POLICIES & PROCEDURES
Insurance coverage for University buildings and contents is coordinated through the Risk Management Section of the Environmental Health and Safety Office, which procures insurance through N.C. Department of Insurance approved services.
Property Insurance Overview
Property insurance for buildings, structures and business personal property owned by the State of North Carolina is provided through the State Property Fire Insurance Fund (the Fund). All property is required to have coverage for losses caused by Fire and Lightning. However, an agency or university may choose to insure property under its control for other types of property losses. Listed below are some of the options with a general description of covered losses. (The term “general” is used since most classifications of insurance have exclusions.)
Fire: Fire and lightning only. (This coverage is provided by the State at no charge for operations supported by General Fund appropriations. All other operations must pay for the fire and lightning coverage).
Extended Coverage: Windstorm, hail, smoke, explosion, aircrafts, vehicles, riot and civil commotion.
Broad Form: Extended Coverage plus fire and lightning, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects, weight of snow, ice or sleet and water damage.
All Risk-Special: Covers risks of direct physical loss, except those losses specifically noted in the exclusions.
By statute, the State Property Fire Insurance Fund pays for losses to State property on a replacement cost basis. This means that the Fund will pay the actual cost at the time of loss to replace damaged property with new property of like kind and quality and used for the same purpose, without adjustment for depreciation.
In order for an agency of state government to fully recover its loss on a replacement cost basis, it is necessary that the property be insured for its full replacement value. Accuracy in reporting values is important since the Fund cannot pay more than the amount reported.
Reporting Property Values for New Buildings
For new buildings, the cost of construction is typically the replacement value for the building at that point in time. When reporting the values for insurance purposes, please do not include any costs associated with the purchase of land. Also, do not include any “movable equipment” costs in the building value since these costs are usually part of the contents.
Reporting Property Values for Older Buildings
For older buildings that are purchased or otherwise acquired, an appraisal may be necessary to arrive at the insurance replacement cost. Keep in mind that the replacement value for buildings is not the same as the market value. The replacement value for insurance purposes is the cost to rebuild the structure at the time of loss with one of like kind and quality.
Once the agency has established the appropriate replacement value, the Fund will annually adjust the values of buildings and structures in its database for inflation. This is normally done in February of each year. Agencies are encouraged to review the building values annually when the Fund sends out the pre-billing information to assure that the values are correct.
For Business Personal Property (or Contents), the “acquisition cost” (or purchase price) and “replacement cost” are usually the same at the time of purchase for new property. However, in subsequent years the two costs will be different. Consequently, inflationary adjustments need to be made to the values of assets in years following the year of purchase to reflect the replacement cost accurately.
For older property, the acquisition cost may not indicate the property’s replacement cost. So, the property may need to be appraised or compared with the cost to purchase property of like kind and quality in the marketplace. The replacement value of some types of Business Personal Property may actually decrease over time. This is typically the case with equipment where the technology is changing rapidly such as computers and related equipment. For items of this type, it may be more appropriate to use the current market value for comparable equipment. The Fund does not make inflationary adjustments for contents values.
For economic efficiency, the university does not maintain records in the statewide fixed asset system for property values less than $5,000; however, if only those property values that are recorded in the statewide fixed asset database are reported for insurance purposes, the University may be substantially underinsured in the event of loss. It is recommended that an appropriate amount also be included in the insurance replacement values to account for those values less than the threshold amount. The Fund will reimburse the university for no more than the values reported for insurance purposes.
Newly Acquired or Constructed Property
Property that has been accepted for ownership by the State should immediately be reported to the State Property Fire Insurance Fund for coverage. Failure to report this property may result in a lack of insurance coverage should a loss occur prior to reporting the property to the Fund. There are two major concerns that justify prompt reporting of newly acquired or constructed property to the Fund. Unless your agency insures all of its property for the same coverage, the Fund does not know which coverage you intend to place on the new property. Also, the coverage under the Fund’s reinsurance is limited for newly acquired or constructed property.
Liability insurance required for state-owned vehicles. Every department, agency or institution of the State must acquire motor vehicle liability insurance on all state-owned motor vehicles under its control. The coverage is automatic and state agencies complete a self-audit at the beginning of the physical year using the Department of Insurance website.
N.C. Association of Insurance Agents, Inc.
The NC Dept. of Insurance obtains other types of insurance for the University through the North Carolina Association of Insurance Agents, Inc. (NCAIA), the State’s Agent of Record. Following are some examples: Auto Physical Damage (Optional comprehensive and/or collision) Boiler and Machinery Inland Marine Employee Dishonesty Crime and Theft Music and Related Equipment Fine Arts Athletic Accident Leased Business Equipment Coverage paid by the individual student: Student Health (for both domestic and international students) Study Abroad Student Internship Liability
Hazardous Materials and Hazardous Waste Data Sheet
Lids, Labels, Leaks & Location
The most commonly cited violations of hazardous waste/hazardous materials regulations are: open containers or lids not screwed-on tight; improper labels/identification; lack of secondary containment, and waste storage location. What may seem as a relatively minor violation has resulted in fines of several thousands of dollars per violation. Observing these simple practices can keep NC A&T in compliance.
Lids/caps must be securely in-place except when material is being removed or added to the container. A funnel resting on the mouth of a bottle does not constitute a lid, even when a watch glass is used. Lids/caps on waste containers must be tight (note: be sure that gas producing reactions, e.g., organics in acids, have worked to completion before transferring the material to a hazardous waste container). A good rule of thumb is: A closed container, when tipped over, won’t leak.
OSHA regulations require that the name of the chemical be clearly identified. Chemical formulas and abbreviations, such as H2SO4, HCl, EtBr, ETOH, etc., are not acceptable.
Hazardous Waste regulations require the words “Hazardous Waste” on waste containers and words which identify the contents, e.g., “Acetone Waste”. NC A&T was recently fined $27,000 for violation of this requirement.
Secondary containment is to be used to minimize the potential for breakage and to minimize the consequences in the event of breakage. Without exception, secondary containment is required for the following:
• all glass containers of liquid hazardous materials stored on the floor.
• all containers, with capacity of ≤ 4 liters, of liquid hazardous waste, regardless of storage
In general, secondary containment is to be used as a means of preventing incompatible materials from interacting in the event of breakage and/or spillage of hazardous materials. For example: acid baths are to be provided with secondary containment. Hazardous materials are to be segregated by hazard class and stored in separate cabinets, trays, or pans.
Hazardous waste regulations require that the generator accumulate hazardous waste in containers (properly closed, labeled, and less than 55 total gallons) at or near any point of generation where wastes initially accumulate, which is under the control of the operator of the process generating the waste. Wastes cannot be stored in a separate room or down the hall.
Environmental Health & Safety Department – 334-7992
Paint operations generate waste paint in three main areas:
1) Solvents used in cleanup operations
2) Leftover paint after completion of a project
3) Volatile Organic
Compounds emitted to the atmosphere.
- Use paint and solvents with the lowest possible VOC (volatile organic compound) content. Avoid oil based paints and paints containing metals. Use latex paints whenever possible.
- Limit your use of thinner to the maximum extent possible. Use cleaning solvent the
maximum number of times before disposal.
- Try to practice good inventory control. Buy only enough paint to complete the job.
- Keep all paint and solvent containers closed when not in use to minimize evaporation
and prevent spills.
- Use an industrial rag service to avoid having to treat solvent rags as hazardous waste.
- Contact EHS for assistance with disposal of paint and paint related material.
- If you collect paint or solvent waste in drums, keep the lid closed at all times, unless
adding material, and label the container “Used Paint” or another applicable name.
- Do Not discharge any paint, solvent, or paint cleanup wash water into storm drains,
surface water, or onto the ground.
- Do Not dispose of paint filters in a dumpster if you are using oil based paints.