Office of Origin: Purchasing & Risk Management 
Responsibility: Manager, Purchasing & Risk Management 
Date Adopted: 01-24-17 
Dates Reviewed: 05-19-17, 08-05-17, 12-08-20 
Last Date Board Approved: 12-08-20  

Lake Michigan College (the College) maintains insurance coverage to protect the assets and resources of the College and mitigate the risk of loss.  Certain risks are not insurable by nature, or, in other instances, the risk may be assumed by the College where the potential impact of a loss is not considered significant or where cost economies can be realized by retaining or self-insuring the exposures.  

Responsibilities 

The Manager, Purchasing & Risk Management (Risk Management) is responsible for 

• assessing the levels of loss the College can bear without insurance  
• considering how to mitigate overall risks facing the College 
• supporting filing and processing of claims with insurance carriers in an expeditious manner 
• Reviewing contracts and agreements to ensure that appropriate insurance and other protective clauses are in the agreement. 

It is the responsibility of employees, students, and volunteers to report incidents of injury or damage to Risk Management immediately to determine if an incident may be covered under insurance policies. 

Coverages 

The following are the insurance policies the College will maintain. See the current insurance company declaration pages for the limits of liability per coverage. 

1. Auto Liability, Auto Physical Damage, & Garage Coverage 
   This insurance covers potential liability for damages that may be owed to third parties arising out of ownership, maintenance, or use of an automobile, owned or leased by the College, plus certain medical expenses incurred by passengers as a result of an accident in an insured vehicle. Use of a personal auto on College business or while traveling to or from College business is covered with the College insurance as secondary (excess) coverage to the employee’s personal coverage. 
2. Commercial General Liability 
   This insurance covers the College as well as its officers and its employees when acting on behalf of the College and within the scope of their duties for legal liability that might result in damages to third parties as a result of insured occurrences. This insurance does not provide for automatic medical coverage to injured visitors or for replacement of their damaged property; in order for such coverage to attach, liability on the part of the College must be demonstrated. Coverage is not extended to individual employees or officers if the loss or injury is a result of a malicious or intentional act. 
3. Property Insurance 
   This insurance covers all College owned or leased buildings and business personal property as well as property owned by others for which the College is liable from loss due to insured damage. Losses to property resulting from wear and tear or lack of maintenance through consequential damage is generally not covered. It excludes personal property of students, employees, or third parties as well as the loss of currency. 
4. Crime Coverage 
   This insurance provides coverage for crime losses that are not insured under other policies.  Briefly described, generally commercial crime insurance covers money, securities, and other property against a variety of criminal acts, such as employee theft, robbery, forgery, and extortion and computer fraud. 
5. Cyber Liability / Data Breach 
   Cyber liability/data breach policies focus on liability for a data breach where individual personal information, such as social security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the College’s electronic network. 
6. Personal Liability – Employees 
   Employees will be covered up to a maximum under general liability and a maximum for professional liability policies per occurrence. This coverage extends to an employee fulfilling the reasonable requirements of employment whether on or off-campus. When acting as an agent of the College in community service and/or off-campus activities, the employee must seek the approval of the employee's supervisor to participate; the College assumes no liability for an employee's activities or actions unless those activities or actions are within the normal requirements of employment or are otherwise authorized. 
7. Personal Liability – Volunteers 
   A volunteer at a College-sponsored event is covered for medical payments up to a per person and per occurrence maximum while acting for the College on-premises.  This protection is extended to a volunteer while fulfilling the reasonable requirements of the volunteer activity.  A College-sponsored event will be considered an event having the approval of the President or direct report. 
8. Professional Liability 
   This insurance includes coverage for claims against College officers, faculty, staff, and students who are participating in clinical experiences, so long as the action is within the scope of their duties. Coverage is not extended to individuals if the injury is a result of a malicious or intentional act. 
9. Educators Legal Liability (Directors & Officers Insurance) 
   This insurance covers the cost of defense as well as the payment of damages owed to third parties as a result of claims against employees or appointed or elected official of the College, including implicated employees, for actions within the scope of their duties as well as coverage for losses or damages as a result of claims. 
10. Workers Compensation  
    The Workers' Disability Compensation Act law requires that every covered employer provide some way of assuring that benefits are paid to its workers if they become injured while on the job, either by purchasing an insurance policy, self-insuring the risk, or joining a group fund. 
11. Liquor Liability 
    This insurance covers bodily injury or property damage caused by an intoxicated person who was served liquor under the College’s liquor licenses through The Mendel Center or Culinary Program.  
12. Underground Storage Tank Coverage 
    This insurance provides coverage for third-party bodily injury and property damage from pollution conditions coming from underground storage tanks.  

Indemnification 

College staff (“staff” being defined as employee and/or elected or appointed official) may be indemnified, and provided a legal defense, from certain claims that may arise against such staff when acting for the College and acting within the scope of their authority. 

If a civil claim or action is brought against former or present College staff for an act or omission of that staff while acting within the scope of their professional authority, the College will provide legal representation for that person if necessary by authorizing an attorney to act on behalf of the person being defended or by asserting the College's rights under any insurance policy that requires the insurer to provide the defense. Alternatively, the College may reimburse the staff for legal expenses reasonably incurred in connection with any civil claim or action. If the College provides for the legal defense of staff, the College may assume exclusive control over the representation of the person defended, which includes, but is not limited to, the right to investigate, compromise, settle, and/or pay a claim.  Staff are required to participate in and cooperate with the legal defense provided by the College. 

If a civil claim and/or action results in a judgment for damages being awarded against staff caused by staff while acting within the scope of such person's official employment and within the scope of such person's authority, the College will indemnify the staff and will pay, settle, or compromise the judgment.  

The College will not, however, indemnify or provide legal representation to any former or current staff in connection with any civil claim or action that arises out of: 

• an act or omission that is outside the scope of employment or authority of the staff 
• the willful misconduct or gross negligence of the staff 
• an intentional tort or fraud of the staff, or 
• any act and/or omission of any staff while under influence of controlled substances. 

The College will also not indemnify or provide legal representation to any former or current staff in connection with any civil claim or action if the staff fails, in the sole discretion of the College, to participate in and/or cooperate with the legal defense offered by the College. 

The College retains the right to assert all available defenses to any claim made against it, and nothing in this policy will be construed to be a waiver of any defense, including but not limited to governmental immunity, available to the College or its staff. 

Certificates of Insurance 

The College may be requested by outside parties to provide evidence of insurance. Requests for a certificate of insurance should be made in writing to Risk Management.   

Vendors/Contractors Insurance Requirements 

The College requires that certain vendors and contractors working for the College have a minimum amount of insurance; these requirements vary depending on the nature and hazard of the work being performed. Risk Management will provide minimum insurance requirements and when a certificate of insurance is required from a vendor or contractor.   

Claims Procedures: 

It is important that Risk Management be notified immediately of an incident to determine if an injury or damage is or may be covered under insurance policies.  Any event or situation that could be reasonably supposed to result in an insurance or legal claim should be reported immediately to Risk Management. If in doubt, call Risk Management or Director of Public Safety to determine if the event or situation merits reporting. 

Risk Management should be notified of any property loss or potential loss as soon as possible, preferably before any cleanup activities have begun.  

Although some incidents or claims may not be eligible for insurance coverage, ALL incidents involving property damage, theft, disturbances, etc., must be reported to Director of Public Safety using the Claim/Incident Report. 

If an employee is served with a lawsuit related to the College or to work performed at or on behalf of the College, any such document should immediately be submitted to Risk Management. All legal paperwork, claims, and police reports should be provided immediately to Risk Management.   

References:      

Bodily Injury/Property Damage/Theft procedure   
Claim/Incident Report  
Travel policy 
Workers’ Compensation procedure 
Workers' Disability Compensation Act