Theft Insurance

Coverage Description

The Theft Insurance Program is an optional program in which units elect to cover property against the risk of a loss by theft. Units must pay a premium for coverage. The University’s Property Insurance Program insures University-owned property against loss by most causes including theft subject to a deductible. The deductible applying to the theft of property attractive to thieves as described below is $25,000 per event. The Theft Insurance Program allows units to reduce the deductible. Units considering participation in the Theft Insurance Program should consider the total cost to participate, the practices of the unit that safeguard property against theft and the impact of theft losses on the unit’s budget.

What should I insure?

The Theft Insurance Program applies to University-owned property that is susceptible to theft. Each year, units must confirm their participation by submitting to Risk Management by July 1, a current list of equipment that the unit desires to insure and a completed Interdepartmental Order form 62. Cost of this insurance is $.0033 per dollar value subject to a minimum of $5.00. For example, if the total replacement cost of equipment to be insured is $150,000, the cost of the insurance is calculated as $150,000 x .0033 or $495.00.

The Theft Insurance Program applies to property that is attractive to thieves. Examples of property for which the theft insurance is intended include:

  • Computer equipment (personal computers, laptops, printers, monitors, scanners, modems and other hardware)
  • Office equipment (fax machines, desktop copy machines, typewriters, telephone answering machines and calculators)
  • Electronic equipment (video projectors, televisions, video cameras, video recorders, radios and stereos)
  • Laboratory equipment (microscopes and balances)
  • Communications equipment (mobile phones and walkie-talkies)
  • Other equipment that is prone to loss by theft (musical instruments, cameras, etc.)
  • Portable property insured under this program is covered for accidental damage while in transit or away from campus with unit approval.

Property that is not attractive to thieves or is difficult to steal is covered under the University’s property insurance program subject to the standard deductible. Such property includes furniture and fixtures, inventory held for sale, supplies, and immoveable equipment.

Exclusions

The Theft Insurance Program does NOT apply to:

  • Personal property owned by faculty, staff, students, or others
  • Computer software and data
  • Money, securities, stamps and similar property
  • Property away from the University facilities unless approved in advance by the unit to which the property is assigned.

Theft is the felonious taking of property with the intent to deprive the unit of its use. Circumstances must indicate that its more likely than not that the property was stolen. Theft does not cover property that is merely missing or misplaced. Theft also does not cover borrowed property that someone fails to return.

The Risk Management Department encourages the use of computer backups for software and data. Backup copies should be stored away from the computer in a separate location, preferably in another building. Software and data are not a covered loss.

Theft or disappearance of portable computers (laptops) which are left unattended in public, checked as baggage on planes, with hotels or otherwise is not covered. Attached are some tips on Loss Prevention of Laptops.

Enrollment

Participation in the Theft Insurance Program is voluntary. To enroll units must:

  • Provide a list of property to be insured to Risk Management. The listing must include:
    • Description and serial number
    • Purchase price or current replacement cost. Reasonable estimates are acceptable.
  • Pay for the coverage through a completed signed Interdepartmental Order Form 62. The cost is $.0033 per dollar of value subject to a minimum charge of $5.00. (This charge is a flat rate for the fiscal year or any part of it.) Payment maybe made through a form 62 sent to Risk Management or by journal voucher through prior arrangement with Risk Management.
  • On receipt of the form 62, Risk Management will fill in the “Account Credited” and “Name of Account Credited” and send it to data processing.

Coverage is effective when Risk Management receives the property list and Interdepartmental Order. The program term is for one year beginning July 1. The form 62 will be processed after July 1. Units must confirm their participation each year or their coverage under the program will expire effective June 30.

To change the list of covered property, units must submit a revised list containing both the insured items and the new items to be insured. Units must also forward a completed Interdepartmental Order Form 62 or process a journal voucher to pay for insurance on the new items. Coverage on new equipment is also $.0033 per dollar of its value. Newly acquired equipment is automatically covered for two weeks from its acquisition if it is similar to other property that the department or affiliate has insured.

Risk Management urges participants to computerize the list of insured equipment to ease the effort needed to supply a complete new list when changes are made. Separating the items by user or FAS account may prove to be the most efficient way of listing the items.

Claim Reporting Process

Risk Management will reimburse units for the cost to replace stolen property insured under the program. Insured property is any property described on the list provided by the unit to Risk Management according to procedures discussed below. If stolen property is not listed, its loss is not covered under the Theft Insurance Program.

To receive reimbursement for stolen property, units must:

  • Report the theft immediately to the University Police Department and obtain a University Police Department report number from the investigating officer.
  • If the theft occurs away from the University, report the theft immediately to the police department having jurisdiction.
  • Report the loss to Risk Management within five business days including a description of property taken and University Police Department or other Police Department report number. If the report of theft and loss is not timely, the department or affiliate waives its’ right to reimbursement for its’ loss.
  • Replace the stolen property within 30 days unless otherwise approved by the Risk Management Office. Initial costs must be paid by your individual department. Losses are subject to a 10% deductible with a minimum of $500 and a maximum of $2,000. To receive reimbursement, submit a copy of a Purchase Order or Interdepartmental Order for the replacement property and an FAS account number to be credited. Units must follow all applicable University purchasing and property management procedures. Risk Management will reimburse the unit by journal entry through the University’s accounting system for the loss less the applicable deductible.

Contact Information

For all claims, notify Candy Walters in Risk Management as soon as practical. Phone or e-mail is preferable:

Candy Walters
Risk Management Analyst
773-702-1951
cwalters@uchicago.edu