Notice Regarding New Deductible

Friday, August 4, 2017

Effective July 1, 2017, a new deductible of $2,500 will be applied by the State Risk Management Division to all property and automobile insurance claims from all state agencies – including the 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. Through a series of budget maneuvers, Risk Management Services has devised a plan to protect university departments that suffer property losses from the impact of the deductible for upcoming fiscal year 2017-18.

Property claims procedures, including those for losses less than $2,500, remain unchanged at this time. Claim reporting procedures are available at It is particularly important that auto collisions be reported to RMS so that any liability issues can be evaluated separately.

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. RMS will be assembling campus stakeholder groups to assist with these evaluations. If you would like to participate, have questions about the deductible, or about university insurance coverage, contact Risk Management at or 520-621-1790.