Title
University of North Carolina at Chapel Hill Policy on Liability Insurance for Employees
Reason for Policy
All employees and recognized agents of the State of North Carolina while acting within the scope of their employment are provided with this statutory and insurance protection. This excess liability insurance policy is intended to seamlessly fit with the protection provided by the Tort Claims Act, giving employees a secondary tier of protection.
Policy Statement
The University provides at no charge to its employees and other recognized officials, excess liability insurance coverage up to $10,000,000 per occurrence. This Liability Insurance coverage is in addition to the statutory coverage pertaining to state employees found in North Carolina (N.C.) General Statute §143-291, commonly referred to as the Tort Claims Act.
The Tort Claims Act limits the University's liability for the negligence of its employees and agents to $1,000,000 per claim. The University is responsible for paying up to this first $1,000,000 of any judgment awarded against employees and agents for their negligent acts or omissions while in the scope of their employment.
This excess liability insurance policy is intended to seamlessly fit with the protection provided by the Tort Claims Act, giving employees a secondary tier of protection. Accordingly, employees could have up to $11,000,000 of coverage per occurrence when combining both the Tort Claims Act and the excess liability insurance coverage. Coverage is also not just limited to claims resulting in property damage or bodily injury. Rather, the insurance policy responds when legally obligated to pay damages "resulting from a wrongful act(s) committed by the employee." This coverage also responds to claims or lawsuits filed anywhere in the world.
Exclusions
This liability protection is only provided for acts or omissions within the course of one's University employment. It does not apply to personal, secondary employment or other non-University functions. This protection also does not apply to non-State employees, students, or independent contractors.
The excess liability insurance policy does not cover all categories of University employees or their activities. Most medical-related occupations and activities are excluded, as are non-State employees. If a department's employees or activities are excluded from this coverage, a separate professional liability or medical malpractice policy can be purchased as needed.
As with any insurance policy, certain Terms and Conditions may exist which limit or exclude coverage. Contact Risk Management Services for information on these policy limitations or Exclusions.
Special Situations
Certain academic departments may have students who conduct professional activities as part of their educational requirements. Students (other than those employed by the University) would not be covered under the excess liability policy.
Additional Information
Frequently Asked Questions
Q: Who is covered by the University's employee liability insurance?
A: Our excess employee liability insurance covers all employees and recognized agents while in the course of their University duties. This also includes part-time and temporary employees. It does not apply to students, contractors or other non-State employees.
Q: The excess employee liability insurance has a $1 million retention. What does this mean and why is it so high?
A: Our excess employee liability insurance is intended to seamlessly fit on top of the Tort Claims Act found in our General Statutes. The Tort Claims Act limits our liability to $1 million per claimant. The excess liability insurance is activated if a judgment is made against an employee above this $1 million. So, essentially, the Tort Claims Act's $1 million limit serves as the deductible for the excess employee liability insurance.
Q: Who is responsible for any claims payment or judgment made under the Tort Claims Act?
A: The campus department against which a claim is made is responsible for any payment under the Tort Claims Act. This payment could be as high as $1 million per claimant.
Q: Who defends me if I'm sued for an act or omission arising out of my University employment?
A: Typically, the NC Attorney General's office will provide a defense for State employees when suit is brought against them. However, there can be special circumstances when this does not apply.
Q: How can an employee or campus department verify to a sponsor or contractual party that they have liability insurance?
A: Contact Risk Management Services if you are required to produce documentation of liability insurance to an outside party. Risk Management Services will obtain the necessary documentation from the State or from the University's insurance company.
Related Data
Contacts
Contact Table
| SUBJECT |
CONTACT |
TELEPHONE |
FAX |
E-MAIL |
| Liability Insurance |
Risk Management Services |
919-962-9061 |
|
risk@unc.edu |
History
Revised:
June 12, 2009