TRAVEL POLICY AND
    PROCEDURES MANUAL

TRAVEL INSURANCE

COMMERCIAL GENERAL LIABILITY

The University maintains a Commercial General Liability Insurance policy, which provides liability coverage for employees, volunteers, agents and others while working for or on behalf of the University. The policy limit is $1,000,000 with a $50,000 deductible. The coverage can provide protection in cases involving bodily injury, property damage, and personal injury caused by the negligence of an insured while carrying out his or her duties.  There are coverage exclusions where certain types of claims are not covered, e.g., discrimination, personal automobile, watercraft, etc. To be covered by the University’s policy, individuals on travel status must be working in official capacity at the time of an accident. The facts and nature of the suit will dictate whether coverage will apply. 

 

UNIVERSITY-OWNED

The University of Massachusetts is self-insured in accordance with Chapter 258 of the Massachusetts General Laws for automobile liability. This self-insurance applies to vehicles owned by the University. The University’s Treasures office manages this program and settles all claims. Settlements are generally paid directly by the at-fault campus, unless the settlement/judgment exceeds $2,500, in which case the State Attorney General's Office needs to approve it, and payment will be made by the State Comptroller. The State Comptroller assesses an annual premium based on the average of all negligence settlements and costs paid on behalf of the University over a five year period. The University relies on certain protections from Massachusetts State Law Chapter 258 when self-insuring. In particular, University employees are generally immune from personal liability associated with damages resulting from their negligence while working within their job responsibilities. The University's liability is capped at $100,000 per claimant for the actions of its employees. Therefore, only University employees should be driving University/State owned vehicles.

The University is prohibited from insuring University/State owned property per Massachusetts State Law Chapter 29, Section 30. Therefore, University/State owned vehicles are NOT insured for Physical Damage (Collision and Comprehensive). Any damages that the University is not able to subrogate to a third party would be paid for by the applicable department.
 Loss form link General Liability Claims and Incident Reporting Form.

 

LONG-TERM LEASED VEHICLES
Before a vehicle is leased, the lease agreement must be approved and signed by the University Treasurer's Office.  The University purchases Liability Insurance and Physical Damage Insurance (Collision and Comprehensive) for all leased vehicles. The title to a leased vehicle remains with the leasing company and, as a result, the University is required by the lessor to purchase insurance on the vehicle. When leasing a new vehicle, University departments should request that the University Treasurer's Office add the leased vehicle to our existing policy, a yearly premium would be assessed to the department, and coverage would extend to anyone driving the vehicle with permission.
Loss form link General Liability Claims and Incident Reporting Form.

 

PRIVATE VEHICLES

The University does not provide insurance coverage for employees operating a privately owned vehicle. The owner/driver is solely responsible for automobile insurance coverage.  The owner/driver will be responsible for any damage caused to third party property and any damage to the employee’s own vehicle, regardless of fault.

 

CAR RENTAL

CAR RENTAL INSURANCE
 

Insurance is purchased for the University by the Treasurers Office.  This insurance policy is only applicable to University employees.  Non-employees are not covered under this policy.  Look at this link http://www.massachusetts.edu/treasurer/rented%20vehicles.html for source information.

When University employees rent vehicles for University business, they must include the "University of Massachusetts" next to their names on rental applications.

Employees renting vehicles will most likely be given the option of buying the following two types of rental insurance:

-          Physical Damage Insurance-often referred to as a Collision Damage Waiver (CDW) or a Loss Damage Waiver (LDW)- covers property damage to vehicles

-          Liability Insurance-covers bodily injury or property damage to a third party

Rental Car Physical Damage Insurance
You should obtain Collision Damage Waiver (CDW) insurance when renting an automobile for University business.  Any charges assessed by the rental company for physical damage that are not covered by insurance are the responsibility of the applicable department.  There are three ways to obtain the CDW:

1.      Using the University's Corporate VISA card for Car Rental:
Full value, primary coverage is provided at no charge for most rental cars when the entire rental transaction is made with the University’s corporate VISA card. This coverage includes coverage for damage or theft for rentals up to 31 days worldwide.  Certain restrictions, limitations and exclusions apply, so please refer to the VISA Corporate Services and Benefits notice that was included with the VISA card or posted at this link http://www.umass.edu/campus_services/travel/visa_card_guide.pdf.  Not all types of vehicles or uses are covered.  Among the types of vehicles not covered are vans designed to transport more than eight people and certain trucks.  Damages sustained while off road is another of the exclusion from coverage.  If the type of vehicle and vehicle use is provided as a benefit of the University’s Corporate Card the car rental company’s CDW/LDW coverage should be declined.  Any charges assessed by the rental company that are not covered by VISA card coverage are the responsibility of the applicable department.

2.   Using a Purchase Order:
Travelers should elect CDW/LDW coverage from the rental company when using a purchase order as coverage is no longer provided by the University.

3.   Using a Personal Credit Card:
The traveler should determine if his/her personal credit card provides automatic coverage for CDW. If not, the University strongly recommends purchasing the car rental company’s CDW. It is a reimbursable expense.

Rental Vehicles Liability Insurance
 The University has a Hired and Non-owned Liability Insurance policy for vehicles rented for University business.  The University's policy is only an excess policy. This policy has a $1,000,000 combined single limit for bodily injury and/or property damage to others.

Rental Vehicle Liability Insurance within Massachusetts
Decline the Liability Insurance offered by the rental company, if you are renting the vehicle in Massachusetts and you will only be driving the vehicle in the State of Massachusetts. In Massachusetts, rental companies are required by state law to carry the minimum liability coverage on their rental vehicles (the rental company's liability insurance serves as the primary liability insurance), so purchasing the additional Liability Insurance from the rental company is not necessary due to the University's existing excess policy.

Rental Vehicle Liability Insurance Outside of Massachusetts
Purchase the Liability Insurance offered by the rental company, if renting a vehicle outside of the State of Massachusetts or for use outside of Massachusetts

 For more insurance elated information please visit the Treasures Office website http://www.massachusetts.edu/treasurer/insurance.html .

 

PRIVATE AND CHARTERED AIRCRAFT

The University provides accident or aircraft insurance coverage only for travelers who utilize regularly scheduled commercial airlines. Should other aircraft be used in exceptional circumstances:
  • The University requires that chartered aircraft owners maintain a minimum of $1,000,000 per seat in Aviation Liability coverage and that the University is named as an additional insured.
  • The same applies if a traveler pilots his/her own or privately owned plane.
  • The Controller’s office should be contacted prior to finalizing plans regarding the use of private or chartered aircraft.

 

ACCIDENT/BAGGAGE INSURANCE

Accident and baggage insurance is provided at no charge by the University’s corporate VISA card if travel services are purchased with the Corporate VISA card.

 

TRAVEL ACCIDENT INSURANCE

$500,000 Common Carrier Travel Accident Insurance is primary coverage, protecting against loss caused by a) a common carrier accident, or b) an accident occurring on the way to or from the terminal in a common carrier (i.e. taxi, bus, or airport limousine), provided the entire travel fare(s) ticket was charged on the University’s corporate VISA card prior to departure for the terminal.
  • Please refer to Corporate VISA card Services and Benefits included with the Corporate VISA card information packet.

Travel accident insurance applies to the cardholder, his/her spouse, and his/her children while traveling worldwide for business purposes, providing the entire travel fare(s) was purchased with his/her University’s Corporate VISA card. Common carrier tickets purchased for fellow employees and tickets acquired with redeemed frequent flyer points or coupons are also covered. This insurance is provided to cardholders and/or Central Travel System (CTS) account users automatically when their entire travel fare(s) is charged to their corporate or CTS account.

$1,250 Lost or Stolen Checked/Carry-On Baggage Coverage

Coverage is provided when the common carrier ticket is purchased with the University’s Corporate VISA card. The individual will receive reimbursement for the cost of luggage and its contents up to the lesser of a) the amount paid to the traveler by the common carrier, or b) $1,250 provided the luggage was checked with the common carrier and lost due to theft or misdirection by the carrier. Reimbursement is made only if the common carrier makes a monetary reimbursement and no other considerations.

 

Coverage is provided for:

  • Checked/carry-on baggage and its contents, bicycles checked as baggage, coats packed in checked baggage, certain personal effects of the Corporate VISA cardholder.

 

Coverage is not provided for:

  • Business contents or effects, umbrellas, hats, coats, cash or its equivalent, credit cards, securities, tickets and documents, contact lenses, artificial teeth and limbs, plants and animals, household effects (items used or displayed in a household not of a personal nature such as silverware, art objects, bedding, and linens), or automobiles, motorcycles, boats or other conveyances.
  • Coverage for "high risk" items such as jewelry, sporting, photographic, or electronic equipment, computers, and audio/visual equipment is limited to a combined maximum of $250 per trip.

 

Questions concerning the University’s travel insurance coverage should be addressed to the University Treasurer’s Office, (413) 587-2055.

Questions concerning the corporate VISA card travel insurance should be addressed to VISA Automobile Rental Insurance 1-800-VISA-911 (1-800-847-2911).

Travel Policy and Procedures Manual (MAIN INDEX)
Travel Management, (MAIN PAGE)
Controllers Office (MAIN PAGE)

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Last Updated: 01/27/09