigned will sign off on the service order when completed and Service Response will close out the service order.
Once the service order has been closed, the Business & Support Manager will submit charges for that specific claim, reflecting the corresponding claim number on the expense form. The Insurance Office will reimburse all costs associated with the claim via a journal entry. A reasonable extension into the next fiscal year for charges to claims should not go beyond 45 days, unless the claim is very large (i.e. fire, large oil spill) and mutually agreed upon between FM and Insurance Office.
Facilities Management Internal Property loss claims procedure effective July 1, 2008:
Claims for damage should be submitted to the Insurance Office when specific, individual incidents result in over $500 in expenses. (This is an insurance reporting threshold rather than a deductible that is applied to each loss - individual incidents that incur over $500 in expenses are covered without a deductible being applied to Facilities Management). Incidents that are the result of severe weather events as classified by the National Weather Service may be considered as one event even when damage occurs at multiple locations. In these situations, the Insurance Office will consult with FM Global for guidance on appropriate handling of weather related events.
Claims that involve mechanical breakdown or failure must have a technician's report attached to request for reimbursement.
Claims that are greater than $5,000 require supporting documentation attached to request for reimbursement (i.e. Purchase Orders, quotes, or estimates for repair work, etc.).
For severe claims or claims of a substantial value the Insurance Office may utilize the services of an outside contractor such as Industrial Services & Engineering, Inc. ISE is the engineering company recommended by FM Global. They are familiar with reviewing damage for insurance claims and the Insurance Office will rely on their advice in order to determine insurance coverage.
In addition, quarterly meetings will be set up with the Insurance Office to discuss all pending insurance claims.