Risk Management

Procedure Statement 1: Reporting Building/Contents Claim

Building and Contents Loss Procedures

Loss reports are to be filed for any damages occurring to any building and/or contents belonging to, or in the care, custody, and control of the State of North Carolina, and in particular, East Carolina University. Reports are to be made to the Risk Management Section of the University Property Office through each department's insurance liaison. It is not the responsibility of individual departments to file reports directly with our insurers.

Note: As stated earlier, the burden of proof of contents existence after a loss is the responsibility of each department; therefore, it is to each departments's benefit to maintain an up-to-date inventory of all its contents, not only items with an acquisition cost above $500 as recorded by the Fixed Assets Coordinator. Fixed Assets has a subsystem available to record assets acquired for less than $500. Contact the Fixed Assets Coordinator in the University Property Office for access and instructions.

Procedure Steps

The following procedures are to be followed in the event of any type of loss to buildings and/or contents:

Fire or Lightning Losses:

• Immediately notify the Greenville Fire Department and the University Police. The University Police secures photographs of the damages and furnishes a set to the Risk Management Section for use in submitting the loss report.

• Once the fire has been contained, the Risk Management Section and Facilities Services are to be notified. The Risk Management Section will notify the Department of Insurance.

• The Facilities Services Director will assess the damage and notify the Risk Management Office verbally, followed by written estimates, indicating the extent of the building damage.

• The NC Department of Insurance will, upon receiving verbal notification, determine if an on- site visit is to be conducted or whether the "Report and Proof of Loss Form" to be submitted along with the photographs and the written estimate of damages will be sufficient for that office to reach a decision about a recommendation to the Insurance Commissioner. If satisfied with the information provided, the Insurance Commissioner will authorize repairs and/or replacement.

The Risk Management Section of the University Property Office or the Facilities Services Director will contact the office of the Comptroller for an account number to which repairs and/or replacements can be charged, and forward it to the Vice Chancellor for Business Affairs. The requisitions will be submitted to the Comptroller for processing once approved by Business Affairs.

• When the damage has been repaired and/or replaced and all cost figures are final, the Risk Management Section will submit the "Report and Proof of Loss Form" to the NC Department of Insurance for processing and reimbursement.

• The NC Department of Insurance will then make a written recommendation for payment in writing to the Insurance Commissioner. The Insurance Commissioner will then request payment authorization from the Council of State via the Governor. Once written payment approval has been given by the Council of State, the NC Department of Insurance will send written notification to the Risk Management Section. The Risk Management Section will notify the department involved of payment.

• When the actual reimbursement is received, the Risk Management Section will deposit the funds into the assigned account.

Specifically Insured Equipment Loss Procedure

The following procedures are to be followed in the event of any type of loss to specifically insured equipment:

• If the loss is a theft, vandalism, or malicious mischief, immediately upon discovery notify the University Police. The University Police is to furnish the Risk Management Section with a copy of the incident report for use in filing the loss claim.

• Once the loss situation is under control, the Risk Management Section is to be notified verbally. The Risk Management Section will notify the NC Department of Insurance.

• The department obtains a written estimate of the cost to repair, or a written estimate of the cost to replace the damaged item(s) if repairs are not possible or repair costs would exceed replacement cost. This/These estimates are then to be submitted to the Risk Management Section along with a written notification of the loss providing details as to date, time, location and extent of damages known at the time of reporting.

• The Risk Management Section will verify that the item(s) is/are insured and submit a "Report and Proof of Loss Form" to the NC Department of Insurance along with the written notification and the written estimate of the damages for processing and reimbursement.

• The NC Department of Insurance will, upon receiving the "Report and Proof of Loss Form" along with the written estimate, make a recommendation for payment to the Insurance Commissioner. The Insurance Commissioner will then request payment authorization from the Council of State via the Governor. Once payment approval has been given by the Council of State, the Commissioner of Insurance will send written notification to the Risk Management Section.

• Upon receipt of the written approval, the Risk Management Section will notify the department involved.