Equipment Insurance Internal Procedure

EQUIPMENT INSURANCE

FLOATER POLICY GUIDE

THE RESEARCH FOUNDATION OF SUNY

OFFICE OF GRANTS MANAGEMENT

STONY BROOK UNIVERSITY

July 2013

Campus Procedure for

Research Foundation Equipment Insurance

1. Grants Management Specialist approves requisitions for items of equipment or inventoried supplies.

These requisitions are identified by an equipment expenditure type beginning with “EQP” and for

inventoried supplies with the expenditure type “SUP Below Threshold Equip”. Once approved, the

requisition will be forwarded to Procurement with the document entitled “Equipment Insurance

Protection” (attachment A) attached for placement of the order and distribution of purchase order

copies.

2. The Procurement office will process requisitions, place orders with vendors and produce purchase

orders for distribution. When distributing departmental copies of purchase orders with the “EQP” or

“SUP Below Threshold Equip” expenditure types, Procurement will attach a copy of the

departmental equipment insurance notice (see attachment A).

3. The Property Control department will obtain a copy of the invoice from the Procurement

department’s imaging system and confirms receipt from Central Receiving for items of equipment

acquired on purchase orders with the expenditure types indicated above.

4. Property Control will forward equipment insurance notice “Have You Considered Insurance

Coverage for This New Equipment?” (attachment B) and the standard equipment insurance

application/floater form to the campus department receiving the equipment along with data

collection form SUSB 703 and decals, upon receipt of the purchase order.

5. Campus departments choosing to purchase equipment insurance will forward a completed

purchase requisition with the following attachments:

 A completed standard equipment insurance application/floater form for each piece of

equipment, and

 A copy of the purchase order from which equipment was acquired.

6. Cost of insurance will be calculated by the RF Business System based on the equipment value and

the time period of coverage. The time period of coverage must be within the award period of the

research grant.

7. Upon approval in Grants Management, the equipment insurance requisition with attachments is

forwarded to Accounts Payable for payment. Documentation and check are sent to the carrier.

8. Should an insurance claim become necessary, please contact Stephanie Ammann in the Office of

Grants Management. Documents required for a claim include:

 a Campus Police Report

 a completed Research Foundation Equipment Loss Detail form,

 a copy of original requisition/purchase order (equipment purchase),

 a copy of the equipment insurance requisition, and

 an explanation from the Project Director

The Equipment Loss Detail form provides guidance on submitting a claim, reduces the

possibility of delays and provides the insurance carrier with an organized overview of supporting documents

as required by its office. Once the Grants Management Office receives this documentation they will

forward to RF Office of General Counsel, who then notifies the RF insurance carrier. This process aids in

maintaining the thirty-day settlement cycle.

Attachment A

EQUIPMENT INSURANCE PROTECTION?

Did you know that all-risk equipment insurance is available through The

Research Foundation Floater Policy? This insurance is available to protect

equipment purchased with sponsored funds, or purchased with other funds,

as long as the equipment is used on RF sponsored projects.

Since the University has no other funding source to provide for

damage to, or loss of equipment, this is your only vehicle for

protecting your equipment. This low cost coverage through AMSURE

protects equipment against loss anywhere in the world. The annual

premium rate under the equipment policy, effective July 1, 2013 is $.95 per

$100.00 of coverage (for the current budget period), and settlement of

claims is based on replacement value of the damaged or lost equipment.

Insurance may be renewed during each new budget period.

Most sponsors allow equipment insurance to be charged to grants and

contracts as an acceptable way to protect the equipment necessary to

conduct the project. We strongly recommend that you consider this option.

Simply send your signed RF purchase req (made out to Amsure Insurance),

a copy of the original purchase order for the equipment and a completed

insurance floater form to your Grants Management Specialist.

We can provide additional information regarding equipment insurance,

as well as claim settlements and policy regulations.

Office of Grants Management

W5510 Melville Library, Zip 3366

632-9038 - (fax: 632-9147)

July 2013

Attachment B

Have you considered insurance coverage

for this new equipment?

Did you know that all-risk equipment insurance is available through The Research

Foundation Floater Policy? This insurance is available to protect equipment

purchased with sponsored funds, or purchased with other funds, as long as the

equipment is used on RF sponsored projects.

Since the University has no other funding source to provide for damage to, or

loss of equipment, this is your only vehicle for protecting your equipment. This

low cost coverage through AMSURE protects equipment against loss anywhere in

the world. The annual premium rate under the equipment policy effective July 1,

2013 is $.95 per $100.00 of coverage (for the current budget period), and

settlement of claims is based on replacement value of the damaged or lost

equipment. Insurance may be renewed during each new budget period.

Most sponsors allow equipment insurance to be charged to grants and contracts as

an acceptable way to protect the equipment necessary to conduct the project. We

strongly recommend that you consider this option. Your Grants Management

Specialist can give you additional information regarding this insurance as well as

claim settlements and policy regulations.

Attached is the standard Equipment Insurance Application form. If you decide to

purchase insurance fill out and sign the form (*the asset/decal number will be on

Form SUSB 703 provided by Property Control). Attach the form to a completed RF

purchase requisition (made out to Amsure Insurance), provide us with a copy of the

PO the equipment was purchased on (to verify $ value) and forward all to the Office

of Grants Management for processing. If you’ve already purchased insurance,

please disregard.

Office of Grants Management

W5510 Melville Library, Zip 3366

632-9038 - (fax: 632-9147)

July 2013

SPONSORED RESEARCH EQUIPMENT INSURANCE

The Research Foundation’s Equipment Floater Policy is an all-risk policy that provides coverage on

purchased equipment with sponsored funds, (or purchased with other than sponsored funds but used

for sponsored projects) against loss by specified external causes anywhere in the world.

PREMIUM RATE Effective July 1, 2013, the premium rate under the Equipment Policy is $.95 per

$100.00 of coverage. Settlement of claims is based on the replacement value of

the equipment.

PREMIUMS Once your completed paperwork is received in the Office of Grants Management,

the data is entered into Oracle (RF Business System) which calculates the

premiums. It is then forwarded to the Accounts Payable Office for payment. This

documentation is mailed to the insurance carrier with the check.

DEDUCTIBLE Effective July 1, 20132, the deductible for each claim is $1000.00. Payment of

the deductible is the responsibility of the campus department and will be paid out

of appropriate account funds as designated by the project director.

DEPRECIATION For most equipment, value decreases with age. Appropriately decreasing the

value of the equipment with time lowers premiums and makes for maximum fiscal

economy. Depreciation is accomplished at the discretion of the Project Director.

As a policy, the Research Foundation encourages Project Directors to consider

that coverage should secure the cost of replacement of equipment during the

project term and not under or over value the equipment. Therefore, it is the

responsibility of the PI to obtain a current quote from the manufacturer for the

same (or closely similar) replacement item.

STATE OWNED Equipment should be insured when on loan from the State and used for

EQUIPMENT Research Foundation sponsored projects. Project Directors may be held

accountable for equipment that is not insured.

EQUIPMENT It is advisable to insure loaned equipment from outside institutions used for

ON LOAN sponsored research.

PROCEDURE Complete and sign both an RF purchase requisition (made out to Amsure

Insurance) for the purchase of insurance, and an insurance application/floater

form (use one for each item to be insured). Provide a copy of the purchase

order the equipment was originally purchased on, and send all forms to the Office

of Grants Management, Zip 3366. You’ll receive a confirming email indicating the

exact premium being charged to your account.

For fixed or stationary items valued at greater than $100,000 and for items that are not portable, a

special equipment policy with a lower premium rate may be negotiated by the Office of General

Counsel in The Research Foundation Central Office with the insurance carrier. This coverage is

designed for facilities that maintain expensive research equipment.

GUIDELINES FOR COVERAGE

LONG TERM In accordance with the insurance policy, renewed insurance is carried for an

COVERAGE an annual or semi-annual term. Equipment is not insured beyond the term of the

grant unless requested by the sponsor.

After project termination, if the property is retained, further insurance is available.

SHORT TERM Short term insurance, such as one, two or three months, is acceptable when:

COVERAGE

 the grant terms within a short period of time subsequent to the acquisition of

new equipment

 equipment is leased or loaned

 equipment is used for sponsored projects beyond the bounds of the campus

location

(Please check with the Office of Grants Management when in doubt about short

term insurance.)

SHIPPING OR Project Directors are encouraged to notify the Office of Grants Management

TRANSPORTING when shipping or transporting insured equipment. Grants Management will

EQUIPMENT then advise the Foundation’s carrier on method of packing, shipping, destination

and delivery dates to ensure proper coverage.

TRANSFERRING Project Directors who are planning to transfer equipment from an RF research

EQUIPMENT TO facility to another institution (whether it’s insured or not) should first obtain an

ANOTHER inventory listing all grant(s) involved from Property Control (Cyril Rickson at

INSTITUTION 2-6306). For complete instructions on the process of Property Status Change,

click this link. Once at its destination, the PD should discontinue insurance

coverage of the equipment on the RF's floater policy as it is no longer being

used on behalf of the RF. Once Grants Management is notified by the PD, the

award would be reimbursed for the balance of the premium payment (if

applicable). Equipment should not continue to be insured Click this link for a

copy of the Property Status Change Request form.

TERMINATION Insurance is automatically terminated if not renewed. When equipment is

OF COVERAGE disposed of, the insurance should be terminated. No provision for prorating

insurance is available when termination occurs within a yearly cycle. Project

directors are encouraged to consider the dates involved and to plan accordingly.

COVERAGE Equipment is covered if the loss is caused directly by fire, lightning, explosion,

windstorm, vandalism, aircraft, rioters, strikers, theft or attempted theft, or by

accident to a vehicle carrying the property. Equipment is also covered for

accidental damage (a damage estimate must be submitted with other related

documents as requested in these guidelines). Please contact the Office of Grants

Management when there is a question of coverage that may not be described

here. There are also limits to coverage under some circumstances.

EXCLUSIONS The Equipment Policy does not provide coverage on the following:

TO COVERAGE (not all exclusions are listed below)

Excerpt from Policy

 Delay, loss of use or loss of market

 Shortage found when taking inventory

 Governmental action

 Nuclear hazard

 War and military action

 Loss caused by pollutants

 Hidden or latent defects or any quality in the property that causes it to damage

or destroy itself

 Wear and tear, gradual deterioration

 Programming errors (software related)

For additional exclusions please contact the Office of Grants Management.

LOSSES AND CLAIMS

REPORTING Claims are not decentralized and remain under the management of the Office

and of General Counsel and Secretary in the Research Foundation Central Office

DOCUMENTING in Albany.

LOSS

Equipment that is stolen, damaged by vandalism, or any accident that occurs

as a result of an external cause must be reported to the Security Office

(Campus Police) and to Stephanie Ammann, Assistant Director, Sponsored

Project Expenditures in the Office of Grants Management (2-9071), for her

guidance. An investigator sent from Campus Police will, with help from the

project director and the Property Control Office, file a report. The report is

retained by the Property Control office and a copy sent to the Office of Grants

Management and the Office of General Counsel and Secretary.

If the equipment was sponsor owned and if their guidelines so request, a report

must be sent in a timely manner (within 30 days) to the sponsor informing it of the

loss or damage and its cause.

In addition, all losses of RF insured equipment must be documented on the

Equipment Loss Detail form, that is linked here (see Submitting Claims below).

The Project Director is responsible for ensuring that:

 lost, stolen, or damaged equipment is reported to the Security Office (Campus

Police), the Office of Grants Management and the Property Control Office,

 the Property Control System is updated to reflect lost, stolen, or damaged

equipment,

 Property Control System records are returned to active status if equipment is

recovered,

 Project Directors and their staff are aware of their role in communicating

occurrences of loss, theft, or damage to the Security Office, the Office of

Grants Management and Property Control Office, and assisting in identifying

equipment asset numbers.

ASSOCIATED Any cost associated with the repair or removal of damaged equipment

COSTS is the responsibility of the Project Director/department.

SUBMITTING The Equipment Loss Detail form provides guidance on submitting a claim,

CLAIMS reduces the possibility of delays and provides the insurance carrier with an

organized overview of supporting documents as required by its office. Once the

Grants Management Office receives this documentation they will forward to RF

Office of General Counsel, who then notifies the RF insurance carrier. This

process aids in maintaining the thirty-day settlement cycle.

SETTLEMENTS Settlement amounts, minus the deductible, are based upon the current

POLICY market replacement value of the equipment. Each item of covered

REGULATIONS equipment must be insured for at least 80% of the actual cash value of the

item at the time of loss.

A thirty-day settlement cycle has been established which commences the day the

Foundation’s insurance carrier receives all required documentation.

Contact the Office of Grants Management at 632-9038 if you need further assistance.