University of California, San Diego




July 2, 2001


SUBJECT:  Campus General Liability Program Rates and Deductibles

The payroll assessment for the campus General Liabilities Program will be increased, effective July 1, 2001, to $0.57 per $100.00 of payroll cost. This increase is due, in part, to additional charges for Excess Liabilities that the campus is now responsible for funding, which include coverage related to the Property area, Boilers and Machinery, Aviation, Crime, and Business Travel. It is expected that the rates will continue to fluctuate annually, dependent upon UCSD's claims experience, actuarial analysis and industry trends. The most effective way to minimize this rate is to reduce accidents and losses.

For your information, deductibles for the Auto, General, and Employment Practices Liability components, are:

$500 deductible for damage to UCSD vehicles; $500 minimum deductible for third party damage and maximum of 20% of the claim cost up to $25,000. A larger deductible will be negotiated for negligence claims.

General Liability:
No deductible unless there is a clear indication of fault or negligence by a UCSD department or employee. The deductible will be negotiated with the department, Risk Management, and campus officials.

Employment Practices Liability:
Assessable to Departments via the Vice Chancellor. There is a $5,000 per claim minimum and a maximum of 20% of the claim cost up to $50,000, unless a department is found to have contributed to a loss because of negligence. A larger deductible may then be negotiated between Risk Management, the department and campus officials.

Also, as a reminder, last July 1, 2000, some of the Property Self-Insurance Program (BUS-28A) deductibles increased:

$5,000 per occurrence

Other covered Perils:
(excluding water damage, & transit)
$1,000 per occurrence

The University's Boiler and Machinery Policy now has a deductible of $100,000 per occurrence.

The funding of all deductibles is the responsibility of the liable department(s).

At the time the General Liabilities Program was decentralized to the campuses, the Office of the President (OP) provided permanent funding to cover the General Funds portion of the costs. This funding was calculated based on April 1997 payroll data. Our campus does not anticipate further augmentations to this allocation from the Office of the President

Beginning July 1, 2001, the Campus Budget Office is requiring that funding for related General Liabilities Program costs be appropriately allocated to the campus central General Liabilities pool when new and permanent FTE are established on General Funds (19900A, 19903A, and 19906A only). In order to prevent future shortfalls in the campus central General Liabilities pool due to payroll cost increases, it is imperative that funding be provided for newly created permanent FTE based on the campus General Liabilities payroll assessment formula. .More detailed instructions will be shared with the staffing contacts within the Vice Chancellor Offices in the near future.

Individual department training sessions for loss control information and program information can be arranged through Risk Management. In addition, Staff Education offers a course taught by Risk Management entitled, "The Unseen Costs of Risk Management." Please contact Van Jahnes-Smith at 43782 or Diana Olson at 43820 with any questions or concerns.

                                                Martha M. McDougall
                                                Environment, Health and Safety


                                                Margaret F. Pryatel
                                                Assistant Vice Chancellor -
                                                Resource Management