Property

The Office of Risk Management (Risk Management) manages the University’s Property Insurance Program, which includes the administration of property claims. The University sets aside funds to finance property losses and purchases excess commercial insurance, which includes damage to University buildings, contents, art, equipment or vehicles.  Coverage for these losses is for repair or replacement , to return the University back to the condition of where it was before the loss.
 
Each loss is different and will be assessed based on its merits and the specifics of the loss in accordance with Risk Management guidelines and the terms and conditions of the University's insurance policies.  Departments must thoroughly document all aspects of the loss to ensure that adequate and accurate information is available to Risk Management for loss adjustment activities. Once sufficient information has been made available, Risk Management will review the loss to determine if the damage was caused by a covered peril (i.e., fire, flood, wind, water damage, or equipment failure (boiler and machinery). The final determination of coverage, and the amount of the claim paid, will be made by Risk Management, in consultation with other professionals, as needed.

Property Reporting Form

  • Call LSU Police at 225-578-3231 immediately for emergencies, including spillage of hazardous materials, theft, vandalism, or any other criminal act. Safety is the primary concern and then property.  (For details on planning to respond to an emergency, contact Risk Management.)
  • Call Facilities Services for any losses that require immediate professional action (such as water damage from a leaking pipe or roof, smoke damage to walls, collapsed ceiling, etc.). Contact Facilities 24 hours/7 days a week at (225) 578-2327. 
  • Take immediate action to prevent injury or additional property damage. Departments must utilize the LSU master disaster response, mitigation, and restoration services contract (Northstar Restoration Services 1-800-283-2933) for all losses or Risk Management must approve any alternative vendors before incurring expenses. Failure to utilize the master contract or request approval may result in loss of coverage for such services.
  • Take detailed videos and/or photographs of all damage; and, if known, the source of the damage (such as a broken water pipe or leaking roof).
  •  Contact Risk Management as soon as possible if a loss is an emergency or repair cost is expected to exceed $25,000, at 225-578-3283 or 225-276-9111(after hours).
  • Secure any material, equipment, or parts that might be a possible cause of the loss for future inspection by Risk Management.  In the event of a fire, the scene must be preserved and secured pending inspection by Risk Management (in collaboration with EHS, Facility Services, and/or Fire Marshall).  No damaged property or equipment should be discarded to ensure Risk Management can complete adequate inspections for loss measurement, salvage, and potential subrogation. Until approved by Risk Management and Property Management, do not destroy or discard any damaged movable property. Such items should be preserved, separated, and inventoried and put it in the best possible order.
  • In the event the loss was potentially caused by the fault of a third party, Risk Management must be engaged prior to any investigation to preserve the integrity of the investigation. Risk Management and the General Counsel’s Office must coordinate the investigation.
  •  If coordinating repairs, direct all vendors and contractors to be thorough and complete in their descriptions of work performed, including specific areas worked, descriptions of parts and services provided, and dates/hours work is performed.
  • Implement means to capture all loss-related expenses. Request a Workday Project account from Accounting Services to track expenses for claims expected to exceed $25,000. Sponsored Program Accounting (SPA) will provide each damaged building/location a Grant Account after a FEMA declared disaster. 

  • All losses must be reported to Risk Management, via the online form as soon as possible. Failure to report a claim timely could result in denial of the claim. 
    • Report losses with estimated damage exceeding $5,000 within five (5) business days. 
    • Report losses with estimated damages of less than $5,000, within 14 days.
  •  If a loss is an emergency or repair cost is expected to exceed $25,000, contact Risk Management as soon as possible at 225-578-3283 or 225-276-9111(after hours).
  • If a loss involves multiple buildings/locations, a claim must be submitted for each building/location.
  • When reporting a property loss to Risk Management, the following information will be needed (do not delay in submitting a claim if the information is incomplete, as missing information can be provided later):
    • Department Information
      • Cost Center
      •  Primary Contact
    • Loss Information
      • Date of Loss
      • Estimated Time of Loss
      • Building Name, Room #(s)
    • Loss Description Information
      • Cause of Loss
      •  Description of Loss (How did the loss occur and what was damaged?)
      • Photos, videos, inventory records other related documents
    • Estimated Cost

Claim Reimbursement Guidelines

Once a loss has been determined as a covered loss, the department may submit claim expenses along with the corresponding supporting documentation (see below) to Risk Management. Submitted claim expenses and supporting documentation will be reviewed, and the claim will be adjusted in accordance with Risk Management guidelines and the terms and conditions of the University’s insurance policies. 

  •  All approved expenses will be reimbursed to the department. Risk Management will not make any payments directly to third-parties. All loss events (occurrence) will be subject to a $1,000 departmental deductible, applied as a reduction to the department’s reimbursement. The departmental deductible of $1,000 will be assigned to a department or between multiple departments by Risk Management, based on the circumstances of the loss.
  • If a loss involves multiple buildings/locations, all invoices and expenses must be itemized and assigned to the corresponding claim by building/location.
  • If a loss involves multiple departments, each department should submit a claim for reimbursement of their expenses. Facility Services will submit a claim for all building damage and restoration services for all non-auxiliary departments. Facility Services should not charge Non-auxiliary departments for covered losses.
  • Departments may proceed immediately with the repair or replacement of damaged items. If damaged items or property are destroyed or discarded prior to Risk Management approval, the claim cannot be properly evaluated, and therefore the claim may be denied. To ensure that Risk Management covers all repairs and replacement expenses, the department may submit plans or estimates for review and approval before the repair or replacement begins. 
  • For contents or equipment, when the exact make or model is no longer available, the department will need to provide cost information for an item most comparable in function or capacity to the property damaged.
  • If the department decides to replace the damaged property with property that exceeds like kind and quality (upgrade), they may choose to do so. They must submit an estimate for the replacement of like kind and quality, along with a copy of the invoice for the actual replacement. The department will be responsible for the cost difference between the replacement cost and the upgrade.
  • During the repair or replacement process, it may also be determined that it is in the best interest of the department or University to make changes or upgrades to the damaged property to prevent or mitigate future losses.  The Office of Risk Management strongly supports such loss prevention measures.  However, these additional expenses are not eligible for reimbursement as part of the claim or from the Risk Management Loss Prevention program.
  • The department will need to implement a means to capture all loss related expenses for reporting to Risk Management along with supporting documentation as listed below. It is recommended that a department request a Workday Project account for all claims exceeding $25,000.  Sponsored Program Accounting (SPA) will provide each damaged building/location a Grant Account after a FEMA declared disaster. Direct expenses related to loss activities, including materials, supplies, vendors, contractors, and other claim related items may be charged to the Project/Grant. The department will be responsible for all charges to a Project/Grant account, not reimbursable as part of a claim.
  • All claim expenses and supporting documentation must be submitted to Risk Management within 180 days of the date of loss or the claim will be closed without payment. Thirty (30) day extensions may be granted up to 360 days for non-capitol expenses with adequate justification for the delay and approval of Risk Management. Only capital project expenses managed by Planning, Design, and Construction may exceed 360 days. If repairs or replacements are not made, the department cannot be reimbursed for the loss (that is, there are no cash settlements to departments for damage to University property).
     

Supporting Documentation Required for Repairs

  • If a contractor or vendor is used, then University procurement procedures must be followed for securing contractors or vendors. Facilities Services must approve any building related work.
  • Invoices for repair expenses should include itemized charges along with a description of the work performed and supplies provided; or be supported by a detailed Purchase Order/Scope of Work. Workday Invoice# or PDF must also be provided with each invoice.
  • Document costs when making temporary or permanent repairs to structures and equipment, including receipts, expense reports, purchase orders, and other related documents.  
  •  Solicitations, estimates, and/or purchase orders from contractors/vendors should be provided.

Supporting Documentation Required for Replacing Equipment and Contents  

  • The University procurement procedures must be followed for purchasing replacement equipment or contents.
  • Invoices for replacement expenses should include itemized charges along with a description of charges or be supported by a detailed Purchase Order or Expense Report. Workday Invoice# or PDF must also be provided with each invoice.
  • A complete inventory of all damaged or destroyed property (departments shall utilize the contents tracking sheet provided by Risk Management).  This inventory must detail the LSU ID#, quantity, cost, replacement/repair cost.
  • Solicitations, estimates, purchase orders from vendors should be provided.

Supporting Documentation for University Labor Expenses   

  • The department may utilize University labor (hourly employees only) to complete repairs/replacement of damaged property by justifying cost savings over using contracted services. The following information must be tracked and submitted for university labor reimbursement.
    • Employee name
    • Employee type (hourly)
    • Dates and hours worked
    • Work order documents
    • A detailed description of the activities performed.
  • University Labor provided by Facility Services may be used to complete repairs/replacement of damaged property without additional justification. Standard Facility Service work order(s) will meet the documentation requirements for providing university labor, but they must provide a detailed scope of work and be specific to the claim.
  • University labor should not be assigned to a Project account if such an account is being utilized to track expenses. Labor expenses can be tracked manually via a spreadsheet and submitted to Risk Management with the above information.   

Supporting Documentation Required for Business Interruption and Extra Expenses

  • The department may be eligible for business interruption coverage if the University’s total loss expenses exceed $250,000. Risk Management will work with departments to determine if revenue is lost or additional expenses were incurred when normal business operations are suspended because of a property loss caused by an insured peril. 
  • Documentation related to extra expenses and expediting expenses such as rent for temporary lease space, storage costs, utilities, etc.

Risk Management’s main objective is to administer covered losses effectively, to help return the University back to the condition of where it was before the loss. However, Risk Management may need to deny a loss for various factors, such as an exclusion or limitation in the University’s insurance, insufficient evidence or information regarding the loss, or a department’s failure to follow the above essential guidelines. If after consideration of the reasons for the denial, a department may request a claim review meeting with the Director of Risk Management to review the claim for reconsideration. To request a claim review meeting the department should submit a request in writing and provide justification for the claim review to riskmanagement@lsu.edu.

In most instances the University assumes no liability for loss or theft of personal property of students, employees and visitors to the campus.

If more assistance is needed please email Shana Salsberry.