FI0135 – Insurance (Workers Compensation, General Liability, Automobile Accident Claims, and Property)

Effective: June 1, 2004
Revision No: 5
General Policy Property Insurance Coverage
Workers' Compensation Coverage Procedures
General Liability (Other Than Automobile) Forms
Professional Liability Contacts
Automobile Liability Related Policies

To provide policies and information on workers' compensation coverage; general, professional, and automobile liability insurance; and property insurance coverage.


General Policy[top]

  1. The university's liability and accident protection covering workers' compensation, general liability, professional liability, and automobile liability claims is provided by the state of Tennessee under the provision of the Tennessee Claims Commission, Tennessee Code Annotated 9-8-301-307.

Workers' Compensation Coverage[top]

  1. Since July 1, 1974, the benefits as provided by the Tennessee Workers' Compensation Law have been extended to university employees for on-the-job injuries through the Division of Claims Administration.

    University policy relating to workers' compensation coverage is discussed in HUMAN RESOURCES POLICY HR0397.

Medical Consultations and Examinations Resulting from Exposure to Hazardous Chemicals and/or Conditions:

  1. The employee must file a claim under workers' compensation (see HUMAN RESOURCES POLICY HR0397).

    If such medical expenses are rejected for workers' compensation payment by the state, the university's Office of Risk Management will determine if payment is required by the university under TOSHA/OSHA standards. If payment is required, Risk Management will initiate payment through the Treasurer's Office.

General Liability (Other Than Automobile)[top]

  1. Effective July 1, 1986, the university became subject to the provisions of the Tennessee Claims Commission Act, TCA 9-8-301-307. As such, the university is precluded from purchasing commercial liability insurance. Under this law, the university is unable to hold harmless or indemnify a third party.

  2. The university, for its acts or the acts of its employees or persons serving the university in a "volunteer" capacity, is protected under the Tennessee Claims Commission Act. This protection provides civil immunity for employees and registered volunteers of the state and for university employees who act within the scope of their university-assigned duties. The limit of the state's (university's) payment to a third party is $300,000 per claimant and $1,000,000 per accident.

Professional Liability[top]

  1. The professional liability of university employees and registered volunteers is likewise covered under the Tennessee Claims Commission Act, TCA 9-8-301-307, as long as the employees are acting within the scope of their university-assigned duties and not for personal profit or gain.

Automobile Liability[top]

  1. Authorized drivers of university-owned vehicles are protected under the Tennessee Claims Commission Act, TCA 9-8-301-307. (Also refer to FISCAL POLICY FI0705 and The University of Tennessee Transportation Services Driver's Reference Manual.)

Reporting Accidents and Claims

  1. In the event of an accident or occurrence involving workers compensation, general liability, professional liability, or automobile liability, employees are instructed to do the following:

    1. Workers Compensation. Report to the supervisor and obtain the appropriate claim forms from the campus or institute workers' compensation office (also refer to HUMAN RESOURCES POLICY HR0397).

    2. General Liability. Complete a REPORT OF AN OCCURRENCE form and report to the campus Risk Management liaison or designated campus/institute "claims" office. This form is available from the campus or institute business office or the Office of Risk Management.

    3. Professional Liability. Report any potential claim to Risk Management and/or the General Counsel's Office. Also complete a Report of an Occurrence form, except for medical claims.

    4. Automobile Liability. Refer to the Driver's Reference Manual provided by Transportation Services and the instruction packet located in the glove box of the university vehicle.

    Any accident or occurrence that may produce a claim in any area above must be reported immediately, and no admission of fault or responsibility should be made.

    Any questions about reporting claims, accidents, or occurrences may be directed to the campus or institute business office or the Office of Risk Management, 112 Conference Center Building, Knoxville, TN 37996-4113, (865) 974-5409, fax (865) 974-0936.

Property Insurance Coverage[top]

  1. The 1971 legislature authorized the establishment of a State Property Insurance Pool for a plan of limited self-insurance for state-owned property with private insurance coverage for major losses. The Finance Committee of the Board of Trustees authorized university participation in this state program for insurance coverage on all university buildings and contents. Accordingly, no budget entity or department may obtain commercial property insurance without authorization from the university's risk manager.

Scope of Coverage

  1. The coverage under the state insurance program includes fire, theft, vandalism, malicious mischief, explosion, and other risks. Some events are excluded from coverage, such as currency losses, damage from freezing or flooding, crop failure, earthquake, among others. Only property owned by the University of Tennessee or non-owned property for which the university has contractually assumed responsibility is covered under this insurance program. Thus, the property of students, faculty, and others is not covered and no liability is assumed for such property except by written agreement.

Insurance Schedule

  1. Semiannually, the Office of Risk Management sends the relevant portion of the University of Tennessee Property Insurance Schedule to the campuses and institutes for their review of the values of the buildings and contents listed on the schedule. Erroneous values will cause either higher premiums resulting from excessive insurance or inadequate insurance, possibly resulting in uninsured losses that would be borne by the appropriate campus or institute. The value of each building is adjusted in July for inflation using a general inflation factor.

    Annually, Risk Management distributes the premium expense by internal transfer to all campuses and institutes based on their valuations on the insurance schedule.

Reporting Losses

  1. All property losses must be reported within 30 days of the date a loss is first suspected to the appropriate budget entity business or finance officer, who in turn will forward a report to the Office of the Treasurer. In case of loss estimated to exceed $25,000.00, the budget entity business or finance officer will, in addition to the report, notify the Office of Risk Management as soon as the loss is suspected to exceed this amount so that an insurance adjuster can promptly inspect the damage to facilitate the settlement of any claim.


  1. The State Property Insurance Pool coverage is subject to a deductible of $25,000.00 for each loss occurrence. The university has established an internal Insurance Replacement Fund for repair or replacement expenses that fall within the $25,000.00 deductible, subject to the limitations detailed below.

    1. Each budget entity of the university is responsible for repair or replacement expenses of losses (other than theft) up to $5,000.00 per occurrence. In the case of theft coverage, the budget entity's responsibility is $10,000.00 per occurrence.

    2. For losses in excess of the limits set in (a.) above, the balance of the $25,000.00 deductible amount will be paid from the University Insurance Replacement Fund.

Health Science Center:
Institute of Agriculture:



Butch Peccolo  (865) 974-2302

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