Risk Management
Virtual Visit Request info Apply
MENUMENU
  • Insurance
    • Property Insurance »
      • Art Work Coverage
      • Damage/Theft Reporting Procedures
      • Exclusions in Coverage
      • NAU-Owned Property Coverage
      • Shipping Insurance
      • Third-Party Property Coverage
    • Vehicle Insurance »
      • Charter Buses
      • Personal Vehicles
      • Rental Vehicles
      • University-Owned Vehicles
      • Vehicle Accident Reporting
    • Liability Insurances »
      • Employee Coverage
      • Pilot Insurance
      • Student Internship Coverage
      • Volunteer Coverage
    • Travel Insurance »
      • Domestic Travel Insurance for Students/Volunteers
      • International Travel Insurance
      • Mexican Automobile Insurance
      • Renting a Vehicle in Foreign Country
  • Property & Liability Claims
    • Overview
    • Filing Procedures
    • Third-Party Liability Claim Filing Procedures
    • Third-Party Report of Injury
    • Vehicle Claim Filing Procedures
  • Damage Report
  • Loss Prevention
    • Overview
    • Losses by Fiscal Year
  • Staff
  • Forms
  • IN
  • Insurance and Claims Services
  • Exclusions in Coverage

Exclusions in coverage

The State excludes from coverage any University property loss arising from the following (Statutory Exclusions of Coverages and Arizona Revised Statutes §41-622.B):

  • employee infidelity
  • inventory shortages
  • mysterious disappearance
  • normal wear and tear
  • obsolescence
  • non-serviceability
  • mechanical or electrical breakdown
  • University property losses less than $100 in value
  • nuclear reaction or radiation
  • warlike action
  • other common exclusions

Exclusions in coverage pertain to the following State-owned property:  roads, bridges, tunnels, dams, dikes, and retaining walls, Arizona Administrative Code R2-10-106.

A common coverage question arises when there is an apparent theft without forced entry.  Coverage under the rule is applicable if the facts support a reasonable presumption of theft.  The key factors in making this determination are definite knowledge of property in a specific location and a relatively short time lapse for the property to be discovered missing.  Without reasonable presumption of theft, the State adjuster will classify missing property as a mysterious disappearance and deny the claim.  To qualify for insurance settlement for theft or burglary of NAU-owned personal property, the University must show evidence of forcible entry, that a threat of violence was used in the taking of the property, or there must a reasonable presumption of theft (A.R.S. §41-622.C).

For more information on Exclusions in Coverage, contact Risk Management at (928) 523-2009.