The university is insured against theft of equipment, and the user department/office may receive reimbursement after the deductible (currently $1,000) has been charged to the department’s fund/org. This deductible is “per occurrence,” so all stolen items must be reported at the same time.
The university is also insured against casualty loss of equipment (fire, water damage, vandalism, etc.)
Fraud and Theft of Cash and Financial Accounts
Fraud and theft of the university’s cash and financial accounts by Mason employees is covered up to $5,000 per occurrence. The Fidelity Bond Program covers losses up to the limit of the policy, with no deductible.
Missing During Inventory
The university’s insurance policy specifies that items discovered missing during an inventory cannot be claimed as stolen for insurance reimbursement purposes.
- Department must notify the University Police in the event theft or fraud is suspected.
- The State Police:
- Will investigate the matter.
- Must name the suspect (an employee) to activate the bond.
The Following Clarifications Should be Noted:
- Replacement value
- Upgrade a lost item
Replacement value means that Mason’s insurance carrier will pay whatever it costs to restore the lost/damaged item to its previous state. There is no adjustment for depreciation.
Required Process if the department wants to upgrade a lost item:
- The insurance carrier will pay only what it would have cost to replace the item.
- The department must pay for the difference.
- The departments should ask the vendor to annotate on the purchase order separate replacement cost and upgrade cost.
- The Commonwealth’s Risk Management Plan does not reimburse for the cost of warranty or extended warranty.
The University’s insurance coverage also provides for payments for rental items if necessary for continued operations until the lost/damaged property can be restored.
The University’s property insurance policy specifically excludes coverage for employee dishonesty, unexplained (mysterious) disappearances, and losses and shortages disclosed when taking inventories.