University Guidelines

Section 5.2 University Risk Management: General Administration
Issued: March 2020
Replaces:  July 2019

The University Risk Management and Self-Insurance Program, hereinafter referred to as the Program, is designed to support a University-wide effort. Like all successful University-wide programs and efforts, the active participation of individuals from throughout the University is required.

The Senior Vice President for Financial and Administrative Affairs and Board Treasurer (Senior Vice President) will coordinate and administer the Program. Control of Program funds will be the responsibility of the Senior Vice President.

Day-to-day operations of the Program will be managed by the Director of University Risk Management (Director), who reports administratively to the Senior Vice President. Coordination of claims handling will take place through the University Risk Management office.

General Counsel will coordinate and administer the legal activities related to the Program and will have responsibility for oversight of the investigation and litigation of any suit in the best interests of the University, with due regard for the rights of individual Insureds under the Duty to Defend, as defined by law.

Any claim or suit may be investigated and defended under a Reservation of Rights as the Director may deem necessary. Furthermore, with the concurrence of the Director and Senior Vice President, the University may seek a declaratory judgment against an Insured.

Persons insured under this Program are expected to cooperate with the University in the settlement of claims and suits and to accept reasonable settlements negotiated by the University on their behalf.

The requirements for approval of comprehensive general and professional liability settlements shall be as follows:

  1. The Senior Vice President shall be authorized to approve settlements up to and including $250,000.
  2. The President shall be authorized to approve settlements up to and including $500,000.
  3. Settlements in excess of $500,000 shall require approval by two of the three members of the Executive Committee of the Board of Trustees.

Before making a settlement recommendation of more than $250,000 to the President and members of the Board of Trustees Executive Committee, the Senior Vice President/Director shall discuss, as appropriate, such recommendation with the following:

  1. The individual insured;
  2. The Office of General Counsel;
  3. The pertinent Chancellor or Dean and Provost of SIU School of Medicine or Deans of the first professional schools; and
  4. The School of Medicine Risk Management Committee for professional liability cases related to the School of Medicine.

Members of the School of Medicine Risk Management Committee will be appointed by the Dean of the Medical School. This Committee shall assist with the organization and implementation of an appropriate risk management program for clinical activities.

A.University Risk Management

The Program accepts a reasonable element of risk and simultaneously pursues the goals of risk avoidance and loss prevention.


It is a responsibility of the Board of Trustees of Southern Illinois University to safeguard University assets and protect the physical well-being of students, faculty and staff members, and members of the general public involved in University activities. A goal of the Program is to identify and evaluate risk exposures and implement loss prevention measures. Risk management considers exposure from the standpoint of the entire University rather than from any one activity or entity within the University. It shall be the responsibility of individuals designated by the Chancellor of each University to plan, organize, and implement appropriate risk management programs and procedures for the various administrative units of SIUC and SIUE. These activities will be coordinated by the Director. The main elements of risk management will include:

  1. Preserving University assets in the long term.
  2. Recommending loss prevention techniques and risk transfer methods for all University activities and exposures.
  3. Communicating with, educating, and assisting University personnel in understanding the responsibilities of risk management.
  4. Administering the Program in compliance with applicable federal, state, and local administrative statutes and regulations.
  5. Recommending whether risks should be insured commercially or through self-insurance.

B. Financial Management

Decisions related to the funding of the Program will be made by the President with the advice and counsel of the Senior Vice President, Chancellors, the Dean of the Medical School, and other university officers at the discretion of the President. These decisions will include the determination of:

  1. Amounts to be held in reserve.
  2. Levels of annual contributions to the reserve.
  3. Amounts of annual contributions from the various elements within the University.
  4. Methods of funding in the event expenditure requirements exceed reserve funds available.

C. Financial and Accounting Procedures

The Senior Vice President shall be responsible for administering the self-insurance reserve funds in accordance with applicable laws of the State of Illinois and Policies of the Board of Trustees. The Senior Vice President shall direct the establishment of financial and accounting procedures necessary to:

  1. Properly account for all reserve contributions and expenditures.
  2. Bill operating units for their annual contributions to the reserve.
  3. Make payments for settlements or awards in civil suits, claims, damages, losses and expenses, including attorney fees, claims investigation costs, and actuarial studies as may be directed.
  4. Provide historical information related to reserve fund activities.
  5. Purchase primary or excess insurance to offset self-insured liabilities or other losses.