Insurance Coverages | Department of Administration

Risk Management is authorized under Idaho Code to determine the nature and extent of insurance coverage needed for the risks and property of all offices, departments, divisions, boards, commissions, institutions, agencies, and operations of the State of Idaho government, when the premiums are payable in whole or in part from state funds.

All state agencies participate in five core coverages: liability, cyber liability, major property (including earthquake), boiler/machinery, and employee bond/crime. Agencies may also choose to participate in optional auto physical damage coverage and inland marine coverage.

Together, these seven coverages make up the core coverages affected by the Statewide Cost Allocation Plan (SWCAP). These coverages are included in a state agency’s insurance appropriation, and no agency is billed more than its total insurance appropriation. All seven coverages are renewed annually.

The Risk Management Program handles all claims arising from these core coverage areas.

Core Coverages Overview

Comprehensive Liability – Idaho’s comprehensive liability insurance provides coverage from money damages arising from negligent or wrongful acts, with certain limitations. Under the Idaho Tort Claim Act (ITCA), the State of Idaho, its agencies, and its employees are subject to comprehensive liability. This coverage is commonly referred to as “third-party” coverage because it applies to injury or damage to others.

Cyber Liability – Idaho’s cyber liability insurance provides coverage from the risk posed by conducting business over the internet or other networks, or using electronic storage technology.

Major Property – Idaho’s major property insurance provides coverage from direct physical loss to scheduled property owned or leased by the State of Idaho, excluding vehicles. This coverage typically applies to perils external to the insured item. Covered items include scheduled buildings, contents, stock and supplies, and fine arts. This coverage is typically referred to as “first-party” coverage because it applies to property of the insured.

Boiler/Machinery – Idaho’s boiler/machinery insurance provides coverage from damage or certain types of mechanical breakdown that occur within the covered object. Covered objects may include boilers, refrigeration equipment, and HVAC equipment.

Crime/Employee Bond – Idaho’s crime/employee bond insurance provides coverage from loss of money and other financial instruments by theft and similar causes of loss. It includes coverage for the employees and officials of state government who, by statute, must have faithful performance bonds.

Auto Physical Damage – Idaho’s optional auto physical damage insurance provides coverage from comprehensive and collision damage to scheduled vehicles owned and leased by the State of Idaho. It includes coverage from damage to short-term rental vehicles rented by the State of Idaho. All vehicles owned and leased by the State of Idaho must have this Certificate of Financial Responsibility in the vehicle at all times.

Inland Marine – Idaho’s optional inland marine insurance provides coverage for scheduled smaller, portable items valued at less than $5,000, which are not in a fixed location. Such items include, but are not limited to, laptops, cameras, GPS units, and phones.

Non-SWCAP Coverage Examples

These coverages are for specialized situations, they have various renewal dates, and they do not apply to all agencies. A state agency’s annual insurance appropriation does not include these coverages.

Media Professional Liability – Idaho’s media professional liability insurance provides coverage for colleges and universities that publish newspapers and journals. This coverage protects against liability for libel, copyright violations, etc. It does not cover students who publish newspapers and journals. Colleges and universities are billed for this exposure if their students publish newspapers and journals.

Foreign Liability – Idaho’s foreign liability insurance provides coverage for legal liability protection of employees abroad on state business in a foreign country. It includes auto liability coverage, voluntary workers compensation coverage (if the State Insurance Fund does not already provide coverage), and travel accident benefits. State agencies are billed for this exposure, when applicable.

Out-of-State Workers’ Compensation – Idaho’s out-of-state workers’ compensation insurance provides coverage for State of Idaho employees who are permanently domiciled in another state. These employees must have workers’ compensation insurance coverage that is in compliance with the laws of their state of domicile. State agencies are billed for this exposure, when applicable.