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Insurance Protection Procedure - 62.06.01

College Policy Number/Title:

Howard Community College (HCC) is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The college participates in Howard County’s internal service fund (risk management) to account for and finance its uninsured risks of loss. The laws of Maryland and Howard County govern the risk management fund. The fund is only for local government agencies and, as such, cannot insure entities outside of local county government. The risk management program may be implemented by purchasing insurance coverage, by providing self-insurance, or by combining the two, subject to Maryland law.

Any area of the college undertaking a new program should confer with the office of the vice president of administration and finance before beginning the program to ensure that current coverage will apply to the program. The Howard County risk management administrator must review each new program outside the scope of current activities to ensure that adequate coverage is available. When planning new programs, individuals should allow adequate time for the risk management administrator’s review.

The college maintains the following coverages summarized below:

Risk Management Self-Insurance Fund:

  • Comprehensive general liability;
  • Environmental impairment liability;
  • Employment-related claims/legal defense coverage;
  • Property coverage;
  • Workers’ compensation;
  • Officers and directors professional liability;
  • Boiler and machinery coverage; and
  • Cyber security.

Local Government Insurance Trust (LGIT):

  • Primary and excess automobile coverage;
  • Excess property coverage;
  • Excess comprehensive general liability; and
  • Excess officers and directors professional liability.

Commercial Insurance:

  • Athletic teams basic medical and catastrophic;
  • Child care liability and student accident;
  • Dental clinic liability and property;
  • Employee dishonesty crime bond;
  • Employee and retiree medical;
  • Fine arts and museum;
  • International travel;
  • Medical professional; and
  • Travel accident.

Risk Management Self-Insurance Fund

Comprehensive general liability

Coverage—Coverage shall be for liability arising from exposures on the college’s premises or from activities of the insured’s operations, including volunteer activities. This coverage includes personal and advertising injury liability.

Exclusions—Environmental exposures and vehicle exposures are not included under this coverage.

Limits—Limit of coverage is $5,000,000 per occurrence for any single event. The first $1,000,000 is covered through the risk management fund. Four million dollars in excess of the first $1,000,000 is covered, subject to certain conditions and with the exception of certain exclusions, under a policy of excess insurance underwritten by LGIT. Limits are subject to immunities and caps under the Local Government Tort Claims Act.

Environmental impairment liability

Coverage shall be for underground storage tanks and environmental hazards to meet financial responsibility requirements established under Maryland law.

Employment-related claims/legal defense coverage

  • Employee-related claims—Coverage shall be for actual or alleged actions; omissions or practices involving the discharge of the duties of the insured relating to hiring, promotion, discipline, termination, workplace conduct; or any employment contract. Certain limits apply.
  • Legal defense coverage—Howard County will be responsible for providing primary legal defense provided that the following conditions are met:
  • The insured shall cooperate fully with legal counsel and the Howard County Bureau of Risk Management in the investigation and defense of claims, including all aspects of litigation.
  • The insured shall confer with the HCC office of human resources with respect to all personnel policies, practices, and decisions of the insured.

No claim shall be negotiated, compromised, or settled without the knowledge and consent of the Howard County Bureau of Risk Management or the Howard County Office of Law.

Property coverage

Coverage—Coverage shall be for direct loss or damage equal to the insurable value of real and personal property leased or owned by the insured, including electronic equipment and office furnishings. For the county to reimburse the cost of a stolen item, the theft of that item must have resulted from a breaking and entering incident that was immediately reported to the public safety office. The public safety office reports such incidents to the Howard County Police Department.

This coverage also includes loss of tuition fees as a result of partial or complete suspension of school operations caused by damage to or destruction of the college by covered causes of loss during the coverage period.

Exclusions include the following:

  • Theft of cash;
  • Business interruption expenses and loss of income resulting from a property loss other than tuition;
  • Personal property of employees; or
  • Items missing from campus that were not a result of breaking and entering.

Limits:

  • No deductible shall apply for each loss involving equipment, personal property, and furnishings owned by the insured.
  • Coverage shall be based on replacement cost of comparable equipment.
  • The first $100,000 of coverage is through the Risk Management Fund. The remaining coverage, to full replacement cost, is through a policy of excess property insurance underwritten by LGIT.

Workers’ compensation

This compensation is statutory coverage as required by the State of Maryland for all employees and elected officials. Coverage for volunteers is not available.

Officers and directors professional liability

Coverage—Coverage shall be for liability arising out of or as a result of acts or omissions, actual or alleged errors, misstatements, or misleading statements, or neglect or breach of duty by the insured in the discharge of their duties.

Exclusions—Specifically excluded from coverage are:

  • Claims based upon or attributable to the gaining in fact of any personal profit or advantage by any individual insured, or claims resulting in a determination that acts of fraud or dishonesty were committed by the insured;
  • Claims resulting from wanton or malicious wrongdoing, actions falling outside the scope of employment, or actions taken in bad faith; or
  • Claims relating to employment practices and procedures.

Limits—Coverage is included in the policy of excess insurance underwritten through LGIT. Therefore, the first $1,000,000 is covered through the Risk Management Fund, and an additional $4,000,000 of coverage is available through LGIT, subject to the conditions and exclusions of the policy.

Boiler and machinery coverage

Provides coverage for accidental loss involving boilers, fired vessels, heating and air conditioning units, and mechanical apparatus used for the generation, transmission, or utilization of electrical power. Includes Maryland State mandated inspection services and business interruption coverage.

Cyber security

Cyber security liability, also referred to as cyber liability or data-breach liability, covers incidents resulting from data loss due to a security breach or other cyber event, and includes network outages or service interruption.

Local Government Insurance Trust

Primary and excess automobile coverage

In addition to the previously listed insurance, the college also has a separate policy with LGIT for automobile coverage up to a maximum of $1,000,000 for each automobile claim.

The deductible for an accident must be covered by the cost center of the employee using a college vehicle involved in an accident. To report damages for insurance claims for college vehicles, drivers of the vehicles who are involved in an accident must follow college procedure 70.02.01, Use of College Vehicles, the vehicle and equipment accident reporting section.

Excess property coverage

Coverage for primary property coverage is through Howard County’s Risk Management Fund, which covers the first $100,000 of a single event. The remaining coverage, to full replacement cost, is through a policy of excess insurance underwritten by LGIT.

Excess comprehensive general liability

Primary comprehensive general liability is through Howard County’s Risk Management Fund, which covers the first $1,000,000 of a single event. Four million dollars in excess of the first $1,000,000 is covered under a policy of excess insurance underwritten by LGIT.

Excess officers and directors professional liability

Primary property coverage is through Howard County’s Risk Management Fund, which covers the first $1,000,000 of a single event. An additional $4,000,000 of coverage is available through LGIT, subject to the conditions and exclusions of the policy.

Commercial Insurance

Athletic teams basic medical and catastrophic

Coverage—Coverage includes basic athletic accident insurance and catastrophic insurance. The basic insurance covers student-athletes, coaches, trainers, and recruits of Howard Community College. The catastrophic insurance covers these same groups plus student managers and student trainers of Howard Community College. Both insurances cover bodily injury sustained while participating in intercollegiate sports including scheduled games, supervised practice sessions, and authorized group or team travel to and from such events. The basic insurance also covers injury sustained while participating in sports conditioning.

Exclusions—The basic insurance excludes injuries or charges resulting from, for, or during the following:

  • Intoxication or otherwise “under the influence;”
  • Criminal activity, brawling, fighting, or rioting;
  • Self-inflicted injury;
  • Employment-related activity; or
  • Sickness.

Limits—Claims will be paid in excess of all other insurance, for expenses incurred within the benefit period from the date of the accident. For the basic insurance, the $250 deductible is “disappearing,” which allows payments by other insurance to reduce or satisfy the deductible. Other limits apply, such as a two-year benefit period and a $10,000 accidental death and dismemberment benefit.

Child care liability and student accident

Coverage—The precision portfolio includes general liability, property coverage, student accident, and umbrella coverage. The liability policy includes products and operations, tenants liability, bodily injury, medical expenses, personal and advertising injury, and abuse or molestation coverage. The property policy includes the building and its contents, boiler and machinery, commercial crime, loss of business, debris removal, and freestanding fences and walls. The student accident policy provides accident medical expense benefit, as well as accidental death and dismemberment. An excess umbrella policy is also procured as part of the package.

  • Additional Insured—The following are covered as part of the center’s operations:
  • Tenants of property;
  • Mortgagee, assignee, or receiver;
  • Volunteers; and
  • College programs and activities including faculty and students.

Exclusions—This policy does not cover any loss resulting from:

  • Terrorism;
  • War;
  • Nuclear, chemical, or biological hazard;
  • Arson;
  • Asbestos;
  • Fungus; or
  • Software and data-related losses.

Limits—The following are the limits of liability for each policy:

  • General liability - $1,000,000 per occurrence / $2,000,000 aggregate;
  • Products and operations - $1,000,000 per occurrence / $2,000,000 aggregate;
  • Tenants liability - $2,000,000;
  • Personal and advertising injury - $1,000,000;
  • Abuse or molestation - $500,000;
  • Property - $1,750,000;
  • Student accident - $500,000; and
  • Umbrella excess coverage - $5,000,000.

Employee dishonesty crime bond

Coverage shall be for all insured employees authorized to handle cash, securities, sign checks, or prepare or certify payment vouchers or payroll documents. The current commercial policy contains a policy limit of $100,000 per occurrence.

Employee and retiree medical

Refer to procedure 63.07.03, Group Health Benefits.

Fine Arts and museum

Coverage—The package includes small museum collections, fine arts, collectible items, and temporary gallery loans and exhibits. Coverage extends to the property of others on loan to the college, offered as gifts to the college, and for sale while at the college waiting formal acceptance. The comprehensive policy also allows for displays and exhibits at other locations worldwide, as well as transit coverage for any one conveyance.

Exclusions—This policy does not cover any loss resulting from:

  • Wear and tear, gradual deterioration, moths, vermin, restoration, or retouching process;
  • Terrorism;
  • War;
  • Nuclear reaction or radioactive contamination; or
  • Territorial limits that exclude specific countries.

Limits—The following are the limits of liability for the policy:

  • Property at college location - $500,000;
  • Property at any location worldwide - $500,000;
  • Property in transit - $500,000;
  • Property in any one loss or disaster - $500,000; and
  • Aggregate in any one loss - $500,000.

International travel

Coverage—The package includes foreign commercial liability, foreign commercial automobile liability for hired and non-owned autos, foreign voluntary workers compensation and employers liability, foreign travel accident and sickness, and foreign kidnap, ransom, and extortion. The comprehensive policy also includes accidental death and dismemberment, repatriation, injury and disease, and damage to premises or property rented.

Exclusions—Only international education program participants are covered by this policy, which includes registered participating employees and students. Spouses and children are not covered; therefore, all travelers must be enrolled as a student in the program in order to travel or participate in international or study abroad trips. The International Travel insurance do not cover countries or regions determined by the U.S. State Department as Level 4, highest risk. Effective January 2018, the U.S. Department of State recently unveiled its new system of travel advisories that assigns a risk rating to all countries. Level 1 means “exercise normal precautions,” while Level 2 means “exercise increased caution: be aware of heightened risks to safety and security.” Level 3 means “reconsider travel: avoid travel due to serious risks to safety and security.” Level 4, the highest risk rating, means “do not travel.” The new system also specifies the types of risks that have led to the various country ratings, related to crime, terrorism, health, civil unrest, natural disaster or a time-limited event such as a major sporting event. While each country has an overall rating, the State Department also designates higher-risk areas within countries. In response to the State Department's change in its travel advisory methodology, the college dos not permit travel to countries or regions determined to be Level 4. In accordance with accepted risk management practices, additional review and approval is required for travel to Level 3 countries or regions. While travel to Level 1 and Level 2 countries is permitted, the college will continue to monitor and assess travel on a case-by-case basis to countries with high-risk regions prior to scheduling and approving the international program.

Limits—The limits of liability for the international package are as follows:

  • Foreign general liability-$1,000,000 per occurrence / $2,000,000 aggregate;
  • Products and operations-$1,000,000 per occurrence / $2,000,000 aggregate;
  • Personal and advertising injury - $1,000,000;
  • Damage to premises rented - $50,000;
  • Medical expense limit - $10,000;
  • Auto liability - $1,000,000;
  • Auto medical expense limit - $10,000;
  • Employers liability injury by accident - $1,000,000;
  • Employers liability injury by disease - $1,000,000;
  • Accidental death and dismemberment - $100,000 per occurrence / $1,000,000 aggregate;
  • Accident and sickness medical expense limit - $50,000;
  • Emergency medical evacuation limit - $100,000;
  • Emergency family travel - $100,000;
  • Repatriation of remains - $25,000;
  • Supplemental repatriation expense limit - $100,000; and
  • Foreign kidnap, ransom, extortion - $1,000,000.

Medical professional

Coverage—The policy specifically includes medical professional liability protection for colleges and universities that place students and faculty at medical institutions as part of their clinical and course requirements. It also includes students and employees participating in the dental clinic on campus. The college programs that are currently active under this policy include cardiovascular technology, dental hygienist, diagnostic medical sonography, emergency medical services, nursing, physical therapist assistant, and radiologic technology. This policy permits the hospital or medical facility to be added as an additional insured depending on the requirements of the institution.

Exclusions—This policy does not cover any loss resulting from:

  • Terrorism;
  • War; or
  • Communicable disease.

Limits—The following are the limits of liability for each policy:

  • Professional liability - $2,000,000 per occurrence / $5,000,000 aggregate.

Dental clinic liability and property

Coverage—The master portfolio includes general liability, property coverage, accident, and dental office endorsement coverage. The liability policy includes products and operations, bodily injury, medical expenses, personal and advertising injury. The property policy includes the building and its contents, commercial crime, loss of business, loss of equipment, loss of data, and personal property. The dental office endorsement includes business personal property, medical malpractice, personal and bodily injury, fraud, consequential loss, and vital business records on and off site.

Exclusions—This policy does not cover any loss resulting from:

  • Terrorism;
  • War;
  • Nuclear, chemical, or biological hazard;
  • Arson; or
  • Asbestos.

Limits—The following are the limits of liability for each policy:

  • General liability - $1,000,000 per occurrence / $2,000,000 aggregate;
  • Products and operations - $1,000,000 per occurrence / $2,000,000 aggregate;
  • Personal and advertising injury - $1,000,000;
  • Medical Expenses - $50,000;
  • Employment Practices and Fraud - $10,000;
  • Property - $1,000,000; and
  • Dental Endorsement - $1,000,000.

Travel accident

Coverage—This policy covers the trustees, president, and vice presidents for injury resulting from an accident that occurs anywhere in the world, including:

  • Injury resulting from an accident that occurs while the insured person is a passenger on, boarding, or alighting from aircraft; and
  • Injury resulting from being struck by an aircraft.

Exclusions—This policy does not cover any loss resulting from:

  • Intentionally self-inflicted injury, suicide, or attempted suicide, whether sane or insane;
  • War or act of war, whether declared or undeclared;
  • Injury sustained while in the armed forces of any country or international authority;
  • Injury sustained while on any aircraft, unless, and only to the extent, a hazard specifically describes such coverage; or
  • Injury resulting from an accident that occurs while the insured person is on, boarding, or alighting from:
    • An aircraft engaged in extra-hazardous aviation activity; or
    • A policyholder aircraft.

Limits—Three hundred thousand dollars shall be the total aggregate limit of the insurance company’s liability for all benefits payable under this policy because of injury sustained due to any one accident and shall be payable to HCC. There is an aggregate limitation if:

  • Two or more persons, in the same or different classes, are injured as the result of any one accident that occurs in the manner specified in the hazards identified in the policy; and
  • The total of all amounts payable for all persons, in the absence of this provision, exceeds the aggregate amount shown for the hazard in the policy.

The amount for each person will be proportionately reduced so that the total will equal the aggregate amount.

Other

Occasionally, the college will need insurance for special programs or events, such as service learning programs and other activities outside the state of Maryland. For these special programs, the vice president of administration and finance, or designee, will first consult the Howard County Risk Management Administrator for insurance requirements and coverage.

Effective Date: 05/10/19

President's Office Use:  VPAF

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