Department of Administrative Services
POLICY MANUAL
Issuing Division: Enterprise Goods and
Services, Risk Management
Number: 125-7-101
Effective until
cancelled.
Revised April 1,
2018.
Subject: Property Self-Insurance Policy Manual
Approval
i
CONTENTS
I. Purpose ................................................................................................................................... 1
II. Self-Insurance Agreement ....................................................................................................... 1
III. General Definitions and Exclusions ........................................................................................... 2
• General Definitions .......................................................................................................... 2
• General Exclusions ............................................................................................................. 5
IV. Real and Personal Property ................................................................................................... 6
• A. Insuring Agreement ........................................................................................................ 6
• B. Definitions ................................................................................................................... 6
• C. Exclusions ....................................................................................................................... 6
• D. Limits of Insurance ...................................................................................................... 8
• E. Deductibles ................................................................................................................. 9
• F. Conditions for Coverage .............................................................................................. 9
• G. Reporting Losses ...................................................................................................... 10
• H. Loss Settlement ........................................................................................................ 11
V. Equipment Breakdown Coverage .......................................................................................... 16
• A. Insuring Agreement ...................................................................................................... 16
• B. Reporting Losses ...................................................................................................... 16
Department of Administrative Services
POLICY MANUAL
Issuing Division: Enterprise Goods and
Services, Risk Management
Number: 125-7-101
Effective until
cancelled.
Revised April 1,
2018.
Subject: Property Self-Insurance Policy Manual
Approval
ii
VI. Money and Securities ........................................................................................................... 17
• A. Insuring Agreement………………………………………………………………………… 17
• B. Definitions ................................................................................................................. 17
• C. Exclusions ................................................................................................................. 17
• D. Limits of Insurance .................................................................................................... 18
• E. Deductibles ............................................................................................................... 18
• F. Conditions for Payment ................................................................................................. 18
• G. Reporting Losses ...................................................................................................... 19
• H. Loss Settlement ........................................................................................................ 19
VII. Exceptional Items ................................................................................................................ 20
• A. Insuring Agreement ...................................................................................................... 20
• B. Definitions ................................................................................................................. 21
• C. Exclusions ..................................................................................................................... 21
• D. Limits of Insurance .................................................................................................... 21
• E. Deductibles ............................................................................................................... 22
• F. Conditions for Payment ................................................................................................. 22
• G. Reporting Losses ...................................................................................................... 23
• H. Loss Settlement ........................................................................................................ 24
VIII. Special Services ................................................................................................................ 25
Department of Administrative Services
Continuation Sheet
Number 125-7-101
1
I. Purpose
Under Oregon Revised Statutes (ORS) Chapter 278, the state pays, through the Insurance
Fund, its cost of restoring most state property that may be lost, damaged, or destroyed. The
purpose of self-insuring is to restore property needed for the operation of the state. The
Insurance Fund is meant to reimburse for accidental loss, not to substitute for your duty to
prevent and reduce loss or to maintain good repair.
Additional property coverage and related information may also be available under:
• Policy 125-7-201, Liability Self-Insurance Policy Manual for State Agencies;
• Policy 125-7-202, Liability Self-Insurance Policy Manual for State Officers, Employees, and
Agents;
• Policy 125-7-203, Employee Dishonesty Self-Insurance Policy Manual;
• Policy 125-7-204, Volunteer Injury Coverage Policy;
• Policy 125-7-301, Aircraft and Pilot Standards;
• Policy 125-7-401, Alcohol Risk Control Policy;
• Policy 125-7-501, State Business & Travel Status Policy; and
• OAR Chapter 125, Division 155, State Vehicle Use and Access
II. Self-Insurance Agreement
This Self-Insurance Policy Manual includes the following lines of coverage for state property and
insures against all risks of direct physical loss or damage, unless the cause of the loss is
otherwise excluded or limited in this policy manual:
A. Real and Personal Property
B. Equipment Breakdown Coverage
C. Money and Securities
D. Exceptional Items
Changes and exceptions to the terms and conditions of this policy manual are only effective if
the Enterprise Goods & Services Administrator or the Risk Management Manager signs a
written Amendment or Endorsement. This policy manual is subject to change without prior
notice.
Various provisions of this agreement restrict coverage. Read the entire policy manual carefully
to determine rights, duties, and what is and is not covered. Words or phrases that appear in
boldfaced type have special meanings, per Section III, General Definitions, and elsewhere in
this policy manual.
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Continuation Sheet
Number 125-7-101
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III. General Definitions and Exclusions
Throughout this policy manual, “you” and “your” refer to the state and its agencies, “we”, “us”,
and “our”, refer to the Department of Administrative Services, Enterprise Goods & Services Risk
Management (RM). General Definitions and Exclusions apply to all lines of coverage. Other
terms have the meanings stated in each respective line of coverage definition and exclusion
section.
General Definitions
1. Actual Cash Value means a valuation method where the value equals the current
replacement cost less proper deduction for depreciation based on age, condition at time of
loss, time in use, and obsolescence.
2. Alternative Use means a use that could not reasonably be made of the property before the
loss. Exception: New equipment may have standard features that were unheard of when
the lost or damaged equipment was acquired. Those are improvements you cannot avoid.
They are not alternative uses.
3. Annual Risk Report is the yearly report form you must use to report your property and its
estimated value. You are required to report all property that you possess on July 1st of
each year in which this policy would pay losses.
4. Betterment is replacing the property with something better than it was before. It is covered
by this self-insurance when new materials must be used, new models must replace
discontinued models, or when changes are required by current codes in order to restore a
damaged property to functional use.
5. Business Interruption means a loss of earnings when normal business operations are
temporarily interrupted or suspended. Business interruption can include salaries, taxes,
rents, revenue, and necessary continuing operating expenses.
6. Catastrophe means a sudden and widespread disaster; a disaster beyond expectations.
7. Collection means pieces or items of personal property that are not normally separated, are
similar in nature, or are gathered for a single purpose.
8. Consequential Damages means damage or destruction of property from a peril that is not
the immediate cause of loss.
9. Contaminants and Pollutants means any solid, liquid, gaseous, or thermal irritant or
contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste,
which after its release can cause or threaten damage to human health or human welfare, or
causes or threatens damage, deterioration, loss of value, marketability or loss of use to
property insured, including, but not limited to bacteria, fungi, virus, or hazardous substances
as listed in the Federal Water, Pollution Control Act, Clean Air Act, Resource Conservation
and Recovery Act of 1976, and Toxic Substances Control Act or as designated by the U.S.
Environmental Protection Agency. Waste includes material to be recycled, reconditioned or
reclaimed.
10. Control means having the legal ability and responsibility:
A. To direct the property’s use and location;
B. To direct who may have access to it; and
C. To take possession of it.
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11. Employee, volunteer, or agent owned personal property is used for work to accomplish
a mission critical function and only with a prior written agreement to accept responsibility.
12. Fungus means any type or form of fungus, including mold or mildew, and any mycotoxins,
spores, scents, or by-products produced or released by fungi.
13. Heavy Mobile Equipment means heavy-duty machines or devices designed for construction
tasks, most frequently involving earthwork operations including constructing or resurfacing
roads and are not registered as a motor vehicle. Examples include, but are not limited to: road
graders, road scrapers, steam rollers, backhoes, wheel loaders, excavators, front end loaders,
bulldozers, all-terrain forklifts and cranes.
14. Land means soil, water, rock, timber, and uncultivated plants.
15. Limited Damage Waiver means a provision in many passenger vehicle rental contracts
charging an extra fee to the person renting a vehicle. In exchange the rental company
waives some of its right to recover physical damage and some other types of losses from
the renter.
16. Location means a single campus or complex of buildings owned by the same state agency
or all structures owned by an agency with the same zip code.
17. Loss of Income means a loss to income or revenue when normal business operations are
temporarily interrupted or suspended.
18. Market Value is the likely value of property based on the price a willing buyer would have
paid had it been offered for sale immediately before loss.
19. Mysterious Disappearance means property is gone, but no one knows for sure when it
disappeared or what happened to it. In an office or workspace that is usually occupied, it
means the item was not in a known place near the time of its loss. In a vehicle or an area
usually unoccupied, it means there is no physical evidence of theft or forced entry.
20. Occurrence means an accident, incident, or a series of accidents or incidents arising out of
a single event or originating cause and includes all insured losses. Each loss by
earthquake, flood, freeze, or windstorm will constitute a single occurrence. If more than one
earthquake or flood occurs within any period of 72 hours during the term of this policy, we
will determine the moment when the time period began.
21. One Percent Art means art purchased as one percent of building cost to fulfill ORS
276.080.
22. Personal Property means moveable property including, but not limited to, merchandise,
furniture, goods, ordinary farm livestock, fish, crops, heavy mobile equipment, vehicles
(including aircraft and boats), non-motorized trailers not being towed by a licensed vehicle,
moveable machinery, tools, equipment, and supplies.
23. Property means real and personal property reported on your Annual Risk Report or
acquired since the last report.
24. Property of Others is real property or personal property that is rented, leased or borrowed
by a state agency, other than employee, volunteer, or agent owned personal property.
25. Possession means having the exclusive use of property.
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26. Real Property means your buildings, structures, and fixtures erected on, above, or under
your land within the U.S., its territories, or Canada. Real property includes artworks
permanently erected on and affixed to state-owned lands or buildings. If reported in your
risk report, real property includes outdoor lighting, ornamental trees and shrubs, or fencing.
It includes a residence to which you hold title or possession or that you control as landlord,
due to default on a direct loan or sales contract that you made.
27. Replacement Cost is the cost to replace damaged property with property of like kind and
quality; the cost to replace property at its current price without a deduction for depreciation.
28. Reproduction Value is the cost of duplicating building materials or techniques. However,
repair of one percent art or of some property damage may call for some repairs that, by their
nature, approach reproduction. Example: Restoring a damaged building of historical
significance to its pre-loss state.
29. Research Data and Products means property that cannot be replaced except by repeating
all or part of the projects, research, breeding, or other work that produced them.
30. Restoration Cost means the lower of necessary and reasonable cost to repair or the cost of
replacing with property of equivalent function and reasonably similar to the old.
31. Security Property means real or personal property you own or have a financial interest in, if
it is for the purpose of generating an investment gain. It does NOT include:
A. Buildings in which at least 51 percent of the floor space is occupied by state employees
or agents conducting state business;
B. Single family residences or personal property in which legal ownership has defaulted
back to you from your loan program borrower and you are working to dispose of it or
seek new borrowers; or
C. Other property you own and are holding for eventual sale.
32. Substantial Completion means the date certified by the Owner when construction is
sufficiently complete, in accordance with the contract documents. The Owner can occupy or
utilize the work for which it is intended, as expressed by the contract documents.
33. Surplus Property means property no longer needed by the owning agency that is either:
A. Intended for re-sale by or on behalf of the owning agency; or,
B. Designated as disposal or salvage.
34. Terrorism means a violent act that is dangerous to human life, property, or infrastructure
that is committed by an individual or individuals and that appears to be part of an effort to
coerce a civilian population or to influence the policy or affect the conduct of any
government by coercion.
35. Valuable Papers means papers that prove, or represent rights or which contain records or
data that cannot be readily replaced. A few examples include mortgages, deeds, title
transfer documents, business records, and surveying or engineering field notes.
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Continuation Sheet
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36. Vehicles are conveyances designed to move passengers or cargo on public roads. For the
purpose of this policy means:
A. Passenger vehicle means cars, trucks and vans, with a weight carrying cargo capacity
of less than one ton designed to carry two or more passengers, and licensed under
state law for highway use, including non-motorized trailers being towed by a licensed
vehicle.
B. Other vehicles mean large vehicles, including sanders, snowplows, trucks with cargo
capacity of one ton or more, boats, airplanes, and trains. Note that off-road vehicles, golf
carts, front end loaders, and other heavy mobile equipment are personal property, but
not defined as vehicles.
37. Vessel means a boat, ship, craft or structure made to float or travel upon the water which
may or may not be powered by a marine engine
General Exclusions
1. Hostile, warlike action or terrorism of any kind by persons other than those held in physical
state custody including action in hindering, combating, or defending against an actual,
impending, or expected attack.
2. Due to nuclear reaction, nuclear radiation, or radioactive contamination, all whether
controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote,
or be in whole or in part caused by, contributed to, or aggravated by the peril(s) insured
against in this policy; however, subject to the foregoing and all provisions of this policy,
direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive
contamination is insured against by this policy.
3. Any loss or damage caused by, resulting from, contributed to or made worse by actual
alleged or threatened release, discharge escape or dispersal of contaminants or pollutants,
all whether direct or indirect, proximate or remote or in whole or in part caused by,
contributed to or aggravated by any physical damage covered by this policy. Nevertheless, if
fire is not excluded from coverage, and a fire arises directly or indirectly from seepage or
contamination or pollution, any loss or damage covered under this policy arising directly from
that fire is covered, subject to the provisions of this policy.
This exclusion shall not apply when loss or damage is directly caused by fire, lightning,
aircraft impact, explosion, riot, civil commotion, smoke, vehicle impact, windstorm, hail,
vandalism, malicious mischief. This exclusion shall also not apply when loss or damage is
directly caused by leakage or accidental discharge from automatic fire protection systems
4. To property you possessed on July 1st preceding a loss, but you failed to report it on your
Annual Risk Report.
5. Arising directly out of a cause that is within your knowledge and power to correct.
6. Intentionally caused by action officially taken or withheld by you
7. Due to mysterious disappearance. This exclusion is by law, per ORS 278.050. It is not
waived or accepted.
8. Losses due to employee dishonesty are not paid under this policy manual. See our
Employee Dishonesty Policy Manual 125-7-203. Losses due to employee dishonesty are
subject to the terms of that policy and any bond or crime policy we may carry. However, this
policy manual does insure acts of direct insured physical damage intentionally caused by a
state employee and done without the knowledge of the State.
9. To intellectual property such as trademarks, trade secrets, copyright, or patents.
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Continuation Sheet
Number 125-7-101
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IV. Real and Personal Property
A. Insuring Agreement
This agreement covers property, as described within, against all risks of direct physical loss or
damage to the State’s real and personal property.
We pay for all direct physical loss or damage to state real and personal property occurring
during the policy period of this self-insurance policy unless the loss is excluded or limited in this
policy manual. Subject to the terms of this policy manual, we will pay to restore real and
personal property that is lost, destroyed, or damaged.
Changes and exceptions to the terms of this policy manual are only effective if the Enterprise
Goods & Services Administrator or the Risk Management Manager signs a written amendment
or endorsement. This policy manual is subject to change without prior notice.
B. Definitions
All definitions relating to Real and Personal Property are included in Section III, General
Definitions.
C. Exclusions
We will not pay for loss or damage caused directly or indirectly by any General Exclusions
under III, General Exclusions or any of the following. Such loss or damage is excluded
regardless of any other cause or event that contributes concurrently or in any sequence to the
loss.
1. Directly caused by laws, ordinances, or administrative rules being enforced, unless resulting
from direct physical loss or damage to property which requires that the property being rebuilt
be brought up to new code requirements.
2. Intentionally caused by action officially taken or withheld by you.
3. To contracted new building construction prior to substantial completion.
4. To septic tanks, wells, or underground tanks.
5. To roads, streets, highways, paving, bike paths, trails, sidewalks, guardrails, supports,
culverts or related improvements to real property not involving buildings or structures.
6. To temporary or permanent, fixed, or movable property related to highways, roads and
streets including, but not limited to, computer controlled or electronic programmable
message reader boards, variable message signs, highway signs, road signs, and traffic
signals.
7. To land or land values, orchard trees, timber, uncultivated plants, earth berms, terraces,
landscaping, dams, dikes, ditches, lagoons, or other earthen forms and structures.
8. To bridges, trestles, viaducts, tunnels and ramps unless owned by the state, immediately
adjacent or attached to covered property, and used for maintenance or access to a covered
building.
9. Due to mysterious disappearance. This exclusion is by law, per ORS 278.050. It is not
waived or accepted.
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Continuation Sheet
Number 125-7-101
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10. Directly due to poor care or lack of maintenance, wear and tear, or condition inherent in any
type of property that causes it to deteriorate or destroy itself; including loss due to rust,
corrosion, fungus (including mold, mildew, and any mycotoxins, spores, scents or by-
products produced or released by fungi), or decay that is reasonably discoverable; or
caused by insects or vermin, gradual rise of ground water, underwater or underground
electrolysis, continuous or repeated seeps, or leaks occurring over time.
11. To cash and negotiable securities except as provided under the Money and Securities line
of coverage Section VI.
12. Due to:
A. Mechanical breakdown, including rupture or bursting caused by centrifugal force, of
machinery or equipment unless physical damage not excluded by this section results, in
which event, this section shall cover only such resulting damage;
B. Artificially generated electrical current, including electrical arcing, that damages electrical
devices, appliance or wires, unless physical damage not excluded by this section
results, in which event, this section shall cover only such resulting damage;
C. Explosion, rupture, bursting, breaking, cracking, burning or bulging of steam boilers,
pressure vessels, steam turbines, gas turbines and steam engines, or piping or
apparatus attached to any of the foregoing; except that the following are covered under
this section,
(1) Direct physical loss or damage resulting from explosion of accumulated combustible
gases or unconsumed fuel within the furnace of a boiler or pressure vessel, or within
the flues or passages which conduct the gases of combustion therefrom; including
damage to steam boilers, pressure vessels and steam engines;
(2) A combustion explosion outside of any of the above equipment even though such
combustion explosion may have been the direct result of the explosion of such
equipment.
13. Due to loss of electric power or electrical spikes, surges, arcs, drops, or fluctuations not
caused by lightning, unless a covered loss to property not otherwise excluded under this
policy ensues, and then the ensuing property loss is covered.
14. Due to water which backs up through sewers or drains or water below surface of the ground
including that which exerts pressure on or flows, seeps, or leaks through doors, window
openings in such, sidewalks, driveways or other foundations, walls or floors, unless a
covered loss to property not otherwise excluded under this policy ensues, and then the
ensuing property loss is covered.
15. Due to normal settling, cracking, shrinkage, or expansion in foundations, walls, floors or
ceilings; subsidence, unless a covered loss to property not otherwise excluded under this
policy ensues, and then the ensuing property loss is covered.
16. Due to landslide unless caused by a peril insured against.
17. Due to freezing where you unreasonably fail to provide heat or other protection from
freezing.
18. To real property due to flood if we previously paid for loss due to flood. We will not pay
losses from subsequent floods unless you complied with local flood plain ordinances, state
building codes, or other remediation officially required at the time of first flood loss, unless a
covered loss to property not otherwise excluded under this policy ensues, and then the
ensuing property loss is covered.
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Continuation Sheet
Number 125-7-101
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19. Of consequential or indirect nature. A loss arising indirectly from an insured peril.
20. Caused by asbestos, PCB’s, indoor air contaminants, or other contaminants in the materials
from which your property is built or in items brought onto the property. This exclusion
applies to releases caused by abatement efforts, repairs, moving, remodeling, demolishing,
or disposing of property. It applies to illegal drug manufacturing and to industrial or
domestic chemicals and processes. Loss due to contaminants is paid for property we do not
exclude when caused by some other loss that we pay.
21. Cost of repeating research upon loss of research product including recreation of all or part of
the project, research, or experimentation.
22. To property intended for salvage, demolition or disposal, other than losses to individual or
single items of property valued above the agency deductible and intended for re-sale by or
on behalf of the owning agency.
23. Loss of income.
24. Losses due to business interruption.
25. Equipment that is placed and left submerged in a body of water for more than 24 hours.
26. Property procured secondary to accomplish a mission related purpose when the property is
not purchased for use as a state facility.
27. Loss to Property of Employees, Volunteers, or Agents, unless prior to the loss, you lawfully
agreed in writing with the owner to be responsible for the loss or damage. Except:
A. Pursuant to ORS 292.250(2), we cannot cover vehicles of employees, agents, or
volunteers, used by their owners. Mileage reimbursement rates cover all costs, including
insurance. Vehicles include cars, boats, and airplanes.
B. Typical residential household items will not be covered.
28. Loss to Property of Others, unless prior to the loss, you lawfully agreed in writing with the
owner to be responsible for the loss or damage. Except, we will not cover:
A. Typical residential household items.
B. Vehicles, which include but are not limited to cars, boats, airplanes, and trains of
contractors used by their owner or entity.
D. Limits of Insurance
1. Payments will be made under terms of this policy manual and under terms of any other
insurance we may purchase. We presently buy excess commercial insurance with terms
similar to this policy manual. However, excess commercial or other insurance purchased
may not cover all real property or personal property covered by this policy manual. Loss
payments not covered by this policy manual:
A. Any deductible;
B. Any gap between the self-insured retention and the loss amount where commercial
excess property insurance coverage begins;
C. Amounts covered by any other applicable insurance;
D. Amounts above the self-insured retention that are excluded from or limited by
commercial excess property insurance coverage;
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E. Any amounts above the commercial excess property insurance limit.
2. Extra expense payments are limited to the lesser of an amount equal to the paid
property loss that caused the extra operating costs or $1,000,000.
E. Deductibles
1. All other real and personal property of agencies with Legislatively Approved Budgeted
FTE of more than 20, $2,500.
2. All other real and personal property of agencies with Legislatively Approved Budgeted
FTE of 20 or fewer, $1,000.
3. We will apply one deductible per location per occurrence.
4. If we declare an event a catastrophe, we may waive deductibles for each loss arising
from the event when the loss exceeds the deductible amount.
F. Conditions for Coverage
1. An Annual Risk Report must be filed by July 1 each year which includes the following:
A. Estimated Restoration Cost, Replacement Cost, or Actual Cash Value as specifically
requested in the risk report must be reported for:
1) All owned property;
2) All borrowed, rented, or leased property for which you have agreed to be
responsible in writing for loss or damages.
NOTE: Accurate reporting of property is important. The value of what you
report can affect loss settlement (see H. Loss Settlement 2. D.).
B. Loss to property acquired after your report will be paid subject to the conditions of
this policy manual.
NOTE: Timely reporting of your property is important. It is recommended you
update the risk report immediately upon acquiring new property. It provides
additional assurance of coverage being available for your property under this self-
insured policy manual and the commercial excess loss policy (see III. General
Exclusions #4).
C. We reserve the right to exclude personal property valued at $1,000,000 or more that
presents an adverse exposure to loss. We will review your agency’s Annual Risk
Report each year. If we determine that your agency’s personal property presents an
adverse exposure to loss, we will notify your agency of the exclusion of coverage
within 90 days after you submit the report.
2. Loss to Property of Employees, volunteers, or agents may be paid only if, prior to the
loss, you lawfully agreed in writing with the owner to be responsible for the loss or
damage.
A. When you agree in writing to cover another’s property this self-insurance is primary.
Losses will be adjusted and limited to the valuation methods described in Section IV.
H., Loss Settlement, of this Manual.
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B. The agreement must contain:
1) A detailed description of the property, including the property’s current condition.
2) The current replacement value of the property.
3) The purpose of the use.
4) A limited time period of coverage.
C. The property must be deemed as necessary to accomplish a mission critical use by
an appointing authority (or delegate) within your agency.
D. The property must be reported on your agency’s Annual Risk Report.
3. Loss to Property of Others may be paid only if, prior to the loss, you lawfully agreed in
writing with the owner to be responsible for the loss or damage.
A. When you agree in writing to cover another’s property, this self-insurance is primary.
Losses will be adjusted and limited to the valuation methods described in Section IV.
H., Loss Settlement, of this Manual.
B. You must have possession or control of the property at the time of loss.
C. The property must be deemed as necessary to accomplish a mission critical use by
an appointing authority (or delegate) within your agency.
D. The property must be reported on your agency’s Annual Risk Report.
4. Only loss to covered property you include in the Annual Risk Report will be paid, subject
to the terms and conditions of this policy manual.
5. Property losses must be reported to us as soon as possible and not later than 90 days
after you discover it. Failure to report your agency’s loss to us within this timeline may
result in denial of the claim.
6. You must cooperate fully with us in investigating your claim and documenting the loss.
Coverage may be forfeited if you fail to cooperate fully and honestly in the investigation
and documentation of your claim.
7. You must comply with this policy manual.
G. Reporting Losses
1. The State Self-Insurance Claim Report Form should be used for all property losses.
It is an all-purpose, self-insured loss and lawsuit report form. Do not use for workers’
compensation and inmate injury claims. The documentation we will require for claims is:
A. Evidence of state ownership or responsibility;
B. Copy of the DMV traffic accident and insurance report, if applicable;
C. Copy of any police or fire department report, if applicable;
D. Repair estimates, photographs, other data on cost of damages;
E. Information on any adverse party’s insurance; and
F. Evidence you complied with any conditions of coverage specified for real or personal
property
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2. Property losses under the deductible do not need to be reported to Risk Management.
We do not handle or adjust these losses.
3. Property losses caused by others that are above the deductible need to be reported to
Risk Management as soon as possible and no later than 90 days after you discover it.
We will assist your agency in recovering from the other party.
4. All losses to commercially rented vehicles shall be reported. However, losses to
commercially rented vehicles under the deductible will be handled by the agency.
Loss report form can be found on the Risk Management website:
http://www.oregon.gov/das/Risk/Documents/Form_StateOwnedPropertyLoss.pdf
H. Loss Settlement
All loss settlements are subject to Section IV. D., LIMITS OF INSURANCE.
1. In the event of a loss, we will require you to provide documentation proving your loss.
This may include records verifying any extra expense being claimed, your ownership or
control and/or responsibility for property damage or loss being claimed. We may also
need to know how you determined your reported value. Also refer to item 6 under
section F. Conditions of Coverage.
2. Payment for losses will equal our finding of restoration cost, actual cash value (ACV), or
other valuation method as described in this Manual. The deductible will reduce our
payment. Restoration cost is the lesser of the cost to repair or replace in conformance
with state purchasing rules or state price agreements. To find the restoration cost, we
may use:
A. Appraisals by our staff or our contractors;
B. Competitive bids;
C. Published cost services or your purchase price;
D. The same method you used to determine values for Annual Risk Reports; or
E. Other data.
3. For the following types of property, loss payment is determined by:
A. Unless otherwise described within this section H. Loss Settlement, all Personal
Property will be paid on an actual cash value basis.
B. Passenger Vehicles:
1) Owned by you qualify for:
a. Actual cash value (ACV) loss payment; or
b. If surplus, the declared value at the time sent; or
c. The cost to repair the vehicle, whichever is lower.
2) Paid losses to vehicles will be paid to the owning agency and charged to the
agency in possession and control of the vehicle at the time of the loss.
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3) We pay reasonable and necessary towing and storing charges for your damaged
vehicles. We do not pay fees for storage on any state-owned or state-rented
property or land.
C. Other Vehicles:
1) Owned by you qualify for:
a. The lower of necessary and reasonable cost to repair or the cost of replacing
it with property of equivalent function and reasonably similar to the old; or
b. If surplus, the declared value at the time sent.
c. We will pay replacement cost when the cost to repair exceeds 80 percent of
NADA book (retail value) or similar depreciated value as determined by us or
our contractors.
d. Any vehicles that are defined as “other vehicles” you do not own, did not
purchase new, or will not replace with a new vehicle, qualify only for the lower
of:
i. Depreciated value; or
ii. If surplus, the declared value at the time sent.
2) Paid losses to vehicles will be paid to the owning agency and charged to the
agency in possession and control of the vehicle at the time of the loss.
3) We pay reasonable and necessary towing and storing charges for your damaged
vehicles. We do not pay fees for storage on any state-owned or state-rented
lands.
D. Commercially Rented Vehicles and Property of Others:
At the time of rental, State agencies should purchase the Limited Damage Waiver,
if applicable. We will pay:
1) Loss or damage that is in excess of the Limited Damage Waiver (purchased by
agency) that you become obligated to pay according to the terms of the agency’s
rental contract. The Limited Damage Waiver will be applied against or satisfy the
Agency’s deductible, depending on the amount of coverage purchased.
2) Losses we pay will be paid on an actual cash value at the time of loss.
E. Aircraft and Vessels used principally in the ocean:
Qualify for the lower of the cost to repair to its pre-loss condition or actual cash
value. If we determine the hull a total loss, settlement is limited to actual cash value,
or market value, prior to the loss, whichever is lower. We will take into account any
depreciation for age, wear and tear, condition of hull at time of loss, and/or
obsolescence factors.
F. Buildings and Structures:
Qualify for the lower of necessary and reasonable cost to repair or construct a new
building that will functionally replace the old building.
1) Cost to replace includes the necessary use of modern construction materials and
techniques; one percent art; and cost to comply with current minimum building
codes.
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2) It does not include, even if required by current building codes:
a. Adding or replacing parking, paving, sidewalks, or utility pipes or conduits not
destroyed in the loss;
b. Items excluded from the definition of real property; or
c. Any increased cost caused by new or expanded functions or intended use.
G. Surplus Property:
1) Losses to individual or single items valued above the agency deductible and
intended for re-sale by, or on behalf of, the owning agency qualifies for the
declared value of the property at the time designated as surplus, Actual Cash
Value (ACV), or the cost to repair the property, whichever is lower.
2) Sent to DAS Surplus Property or other state surplus property operations for the
purpose of disposal or salvage is considered as disposed property and will not
quality for loss payment.
3) Transferred to DAS Surplus Property, or other state surplus property operations,
without an agency expectation of payment, are considered to be a Loss of
Income and are excluded from payment under this Policy Manual.
4) Paid losses to surplus property will be paid to the owning agency and charged to
the agency in possession and control of the property at the time of the loss.
H. Research Products and Valuable papers:
Qualify only for the cost of replacing the property with common, everyday materials
similar to those of which the item was composed, unless covered by Equipment
Breakdown coverage.
I. One Percent Art:
Qualify for the reasonable and necessary cost to replace the work of art with a
similar piece by the same artist. When that is not feasible, we pay for a reasonably
similar work of art. Non-artistic elements, such as a storm window covering a work of
stained glass, will be valued as any ordinary structure or personal property.
Before taking any action on one percent art, except that necessary to immediately
protect the damaged piece, you must contact the Oregon Arts Commission. The
Oregon Arts Commission will review the contract for the specific art piece and advise
on the best course to repair, replace, or restore the artwork. We will only authorize
payment for repair, replacement, or restoration expressly authorized by the Oregon
Arts Commission at an amount approved by us
J. Debris Removal:
1) We will cover the necessary and reasonable expenses actually incurred by you
for removal of debris of property covered resulting from damage to covered
property by a covered peril. This coverage does not apply to costs to:
a. Extract contaminants or pollutants from the debris; or
b. Extract contaminants or pollutants from land or water; or
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c. Remove, restore or replace contaminated or polluted land or water; or
d. Remove or transport any property or debris to a site for storage or
decontamination required because the property or debris is affected by
pollutants or contaminants, whether or not such removal, transport, or
decontamination is required by law or regulation.
2) Before recovery under this extension we will have paid or agreed to pay for direct
physical loss or damage to the property covered and that you give written notice
to us of intent to claim for cost of removal of debris or cost to clean up not later
than 180 days after the date of such physical loss or damage.
3) This coverage does not increase the Limit of Liability as specified in Section IV.
D, Limits of Insurance.
K. Extra Expense Payment:
Extra expenses we pay are the necessary costs of operating that exceed the normal
operating costs, had the loss not occurred. This payment is limited to the lesser of an
amount equal to the covered property loss or $1,000,000.
We do not pay the following extra expenses:
A. Expenses that are not the result of a covered property loss.
B. Expenses beyond the time we conclude you are able to resume normal
operations.
C. Loss of income.
D. Increased payroll and personnel expenses due to labor dispute or strike.
E. Costs to reconstruct, re-input, or replicate data or programs on media, valuable
papers, research products, data, or records.
F. Expenses caused by your failure to use due diligence and dispatch all
reasonable means to resume business at the described location.
G. Any other costs expressly excluded by this policy manual.
L. Alternative Use of Funds:
ORS 278.050(2) allows you to apply loss payments to alternative uses. If you will
apply payments to an alternative use, we will decide the payment for loss at the
lowest reasonable amount in accord with this self-insurance policy. A loss approved
for restoration may be reduced for an alternative use. Example: We will not pay the
costs of meeting new code or legal requirements or providing one percent art on a
building that will not be rebuilt. (Cont.)
A. Advise your claims adjuster in writing if you want to apply loss payments to
alternative use.
B. We must approve your plan for alternative use. Our approval is hereby given for
all lawful alternatives, provided:
1) Total cost is under $50,000;
2) You have sufficient spending authority for the proposed use; and
3) The proposed use was not removed from your requested budget by DAS or
the Legislature.
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C. Proposed alternative uses that do not meet all of the above conditions require
our written approval as specified in ORS 278.050(2).
M. Subrogation:
If we make payment on your loss, we will handle any recovery actions against third
parties. Our recovery will reduce your losses used in determining future risk charges.
N. Sensitive Claims:
It is our policy to consult with you on our actions on sensitive claims. You should
alert us in writing if a loss is of a sensitive nature.
O. Salvage:
We may decide that damaged property can be sold for salvage. If so, we will request
your title or evidence of ownership. These must be assigned and transferred to us
upon our request. We will arrange for any disposal of the property.
Funds recovered will be credited against your losses and used in calculating your
future risk charges.
P. Other Insurance or Funding Source for Restoration:
1) If we purchase primary commercial property insurance, or delegate the
purchasing authority to you, for your specific property (real or personal), that
coverage is your sole remedy for indemnification of loss and subject to the
policy terms and conditions of the commercial property insurance policy.
2) There is no coverage under the Insurance Fund even if the specific policy is
not as broad as Insurance Fund coverage.
3) If your agency has other funding sources for the restoration of the same loss
or damage, other than that described in A. above, we will only pay for the
amount of covered loss or damage in excess of the amount due from that
other funding source, subject to the terms and limitations of this policy
manual. However, we will not pay more than the applicable limit as described
in Section IV. D., Limits of Insurance.
Q. Partial Payment of Loss:
We may make a partial payment of claims subject to the policy provisions and the
normal policy adjustment provisions. You must submit a claim form with all
supporting documentation to obtain the partial payment of claim.
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V. Equipment Breakdown Coverage
A. Insuring Agreement
We purchase commercial Equipment Breakdown insurance with a deductible of $100,000. This
Policy Manual will provide coverage for an equipment breakdown loss up to a limit of $100,000
subject to a $25,000 agency deductible. A covered loss under this policy manual will be
determined by and subject to the terms and conditions of the commercial insurance policy.
For additional information on the commercial Equipment Breakdown policy, see the Equipment
Breakdown coverage policy summary (click here for link to policy).
B. Reporting Losses
1. The State Self-Insurance Claim Report Form should be used for all equipment
breakdown losses.
It is an all-purpose, self-insured loss and lawsuit report form. Do not use for Workers’
Compensation and Inmate Injury Claims. The documentation we will require for claims
is:
A. Evidence of state ownership or responsibility;
B. Copy of the DMV Traffic Accident and Insurance Report, if applicable;
C. Copy of any police or fire department report;
D. Repair estimates, photographs, other data on cost of damages;
E. Information on any adverse party’s insurance; and
F. Evidence you complied with any conditions of payment specified in applicable
Equipment Breakdown coverage.
2. Equipment losses under the $25,000 agency deductible do not need to be reported to
Risk Management. We do not handle or adjust these losses.
3. Equipment losses caused by others that are above the deductible need to be reported to
Risk Management as soon as possible and not later than 90 days after you discover it.
We will assist your agency in recovering from the other party.
4. All losses to commercially rented or leased equipment shall be reported. However,
losses to commercially rented or leased equipment under the deductible will be handled
by the agency.
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VI. Money and Securities
A. Insuring Agreement
We will pay for direct loss of money, negotiable papers, and securities, at reported
locations occurring during the policy period, unless the loss is otherwise excluded or
limited according to the terms of this policy manual.
B. Definitions
Additional definitions relating to Money and Securities are included in Section III,
General Definitions.
1. Dual Controls means measures which require cross checking or accounting by at
least two people, which restrict access of funds to no less than two individuals, which
segregate duties or money handling procedures with checks and balances.
2. Reported Location means a separate structure, a building, or a stadium, and each
unrelated money center in any single structure, building, or stadium.
3. Related money center means a part of the same program so that they are subject
to the same procedural and management controls and purposes. For instance, two
or more admission gates at a stadium would be related. A snack bar and the office
where students pay tuition are unrelated even though they are in the same building.
4. Securities means all negotiable and non-negotiable instruments or contracts
representing either “money”; defined as currency, coin, bank notes and bullion; or
other property including revenue and other stamps in current use, tokens, coins and
tickets.
C. Exclusions
We will not pay for loss or damage caused directly or indirectly by any General Exclusion
under III, General Exclusions, or any of the following. Such loss or damage is excluded
regardless of any other cause or event that contributes concurrently or in any sequence
to the loss:
1. We do not cover any loss due to mysterious disappearance as defined under III,
General Definitions (18).
2. Direct loss of money or securities caused by theft, forgery, alteration, and/or
dishonesty by any officer, employee or agent acting alone or in collusion with others
is excluded under this policy manual. See our Employee Dishonesty Policy Manual
125-7-203. Losses due to employee dishonesty are subject to the terms of that
policy and any bond or crime policy we may carry.
3. There shall be no coverage under this policy manual to any officer, employee, or
agent immediately upon discovery, by DAS Risk Management, of a dishonest act
committed by that employee whether before or after becoming employed by the
State.
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D. Limits of Insurance
1. Payment for loss of Money and Securities may not exceed $750,000 for each loss at
any location or building.
2. Payments will be made under terms of this policy manual and under terms of any
other insurance we may purchase. However, commercial insurance purchased may
not cover all money and securities covered by this policy manual. Loss payments not
covered by this policy manual include:
A. Any deductible;
B. Any gap between the self-insured retention and the loss amount where
commercial insurance coverage begins;
C. Amounts covered by any other applicable insurance;
D. Amounts above the self-insured retention that are excluded from or limited by
commercial insurance coverage; and
E. Any amounts above the commercial insurance limit.
E. Deductibles
One deductible applies to each loss as follows:
1. Money and Securities is $5,000 unless we agree in writing before a loss to a lesser
amount.
F. Conditions for Payment
1. You should maintain a written loss control plan for each location and be able to
demonstrate it is being followed. Your loss control plan should include at least the
following items:
A. Dual Control Measures such as: physical safeguards for cash, limits to amount
of funds on hand, secure storage and transport of funds, immediate posting and
receipts of cash, daily balancing by at least two people, procedure for correcting
and confirming correction of ledger or recording errors, regular verification of
stored items.
B. Measures for prompt reporting to police after a loss, then to us without delay.
C. Measures for prompt recovery from loss.
D. Periodic internal audits.
E. Periodic verification that loss control plan is being followed
2. Annual Risk Report.
You must include the total estimated value of covered money and securities at all
covered locations on the Annual Risk Report. You also must maintain and provide
upon request:
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A. Name and description of each covered location;
B. Description of the money and securities to be covered at each location;
C. Amount of money and securities at each location; and
D. Summary of applicable seasonal variations.
3. Property losses must be reported to us as soon as possible and not later than 90
days after you discover it. Failure to report your agency’s loss to us within this
timeline may result in denial of the claim.
4. You must cooperate fully with us in investigating your claim and documenting the
loss. Coverage may be forfeited if you fail to cooperate fully and honestly in the
investigation and documentation of your claim.
G. Reporting Losses
1. The State Self-Insurance Claim Report Form should be used for all property
losses.
It is an all-purpose, self-insured loss and lawsuit report form. Do not use for Workers’
Compensation and Inmate Injury Claims. Attach supporting documentation, such as:
A. Evidence of state ownership;
B. A copy of any police or fire department report;
C. Information on any adverse party’s insurance; and
D. Evidence you complied with any conditions of payment specified in the applicable
Money and Securities coverage Section.
2. Property losses under the deductible do not need to be reported to us. We do not
handle or adjust these losses.
3. Property losses caused by others that are above the deductible need to be reported
to Risk Management as soon as possible and no later than 90 days after you
discover it. We will assist your agency in recovering from the other party.
Loss report form can be found on the Risk Management website:
http://www.oregon.gov/das/Risk/Documents/Form_StateOwnedPropertyLoss.pdf
H. Loss Settlement
All loss settlements are subject to Section VI. D., LIMITS OF INSURANCE.
Subject to the terms of this policy manual:
1. Money and Securities loss payment will be determined based on Replacement Cost.
We will pay documented losses. Proof of amount of loss must be made from your
accounting and security records. Incomplete or unclear records will not support a report
of loss.
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2. Subrogation: If we make payment on your loss, we will handle any recovery actions
against third parties. Our recovery will reduce your losses used in determining future risk
charges. Funds recovered will be credited against your losses and used in calculating
your future risk charges.
3. Sensitive Claims: It is our policy to consult with you on our actions on sensitive claims.
You should alert us in writing if a loss is of a sensitive nature.
4. Other Insurance or Funding Source for Restoration:
A. If we purchase primary commercial property insurance, or delegate the purchasing
authority to you, for your specific property (real or personal), that coverage is your
sole remedy for indemnification of loss subject to the policy terms and conditions.
There is no coverage under the Insurance Fund even if the specific policy is not as
broad as Insurance Fund coverage.
B. If your agency has other funding sources for the restoration of the same loss or
damage, other than that described in A. above, we will only pay for the amount of
covered loss or damage in excess of the amount due from that other funding source,
subject to the terms and limitations of this policy manual. However, we will not pay
more than the applicable limit as described in Section VI. D. LIMITS OF
INSURANCE.
VII. Exceptional Items
A. Insuring Agreement
Subject to VII. D. Limits of Insurance, we will pay for repair, restoration, or loss, up to
market value for loss to artwork or other exceptional items. If loss is total or cost to
repair exceeds the agreed value, we will pay the lesser of the reported appraised value
or market value as determined by a recognized appraiser whom we may retain.
Exceptional Items refers to three kinds of personal property. These items have market
value caused by collectors desiring to possess them. The state’s need for them can
often be met by having access to or information about them rather than owning them.
Exceptional items include:
A. Historic Items: Original papers, artifacts, and memorabilia. Their high market value
comes from their authenticity, rarity, and age.
B. Collectibles: Their high market value is due to their popularity. People hold them for
appreciation and transfer of wealth.
C. Works of Art: These include art owned by the state and art on loan to the state for
display
Subject to Section VII, D, LIMITS OF INSURANCE, 1 (A) and (B), highly valued
individual items and highly valued collections have special appraisal and/or written
coverage endorsement requirements that must be met.
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B. Definitions
Additional definitions relating to Exceptional Items are included in Section III
General Definitions.
A. Appraisal means a documented valuation conforming to normal or recognized
standards for commercial appraisals of similar items. An appraisal must include a
description of the item, its market value, date of valuation, identification of the
appraiser, his or her qualifications, and the appraiser’s signature.
B. Item means pieces that are normally separated from similar items. Example: A
chess set is an item within a collection of chess sets. A chess piece would not
normally be an item.
C. Collection means pieces or items of personal property that are not normally
separated, are similar in nature, or are gathered for a single purpose.
D. Recognized Appraiser means an expert who appraises similar items in the course
of his or her state employment or in private practice. It does not include the owner of
the item.
C. Exclusions
We will not pay for loss or damage caused directly or indirectly by any General
Exclusions under Section III, General Exclusions, or any of the following. Such loss or
damage is excluded regardless of any other cause or event that contributes concurrently
or in any sequence to the loss:
All market value payments for loss to exceptional items exclude:
A. Loss or damage due to gradual deterioration or due to damp, dry, hot, or cold air,
unless such damage is the result of some other paid loss.
B. Results of delay or loss of market.
C. Loss or damage from acts of dishonesty of any person to whom you may entrust
these items.
D. Damage due to any repair, restoration, or retouching. But we will pay reasonable
cost to repair or restore damaged items or to make reproductions of lost parts of a
pair, set, or collection.
E. We will not pay diminished market value due to repaired damage or due to loss of a
piece, item, or unit from a pair, set, or collection.
F. Items on loan to you are still covered by our liability policy manual, but only to the
extent the loss or damage was due to your negligence.
D. Limits of Insurance
1. Payment for Exceptional Items is limited to $250,000 per occurrence and $50,000
per item unless we consent by written amendment or endorsement to a larger
amount. In addition:
A. An item valued over $10,000 or a collection valued over $50,000, must be valued
in writing by a recognized appraiser.
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B. An item valued over $50,000 or a collection valued over $250,000, requires our
approval by written endorsement. We may elect to purchase commercial
insurance on your behalf and at your cost.
2. Payments will be made under terms of this policy manual and under terms of any
other insurance we may purchase. However, excess commercial or other insurance
purchased may not cover all real property or personal property covered by this policy
manual. Loss payments not covered by this policy manual:
A. Any deductible;
B. Any gap between the self-insured retention and the loss amount where
commercial excess property Insurance coverage begins;
C. Amounts covered by any other applicable insurance;
D. Amounts above the self-insured retention that are excluded from commercial
excess property Insurance coverage; and
E. Any amounts above the commercial excess property insurance coverage.
E. Deductibles
One deductible applies to each loss as follows:
1. All other real and personal property of agencies with Legislatively Approved Budgeted
FTE of more than 20, including Exceptional Items, $2,500.
2. All other real and personal property of agencies with Legislatively Approved Budgeted
FTE of 20 or fewer, including Exceptional Items, $1,000.
3. We will apply one deductible per location per occurrence.
4. If we declare an event a catastrophe, we may waive deductibles for each loss arising
from the event when the loss exceeds the deductible amount.
F. Conditions for Payment
A. You should follow a written loss control plan for exceptional items valued over $10,000
or collections valued over $50,000 and be able to demonstrate it is being followed. Your
loss control plan should include at least the following:
1) How the property will be appropriately protected from loss or breakage with
reasonable precautions to protect fragile items while on display, in storage, and
during shipping.
2) How the property will be appropriately protected from theft and vandalism.
B. If on loan to you, you must have a written agreement with the owner-lender that makes
you responsible for loss or damage. The agreement must be signed before any loss or
damage and name the agreed upon market value. It is your duty to assure agreed upon
values do not exceed reasonable market values.
C. You must inventory items or collections on loan each time the item or collection changes
location.
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D. Annual Risk Report. You must include the estimated total value of covered property on
the Annual Risk Report. You must maintain and provide upon request details supporting
the summary which includes:
1. Name and description of each exceptional item or collection;
2. Building location of exceptional item or collection;
3. Total value of covered items at each location;
4. Estimated market value; and
5. Maintain a separate list of items whose individual value exceeds $50,000 or
collections valued over $250,000.
E. Property losses must be reported to us as soon as possible and not later than 90 days
after you discover it. Failure to report your agency’s loss to us within this timeline may
result in denial of the claim.
F. You must cooperate fully with us in investigating your claim and documenting the loss.
Coverage may be forfeited if you fail to cooperate fully and honestly in the investigation
and documentation of your claim.
G. Reporting Losses
1. The State Self-Insurance Claim Report Form should be used for all personal property/
Exceptional Items losses.
It is an all-purpose, self-insured loss and lawsuit report form. Do not use for Workers’
Compensation and Inmate Injury Claims. Attach supporting information, such as:
A. Evidence of state ownership or responsibility;
B. Copy of the DMV Traffic Accident and Insurance Report, if applicable;
C. Copy of any police or fire department report;
D. Repair estimates, photographs, other data on cost of damages;
E. Information on any adverse party’s insurance; and
F. Evidence you complied with the conditions of payment specified in this coverage
Section for Exceptional Items
2. Exceptional Items losses under the deductible do not need to be reported to Risk
Management. We do not handle or adjust these losses.
3. Exceptional Items losses caused by others that are above the deductible need to be
reported to Risk Management as soon as possible and not later than 90 days after you
discover it. We will assist your agency in recovering from the other party.
Loss report form can be found on the Risk Management website:
http://www.oregon.gov/das/Risk/Documents/Form_StateOwnedPropertyLoss.pdf
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H. Loss Settlement
All loss settlements are subject to Section VII. D., LIMITS OF INSURANCE.
1. The documentation we will require for claims is provided above under REPORTING
LOSSES. Incomplete or unclear records will not support a report of loss.
2. In the event of a loss, we may require records of your ownership or your control and/or
responsibility for damage. We may also need to know how you determined your reported
value.
3. For Exceptional items, loss payment is determined by the cost of replacing the property
with common, everyday materials similar to those which the item was composed.
4. Payment for losses will equal our finding of restoration cost, actual cash value, or other
valuation method as described in this policy manual. The deductible will reduce our
payment. Restoration cost is the lesser of the cost to repair or replace in conformance
with state purchasing rules or state price agreements. To find the restoration cost, we
may use:
A. Appraisals by our contractors or a recognized appraiser;
B. Competitive bids;
C. The same method you used to determine values for Annual Risk Reports; or
D. Other data.
5. Subrogation: If we make payment on your loss, we will handle any recovery actions
against third parties. Our recovery will reduce your losses used in determining future risk
charges. Funds recovered will be credited against your losses and used in calculating
your future risk charges.
6. Sensitive Claims: It is our policy to consult with you on our actions on sensitive claims.
You should alert us in writing if a loss is of a sensitive nature.
7. Salvage: We may decide that damaged property can be sold for salvage. If so, we will
request your title or evidence of ownership. These must be assigned and transferred to
us upon our request. We will arrange for any disposal of the property.
8. Other Insurance or Funding Source for Restoration:
A. If we purchase primary commercial property insurance, or delegate the purchasing
authority to you, for your specific property (real or personal), that coverage is your
sole remedy for indemnification of loss subject to the policy terms and conditions.
There is no coverage under the Insurance Fund even if the specific policy is not as
broad as Insurance Fund coverage.
B. If your agency has other funding sources for the restoration of the same loss or
damage, other than that described in A. above, we will only pay for the amount of
covered loss or damage in excess of the amount due from that other funding source,
subject to the terms and limitations of this policy manual. However, we will not pay
more than the applicable limit as described in Section VII. E. LIMITS OF
INSURANCE.
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VIII. Special Services
1. If you need coverage for something not mentioned, something excluded or limited by this
self-insurance policy, please tell us. We may be able to form a plan of self-insurance to
meet your needs. Any plan we develop must be consistent with ORS Chapter 278 and be
actuarially sound. We may have to obtain legislative approval for the plan. We may be
able to obtain commercial insurance to meet your needs.
2. We may be able to help you develop a risk control plan that will remove or reduce your
need for coverage.
3. Our staff may be able to help you pursue a claim against your contractor’s insurance
company. How much help we provide depends on your need, our expertise, and
available resources. There is no charge for this help.
HISTORY:
Replacing policy dated July 1, 1998.
Replacing policy dated April 1, 2004.
Effective September 1, 2008, replacing April 1, 2004
Effective July 1, 2015, replacing September 1, 2008
Effective April 1, 2018, replacing July 1, 2015