Commercial Insurance Policies
Although Risk Management (RM) provides self-insurance to cover most of state’s risks, we also purchase additional coverage. We buy property, liability, out of state workers’ compensation and bonds. All this is done through our Broker of Record.
The state self-insures the first $1.5 million cost of loss to its property. If earthquake or flood causes the loss, that deductible goes up to $4 million. Costs over the deductibles are covered by insurance we buy on the commercial market. The most that insurance will pay is $400 milllion.
View Excess Real and Personal Property Insurance Summary.
Until 2002, commercial Boiler and Machinery coverage was included in the Excess Property policy. However, during the renewal process of the 2002-2003 Excess Property policy, underwriters removed Boiler and Machinery coverage. This resulted in a new, separate statewide policy being purchased. Boiler and Machinery is now more commonly known as Equipment Breakdown.
Equipment Breakdown insurance covers more than boilers. Covered equipment includes the following, unless specified otherwise by the policy terms and conditions:
- Equipment that generates, transmits, or utilizes energy including electronic communications and data processing equipment, or
- Equipment which, during normal usage, operates under vacuum or pressure, other than the weight of its contents.
The commercial policy has a per accident limit of $100,000,000. Refer to the Equipment Breakdown insurance summary for other limitations and deductibles. Also please refer to the Property Self-Insurance Policy Manual for further information about this coverage.
View Equipment Breakdown Insurance Summary.
We buy an Aviation Liability for our agencies that have pilots who fly while on state business. Allowing your pilots to fly on state business is an agency management decision. To be eligible for the aviation liability coverage, you must agree to comply with the Aircraft and Pilot Standards 125-7-301. Your pilot must adhere to the minimum qualifications. Each year just prior to renewal, pilots will receive a pilot qualification form. The form must be completed. We will verify that your pilots are qualified.
We have state employees and agents who handle public funds. To protect the state against financial loss in the rare event of a dishonesty act, we provide a bond. RM self-insures the first $350,000 of a dishonesty loss. But we do purchase additional coverage with a limit of $20,000,000.
View Dishonesty Bond/Crime
State agencies do business all over the world and all over the United States. We buy WC and Employers Liability insurance for your out of country employees and any third country or local nationals you may hire. Many times we hire someone from another state to work on a special project. Or, we might send our own people out of state to work for a limited amount of time.
Typically, if you hire a resident of another state to work in their home state, we must purchase workers’ compensation insurance in that state. When a state employee travels to another state to attend a meeting or conference, our Oregon workers’ compensation coverage provided by SAIF would follow. However, if we send someone to work outside of Oregon on a temporary basis, longer than a few weeks, some states require we buy local coverage.
This is very complex coverage. Each state has it’s own workers’ compensation laws. To be certain your employee has coverage, contact us well in advance of hiring someone to work out of state or re-assigning your Oregon worker. We will research the laws of the other state to be certain we have appropriate coverage, are not violating any laws or be hit as a non-complying employer.
There are many policies purchased to cover the State of Oregon for our various activities. Many cover all state agencies. However, RM also buys outside policies for your unique risks. Do you have a unique risk that could cause harm to others or yourself? Do you want to transfer the risk to a commercial insurer? Although you would pay for the commercial insurance, transferring the risk to an insurance company could keep risk charges down. Do you have a need to have a higher limit than our self-insurance provides?
Samples of coverages purchased by state agencies:
- Fire Fighting Expense, Department of Forestry
- Student Malpractice Liability, Various Universities
- Motorcycle Liability, Team Oregon
Remember that commercial insurance is subject to market changes. At times the coverage is not available. At other times it is too expensive. At all times it takes several weeks to months to obtain coverage. Here’s what you can do:
- Work with your agency Risk Coordinator to do a Risk Analysis. That will help you decide if you need coverage and what type.
- Contact RM as far in advance as possible. In the current market it is taking at the least 60 to 120 days to place most coverages.
- Commercial insurance does not relieve you of the responsibility to plan and implement safety and risk control practices.
The Insurance Summaries that are attached above, are only brief highlights of the coverage. For actual terms, conditions and a complete list of exclusions, you must refer to the policy.