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Coverages

lewis and clark college
Photo: Lewis and Clark State College

By statute, Risk Management is authorized to determine the nature and extent of needs for insurance coverages as to risks and property of all offices, departments, divisions, boards, commissions, institutions, agencies and operations of the government of the state of Idaho, the premiums of which 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 two optional coverages; auto physical damage and inland marine.

Together, these seven coverages are the core coverages affected by the Statewide Cost Allocation Plan (SWCAP). These coverages are included in the insurance appropriation to a state agency, and no agency is billed for an amount greater than their total insurance appropriation. All seven of these coverages are renewed annually.

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

Below are brief descriptions of the seven core coverages:

  • Comprehensive Liability – Under the ITCA, the state, its agencies and employees are subject to liability for money damages arising from negligent or wrongful acts, with certain limitations. This is typically referred to as “third-party” coverage because it applies to injury or damage to others.
  • Cyber Liability – Idaho’s Cyber Liability Insurance Policy is designed to provide coverage for the risk posed by conducting business over the Internet, over other networks or using electronic storage technology.
  • Major Property – Property insurance is for direct physical loss to scheduled property owned or leased by the state, other than autos. This is usually for perils external to the insured item. Covered items include scheduled buildings, contents, stock and supplies, and fine arts. This is typically referred to as “first-party” coverage because it applies to property of the insured.
  • Boiler/Machinery – Boiler coverage is for 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 – This coverage provides protection to the state from loss of money and other financial instruments by theft and similar causes of loss. It also includes coverage for the employees and officials of state government who, by statute, must have faithful performance bonds.
  • Auto Physical Damage – This optional core coverage is for comprehensive and collision damage to scheduled vehicles owned and leased by the state. It also includes coverage for damage to short-term rental vehicles rented by the state.
  • Inland Marine – This optional core coverage for scheduled smaller, portable items, valued at less than $2,000, which are not in a fixed location. Such items include laptops, cameras, GPS units, phones, etc.

Examples of Other Non-SWCAP Coverages:

These types of coverage are for more specialized situations, and do not apply to all agencies. They have various annual renewal dates. The annual insurance appropriation does not include these coverages.

  • Foreign Liability – This coverage provides for legal liability protection of employees abroad on state business in a foreign country. It includes coverage for auto liability, voluntary workers compensation coverage (if the State Insurance Fund does not cover), and travel accident benefits. Not all agencies have this exposure, and it is billed only to those who do.
  • Out of State Workers Compensation – The State Insurance Fund (SIF) provides workers compensation coverage for employees of the State of Idaho who are domiciled in Idaho, or while they are temporarily in another state. However, workers who are permanently domiciled in another state but employed by the State of Idaho, must have workers compensation that is in compliance with the laws of the state of domicile. The SIF does not provide this in other states. Not all agencies will have this exposure, and it is billed only to those who do.
  • Media Professional Liability – This coverage is for the colleges and universities who publish newspapers and journals. The coverage protects against liability for libel, copyright violations, etc. As the publications are done by the students, they cannot be included in the liability plan for the state agencies and employees. Colleges and universities are billed for this exposure if their students have such publications.
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