EXCESS LIABILITY INSURANCE
Effective 7/1/08 the Excess Liability Insurance policy, which provides liability insurance for all University employees (including volunteers and agents in certain situations) has been renewed. The policy limits are $10,000,000 per claimant, $10,000,000 per occurrence, $25,000,000 annual aggregate with a $1,000,000 retention per claim. The premium for this coverage, which is paid by the University, is provided at no cost to the employees.
The policy is an excess liability policy written on an occurrence basis. It provides coverage for errors and omissions that are committed by state employees in the performance of their jobs and which result in bodily injury, property damage or other losses. The policy pays judgments in excess of the Defense of State Employees Act ($1,000,000 Tort Claims Limit) subject to the policy terms, conditions, exclusions and policy limits. The policy does not pay defense or investigative cost. For more information related to the policy contact the Director of Insurance and Risk Management, extension 5-6122.
Article 31, Chapter 143, of the North Carolina General Statutes, The Defense of State Employees Act, is designed to provide coverage up to a maximum of $1,000,000 per claimant for damages awarded in lawsuits against State employees. This law recognizes that state employees may be named as defendants in their individual capacities as well as their official capacities, based on the performance of their jobs. It authorizes the State to provide legal defense of employees who are sued in their individual capacities, and allows the State to pay damages on their behalf, at the discretion of the Attorney General.
At NC State, the General Counsel is responsible for providing notice to the Attorney General of all potential claims falling under the Defense of State Employees Act and the Excess Liability Policy. Potential claims that arise should be reported to the Office of General Counsel at extension 5-3071 as soon as individuals are aware of them. For more information on the legal aspects of this protection contact the Legal Counsel.
For answers to legal questions and information on Tort Liability, please refer to Legal Affairs' web page at http://www.ncsu.edu/legal/legal_topics/tort.php.
EXCESS LIABILITY POLICY
EXCESS LIABILITY INSURANCE
The Excess Liability Policy, which provides liability coverage for NC State employees, is administered by the Public Officers and Employees Liability Insurance Commission in the NC Department of Insurance through the NC State's Department of Insurance and Risk Management. Potential claims that arise at NC State University should be reported to the Office of General Counsel at extension 5-3071 as soon as individuals are aware of them. The following is an outline of the coverage provided by the policy, and answers frequently asked questions (Who, What, When and Where). The following is intended as a general guide only, and specific questions and concerns should be directed to Insurance and Risk Management at extension 5-6122. No warrants are expressed or implied, nor intended for policy or coverage interpretation.
The Policy is an excess liability policy written on an occurrence basis. It is designed to provide coverage for errors and omissions of state employees for losses in the performance of the job and for losses resulting in bodily injury and property damage. The policy pays judgements in excess of the Defense of State Employees Act ($1,000,000) subject to policy terms, conditions, exclusions and policy limits. The policy does not pay defense or investigative cost.
The policy is not designed to replace insurable coverage that is better provided for under other types of insurance policies. (i.e. workers compensation, auto liability, or medical malpractice).
WHO IS COVERED - (G/S 143.300.2)
NOTE:
Independent contractors are not considered employees/agents of the State.
WHAT IS COVERED (143-300.3)
An occurrence (act or accident) which results in a claim against a state employee, as provided in General Statues 143-300.2 through 143-300.6, unless excluded in the policy or general statues.
NOTE: Definitions (In General Terms)
WHAT IS NOT COVERED (143-300.4)
General Statues excludes coverage for the following:
The Policy has the following exclusions:
WHO DEFENDS - (G/S 143-300.3)
Upon request from a covered individual, the State may provide defense through:
PAYMENT OF JUDGEMENTS (G/S 143-300.6)
The first $1,000,000 of all final judgements shall be paid by the department, agency, board, commission, institution, bureau, or authority which employ(s) the individual. (Article 31/31A)
Other commercial liability insurance shall be considered primary. (Tort judgements are excess of other commercial insurance and other insurance cannot be used in lieu of tort.)
The State's excess liability policy will respond to judgements in excess of $1,000,000 to policy limits.
The State through the Defense of State Employees Act and the Excess Liability Policy protects, defends and indemnifies employees from legal suits brought against them in the scope and course of their employment.