Policy on Insurance Charges to Campus Departments


University of North Carolina at Chapel Hill Policy on Insurance Charges to Campus Departments

Policy Statement

Campus departments are charged for insurance coverages utilized for their operations. Other costs of risk such as policy deductibles and uninsured losses are also the responsibility of the department with which the loss was incurred.

Reason for Policy

Allocating the University's Total Cost of Risk back to each campus department provides more accountability and financial incentive for them to avoid losses. A department's financial planning and budgeting is easier and more accurate when its cost of risk is known.

Special Situations

Certain insurance coverages are purchased on behalf of the University without all, or a portion of the charge allocated back to departments. Risk Management Services pays these insurance premiums. Examples of insurance coverages not entirely charged back include the following:

  • Boiler and Machinery Insurance
  • Fine Arts Insurance
  • Employee Dishonesty Insurance
  • Crime Insurance
  • Employee Excess Liability Insurance

With regard to campus-wide property insurance, the University distinguishes between completely receipt-supported operations and those which receive funds from other sources. A certain portion of property insurance is not charged back to departments which receive state funds.

Additional Information

Frequently Asked Questions

Q: Why are insurance costs charged back to my department?
A: It is not unusual for any organization to allocate insurance costs back to the end user. Allocating the University's "cost of risk" back to each campus department provides more accountability and financial incentive to avoid losses.

Q: How are these insurance charges allocated back to departments?
A: Risk Management Services utilizes ConnectCarolina to electronically charge departments with the cost of their insurance coverages. For insurance policies shared by numerous departments, an equitable formula is used to appropriately allocate costs based on each department's exposure.

Q: Some insurance costs never show up in my department's ConnectCarolina reports. Does this mean we are not covered by that insurance?
A: The University pays certain insurance costs centrally without charging an amount back to departments. So, just because your department doesn't incur an insurance expense doesn't necessarily mean you're not covered. Contact Risk Management Services for those centrally paid insurance coverages that may be applicable to your department.


Contact Table
Insurance Charges Risk Management Services 919-962-7360 919-962-0636 risk@unc.edu



October 1, 2014: Updated names of financial system and reports.
June 12, 2009

Print Article


Article ID: 131848
Thu 4/8/21 9:18 PM
Thu 7/29/21 5:11 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Risk Management Services and Mission Continuity
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Associate Vice Chancellor for Campus Safety and Risk Management
Next Review
Date on which the next document review is due.
10/07/2018 12:00 AM
Last Review
Date on which the most recent document review was completed.
10/07/2014 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
10/01/2014 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
10/07/2014 12:00 AM
Date on which the original version of this document was first made official.
08/01/2003 12:00 AM