Purchasing Insurance - Procurement
When to Purchase Insurance
ISU is self-insured for both property and liability under the State Code of Iowa; however, limited state resources and the nature of the loss may restrict the ability to collect from the State of Iowa.
It is important to consider the cost-benefit factor before determining if purchasing insurance is the best option. Such factors include the value of the insured item, what is the cost to insure it, what are the chances of a loss, and most importantly, do you have the internal funding available to pay for the loss if it happens. If the item is critical to operations and replacing it would be problematic, then buying insurance coverage would be the best option. Please contact the Office of Risk Management if you have any questions or if you need assistance in evaluating an insurance purchase.
The Office of Risk Management at Iowa State University manages two optional protection programs to provide coverage for owned or leased property against theft and other common perils. ORM offers two insurance property programs: Computer (EDP) Insurance Program and Miscellaneous Property Insurance Program.
Computer (EDP) Insurance Program
The definition of electronic data processing (EDP) equipment is a network of machine components capable of accepting information, processing it according to a plan and producing desired results. This equipment includes complete workstations, peripheral equipment (printers, scanners, LCD projectors), laptops, servers, etc. This offer is limited to ISU owned computer equipment and includes non-owned equipment in the custody and control of ISU (i.e. leased or loaned to ISU). Home computers purchased with personal funds cannot be insured under the EDP policy. To insure your personally owned equipment, check with your homeowners insurance provider.
The basic policy provides protection from external risks of direct physical loss caused by a covered peril. Examples of covered perils include: theft, fire, water, accidental damage, etc. The value of computer equipment is based on the replacement cost without deduction for depreciation. Replacement cost is what it would cost to replace the piece of equipment with the same or closest comparable equipment at today's prices.
World Wide Coverage is also included in the basic coverage and provides insurance for your department-owned portable computer equipment while being used or transported outside of the United States and its territories.
A variety of deductibles are available beginning as low as $500. Please contact the Office of Risk Management for more detailed information regarding deductible levels and related premium costs.
The deductible for a loss is applied on a per occurrence basis. For instance, if you have one computer stolen or several computers stolen on a specific date, the deductible amount applies to the total loss suffered by the insured on that date. If you experience a loss of insured equipment, it should be reported as soon as possible to the Office of Risk Management. If the loss is theft-related, you should also contact the Department of Public Safety for the official record.
If you wish to participate, please provide us with a complete inventory of all equipment to be included. The inventory should include a basic description of each item, unique number - serial number and/or ISU number, location, person responsible for the equipment and replacement value.
Miscellaneous Property Insurance Program
Miscellaneous property can include a wide range of items that are owned, on loan, or leased by a department or organization. Examples of miscellaneous property include golf carts, mobile radios, various rental equipment, scientific equipment, etc. This program is comparable to a commercial insurance policy in that coverage is subject to standard commercial insurance policy exclusions. A listing of the types of losses excluded from coverage is available upon request. This program is not designed for computer or computer related equipment. The separate electronic data processing (EDP) program is available to protect computer equipment.
The value of miscellaneous property is based on the replacement cost without deduction for depreciation. Replacement cost is what it would cost to replace equipment with the same or closest comparable equipment at today's prices. The deductible level offered is a $1,000 deductible. Higher deductibles may be available upon request. The annual premium rate to insure most miscellaneous property is $1.00 per $100 of value subject to a minimum premium of $50.00. This rate is subject to change depending upon the type of property and/or the value. Property scheduled for less than a full year will be pro-rated based on the time period the property is to be included in the program. The fund account number to use for premium payment should be included when submitting property schedules.
The following is basic information that should be included for each requested item to be insured:
- Department/Organization Name
- Dates of coverage
- Fund Account Number for Premium Payment
- Description of Item
- Property Model
- Serial # (if applicable)
- Inventory Number
- Replacement Cost
If serial numbers or model numbers are not available, the reporting of all available information is sufficient. Only reported equipment is covered and schedules need to be updated on an annual basis. Completed property schedules are submitted to the Office of Risk Management, 1700 ASB or by e-mail to email@example.com. Items can be added or removed from the program at any time. It is the responsibility of the department or organization to notify ORM of any requests for changes in coverage and any requests for cancellation must be submitted in writing.
Any losses should be reported to the Department of Public Safety (515-294-4428) and the Office of Risk Management (515-294-7711) as soon as possible. Failure to report losses in a timely manner may result in denial of a claim.
ISU Procedures for the Purchase of Insurance
On occasion, departments may be initiating their own incidental insurance purchases. All invoice vouchers for the purchase of insurance must be routed through the Office of Risk Management for signature approval.
Please contact the Office of Risk Management if you have any questions or if you need assistance in evaluating an insurance purchase.1700 Administrative Services Building
2221 Wanda Daley Drive
Iowa State University Ames, Iowa 50011-1004