05.03 - Inland Marine Insurance Coverage

Last updated December 18, 2008

A. Policy. Inland Marine coverage is for items that are valued under $2,000, are owned by the University or are contractually obligated to be insured by the University, and may be subject to theft, or physical damage. Inland Marine coverage is not automatic coverage. Departments must report annually all items to be covered. If a new item is purchased or an addition is needed during the year, a department may request an addition to its covered items. The cost for coverage to the department is $.035 per $100 of the value of each item. Premiums are billed annually and are not prorated based on the length of time an item is covered. Items that have a locking mechanism to prevent theft can be covered by request at no charge to the department. In the event of a loss, the department must work with the university Department of Risk Management (Risk) to make a claim to the State of Idaho Insurance Fund. When a loss occurs, there is a $50 deductible that the department must pay. [ed. 12-13]

A-1. Coverage Exclusions. Inland Marine insures against risk of physical loss or damage, except as provided by policy exclusions, which include, but are not limited to, the following:

i) Loss or damage to student or employee personal property unless:

a) the loss is due to clear negligence of the University, or
b) in the case of employee property, the employee has been requested in writing by an authorized representative of the University to bring personal property to the workplace for employment purposes and a copy of that written request is forwarded to Risk prior to any loss;

ii) Inventory shortage or unexplained disappearances;
iii) Theft of University property by an employee;
iv) Ordinary wear and tear, inherent vice, moths, termites, or vermin;
v) Mechanical breakdown;
vi) Nuclear reaction;
vii) War;
viii) Real property or buildings;
ix) Autos;
x) Vehicles licensed for the road; and
xi) Consumable supplies.

B. Process/Procedure.

B-1. Annual Renewal. Departments are responsible for maintaining their Inland Marine Insurance schedule. Departments must submit an updated schedule of items to be covered to Risk once a year (usually in the spring). Risk will collect from each department an electronic schedule of items to cover. Risk will compile all data and will send the necessary information to the State of Idaho Department of Administration Division of Insurance and Internal Support Risk Management Program. The State of Idaho will bind coverage with an insurance company. Items can be added for coverage at any time during the fiscal year. For specific instructions on procedure, see D below.

B-2. Adding Items to Coverage during the fiscal year. Items may be added at any time during the year. The coverage of the item will begin on the date the request is sent to the State of Idaho Risk office and, unless deleted prior, will continue until the end of the fiscal year, June 30. Inland Marine Insurance premiums for the fiscal year are not pro-rated, so regardless of when you add an item during the year you will pay for a full year’s coverage of that item. For specific instructions on procedure, see D below.

B-3. Deleting Items from Coverage during the fiscal year. Items may be deleted at any time during the year. The coverage of the item will end on the date requested. Inland Marine Insurance premiums for the fiscal year are not pro-rated. For specific instructions on procedure, see D below.

B-4. Claims. The department can file a claim to receive funds to cover the cost of the replacement or damage of an Inland Marine insured item. For specific instructions on procedure, see D below.

C. Contact Information. Any problems or questions concerning the requirements for increasing insurance coverage with Inland Marine Insurance or maintaining inventory schedules, please call Risk at (208) 885-7177, Risk Email or by fax at (208) 885-9490.

D. Forms and Examples. To request forms for use, email Risk Email. For instructions and examples of completed forms, visit Risk Management: Inland Marine and search worksheets by category.