Description of Coverages

Property and liability

Northern Arizona University, through the Arizona Board of Regents, is an agency of the State of Arizona.  As such, NAU is insured through a statutory program described in Arizona Revised Statutes §41-621, et seq.  The Arizona Department of Administration, Risk Management Division, often referred to as State Risk Management or RMS, administers the state’s insurance program. 

A.R.S. §41-621 states that the Department of Administration shall obtain insurance or self-insure, the State and its Departments, Agencies, Boards, Commissions and all officers, agents and employees thereof against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities and in the course and scope of employment or authorization.  The state extends liability coverage to registered volunteers acting at the direction of University officials, and within the course and scope of their University-authorized activities (Arizona Administrative Code R2-10-107B).  The State’s self-insurance program is excess of any other valid and collectable insurance (A.R.S. §41-621C).

The State’s insurance program utilizes a combination of self-insurance and excess commercial insurance coverage to address the State’s property and liability exposures.  NAU Insurance and Claims Services works within State guidelines and procedures to coordinate these insurance programs on behalf of Northern Arizona University.

Property insurance

This covers all University-owned land and buildings, equipment, automobiles, and collections from losses such as fire, theft, flood, and vandalism.  NAU Insurance and Claims Services provides assistance to departments with claim filing, monitoring, working with adjusters, and distributing claim proceeds to the proper University account.  Claims for University-owned property loss must be filed within specific time lines and must contain sufficient documentation for the loss to be paid.

Liability insurance

This program covers the acts and omissions of University employees acting in the course and scope of employment or authorization.  Liability claims against NAU must be filed as a claim against the State of Arizona and submitted to State Risk Management in accordance with specific legal requirements and time lines (Arizona Revised Statutes §12-821.01).  Settlement authority rests with various entities at the State level, depending on the dollar value of the settlement.  No person at NAU is authorized to pay damages, settle claims, or make any representation of settlement for claims filed against the State of Arizona.  Demands and lawsuits are defended by the Arizona Attorney General’s Office. 

Automobile loss types

Automobile accidents and collisions represent a significant loss exposure for the University.  Depending on vehicle ownership and the parties involved, several types of auto loss claims can arise, as listed below.  It is important to note that a serious accident will likely involve all three claim types and may involve multiple parties, such as passengers and drivers.  In addition, NAU employees injured in an auto accident while on University business are eligible to seek workers’ compensation benefits for medical costs and lost work time as provided by Arizona Revised Statute.

For Workers’ Compensation information and questions, contact NAU Human Resources at 
(928) 523-6106, or go to their website:  Human Resources/Workers’ Compensation.

Auto property

This type of claim is for loss or physical damage to University-owned vehicles.  Examples of an auto property claim is loss or damage to University-owned vehicle from collision, windshield damage, vandalism, theft, weather related, fire, etc.

Auto liability - property damage

This type of claim arises when a NAU driver causes property damage to a private party’s vehicle (may be referred to as third-party property).  For example, a NAU vehicle and a private vehicle are involved in a collision where the NAU driver is at fault.

Auto liability - bodily injury

This type of claim occurs when a NAU driver causes medical injury to another party.  Injured parties may include occupants of another vehicle struck by a NAU vehicle, passengers riding in a NAU vehicle that is involved in an accident/collision, or a bicyclist/pedestrian struck by a NAU vehicle.

Forms for filing a Notice of Claim Against the State of Arizona are not available on-line.  These forms may be obtained directly from NAU Insurance and Claims Services at (928) 523-2009, or Contracting and Purchasing Services (bldg 98B) at (928) 523-4557.

For more information on Descriptions of Coverages, contact the Insurance and Claims Services department, at (928) 523-2009.