Project Related Property Insurance

Effective Date:

September 28, 2016

Function:

Insurance

Contact:

Jim Keegan

Basis for Procedure

Sponsors may insist upon insurance coverage of property or equipment that they furnish, that is acquired with their funds, or that is leased with their funds. Providing insurance availability allows the Research Foundation to comply, in part, with OMB Uniform Guidance provisions for safeguarding property purchased with federal funds and furnished directly by federal agencies.

Procedure Summary

Research Foundation insurance may be obtained for owned, loaned, or leased property if allowed by the sponsor and the insurance is not provided by the loaning or leasing agency. The sponsor and lessor agreements must be reviewed to determine whether insurance is allowed and, if so, who is responsible for providing it.

Sponsors may also disallow using their funds for insurance. When title is retained by the sponsor, their guidelines must be followed. All requests for insurance must be checked by the grant administrator to ensure that they are allowable expenses.

Shipping Insurance

Shipping insurance is most frequently furnished by vendors and, whenever possible, vendor insurance should be requested and relied upon. When the vendor provides delivery, they are responsible for insurance until the property is received by the purchaser. A statement to this effect is part of the standard RF purchase order agreement.

However, when transportation of purchased items becomes the responsibility of the purchaser, the project director must:

Equipment Insurance Module

The Office of the Chief Financial Officer maintains the Equipment Insurance Module in the RF Oracle business system, which records all insured sponsored program equipment on the floater policy. A provision is made within each record for increasing the value as a result of modifications or enhancements, or decreasing the value due to depreciation. The database is used for claims when property is lost, damaged, or stolen and it provides a means for identifying recovered items. The database is used to track when renewals for insurance are necessary and issue advance notifications to campus sponsored programs offices.

Procedure for Obtaining Insurance

Principal Investigators (PIs) may obtain and renew insurance through the Research Foundation by:

Deductibles and Limitations

When an insurance policy has a deductible associated with it, payment of the deductible is a responsibility of the operating location and will be paid out of appropriate account funds as designated by the operations manager.

The marine floater coverage is a world-wide, "all risk" policy insuring against property damage or loss from external cause. The coverage includes property that is portable and extends beyond the bounds of the University location. It does not provide coverage for wear and tear from use, loss caused by dishonesty of employees, or damage caused by electrical breakdown or failure.

Depreciating and Termination of Coverage

As a policy, the Research Foundation encourages PIs to consider that coverage would secure the cost of replacement of critical property during the project term.

For most equipment, value decreases with age. Appropriately decreasing coverage with time lowers premiums and makes for maximum fiscal economy. After project termination, if the property is retained, further insurance is available. Insurance is automatically terminated if not renewed.

When property is disposed of, insurance should be terminated. No provision for pro-rating insurance is available when termination occurs within a yearly cycle. PIs are encouraged to consider the dates involved and to plan accordingly.

Insurance on Decentralized Campuses

Property insurance process has been decentralized to SUNY Albany, Stony Brook, and Buffalo State College due to high volume at these locations. Insurance must still be obtained through the Research Foundation's carrier. However, transactions for acquiring insurance are managed directly between their Office for Research and the Finance Office. Renewal notification at these locations is a responsibility of the campus. The Finance Office remains the office of record and all documentation and claims are forwarded there for handling.

Research Foundation Responsibilities

The Research Foundation has assumed responsibility for making insurance available for property and equipment involved in sponsored projects. The Research Foundation's carrier coverage is available at a significantly reduced rate.

The Finance Office is responsible for:

Operations Managers Responsibilities

The RF operations manager is responsible for ensuring that the campus is complying with the Property Insurance policy.

Principal Investigator Responsibilities

PIs working in cooperation with their operations managers are responsible for

Definitions

None

Related Information

None

Forms

None

Change History

Date

Summary of Change

September 29, 2016

Update premium rate and deductible and minor format changes.

November 19, 2012

Updated insurance terminology, premium rate and deductible.

April 11, 2011

Updated department contact name, RFInsurance email address, fax number and premium rate.

January 9, 2007

Removed reference to EPSS and updated premium rate.

March 10, 2003

New document. Replaces PM-A-50 fro Property Management Manual. The Research Foundation Property Insurance Policy was extracted and is now in a new document "Property Insurance Policy".

 

 

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