Procedure

1. Fire, Automobile, Casualty, and Flood Insurance – College Buildings
   • Fire and other property losses are covered by contracts with private insurance companies. Burke County shall provide to the College the funds necessary to purchase such fire and casualty insurance.
   • State-owned vehicles are covered by liability insurance through a private insurance company and handled by the North Carolina Department of Insurance. The College pays premiums to the North Carolina Department of Insurance for the coverage. Liability insurance for other College-owned vehicles is covered by contracts with private insurance companies.
   • Insure and keep insured each building owned by the institution to the extent of not less than eighty percent (80%) of the current insurable value, as determined by the insured and insurer, against loss by the perils embraced in broad form coverage to include fire, lightning, windstorm, hail, explosion, aircraft or vehicles, riot or civil commotion, smoke, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects, weight of snow, ice or sleet, or water damage to institutional buildings and properties.
   • All insurance must be purchased from companies duly licensed and authorized to sell insurance in North Carolina.
2. Liability Insurance
   • The College may purchase liability insurance to adequately insure the Trustees against any and all liability for any damages by reasons of death or injury to person or property proximately caused by the negligence or torts of the College’s agents and employees when acting within the scope of their authority or the course of their employment.
     • • Public Officers’ and Employees’ Liability Insurance: The risk of tort claims of up to $1,000,000 per claimant is retained under the authority of the State Tort Claims Act. In addition, the State provides excess public officers’ and employees’ liability insurance up to $2,000,000 per claim and $5,000,000 in the aggregate per fiscal year via contract with a private insurance company. The North Carolina Community College System Office pays the premium, based on a composite rate, directly to the private insurer.
   • Employee Dishonesty and Computer Fraud: The College is protected for losses from employee dishonesty and computer fraud for employees paid in whole or in part from state funds. This coverage is with a private insurance company and is handled by the North Carolina Department of Insurance. The North Carolina Community College System Office is charged a premium by the private insurance company. Coverage limit is $5,000,000 per occurrence. The private insurance company pays 90% of each loss less a $100,000 deductible. Liability insurance for other College employees paid through institutional or county funds are covered by contracts with private insurance companies.
   • Cyber Security / Data Breach: The College is protected for losses related to cyber security or data breaches. The coverage is with a private insurance company. Coverage limit is $2,000,000 with a $250,000 sub-limit for notifying affected individuals. The deductible is $25,000 retention for breach and $1,000 for cyber extortion. Liability insurance paid through county funds are covered by contracts with private insurance companies.
   • All insurance must be purchased from companies duly licensed and authorized to sell insurance in North Carolina or from other qualified companies to sell insurance as determined by the N.C. Department of Insurance.
   • The Trustees are authorized to pay as a necessary expense the lawful premiums of the retained liability insurance.

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