AP 6540 Insurance - Administrative Procedures, Chapter 6 Business and Fiscal Affairs
- References: Education Code Sections 32221, 70902, 72502, 72506, 81601 et seq. Government Code 990
The District shall maintain insurance including but not limited to the following:
Liability insurance for damages for death, injury to person, or damage or loss of property.
Liability insurance for the personal liability of the members of the Board of Trustees and of the officers and employees of the District for damages, for death, injury to a person, or damage or loss of property caused by the negligent act or omission of the member, officer or employee when acting within the scope of his or her office or employment.
Comprehensive liability insurance, including liability for operation of vehicles, covering members of the Board and the officers and employees of the District, as required by Education Code Section 72506 and as permitted by Government Code Section 990.
Fire insurance, including extended coverage and vandalism and malicious mischief, shall be carried on all buildings owned by the District and on the contents of all buildings owned or occupied by the District. Coverage of all property shall be carried on a replacement cost basis.
Workers' Compensation insurance covering all employees of the District in accordance with the provisions of the Workers' Compensation Insurance and Safety Act of the State of California.
Vehicle physical damage insurance including fire, theft, comprehensive and collision.
Fidelity bonds or coverage provided by a joint power authority to protect the District against loss resulting from fraud or dishonesty of officers or employees.
Physical loss coverage of District personal property including loss of money and securities.
Boiler and pressure vessel insurance including inspection as required.
Hospital-medical coverage for employees and dependents. Coverage shall be provided through indemnity-type policies and self-funded policies.
Student intercollegiate athletic insurance as required by Education Code Section 32221.
Coverage of student body organizations and Ohlone College Foundation, including liability.
Such other insurance against "other perils" (Education Code Section 81601) as may be authorized by the Board.
The President/Superintendent or designee shall report to the Board the need for insurance, together with the relevant information, including coverage experience and costs for placing such insurance. Upon authorization, the Vice President of Administrative Services shall put in place such insurance. In an emergency the Vice President of Administrative Services may place insurance, and the President/Superintendent or designee shall immediately report such acquisition for ratification by the Board.
Insurance may be obtained through negotiation or competitive bids and shall be awarded to those who contract to furnish the coverage required at the lowest and best price consistent with good service and financial security.
As authorized by Education Code Section 81602, the District may contract for investigative, administrative and claims adjustment services. The contract may provide that the contracting firm may reject, settle, compromise and approve claims within limits and for amounts specified by the Board, including execution and issuing of checks in payment of such claims. The contract may also provide that the contracting firm may employ counsel.
Every two (2) years the District shall contract for an actuarial evaluation of the future annual costs of health and welfare benefits and report the findings to the Board.
Valuation of District property for insurance purposes shall be based upon appraisal by a commercial appraisal service. The appraisal service shall update values annually to reflect changes in replacement costs. In determining the necessary amount of coverage, allowance shall be made for non-insurable items. Records shall be maintained listing all pertinent data necessary to establish value of District properties for insurance or loss adjustment purposes.
Demands on payment of insurance premiums based on orders duly authorized and issued shall be paid in the same manner as other demands against the funds of the District.
Insurance policies shall be cancelled when deemed advisable and unearned premiums returned for deposit except that Board-required coverage shall be maintained.
Insurance records and information shall be maintained in the Administrative Services Office and Risk Management Offices and shall include subject of the insurance, insurance providers, agents or brokers through whom policies are written, premiums and rates, experience, and property values.
The Vice President of Administrative Services shall prepare an annual information report to the Board covering the status of the District insurance program as of the beginning of each fiscal year.
Specific provisions apply for construction project fire insurance.
Fire insurance shall be carried on new buildings or other structures constructed under contract only upon acceptance of the completed contract by the Board
During the performance of contracts for alterations, additions, repairs, reconstruction, rehabilitation, or other work in or on existing buildings, fire insurance including extended coverage and vandalism and malicious mischief shall be carried by the District.
Specifications for alterations or new construction shall contain provisions in accordance with this section.
Accident reports and claim procedures (see Administrative Procedure 3810) shall include the following:
A written report of any accident/incident occurring on District premises or involved with District activities resulting in injury to person or property shall be submitted to the District's Risk Management Office.
Any communication, claim or written demand concerning an accident involving the District shall be forwarded immediately to the Vice President of Administrative Services and Risk Management Office. The Risk Management Office will make such acknowledgement as is deemed appropriate, report receipt of the claim in the Board correspondence, and forward the claim to the liability insurance carrier of the District.
On receipt of notice from the liability insurance carrier of the District that a claim is to be rejected, the President/Superintendent shall make such recommendation to the Board and on approval by the Board, shall so notify the claimant.
When any property is lost, damaged, or destroyed and there is applicable insurance, a notice concerning the loss shall be sent immediately to all affected carriers or their designated representatives.
The President/Superintendent or designee shall act as adjuster for the District in the settlement of loss and shall sign proof of the loss as authorized. The President/Superintendent shall recommend to the Board the basis for settlement and the agreed amount which upon authorization of the Board shall be collected and deposited.
See Board Policy #6540.
Adopted: May 2013