Property Insurance
This program combines self-funding and commercial insurance to provide property coverage, subject to certain policy exclusions, on State-owned buildings and contents and the contents of leased buildings for physical loss or damage. This program also provides coverage for specialty property including but not limited to communications equipment, mobile equipment, solar arrays, watercraft and water tanks. Agencies can apply for coverage on their specialty property by submitting the form called "Supplemental Insurance for State-owned Mobile Equipment and Miscellaneous Property," located on the Risk Management website. State employees' personal property kept or maintained on State property will be "at their own risk" and not covered under the State property insurance.
State-Owned/Leased Building(s) Reporting Requirements
Agencies must report all changes related to their State-owned buildings, including changes in location, building usage, square footage occupied, and changes to property values to the Risk Management Division within 60 days of a move, completion of remodeling, construction projects, or acquisition of new buildings. Those changes must be reported by submitting the form called, "Request for Property Insurance for New State-Owned Buildings," located on the Risk Management website.
Agencies that occupy leased locations via private landlord, must report any move to a new leased location within 60 days of move. The changes must be reported by submitting the form, "Leased Property Insurance Change," located on the Risk Management website.
Annually, Risk Management will send out the Origami Risk Property Survey. Agencies must review their schedule of properties and provide updates. (Buildings and Grounds are responsible for reporting buildings that they own and/or manage on behalf of their State occupants.)
State Public Works Division (SPWD) or Agencies (when the project is not handled by SPWD) shall notify Risk management of all new construction projects at the beginning of the project and when they are completed or substantially completed and occupied. Upon completion of the project, SPWD shall report to Risk Management, the full details about the building, including construction, occupancy, construction values and any furniture or equipment purchased in conjunction with the project, using the form, "Request for Property Insurance for New State-Owned Buildings," located on the Risk Management website.
Project Managers can request a review of building plans prior to construction by making a request via Risk Management to the State's property insurer, regarding plans related to the fire protection system and/or earthquake protection, prior to initiation of the construction project.
Property Deductibles
- Property losses are subject to a $10,000 per occurrence deductible.
- A $100 deductible is applicable to the Governor's Mansion.
- Specialty equipment, including Contractor's and mobile equipment losses are subject to a $10,000 per occurrence deductible.
- The Risk Manager may increase the deductible at a specific location, with due notice to the agency, if an agency fails to implement loss prevention recommendations made by the commercial insurer, in a timely manner, that would prevent or minimize a loss.
Property Claims
Reporting Losses: Agencies must report all losses and take prompt action to protect the property from further damage or loss. In the event of a loss estimated to exceed $50,000, agencies must contact Risk Management as soon as practicable. Risk Management will contact the State's property insurer, who will dispatch a claims adjuster to the scene. Damaged property must be retained, and all evidence related to the loss preserved until inspected by an adjuster.
Property Losses must be reported, using the following link to Origami:
Submit a Vehicle or Accident/Property loss Claim
When reporting the loss, agencies should submit the incident details and additional documentation, such as photographs and estimates of the damages. Losses reported later than 90 calendar days from the date of loss may not be covered. Losses that result from mysterious disappearance (no signs of forced entry or losses found during inventory) or resulting from known risks that have not been corrected may not be covered.
When a loss involves vandalism, theft, or other criminal activity, a copy of the police crime report must also be forwarded to Risk Management. If an agency experiences repeated or multiple losses due to inadequate security or protection of equipment, deductibles may be adjusted, or claims denied with due notice.
Contested claims compensability determinations can be referred to the Risk Manager for review. The decision of the Risk Manager will be final and binding.
Making Repairs:
Agencies are responsible for affecting the repair or replacement process by contacting the appropriate parties as soon as possible. These contacts might include Buildings and Grounds, State Purchasing, State Public Works Division, Governor's Finance Office or outside contractors or vendors (following Purchasing and State Public Works Division requirements).
Repairs or replacement for significant structural property losses (exceeding $50,000) must be coordinated with the Risk Management Division and the State Public Works Division, unless a specific waiver is approved by the Risk Manager. Additionally, claims that require repair or replacement in excess of $100,000 will be submitted to the State's outside insurer and subject to further review by the property insurer adjuster. Repairs must be completed within two years from the date of loss, unless a written waiver is obtained from the Risk Manger.
Paying for a Loss:
Agencies are responsible for a $10,000 per occurrence deductible or an alternate deductible identified by the Risk Manager. Risk Management will pay the lesser amount of the repair or replacement, excluding any betterment and subject to the exclusions contained in the commercial excess property insurance policy.
Agency Reimbursement. When an agency pays for the entire loss out of its budget, Risk Management will reimburse it, after submission of the deductible, proof of repair/replacement, and evidence that the invoices have been paid by the agency. Agencies must submit the "Reimbursement Request Form." *
*Reimbursement forms will be provided by Risk Management upon acknowledgement of claim when applicable.
Risk Management Direct Vendor Payment. Risk Management can directly pay a repair/replacement vendor. To do this, it is necessary that Risk Management be forwarded a copy of related contracts or the original invoices and copies of all estimates and written documentation from the agency that the work has been completed in an acceptable fashion. The agency must pay Risk Management the appropriate deductible in advance of payment to vendors.
Regardless of payment method, it remains the responsibility of the agency to complete all necessary paperwork required to affect the repair or replacement of the damaged or destroyed items. This would include any contracts, purchase requisitions, etc. Risk Management can be identified as the contracting agency once the SPWD contract is reviewed and approved by the Risk Manager.
In the case of purchase requisitions, agencies should complete the form, except for the budget coding sections and the authorization signature and forward to Risk Management for completion. The form must be retained by the requesting agency if electronic or facsimile copies are used for payment purposes, pursuant to SAM 2616.
Boiler and Machinery:
Provides blanket coverage for damage to boilers, pressure vessels, etc. at State-owned locations. Agencies are responsible for payment of policy deductible, subject to various deductibles, dependent upon size of unit and building square footage. Current deductibles are located on the Risk Management website. All losses must be reported to Risk Management within 48 hours; and all damaged equipment must be kept until Risk Management, or its designee has had an opportunity to inspect it.
Cyber Liability:
Protects agencies from risks relating to information technology infrastructure and related activities. It also protects agencies should confidential information fall into the wrong hands, sometimes called a "breach" (whether the information is contained in electronic or hard copy/written form). In part, the coverage pays monies to address legal issues (i.e., lawsuits/regulatory fines), conduct forensic investigations, and to pay expenses related to notifying affected individuals and/or to offer credit monitoring services. The agency suffering the loss should report the incident as soon as possible but no later than 15 days from time of incident. Complete the claim form, called "Cyber Claim Form."* Agencies are responsible for paying Cyber policy deductible of $250,000.
* Cyber Claims must be brought to the attention of Risk Management for processing. For more information contact Loss Prevention Specialist, Maureen Martinez.
memartinez@admin.nv.gov
(775) 687-1756
Coverage for physical damage to computer equipment is provided under the property and contents insurance policy. Agencies are responsible for a $2,500 deductible per occurrence. All losses should be reported to Risk Management as soon as possible, but not more than 90 days from the date of the loss. Reports of losses received beyond 90 days from the date of loss will not be covered. Mysterious disappearance losses (no sign of forced entry) or losses discovered during inventory may not be covered. When a loss involves vandalism, theft, or other criminal activity, a copy of the police crime report must also be forwarded to Risk Management. If an agency experiences repeated or multiple losses due to inadequate security or protection of equipment, deductibles may be adjusted, or claims denied with due notice. All damaged equipment must be kept until the insurance company adjuster has had an opportunity to inspect it.
Commercial Crime Insurance (aka Employee Bond):
A Public Employees' Blanket Bond provides $7,000,000 coverage, subject to a $250,000 agency deductible for loss caused by any fraudulent or dishonest act committed by an employee acting alone or with others. The policy covers all employees except those required by statute to furnish an individual bond; employees of the Nevada System of Higher Education, and employees of the Legislative Counsel Bureau. Coverage for specific employees is automatically terminated upon discovery of their involvement in any dishonest act during current or prior employment or having been cancelled under a prior bond. Potential claims must be reported to the Risk Manager as soon as possible, but no later than 15 days upon discovery, so that reimbursement may be sought from the insurer.
Claims Procedures: Due to the sensitivity of an alleged employee dishonesty claim, the Risk Manager must immediately be notified of any potential claim. The Risk Manager will coordinate with the Attorney General's Office prior to filing a claim for losses with the insurance company.