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Policy Contact: Office of Finance and Budget

1. Purpose

   This policy and its procedures set forth University protocols for risk management with University-coverage of losses of personal property owned by the University, not subject to University Policy 8:8, and not otherwise covered by State of South Dakota insurance or the Public Entity Pool for Liability (PEPL) Fund.

2. Definitions
   1. Insurance: a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
   2. Loss: a reduction in University-owned asset or property value or damage of said University-owned asset or property due to an accident, natural disaster, or other risk.
3. Policy
   1. University Insurance coverage may only be procured by the State of South Dakota Office of Risk Management (SD Risk Management) or, as allowed by law, upon approval by the University President, upon consideration of the recommendations made by the University Damage Claims Committee.
   2. The University Damage Claims Committee, made up of representatives from the Office of General Counsel, VP for Finance and Budget, and the Dean/Vice President of the affected unit, is responsible for reviewing and making recommendations on pursuing purchase of Insurance or recovery of a Loss under this policy.
   3. All Losses must be reported to the University's Risk Management Coordinator for review, and the University Police Department, when applicable.
   4. All Losses must first be reviewed for whether they should be submitted for Insurance coverage by the State of South Dakota Insurance or PEPL Fund.
   5. A Risk Management Fund, based on an analysis of estimated anticipated uncovered Losses and as approved and determined by the University President, will be maintained centrally in the Division of Finance and Budget to cover costs incurred for Losses not covered by authorized Insurance, PEPL Fund, federal coverages, or Losses covered by University Policy 8:8.
   6. The Risk Management Fund will not be used for:
      1. Losses covered by authorized Insurance and their associated deductibles, State of South Dakota PEPL Fund, South Dakota Fleet coverages, workers' compensation, unemployment compensation, disability benefits, federal coverages, or other laws, personal injuries, wages, or intentional and willful or wanton misconduct.
      2. Losses to property that will no longer be used by the University.
      3. Losses determined not to be a reasonable business interest of the University to cover by the Risk Management Coordinator, the VP for Finance and Budget, and/or the University President.
   7. Any Risk Management Funds allocated to cover a qualifying Loss must be used for replacement of the Loss and not redirected to other uses.
   8. An invoice or estimate for replacement or equivalent documentation is required to submit a request for coverage.
   9. Covered requests for Losses from the Risk Management Fund under $50,000 may be eligible for expedited approval.
   10. The Risk Management Coordinator will compile an annual report by August 1 of each fiscal year on Loss and coverages and report to the Risk Management Committee, University General Counsel, and the VP for Finance and Budget. The VP for Finance and Budget, with information from the Risk Management Coordinator, will provide a report on coverages uses to the University President and for the University budget process.
   11. Individuals requesting coverage under the Risk Management Fund are expected to cooperate with the University in the approvals or denials of requests, as well as any Insurance or PEPL coverages, settlements, or litigation.
4. Procedures
   1. Losses must be reported to the University's Risk Management Coordinator via the Report of Accident, Incident, or Unsafe Condition reporting form. Reports to the University Police Department are made through standard emergency/non-emergency contacts.
      1. The Risk Management Coordinator will review every reported Loss for facts and coverages, and will request an estimate to determine the Loss incurred to repair the damage, as applicable.
      2. When the University Police Department is involved, the department will notify the Office of General Counsel through Marsy's reports and will provide the University Risk Management Coordinator the disclosable facts and reports for the University to assess its Loss claims.
      3. If the Loss is covered by another University policy, or if the Loss is subject to State of South Dakota Insurance or the PEPL Fund, the Risk Management Coordinator will timely transmit the claim information and report to SD Risk Management.
      4. If the Loss is not covered by another University Policy or State of South Dakota Insurance or the PEPL Fund, the Risk Management Coordinator will obtain the approval of the applicable department or individual's Supervisor, Dean, Director, Assistant Dean, and/or Vice President and will share the report of Loss and estimate with the Damage Claims Committee for review and processing. The Damage Claims Committee will provide a recommendation regarding recovery of the Loss.
      5. The VP for Finance and Budget will seek approval of the University President for coverage of Losses over $50,000. Requests for eligible Losses recommended for coverage that are $50,000 or under may be approved y the VP for Finance and Budget.
      6. The department experiencing the Loss will be informed of the outcome of any Loss decisions by the Risk Management Coordinator.
      7. SDBOR policies and University Policy 5:12 will be used for any collections of Losses.

5. Responsible Administrator

   The Vice President for Finance and Budget, or designee, is responsible for annual and ad hoc review of this policy and annual review of procedures. The University President is responsible for approval of this policy.

Approved by President on 02/02/2025. Revised; Approved by President on 04/11/2026.

Sources: University Policy 5:12; University Policy 8:8;