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 thru 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 $10 million for flood and earthquake; 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:

FireSmoke
LighteningRiot or civil commotion
ExplosionEarthquake
WindstormFlood
Hail

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

 

In addition to insuring 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.

 

Deductible

  • The property deductible is $25,000 per occurrence for losses except for flood and earthquake. ($10,000,000 per occurrence for flood and earthquake losses) $5,000 is charged to the department. $10,000 is charged to the department if loss is a result of theft.
  • Payment based on Replacement Cost (cost of repairs or replacement cost less depreciation, whichever is less)

 

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 $10,000 deducible with $5,000 charged to the department.