Section 5.1 University Risk Management: Introduction
Issued: July 2010
Replaces: July 2005
On July 11, 1985, the Board of Trustees of Southern Illinois University, 5 Policies of the Board H, authorized the President to direct the development of a program of University Risk Management and Self-Insurance. The authorization contemplated that, where appropriate, a program of self-insurance would replace the protections and administrative services historically provided to the University by commercial insurance companies (see Appendix A).
The program includes:
- Retention of risks by the University within its financial capabilities through the establishment of self-insurance limits to be determined by normal loss levels.
- Creation by the University of a self-insurance reserve, funded within the University's financial capabilities, in those amounts necessary to insure against potential liabilities. Protection against potential liabilities in excess of funds held in reserve would be provided through other University resources or the purchase of insurance coverage for amounts in excess of self-insurance reserve funds.
- Solicitation by the University, as needed, of claims adjustment and legal services to be paid from available resources on a "fee for service" basis.
- Initiation of internal risk management programs intended to reduce the University's exposure to potential liabilities.
Guidelines, promulgated by the President of Southern Illinois University, direct the functioning of the University Risk Management and Self-Insurance Program. These guidelines describe the management of claims and settlements, the involvement of officers throughout the University in the Program, and the increased awareness of all University personnel regarding responsibilities related to University risk management.
Last updated: 30 Jun 2010