Property Insurance Program

What is generally insured

The property program typically covers:

• Buildings and permanent fixtures
• Laboratory, research, instructional, and scientific equipment
• Furniture, contents, and office equipment
• Improvements and betterments in leased spaces when the University is responsible per written agreement
• University owned vehicles

Covered causes of loss include fire, flood, wind, tornado, lightning, burglary, vandalism, water damage from broken pipes, and other perils listed in the policy. 

Property that is not covered

Examples of excluded property include:

• Currency, money, precious metals in bullion form, notes, or securities
• Land, water, or materials in or on the land
• Animals, except for approved research animals
• Standing timber and growing crops
• Watercraft, aircraft, spacecraft, and satellites
• Personal vehicles of University employees

Perils that are not covered

Examples of excluded causes of loss include:

• Insect, animal, or vermin damage
• Faulty workmanship, construction, materials, or design
• Wear and tear, deterioration, rust, corrosion, or erosion
• Latent or inherent defects unless they result in a sudden breakdown
• Settling, cracking, shrinking, or expansion of foundations, pavement, walls, ceilings, or roofs
• Damage caused by temperature or humidity changes except when affecting machinery or equipment due to a covered cause
• Losses associated with normal maintenance responsibilities

Departments should contact the Office of Risk Management with any questions.

Some types of University property have applicable sub-limits. These sub-limits do not increase the total policy limit and apply only to the categories listed below. Some of the key sub-limits are listed below, however this list is not exhastive and other may apply. 

• $2,500 per plant and $50,000 per designated legacy oak tree, and $2,000,000 aggregate for plants and designated legacy live oaks
• $25,000 per animal (reserach only) and $5,000,000 per occurance for animals 
• $500,000 per occurrence, property in transit, media equipment at non university owned locations, and property outside the United States
• $2,000,000 per occurrence and $2,000,000 aggregate, over the side research coverage.
• $2,000,000 per occurrence, specialized vehicles
• $5,000,000 per occurrence, research equipment at non university owned locations

If a department believes any of these sublimits would impact its operations in the event of a loss, the department should contact the Office of Risk Management to discuss the exposure and possible options.

All limits and exclusions remain subject to policy terms and conditions.

Equipment Breakdown Coverage

The Equipment Breakdown Policy applies when insured equipment experiences a sudden and accidental internal mechanical or electrical failure. These types of failures are excluded under the general property policy.

What equipment is generally covered

Covered equipment may include:

• Boilers and pressure vessels
• Chillers, HVAC units, pumps, and compressors
• Electrical distribution equipment such as transformers, switchgear, and panels
• Refrigeration and freezer units used for laboratories, research, food storage, or medical materials
• Communication, control, and building support systems
• Certain production or mechanical equipment used in research or agricultural programs

What is considered a covered breakdown

A covered breakdown must be sudden, accidental, and require repair or replacement. Examples include:

• A boiler ruptures from internal pressure
• A chiller or compressor motor seizes
• Electrical arcing damages internal components of a transformer
• A refrigeration unit fails due to an internal electrical issue
• Switchgear suffers a short circuit that causes damage and loss of function

Important exclusions under Equipment Breakdown

The policy excludes:

• Wear and tear
• Corrosion, rust, erosion, or gradual deterioration
• Latent or inherent defects unless resulting in a sudden breakdown
• Gradual decline in performance or capacity
• Equipment that has reached the end of its useful life
• Faulty installation, faulty repair, or faulty workmanship
• Maintenance related conditions

These exclusions mean Equipment Breakdown coverage does not replace aging or worn out equipment.

Responsibilities for departments
Departments should:
Follow maintenance and inspection schedules
Report unusual performance issues to facilities staff or services professionals
Complete proper maintenance which reduces the risk of excluded losses

Business Interruption and Extra Expense

Business interruption and extra expense coverage may support University operations after a covered physical loss. Subject to policy terms, coverage may include:

• Loss of net income for qualifying operations
• Continuing operating expenses
• Temporary relocation of offices, classrooms, or laboratories
• Rental of temporary equipment or space
• Overtime or emergency costs needed to reduce the impact of the loss

Fine Arts Coverage

The Univeirsty maintains a dedicated fine arts policy to protect University owned and certain loaned artwork and collections. This includes items such as paintings, sculptures, rare books, manuscripts, and other objects of cultural or academic value.

Departments that manage or display fine art must coordinate with ORM before accepting loans, scheduling exhibitions, or acquiring valuable items.

Visit our Fine Arts Insurance Coverage webpage 

Research and Research Operations Coverage

When a covered physical loss interrupts research and development activities, the policy may support the recovery of both damaged property and certain project related work needed to resume progress.

What may be covered
Subject to policy terms, coverage may include:

• Repair or replacement of damaged research equipment
• Replacement of research materials and consumables
• Reasonable costs to recreate experiments, samples, test runs, or other physical research work
• Project restoration costs to return the research to the same degree of completion that existed before the loss

Project restoration costs may be covered for up to sixty months from the date of loss. Longer restoration timelines may be considered when approved by the lead carrier. These benefits apply to physical research work that can be reproduced. They do not extend to scientific conclusions, unrecoverable data, or the value of research outcomes.

If a granting agency allows modifications, extensions, or scope changes that enable the project to continue, the insurance program will not cover costs already permitted within the project.

Reporting New Buildings and Leased Locations

To ensure all property is covered:

• New construction, acquisitions, or leased buildings valued over $20 million must be reported to Risk Management before acquisition or occupancy
• Buildings or leased locations valued up to $20 million must be reported within 15 days of acquisition or occupancy

Unreported property will not be covered.

Deductibles

Each loss under the University’s property insurance program is subject to a $1,000 departmental deductible. This applies to any property coverage loss.

If more than one department is affected by the same incident, the deductible will be assigned based on the source and cause of the loss. For large multi-department events such as hurricanes or floods, the departmental deductible may be waived.

The University funds all remaining insurance deductibles and self-insured retentions from internal resources or, when applicable with support from federal disaster assistance.

Department Responsibilities Before a Loss

Departments can help support accurate coverage and smoother claims handling by taking a few practical steps:

• Keep property inventories current with Property Management. Ensuring equipment is tagged and added to inventory promptly.
• Notify the Office of Risk Management when planning to move equipment exceeding $500,000 off campus or between facilities.This is especially helpful when relocating sensitive laboratory or research equipment.
• Make sure loaned or borrowed equipment has properly executed agreements. Departments should confirm responsibilities for care, custody, and control are clearly documented before equipment is brought to campus or sent elsewhere.
• Share contracts or agreements involving equipment or property with the Procurment, Sponsered Programs or the Office of Risk Management early.This includes research collaborations, facility use, storage arrangements, or vendor agreements that place property in the department’s care or requires our equipment to be installed or stored off campus.
• Take reasonable steps to secure equipment and materials. Report building issues to Facilities Services and store items in appropriate spaces.

These steps help confirm ownership, documentation, and responsibility for property, which supports the University’s ability to evaluate coverage and maximize reimbursement after a loss.

Property Loss Mitigation

Preventing property loss is the most effective way to protect research, equipment, and University operations. Each department is responsible for monitoring its own areas, maintaining safe conditions, and ensuring University equipment, materials, and research assets are properly protected.

Departments should routinely review their spaces to identify potential hazards, secure valuable or sensitive items, verify appropriate storage, and monitor environmental conditions.

If assistance is needed, departments should reach out to Facilities Services, Environmental Health and Safety, or the Office of Risk Management. The University’s Associate Risk Management Specialist for Risk Control Julian Williams can be reached at 225-578-4210 or jwil695@lsu.edu and is available to support departments in identifying property risks and recommending appropriate mitigation measures.

Reporting Damage and Filing Claims

All losses must be reported to the Office of Risk Management as soon as possible.

All claims are submitted through the University’s Property Claim Reporting webpage

This site includes:
The online reporting form
Documentation requirements
Emergency guidance
Instructions on the claim review process

Prompt reporting helps ORM coordinate repairs, documentation, and adjusters.

Loss or Theft of Personal Property

In most instances the University assumes no liability for loss or theft of personal property of students, employees and visitors to the campus.