Policies & Claims Procedures
The following is a brief description of some of the University's Insurance Policies and Claims Procedures. These descriptions are intended to serve as a reference guide in providing information on policies and procedures and to answer some essential questions regarding the University's insurance policies. Please note these descriptions are in the process of being updated. Please contact the Insurance Department for current information.
Aircraft Liability
Alcohol/Liquor Liability
Automobiles
Boiler and Machinery
Buildings (Property)
Builder's Risk
Business Travel Insurance
Comprehensive General Liability
Contents/Equipment
Fidelity/Crime
Watercraft
Policy Description:
Provides aircraft liability coverage for the University when specifically named employees use personal or leased aircraft for University business. This policy also provides excess liability coverage when the University charters an aircraft for business. An employee must complete a Pilot Record Form and be specifically named on the University's Non-Owned Aircraft Policy prior to using personal or leased aircraft for university business.
Department Procedure:
An employee must contact the Insurance Department to obtain the necessary paperwork to complete and submit to be named on the University's policy. It is necessary to have your name on file prior to submitting reimbursement for business travel expenses.
Claims Procedure:
Please report any incident or claim to the Insurance Department immediately. Please notify the Manager of Claims and Loss Prevention at 617-496-8830.
Policy Description:
The Liquor Liability Policy is a commercial policy which provides coverage for the University and its employees, students and/or volunteers for claims for bodily injury or property damage arising out of the dispensing, selling or serving of any alcoholic beverage from one of the named insured premises.
Any University location selling liquor must be listed on this policy in order to be insured and also must have the appropriate liquor license with a copy on file in the Office of the General Counsel (OGC).
The current named insured premises that sell, serve or dispense liquor are:
- Faculty Club, 20 Quincy Street
- Faculty Club & Pubs, Harvard Business School
- Cafeteria, School of Public Health
- Harkness Common, Harvard Law School
- American Repertory Theatre, Loeb Drama Center
- Harvard Crimson Catering (Harvard buildings)
- Cambridge Queen's Head
Department Procedure:
The named locations must submit estimated and annual receipts of liquor sales. The Insurance Office will contact each location to obtain this information. If your department sells any alcoholic beverages and your location is not one of the named locations then you must contact the Insurance Office immediately.
Claims Procedures:
Notify the Insurance Office immediately of any incident pertaining to the serving/selling of alcoholic beverages. It is important for us to have the opportunity to investigate a potential claim as soon as possible. Please contact the Manager of Claims and Loss Prevention at 617-496-8830.
Policy Description:
The University's Automobile Liability Policy is a self-insured policy that provides coverage for bodily injury or property damage claims in connection with University employees operating University-owned vehicles.
The University's policy for the use of University-owned vehicles requires that:
- An authorized driver be at least 21 years old and an employee of the University.
- Authorized employees possess valid and applicable licenses.
- Vehicles cannot be used for personal use.
- Transport of passengers, other than employees or affiliates, is prohibited.
Please note: Failure to adhere to these policies could result in an uninsured loss and expenses for which your department will be held responsible.
The University does not have a formal policy for the use of personal vehicles for University business. Each department must formulate its own policy taking into account the needs, the alternatives and the risks involved. The use of personal vehicles for University business is discouraged because:
- At the time of the accident it is often difficult to determine whether the person was on personal business or University business.
- If an accident occurred on University businees the employee would have to submit the claim to their insurer for payment since their insurance is primary and the University's insurance would only be used if the employee's limits were not high enough.
- Employee's would be required to have minimum limits of insurance of $100,000/$300,000 and submit proof of this coverage prior to using their personal vehicle for University business.
The University's Self-insured Auto Program does not provide coverage for certain risks listed below, and it is up to the department to discuss these risks with the employee prior to using a personal vehicle on University business.
- Rental of another vehicle while the damaged vehicle is being fixed.
- Uninsured collision loss.
- Theft, vandalism or glass loss.
- Theft of personal belongings from vehicle.
- Maintenance costs.
Department Procedure:
All University-owned and leased vehicles must be registered and insured through the Insurance Department. Departments with University-owned vehicles must have a designated vehicle coordinator responsible for authorizing use of vehicles and to communicate University vehicle policies and procedures to authorized employee drivers.
Claims Procedure:
All automobile accidents should be reported to the Insurance Department as soon as possible and an Automobile Accident Report
must be completed and submitted. Please note that it is important to report any accident even if there appears to be no visible damage to the University vehicle. Please contact the Manager of Claims and Loss Prevention with any questions at 617-496-8830.
Policy Description:
The Boiler and Machinery Policy is a commercial insurance policy which insures the University's boilers, heating, ventilation and air conditioning (HVAC) equipment against loss due to an accident.
Accident means a sudden and accidental breakdown of the object, or some part of it, which manifests itself by the kind of physical damage which requires all or part of that object to be repaired or replaced.
The most notable exclusions on this policy are wear and tear, depletion, deterioration, corrosion or erosion of materials.
Boilers, heating, ventilation and air conditioning equipment, located in University owned buildings, are automatically insured on this policy. Some of the types of insured equipment are air conditioning and refrigerating systems, boilers, compressors, electric motors, generators, hot water tanks, pressure vessels, transformers, and all non-rotating electrical equipment used for distribution purposes.
Department Procedures:
Departments should contact the Insurance Department if they have any equipment that requires immediate inspection and/or certification. The Boiler and Machinery insurance company inspects and certifies all equipment and machinery, which requires state certification. At the present time an inspector for the insurance company is surveying the University buildings by area and implementing a computerized data system to inventory equipment that requires annual inspection and certification.
Claims Procedures:
Loss or damage to boiler and machinery equipment must be reported as soon as practical after a loss occurs, within 3-5 days. Failure to report a loss in a timely manner could result in the insurance company denying the claim. Please contact the Manager of Claims and Loss Prevention with any questions at 617-496-8830.
Policy Description:
The University self-insures academic and commercial buildings owned by the University. In the Self-insured Property Program, a property reserve is set up to fund for losses to University buildings and pay the costs for excess property insurance. Each fiscal year departments are charged a property premium, allocated per building, to maintain this reserve.
The Self-insured Property Program is based as closely as possible on commercial insurance guidelines as regards coverage's and exclusions. Buildings are insured on a replacement cost basis. The repairs or replacement must be of like kind and quality and all costs for betterment or upgrades will be borne by the department.
This program insures the building structure and built in fixtures for all risk coverage. All Risk perils are defined as fire, water, lightning, wind, hail, aircraft, riot, vehicles, explosion, collapse, smoke, sprinkler leakage, flood and earthquake. A $250,000 reserve is also available for contents damaged as a result of one of the named perils. The most notable exclusions under this policy are losses due to theft.
Department Procedures:
Departments need to notify the Insurance Department, in writing, if a building is bought, sold or transferred to another department. Leased spaces must also be specifically added to the policy in order for the department to be insured.
Claims Procedures:
All efforts should be made to report the building loss to the Insurance Department as soon as possible, within three (3) business days. The loss can be reported by calling the Insurance Department, tel. 495-7971, and leaving a message on voice mail and/or by faxing a Property Loss Report
to FAX#496-0505.
Insurance reimburses the cost to repair or replace with like kind or quality and every attempt is made to reimburse the department the costs to put the building back to the condition it was prior to the loss.
Two or more quotes are required for repairs over $3,000. The Insurance Department needs the opportunity to assess the damage and determine the scope of repairs prior to work being done.
Insurance will provide reimbursement to a department for the costs for work performed by employees doing clean up and repairs. Departments are required to submit a breakdown of hours for each employee, their rate of pay, a description of the work performed and a list of the materials used.
Policy Description:
The Builder's Risk Policy provides insurance for University buildings during construction and for materials on site to be used for construction. A department must purchase Builder's Risk Insurance for any building under-going Capital Project Renovations or high exposure renovations. A department should contact the Insurance Department to discuss any renovations or construction over $100,000 or for any work on a building that poses a greater risk or exposure to the building such as structural changes, involved electrical or mechanical work.
Department Procedure:
There is a greater risk that a loss will occur to a building during renovation and construction. Due to this risk, the building is taken off the Self-insured Property Program and a commercial insurance policy, called Builder's Risk Insurance, is purchased for the period the University building is under construction. A Builder's Risk Request Form must be completed by the department's project manager and submitted to the Insurance Department prior to the start of the project. A Builder's Risk premium is charged to departments and is based on the dollar amount of the renovation/construction, the type of building, and length of time the work is being done.
The Builder's Risk Policy provides coverage for the University-owned building. Coverage does not extend to the contractor/subcontractor and/or their equipment. Per the A.I.A. (American Institute of Architects) Contract, general contractors must show evidence of the following insurance before doing work at the University:
- Comprehensive General Liability
- Worker's Compensation
- Automobile Liability
Architects and consultants are also required to have an Errors and Omissions Policy.
A Certificate of Insurance evidencing this coverage must be given to the project manager prior to the work beginning.
Claims Procedure:
The Insurance Department must be notified as soon as possible and a Property Loss Claim Report must be submitted.
Policy Description:
The Business Travel Policy is a commercial policy that provides coverage for accidental death and/or dismemberment sustained by employees while traveling on University business. University employees eligible for Harvard benefits are automatically covered on the University's Business Travel Policy. The benefit level is five times earnings (annual rate of pay) with a minimum of $100,000 and a maximum $750,000.
Department Procedure:
Business Travel Insurance coverage is automatic for employees. In the event of a claim, the department head would be required to verify in writing that the employee was on University business at the time of the accident.The beneficiary under the Business Travel Policy would be the same as the designated beneficiary under the employee's life insurance policy with the University. The employee can change the designated beneficiary by notifying the Insurance Department in writing.
Claims Procedure:
Notify the Insurance Office as soon as practical of any incident or potential claim that involves an employee on business travel.
Comprehensive General Liability
Policy Description:
The Comprehensive General Liability Policy provides coverage for the University, its directors, officers, employees and students, acting within their duties as such, for claims resulting in bodily injury or property damage and due to the University's negligence.
Department Procedure:
Harvard employees are instructed to complete an Incident Report Form for any incident/accident that occurs on the premises. In the event the incident involves bodily injury the employee should do the following:
- Ask the injured person if he/she needs assistance. If possible, let the injured person tell you what he/she wants to do. If medical attention is required call H.U.P.D. for a medical assist and offer to call a family member or friend.
- Employees should never make a statement regarding liability or payment of bills.
- The Insurance Department should be notified of all incidents involving bodily injury to a third party (student, visitor or guest) as soon as possible.
An incident report should be filled out and submitted as soon as possible to the Insurance Department. Please note any relevant facts such as:
Policy Description:
Departments may also purchase short term insurance for items on loan, rented, leased, shipped or transported. Property of others for which we are legally responsible can also be insured under a short term policy.
Department Procedures for Insuring Harvard-owned Equipment/Contents:
It is recommended that each department determine items of value that they would want to replace if a loss occurs.
Create a lisiting of your items with the following information:
- Item description (make, model, serial number Location
- Replacement value of each item
- Grand total of replacement values
- Department/school
- University mailing address
and maintain the list as a basis for claim in the event of loss.
Department Procedure for Insuring Rented or Leased Equipment and/or Items on Loan:
Departments should be aware of the fact that they may be responsible for items on loan, exhibit or rental. Carefully review all agreements and contracts prior to sigining and if possible have a written agreement that clearly establishes responsibility for the item/equipment as well as the replacement or maximum value of the item in the event of loss.
When artwork needs to be insured, a Short Term Exhibit Form
should be filled out and submitted by the lender prior to the exhibit. It is important that the value of the artwork be agreed upon between the lender and the University before a loss occurs. These items must be scheduled (listed).
Claims Procedures:
Departments must submit an Equipment/Content Loss Report as soon as practical after a loss occurs. A police report must be included if the loss is due to theft.
This policy provides replacement cost in the event of a loss and will reimburse the cost to repair or replace the equipment, which ever is the lesser amount. Actual Cash Value (deduction taken for age) will be paid if the department does not intend to repair or replace. If the same type of equipment is no longer available, the department will be paid the cost to replace with a similar item that performs the same or similar functions.
- Condition of the premises.
- Witnesses – name(s), telephone number, address.
- Injured person's physical state.
- Any statement injured person has made regarding the incident.
Departments can instruct person(s) wishing to file a claim to contact the Insurance Department directly at tel. 617-496-8830. All claims must be submitted in writing and claimants are required to submit a Claimant Incident Report
or letter with the details or description of the incident.
Liability Claims are processed through the University's Insurance Department and are handled by the University's insurance company. Upon written receipt of their claim, the Insurance Department sends each claimant an acknowledgment letter that includes the name, address and telephone number of the insurance company handling the claim. The department contact is also sent a letter notifying him/her that a claim has been filed and stating that a representative from our insurance company will be in contact to investigate the incident.
The University's insurance company investigates all claims for personal effects and bodily injury to determine whether there is negligence on the part of the University. Based on this investigation, the insurance company then arranges the settlement or denial of any claims.
Policy Description:
The Fidelity (Crime) Policy provides three different types of coverage with differing limits for loss of money, negotiable instruments and/or securities due to Employee Dishonesty, Forgery and Theft.
- Employee dishonesty provides coverage for loss of money or property due to the acts of an employee, or employees working in collusion. This is the only portion of the coverage, which will cover property as well as money.
- Loss inside/outside the premise provides for burglary or robbery of money or other negotiable instruments.
- Depositors forgery coverage provides coverage for forgery or alteration of an insured's checks, drafts, promissory notes or similar orders to pay.
Department Procedures:
Money/securities should be kept in a locked secured compartment, preferably a safe. There is a limit for money/securities kept on the premises during business hours and overnight. Departments keeping more than petty cash on the premises should contact the Insurance Department to discuss specific requirements for coverage.
Claims Procedures:
The department should contact the Insurance Department as soon as they are aware of a loss or potential loss. All claims must be filed within four months of discovery of the loss in order to be covered. Failure to report the loss in a timely manner will result in the claim being denied.
In the event there is reason to believe the loss is due to employee dishonesty, the department should also contact the Office of the General Counsel and/or the Director of Risk Management and Audit Services. You will be provided with further instructions as to how to proceed.
Policy Description:
The University's Watercraft Liability Policy provides coverage for bodily injury or property damage claims arising out of the use of University-owned watercraft. All watercraft must be registered through the Insurance Department in order to be scheduled on the Watercraft Policy.
Department Procedure:
All University-owned watercraft must be registered and insured through the Insurance Department. Departments with watercraft must have a designated coordinator responsible for authorizing the use of watercraft.
Claims Procedure:
All watercraft incidents must be reported to the Insurance Department as soon as possible, by telephone and in writing. Please note that it is important to report any incident even if there appears to be no visible bodily injury or property damage.
For more information, please see our Frequently Asked Questions or Contact Us.