Insurance | KCTCS

Administrative Procedures

Insurance

Policy Number: 5.2.1-P

Current Effective Date: 06/01/2018

Original Effective Date: 12/01/2005

Revision Dates: 12/01/2005, 07/01/2010, 08/28/2017

Revision Number: 3

Revision Summary:

Responsible Official: Vice President of Administrative Services

References:

1. Purpose

To describe the liability, property and student accident insurance maintained by KCTCS, managed by the Office of Facilities Support Services – Asset Management Office (AMO), and the steps required to file claims or document coverage.

2. Scope

This procedure applies to all KCTCS employees.

3. KCTCS Insurance

3.1

General Business Insurance. KCTCS maintains the following coverage for its employees, students, and guests, as applicable:

  1. General Liability (Protects KCTCS from claims arising from alleged bodily injury, personal injury or property damage liability. Under this plan, Students are excluded from Medical Payments. See additional Blanket Student Accident policy.)
    1. General Liability for Equine Studies Program
    2. General Liability for Aviation Equipment Floater/Aviation Hanger premises
    3. Commercial Crime and Dishonesty (protection against loss due to criminal acts of others)
    4. Umbrella Liability (coverage for catastrophic liability claims)
    5. International Liability (coverage for school-related foreign travel accident and sickness)
    6. Day Care Liability (General Liability for day care center at Jefferson Community and Technical College)
  2. Directors and Officers Liability/Employment Practices Liability 
  3. Limited Professional Liability (Coverage for students in health-related programs, culinary arts and early childhood development)
    1. Colleges must provide AMO with annual estimated enrollment projections.
    2. Students are assessed a fee for this coverage.
  4. Limited Professional Liability for students in Virginia (coverage for students performing clinical(s) in the state of Virginia (higher limits)
  5. Blanket Student Accident (secondary coverage for students while participating in a sponsored and supervised activity including scheduled sports)
  6. Non-Student Medical Insurance (Secondary coverage for participants -- Non-Students in summer camps or high-risk organized activities). This insurance covers accidents only, not illness.
    1. The FM90 Request for Excess Accident/Dental/Medical Insurance form must be filled out and sent to the AMO in order to obtain coverage.
    2. The FM91 Excess Insurance for Camps/Conference/Field Trips form and FM92 Camps, Conferences and Field Trips Medical Insurance Information forms are to be completed and kept for reference at the college.
  7. Auto Insurance - Kentucky Self-Insured Auto Program (KSAP) (for all college vehicles)
  8. State Fire and Tornado (Coverage for building and contents including boiler and machinery) for premium purposes, values are obtained from asset and inventory records and are scheduled according to official building number assignments

3.2

Coverage for Special Events

  1. KCTCS and/or its colleges may sponsor an event, either by providing financial support or by serving as host for the event.
    1. The college may be subject to liability claims for events in which the college is involved with setting up, controlling, monitoring, or supervising any aspect of an event, including events held off-campus.
    2. Prior to sponsoring an event, College must contact AMO to obtain a Certificate of Liability Insurance Coverage (COI). 
  2. Additional coverage for a special event may be needed when the college is hosting an event that goes beyond what is considered the ordinary academic setting for exposures.
    1. Existing General Liability coverage normally excludes high-risk activities such as rock climbing walls, bouncy/inflatables, petting zoos, pyrotechnics, etc.
    2. Contact the AMO for more information. 
  3. All vendors providing services for KCTCS events must provide a COI naming KCTCS System Office or the KCTCS college with the System Office or College address listed as additional insured. 
  4. When alcohol is served on our campuses, the caterer serving alcohol must provide a COI, which names the college as an additional insured on the General Liability and liquor coverage.
    1. A copy must be filed with the AMO to provide to our General Liability carrier.
    2. Events that involve serving alcohol are subject to all the requirements of Procedure 5.4.17-P Alcoholic Beverage Use on KCTCS Facilities.

3.3

Inland Marine

  1. This coverage is specifically scheduled for mobile equipment that moves between campuses or off campus on a regular basis, such as cameras, laptops, musical instruments, etc., or when displaying items owned by others in an on campus art exhibit.
    1. Prior notice to AMO is required when equipment/items need be scheduled for this coverage.

3.4

Drones

  1. Drone insurance coverage is available through KCTCS’ aviation insurance.
    1. This policy provides liability coverage.
    2. Each drone must be added to liability coverage regardless of the cost.
    3. Coverage for damage to the drone itself is on a case-by-case basis based on value, due to the $1,000 deductible.
  2. Notification to AMO is required immediately upon purchase of any drone. 
  3. Drone operation is prohibited until the AMO has confirmed coverage is in place and the employee flying is certified to do so.
  4. KCTCS employees are required to sit for the FAA, Part 107 examination to obtain an Unmanned Aircraft Systems Remote Pilot Certification.
    1. This certification is required if teaching drone operation classes or using a drone for any purpose related to a college activity.
  5. Drones owned by staff or students should not be flown and are not covered under KCTCS insurance.

3.5

Rental Vehicles

  1. The college president or their designee must approve the valid business purpose and cost involved in proposed rental of vehicles prior to rental.
  2. System Office employees must contact the director of business services for approval prior to renting a vehicle.
  3. Vehicle rentals should be engaged through the contract KCTCS maintains with Enterprise Rent A-Car and National Car Rental for discount and insurance coverages.
    1. Contract #XZ58043 
  4. Enterprise/National maintains appropriate insurance coverages on the vehicle rented.
  5. The liability insurance for a rented vehicle is covered under by the KCTCS Commercial Auto coverage provided by the general liability carrier.
  6. Rental of 15 passenger vans or box trucks is prohibited for safety reasons.
  7. When renting a vehicle through Enterprise/National, KCTCS should be named for any claims to be properly processed. (i.e. KCTCS-Tom Smith employee)

3.6

Travel Abroad

  1. In order to obtain coverage for any international trip, the College must provide AMO with a detailed itinerary of participating individuals a minimum of 3 weeks in advance of the first day of travel.
    1. Refer to Business Procedure 5.8.1-P for more details on international trip requirements.

4. Claims

4.1.

General Liability Claim

  1. A general liability claim is to be filed when a non-student is injured while on KCTCS property. 
  2. Send Accident Incident Report /email with details/police report to the Lead Insurance Coordinator at System Office and Chief Business Officer or Designee.
    1. Date Accident Occurred 
    2. Location
    3. What happened
    4. Name of person injured
    5. Any other information that is available

4.2

Injured Student

  1. Responsible Staff will contact the college business dean and complete form FM84 Injury Accident Report.
  2. Responsible staff will send a copy of the incident report to the AMO and the System Office Environmental Health and Safety Lead promptly within 72 hours and retain a file at the college for all Injury Accident Reports.
  3. Responsible Staff will sent to Students the appropriate insurance forms for filing the Student Blanket Accident Insurance.
    1. Responsible Staff will direct employees to Human Resources for a Worker’s Compensation claim.
  4. Students should submit itemized medical bills for payment consideration with a claim form to KCTCS’s Blanket Student Accident coverage.
    1. If the student has other personal insurance, include the other insurance company’s Explanation of Benefits (EOBs) to expedite the payment.
    2. If the student has questions or problems after they have filed, have student contact the AMO office Lead Insurance Coordinator at the System Office.

4.3

Property Damage

  1. Responsible Staff will complete an incident report form or email a detail description of the loss to the AMO.
    1. The detail description of the loss should include probable loss amount, the cause of the loss, building name along with address and if there was any injuries incurred.
    2. When a claim involves a crime, also notify the local police department.
  2. Take necessary steps to prevent further loss or damage.
  3. State Fire and Tornado (Property) Claims must be filed with the state insurance department within 30 days or an additional $2,500 will be deducted for untimely filing.
  4. If estimated damage is over $5,000, notify the AMO with details of loss, including pictures.
    1. State Risk does not have a claims adjuster to come visit the site.
    2. Pictures are critical in verifying losses.
  5. Responsible Staff will send to AMO itemized repair estimates, replacement quotes, invoices, photographs of damages, police reports, etc. as they become available.
    1. Responsible Staff will include a spreadsheet of all costs when there are multiple invoices.
  6. For damage caused by lightning, have the repairing vendor complete the Lightning Loss Verification form (FM88) and forward to the AMO.
  7. Claims for damage that results from theft, vandalism, or other crime must be supported with a copy of the police report or incident report.
  8. The responsible staff at the college will need to provide to the AMO paid either invoices or purchase orders.
    1. This is necessary to close and reach settlement of the claim with State Risk.
    2. Questions on what would be covered as replacement costs should be directed to the AMO.

4.4

Auto Claims

  1. Call 911 immediately if damage or injuries are involved.
    1. Request an officer to file a report and request medical assistance if needed.
  2. Call your Supervisor.
  3. Obtain the other driver’s license number, insurance information from their insurance card and a description of the vehicle from their registration.
  4. Give the other driver your name, address, and license number and show him/her proof of the Commonwealth’s insurance in the vehicle’s glove compartment. 
  5. If the situation permits photos to be taken safely, take photos of all four sides of all vehicles, license plates, skid marks, all angles of the roadway approach, signage and persons in the vehicles involved in accident.
  6. Do NOT admit fault.
    1. Contract claims adjusters will make that determination.
  7. Do NOT make any statements about the accident to anyone other than the police officer, your supervisor, the AMO, Kentucky State Auto Policy Claim Adjuster (KSAP), or Legal Counsel.
  8. The Responsible Driver will submit a police report along with a KSAP Accident Report Form SRC-12 form to the AMO.
    1. Fill out as much as you can.
    2. Responsible staff should oversee that all paperwork is completed, sent to the AMO and copies are retained.
  9. Police reports and incident reports should be completed and retained by responsible staff even if the car the car is not being repaired and no one else was involved.
  10. As an employee and representative of the Commonwealth, please act professionally at all times.

4.5

Lawsuit

  1. If you receive notice of a lawsuit for a student who is named in a lawsuit for something they did or did not do in a clinical setting and while earning college credit, contact the General Counsel’s Office at the System Office and the AMO.

4.6 

Other Claims

  1. For theft of money or fraud by employee, daycare claims, boiler and machinery, aviation etc., an incident report or an injury accident report will need to be completed.
    1. Please contact your college chief business officer and the AMO.