Loss Reimbursement Policy

... ... ...
Picture
The Ohio State University
Reimbursement Policy for Property Damaged or Stolen
The University has commercial insurance coverage for its property. This coverage is provided on a blanket basis, and covers all University property from equipment to buildings.
The University's deductible is generally $1 million. The General Fund finances most of this, charging each Department a $10,000 deductible per occurrence for a bona-fide loss.
University computers and equipment in individuals' homes and vehicles, are covered by the individual's insurance coverage. To the extent the individual's coverage is insufficient, the University's coverage will apply, subject to the Department's deductible. Property belonging to individuals brought into the workplace is their responsibility, and is not eligible for University reimbursement.
Property losses are adjusted as follows: Payment to a University Department will be made only after evidence of the loss has been reviewed and approved by Risk Management. This usually includes Police Reports, or other similar evidence that an insurable loss has occurred. Wear and tear, and damage due to lack of maintenance or proper care is not an insurable occurrence. Property must be repaired or replaced before reimbursement will be made.
Real property is adjusted on a replacement cost basis, subject to the applicable deductible. The replacement cost is to perform necessary repairs, or to replace a comparable building. Any improvements in size or quality are costs borne by the Department.
Computer losses are reimbursed as follows: Computers are depreciated on a three-year straight-line basis from date of purchase. The lesser of the depreciated basis, or the replacement cost of a comparable unit is the amount available for reimbursement. The applicable deductible is subtracted from that, and the result is reimbursed to the Department.
Other personal property is adjusted as computers, except the economic life for depreciation is dependent on the item. Industry accounting standards are utilized.