Mission

For humanitarian, social, legal, and financial reasons, the University will make every reasonable effort to protect the health and safety of members of the community and the public from any hazards incidental to operations of the University. We will keep a major focus on continually evaluating the cost/benefit of both the insurance and self-insurance programs. We strive to preserve and protect Stanford's resources against losses arising out of any occurrence, thereby enabling the University to carry out its goals and purpose of providing quality education, research, patient care and public service programs. In order to fulfill these objectives, we will consider all types of risks, including but not limited to, natural risks, environmental risks, political risks, compliance risks, economic/business risks, social risks and technological risks.

Objectives

The University is exposed to various risks which may be insured or not insured. Also, certain risks may be avoided, reduced, spread, or prevented. Recognizing the need and responsibility to preserve the University's resources, the following policy and guidelines have been prepared for the managing of insurance and risks:

• We will achieve and maintain a lower cost of risk (both insurance and self-insurance) as compared with sister schools without placing Stanford

in a position of risk exposure which could have a significant impact on its financial security and academic/research mission.

• All risks of loss and need for insurance are to be evaluated from both a single department and entire campus viewpoint. Conditions and practices which may cause loss are to be eliminated or modified whenever possible. Risks are to be assumed or self-insured whenever the amount of potential loss would not significantly affect the University's financial position.

Exceptions may be made:

1. when insurance is not available at any cost; when cost of insurance, compared with the risk, indicates purchase of insurance is not financially sound; or,
2. the risk has been analyzed and included in the report as an uninsured risk for the reasons stated.
3. The decision process for the insurance and risk management programs, including uninsured risks and the selection of large deductibles has involved the participation of the Risk Management Office, actuaries, consultants, insurance brokers, faculty and graduate students of the Graduate School of Business, Operations Research, Geology and the Blume Earthquake Center, the Chief Financial Officer, Vice President for Faculty Staff Services, and finally the Provost, President and the Board of Trustees.

Authority

The Director of Insurance/Risk Management has the authority and responsibility for:

1. preparing an Annual Report for the Board of Trustees and auditors; developing and implementing risk management--risk identification, measurement, evaluation, and claims control programs; recommending those risks which are to be insured and which are to be self-insured or assumed; establishing types and amounts or limits of coverage to protect the University's resources; selecting risk funding alternatives; recommending level of funding for self-insurance reserves; purchasing and administering all University insurance and self-insurance plans relating to property, casualty, workers' compensation, crime, boilers, machinery, bonds, builder's risk, overseas programs, athletic programs, travel accident, etc.; providing counsel to the Benefits Office for the administration and purchase of employee benefits insurance programs; recommending selection of insurance sources (agents, brokers, companies, etc.); working with the Legal Office, insurance companies and others in negotiating, adjusting and settling all insured or self-insured losses;
2. maintaining insurance and accounting records.

Insurance is to be purchased from whatever source (agent, broker, or insurance company) is deemed to be in the best interests of the University, using the following guidelines:

• A competitive atmosphere is desired. However, continuity of relationship with insurance sources is advantageous and will be maintained unless there is a significant reason for making a change. Insurance negotiations will be conducted by invitation to selected sources or open bidding.
• Selection will be based on quality of protection, the services provided, and the ultimate cost.

Services

1. Risk Management--risk identification, measurement, evaluation and claims control Determines and recommends risks to be insured or self-insured or assumed and types, amounts or limits of coverage Selecting risk funding alternatives Establish amount of self-insurance reserves Manage all University (including SLAC), Real Estate insurance and self-insurance plans relating to property, casualty, workers' compensation, crime, boilers, machinery, bonds, builder's risk, overseas programs, athletic programs, travel accident, etc. Prepare and present annual reports to Stanford Board of Trustees Consult with personnel department for the administration and purchase of self-insurance of employee benefits insurance programs Selection of insurance agents, brokers, adjusters, actuaries, negotiate contracts Work with legal office, insurance companies and others in negotiating, adjusting, and settling all insured or self-insured losses Maintain insurance and accounting records; prepare and maintain OSHA logs Contract with actuaries, auditors, insurance brokers and insurance companies to receive and obtain insurance/self-insurance services Assist Real Estate, Office of Technology Licensing, Sponsored Projects, Legal, Facilities Projects Management, procurement and others with contract provisions relating to indemnification and insurance Request, analyze, validate and record evidence of insurance for mortgage interest in the home loan program, research park, contracts, real estate leases, outside and gift properties as required by leases and contracts (approximately 2,000 per year) Prepare insurance/self-insurance budgets for Risk Management Allocation of insurance/self-insurance costs in compliance with DCAA requirements Provide professional guidance and advice in collection of reimbursement for costs associated with pollution in the Research Park & at other sites Prepare specifications, application and requests for proposals for insured plans Obtain and report insurable values to insurers for premium and coverage purposes Fiduciary compliance of securities held in Trust by others Update and maintain lists of vehicles for insurance premium and coverage purposes Review and respond to insurance company recommendations and engineers' reports Serve as member on a variety of panels and committees dealing with risk and loss control issues Provide reports and information to insurance company, internal and institutional auditors Develop and maintain software programs to track trends in losses, make forecasts, establish priorities for loss prevention
2. Work with EH&S regarding loss prevention issues and programs

Clients

Internal

Administration and Personnel

Employee Benefits
Payroll
Worker's Compensation

Athletic Department

Athletic Risk
Liability
Medical
Travel

Deans, Directors, and Department Chairpersons

Claims, Incident reports
Information
Loss Prevention
Training

Facilities and Services

Housing & Food Services
Leases
New Construction, Remodeling
Operations and Maintenance

Finance Accounting

Allocation of Costs
Budgets
Property/Casualty Insurance
Self-Insurance

Institutional Advancement

Broadcast Liability
Events and Services
Publication Risk
Public Affairs

Internal Audit

Cash and Assets
Security

Legal Counsel

Claims
Incidents, Contracts Investigation

Medical Center

Malpractice and Patient General Liability, Loss Prevention
Trust Fund Administration

Police

Incidents and Investigations Coordination

Procurement

Contracts
Property Control (Hold Harmless Agreements)
Specifications

Real Estate

Farm Properties
Homeowners
Research Park

Research Administration

Contracts and Grants
Drug Studies
Federal Requirements
Technology Licenses

Safety

Chemical and Radiation Waste
Inspection, Fire Prevention, Reporting

Actuaries

Budgets and Reserves for Self-Insurance

Auditors

Reports and Examinations

Claimants

Claims Negotiations
Settlements/Dismissals

Claimants' Attorneys

Defense of Claims

Claims Administration

Claims Management and Control

Consultants and Inspectors

Studies and Inspections

Contractors and Vendors

Contract Terms and Certification of Coverage

Homeowners

Certificates of Insurance

Insurance Brokers

Marketing and Procurement of Insurance

Insurance Companies

Insurance Policies
Negotiation of Claims

Public Service

Aid to Other Universities
Health Improvement Program
Help Center
Professional Organizations

Tenants

Contract Terms and Certificates of Insurance

Risk Management Process and Its Guiding Principles