Disclaimer: The following information does not list all coverages, limits, or exclusions. For full coverages, limits, and exclusions please contact the Office of Risk Management.

All University of Tennessee buildings and business personal property are insured through the State of Tennessee comprehensive program consisting of an internal service fund, called the Risk Management Fund, and the procurement of excess commercial insurance policies from the State insurance broker. The State Risk Management Fund is the mechanism used to fund the large annual aggregate deductible (currently $25-50 million for flood and earthquake, depending on zone; separate $7.5 million for all other perils). It is the insurance company’s responsibility to assume payment of losses if the aggregate deductible is exceeded during the annual term of the policy. The Fund assesses state agencies an annual premium, provides coverage for reported locations, and pays claims for property losses due to covered perils.

Some covered perils include the following:

LighteningRiot or civil commotion

For additional covered perils please contact the Office of Risk Management.

In addition to ensuring state-owned buildings and contents, the policy provides coverage for:

  • Business income and extra expense
  • Loss of rental income. This type of coverage is usually for residential dorms.
  • Leases- When leasing space not owned by UT, any university-owned contents located in the non-owned building will be covered as long as the building is listed on the state property schedule.


  • State Deductible
    • The property agency deductible is $50,000 per occurrence for all covered losses except for those arising out of “water damage”, which has a deductible of $75,000.
  • Flood and Earthquake Deductible
    • The agency deductibles for flood and earthquake are (a) Non-hazard flood is $50,000, (b) Special Hazard Flood is $250,000, (c) Non-New Madrid Earthquake is $25,000 and (d) New Madrid Zone is $50,000.
  • Campus/Department Deductible
    • $10,000 is charged to the department if the loss is a result of all other covered perils. $15,000 is charged to the department/campus for a water-related covered loss.

Equipment Breakdown:

This is specialized coverage for the replacement or repair of items such as boilers; fired and unfired pressure vessels; refrigerating or air conditioning systems along with any piping and its accessory equipment; and any mechanical or electrical machine or apparatus used for the generation, transmission, or utilization of mechanical or electrical power. There is coverage whenever there is a sudden and accidental breakdown of the items listed above or any parts of those items. At the time the breakdown occurs, it must manifest itself by physical damage to the object that necessitates repair or replacement. There is a $25,000 deductible ($125,000 for gas turbine generators) with $5,000 charged to the department.