I. Purpose

This section has been developed to provide the institution risk manager and related personnel with a description of the UW System crime policy.

II. Background

In our large and decentralized system of institutions, acts of embezzlement, theft, and financial dissension can and do occur. The potential financial loss faced by the University in light of its fiscal operations is one which has concerned risk management for many years. For this reason, a comprehensive crime policy is purchased annually by System Risk Management, allocated to the institutions, in an attempt to transfer this risk away from the institutions. In addition to transfer, the institutions must take a firm stance against crime by dealing with it on a daily basis through employee training and security measures.

II. Coverage Description

Policy Type: Commercial Crime
Insurer: National Union Fire Insurance Company
Limit: $5,000,000
Deductible: $350,000 per occurrence
Policy Dates: 02/27 – 02/27 (annually)
Territory: Worldwide

Coverages:   The Crime policy is composed of the following separate insuring agreements:

A. Employee Dishonesty – Loss of money, securities, and other property up to $5M resulting directly from one or more fraudulent or dishonest acts committed by an employee.

B. Loss Inside The Premises – Up to $5M for loss of money and securities by the actual destruction, disappearance, or wrongful abstraction thereof within the premises or within the banking premises. Loss of other property or damage to premises by safe burglary or robbery.

C. Loss Outside the Premises – Up to $5M for loss of money and securities by the actual destruction, disappearance, or wrongful abstraction thereof outside the premises while being conveyed by messenger, armored vehicle, or within the living quarter of messenger.

D. Money Orders and Counterfeit Paper Currency Coverage – Up to $5M for loss due to acceptance in good faith of counterfeit US or Canadian paper currency in exchange for merchandise, money or services of any post office or express money order, issued or purporting to have been issued by any post office or express company.

E. Depositors Forgery Coverage – Up to $5M for loss which the insured or any bank which is included in the insured’s proof of loss and in which the insured carries a checking or savings account as sustained through forgery or alteration of any check.

F. Credit Card Forgery – Up to $5M for loss which the insured shall sustain through forgery or alteration of any credit card issued to the insured.

G. Computer Fraud Coverage – Up to $5M for loss resulting from the wrongful abstraction of money, securities or other property related to the use of a computer to fraudulently cause the transfer of such property.

Exclusion: Under the General Terms and Conditions portion of this policy is a section called “Prior Fraud, Dishonesty or Cancellation. This section states that the coverage will not apply to any employee from and after the time that the insured has knowledge or information that such employee has committed any fraudulent or dishonest act in the service of the insured.” Therefore coverage ceases when a supervisor becomes aware of the act of the employee and special provisions may need to be taken by the campus to insure no further fraud occurs or to procure insurance elsewhere.

Additional coverage and exclusion details may be obtained from System Risk Management.

IV. Claim Procedures
According to the crime policy, upon knowledge or discovery of loss or of an occurrence which may give rise to a claim for loss, the institution must give notice as soon as practicable to the System Risk Manager so that determination can be made as to the area of coverage that applies.

System Risk Management requests that when a loss is discovered, claims must be reported directly to our office. If the loss is a violation of the law the police must be notified also. Often claims may be covered under the State Self-funded Property Program.

All claims must include a police report and complete description of the incident to substantiate the loss including:

• Unit/division
• Date of discovery
• Dates of loss
• Employees involved
• Description of loss occurrence
• Amount of loss
• Description of stolen property
• Steps taken to prevent future losses
• Campus police and security report
• Documentation such as cancelled checks Registers, etc.

Refer to SYS 304 for additional information relating to procedures to be used when fraud, embezzlement, conflict of interest, and theft which affect fiscal integrity are discovered.



This insurance document is furnished to you as a matter of information for your convenience. It only summarizes the listed policy(ies) and is not intended to reflect all the terms and conditions or exclusions of such policy(ies). Moreover, the information contained in this document reflects coverage as of the effective date(s) of the policy(ies) and does not include subsequent changes. This document is not an insurance policy and does not amend, alter or extend the coverage afforded by the listed policy(ies). The insurance afforded by the listed policy(ies) is subject to all the terms, exclusions and conditions of such policy(ies).