Disclaimer: The following information does not list all coverages, limits, or exclusions. For full coverages, limits, and exclusions, please contact our office.


The University of Tennessee procures 3 separate types of aviation insurance policies through the State of Tennessee: (1) Aircraft Liability and Hull, (2) Non-Owned Aircraft Liability, (3) Unmanned Aerial System/Drone.

Note: The State only provides liability insurance for reported drones. To request insurance, please complete the Unmanned Aerial System Insurance Request Form.


The State of Tennessee self-insures all state entities including The University of Tennessee, for automobile liability. In accordance with T.C.A. 9-8-101, the limits of liability (under the waiver of sovereign immunity law) are $300,000 per person and $1 million per occurrence. This means people who use university vehicles in the scope of their employment or authorization to conduct university business are protected up to $1 million for negligence resulting in bodily injury and property damage to third parties. The vehicle operator must comply with state travel regulations; and when accidents occur, notify the state police/other authorized law enforcement organization and the Office of Risk Management. The state provides liability coverage for injury to third parties as long as the employee’s conduct was not (1) outside the scope of the employee’s employment; (2) willful, malicious, criminal, or involved personal gain; or (3) grossly negligent.


The State Crime program covers the University’s loss of money, securities, or checks by actual destruction, disappearance, forgery, or wrongful abstraction (robbery or theft), either on-premises or in transit.


Cyber liability is covered through the State of Tennessee’s Captive Insurance Company. The cyber policy covers items such as privacy breach response costs including customer notification and credit monitoring, security and privacy, and network asset protection.

Fine Arts

The University of Tennessee procures Fine Arts coverage under the State of Tennessee’s Insurance Broker. This policy provides wall-to-wall coverage, with a deductible of $2,500. Incoming loans require fully executed loan agreements with an agreed appraised value for each object on loan. For loaned objects valued at $50,000 or more, a written appraisal and photograph are required. An appraisal by a qualified State Curator is acceptable.

General Liability

T.C.A. 9-8-101 et. seq. require the State of Tennessee Division of Risk Management to provide general liability insurance coverage to all State of Tennessee agencies through the State Risk Management Fund, a self-insurance fund. The Fund is liable for bodily injury and property damage to other people caused by the negligence of university employees or designated volunteers while acting within the course and scope of employment. The self-insurance coverage includes:

  • Premises and Operations
  • Personal Injury
  • Professional Liability

In accordance with T.C.A. 9-8-101, the limits of liability (under the waiver of sovereign immunity law) are $300,000 per person and $1 million per occurrence.


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 with an annual premium, provides coverage for reported locations, and pays claims for property losses due to covered perils.

Campus/Department Deductible

  • $15,000 for a water-related covered loss
  • $10,000 if the loss is a result of all other covered perils

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 with $5,000 charged to the department.