Property and Liability Claims

Notice Regarding New Deductible

Effective July 1, 2017, a new deductible of $2,500 is applied by the Arizona Department of Administration Risk Management Division (“ADOA RMD”) to all property and automobile insurance claims from all state agencies with a total appropriated and non-appropriated budget over $1,000,000 – which includes the state universities. Property loss events include damage to campus buildings, broken windows, vandalism, as well as theft of property such as computers or cash, and damage to University vehicles. Claims valued under $2,500 will be internally processed by the Risk Management Unit of Contracts, Purchasing, and Risk Management Services using University funds. Through a series of budget maneuvers, ADOA RMD has devised a plan to protect University departments that suffer property losses from the impact of the deductible for the fiscal year 2018.

Property claim reporting, including those for losses less than $2,500, remain unchanged at this time. To file a claim, please complete the online Damage Report. It is particularly important that auto collisions be reported quickly to the Risk Management Unit so that any liability issues can be evaluated separately.

The $2,500 deductible does not apply to non-owned personal property that is within the University’s care, custody, and control due to a written lease, contract, or agreement finalized prior to the loss. Additional information regarding rental vehicles and third-party property coverage can be found by following the embedded links.

This new rule is an opportunity to evaluate loss prevention efforts, and determine if targeted application of the deductible can be used to motivate better loss prevention for certain types of losses. If you have questions about the deductible or about University insurance coverage, contact the Risk Management Unit at (928) 523-2009 or NAU-PropLiability@nau.edu.