Mission
For humanitarian, social, legal, and financial reasons, the University
will make every reasonable effort to protect the health and safety of
members of the community and the public from any hazards incidental to
operations of the University. We will keep a major focus on continually
evaluating the cost/benefit of both the insurance and self-insurance
programs. We strive to preserve and protect Stanford's resources
against losses arising out of any occurrence, thereby enabling the
University to carry out its goals and purpose of providing quality
education, research, patient care and public service programs. In order
to fulfill these objectives, we will consider all types of risks,
including but not limited to, natural risks, environmental risks,
political risks, compliance risks, economic/business risks, social risks
and technological risks.
Objectives
The University is exposed to various risks which may be insured or
not insured. Also, certain risks may be avoided, reduced, spread, or
prevented. Recognizing the need and responsibility to preserve the University's
resources, the following policy and guidelines have been prepared for
the managing of insurance and risks:
- We will achieve and maintain a lower cost of risk (both insurance
and self-insurance) as compared with sister schools without placing Stanford
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Additional Content of Interest:
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in a position of risk exposure which could have a significant
impact on its financial security and academic/research mission.
- All risks of loss and need for insurance are to be evaluated from
both a single department and entire campus viewpoint.
Conditions and practices which may cause loss are to be eliminated
or modified whenever possible.
Risks are to be assumed or self-insured whenever the amount of potential
loss would not significantly affect the University's financial position.
Exceptions may be made:
- when insurance is not available at any cost;
when cost of insurance, compared with the risk, indicates purchase
of insurance is not financially sound; or,
- the risk has been analyzed and included in the report as an
uninsured risk for the reasons stated.
- The decision process for the insurance and risk management programs,
including uninsured risks and the selection of large deductibles has
involved the participation of the Risk Management Office, actuaries,
consultants, insurance brokers, faculty and graduate students of the
Graduate School of Business, Operations Research, Geology and the
Blume Earthquake Center, the Chief Financial Officer, Vice President
for Faculty Staff Services, and finally the Provost, President and
the Board of Trustees.
Authority
The Director of Insurance/Risk Management has the authority and responsibility
for:
- preparing an Annual Report for the Board of Trustees and auditors;
developing and implementing risk management--risk identification,
measurement, evaluation, and claims control programs;
recommending those risks which are to be insured and which are
to be self-insured or assumed; establishing types and amounts or limits
of coverage to protect the University's resources;
selecting risk funding alternatives;
recommending level of funding for self-insurance reserves;
purchasing and administering all University insurance and self-insurance
plans relating to property, casualty, workers' compensation, crime,
boilers, machinery, bonds, builder's risk, overseas programs, athletic
programs, travel accident, etc.;
providing counsel to the Benefits Office for the administration
and purchase of employee benefits insurance programs;
recommending selection of insurance sources (agents, brokers, companies,
etc.);
working with the Legal Office, insurance companies and others in
negotiating, adjusting and settling all insured or self-insured losses;
- maintaining insurance and accounting records.
Insurance is to be purchased from whatever source (agent, broker,
or insurance company) is deemed to be in the best interests of the University,
using the following guidelines:
- A competitive atmosphere is desired. However, continuity of relationship
with insurance sources is advantageous and will be maintained unless
there is a significant reason for making a change.
Insurance negotiations will be conducted by invitation to selected
sources or open bidding.
- Selection will be based on quality of protection, the services
provided, and the ultimate cost.
Services
- Risk Management--risk identification, measurement, evaluation and
claims control
Determines and recommends risks to be insured or self-insured or
assumed and types, amounts or limits of coverage
Selecting risk funding alternatives
Establish amount of self-insurance reserves
Manage all University (including SLAC), Real Estate insurance and self-insurance
plans relating to property, casualty, workers' compensation, crime,
boilers, machinery, bonds, builder's risk, overseas programs, athletic
programs, travel accident, etc.
Prepare and present annual reports to Stanford Board of Trustees
Consult with personnel department for the administration and purchase
of self-insurance of employee benefits insurance programs
Selection of insurance agents, brokers, adjusters, actuaries, negotiate
contracts
Work with legal office, insurance companies and others in negotiating,
adjusting, and settling all insured or self-insured losses
Maintain insurance and accounting records; prepare and maintain
OSHA logs Contract with actuaries, auditors, insurance brokers and insurance
companies to receive and obtain insurance/self-insurance services
Assist Real Estate, Office of Technology Licensing, Sponsored Projects,
Legal, Facilities Projects Management, procurement and others with contract
provisions relating to indemnification and insurance Request, analyze, validate and record evidence of insurance for
mortgage interest in the home loan program, research park, contracts,
real estate leases, outside and gift properties as required by leases
and contracts (approximately 2,000 per year)
Prepare insurance/self-insurance budgets for Risk Management
Allocation of insurance/self-insurance costs in compliance with
DCAA requirements
Provide professional guidance and advice in collection of reimbursement
for costs associated with pollution in the Research Park & at other
sites
Prepare specifications, application and requests for proposals
for insured plans
Obtain and report insurable values to insurers for premium and coverage
purposes
Fiduciary compliance of securities held in Trust by others
Update and maintain lists of vehicles for insurance premium and coverage
purposes
Review and respond to insurance company recommendations and engineers'
reports
Serve as member on a variety of panels and committees dealing with
risk and loss control issues Provide reports and information to insurance company, internal
and institutional auditors
Develop and maintain software programs to track trends in losses,
make forecasts, establish priorities for loss prevention
- Work with EH&S regarding loss prevention issues and programs
Clients
Internal
- Administration and Personnel
- Employee Benefits
Payroll
Worker's Compensation
- Athletic Department
- Athletic Risk
Liability
Medical
Travel
- Deans, Directors, and Department Chairpersons
- Claims, Incident reports
Information
Loss Prevention
Training
- Facilities and Services
- Housing & Food Services
Leases
New Construction, Remodeling
Operations and Maintenance
- Finance Accounting
- Allocation of Costs
Budgets
Property/Casualty Insurance
Self-Insurance
- Institutional Advancement
- Broadcast Liability
Events and Services
Publication Risk
Public Affairs
- Internal Audit
- Cash and Assets
Security
- Legal Counsel
- Claims
Incidents, Contracts Investigation
- Medical Center
- Malpractice and Patient General Liability, Loss Prevention
Trust Fund Administration
- Police
- Incidents and Investigations Coordination
- Procurement
- Contracts
Property Control (Hold Harmless Agreements)
Specifications
- Real Estate
- Farm Properties
Homeowners
Research Park
- Research Administration
- Contracts and Grants
Drug Studies
Federal Requirements
Technology Licenses
- Safety
- Chemical and Radiation Waste
Inspection, Fire Prevention, Reporting
External
- Actuaries
- Budgets and Reserves for Self-Insurance
- Auditors
- Reports and Examinations
- Claimants
- Claims Negotiations
Settlements/Dismissals
- Claimants' Attorneys
- Defense of Claims
- Claims Administration
- Claims Management and Control
- Consultants and Inspectors
- Studies and Inspections
- Contractors and Vendors
- Contract Terms and Certification of Coverage
- Homeowners
- Certificates of Insurance
- Insurance Brokers
- Marketing and Procurement of Insurance
- Insurance Companies
- Insurance Policies
Negotiation of Claims
- Public Service
- Aid to Other Universities
Health Improvement Program
Help Center
Professional Organizations
- Tenants
- Contract Terms and Certificates of Insurance
Risk Management Process and Its Guiding Principles
Four Elements of
the Risk Management Process |
Guiding Principles |
Risk
Assessment |
1. Identify total
assets and resources of organizations.
2. Identify major exposures to loss.
3. Calculate values of assets and resources.
4. Measure current risk.
5. Project and communicate future losses and potential risk.
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Risk
Control |
6. Support proactive
risk and loss control program.
7. Provide maximum incentive for participation
in risk control program.
8. Monitor effectiveness of risk control activities.
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Risk
Financing |
9. Finance risk,
taking advantage of all available financial resources.
10. Maintain appropriate catastrophe protection.
11. Allocate risk financing costs among operating units on an
equitable, understood, and acceptable basis.
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Administration |
12. Create and sustain
management commitment to risk management.
13. Adopt a clearly defined risk management structure.
14. Develop clearly targeted annual objectives.
15. Maintain sound communications with all affected levels of
management.
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Workers' Compensation Highlights for Supervisors
- Administrative Guide (note: documents in the Administrative
Guide are in PDF format and require the Acrobat
Reader to view)
- Sections on Worker Compensation:
- 2.1.7 Sick Leave
and Other Paid Disability Leave
7.2.1 Emergency/Accident
Procedures
7.6.1 Accident
and Incident Reporting
2.3.5 Disability
Benefit Plans
Insurance/Risk Management Highlights for Supervisors
Administrative Guide Sections
Accidents/Incidents/Exposure Report (SU-17) |
7.6.1 |
Accidents |
Sick Leave and Other |
2.1.7 |
Paid Disability Leave |
Employees |
7.2.1, 7.6.1 |
Insurance |
2.3.1, 2.3.2 |
University Vehicles |
8.4 |
Affirmative action policy |
2.1.2 |
Alcohol in the workplace |
2.2.8 |
Annual Physical examination |
7.7.1 |
Asbestos |
7.7.1 |
Automobiles |
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University-owned |
8.4 |
Cal-OSHA |
7.6.1 |
Cars, University-owned |
8.4 |
Exposure |
7.2.1, 7.6.1 |
Medical monitoring |
7.7.1 |
Conflict of Interest |
1.5.2 |
Corrosive materials, training in use |
7.4.1 |
Embezzlement |
3.5.1 |
Fire department |
Emergency and injuries |
7.2.1 |
First Aid |
7.2.1 |
Group travel |
5.4.2 |
Harassment |
Equal employment policy |
2.1.2 |
Grievance procedure |
2.1.11 |
Sexual |
2.2.4, 2.2.5 |
Hazardous equipment, sale of |
5.2.4 |
Hazards |
Emergency procedures |
7.2.1 |
Medical surveillance |
7.7.1 |
Reporting of |
7.3.1 |
Safety training |
7.4.1 |
Health and safety |
2.3.1 |
Crime |
2.4.4 |
Dental |
2.3.2 |
Disability |
2.3.5 |
Health care |
2.3.2 |
Leased or loaned property |
2.4.4 |
Liability |
2.4.4 |
Life |
2.3.1 |
Gifts of |
4.2.1 |
Property |
2.4.4 |
Travel |
2.3.1, 5.4.2 |
Vehicles |
8.4.2 |
Misconduct, reporting of |
2.2.4 |
Noise exposure |
7.7.1 |
No-smoking policy |
2.2.6 |
PINs (personal identifcation numbers) |
6.4.1 |
Police Department |
Emergencies |
7.2.1 |
Reporting theft |
2.4.5 |
Private vehicles for travel |
8.4.2, 5.4.2 |
Property |
Gifts of |
4.1.1, 4.2.1, 4.2.3 |
Government-owned |
2.4.4, 8.4.2 |
Protection of |
2.4.5 |
Sale of University-owned |
5.2.4 |
Protective equipment |
2.4.5 |
Racial discrimination |
5.5.1 |
Radioactive materials |
Administrative Panel on |
7.1.1 |
Emergency procedures |
7.2.1 |
Purchase of |
5.1.1 |
Training |
7.4.1 |
Rentals |
Automobiles |
5.4.2 |
Equipment or material |
5.2.2 |
Safe deposit boxes |
2.4.5 |
Safety |
Performance standards |
7.5.1 |
Training |
7.4.1 |
Sexual |
Assault |
2.2.5 |
Discrimination |
2.1.2 |
Harassment |
2.2.4 |
Smoking |
Permitted areas |
2.2.6 |
Prohibited areas |
2.2.6 |
Travel |
Accident insurance |
2.3.1 |
Tuberculosis tests |
7.7.1 |
Vehicles, University |
8.4.1, 8.4.2 |
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