The State provides coverage for damage caused by any sudden
and accidental breakdown of a covered object through a program
of self-insurance and commercial coverage. (See Attachment
C for forms and procedures to report boiler and machinery
claims) Coverage is based on repair or replacement cost less
$1,000.00 deductible for which the University is responsible.
DEFINITION OF OBJECT: "Object" shall
mean any boiler, fired vessel or electric steam
generator designated and described in the Schedule and shall
also
include: 1. any steel economizer used solely
with such Object, 2. as respects any such Object which is a
steam
boiler, any piping on the premises of the insured,
or between parts of said premises, with valves, fittings,
traps and separators thereon, which contains
steam or condenses thereof, generated in whole or in part in
such
an Object.
DEFINITION OF ACCIDENT: "Accident" shall
mean a sudden and accidental breakdown of
the Object or part thereof; but Accident shall not mean (a)
depletion,
deterioration, corrosion or erosion of material;
(b) wear and tear; (c) leakage at any valve, fitting, shaft
seal, gland packing, joint or connection;
(d) breakdown of any vacuum tube, gas tube or brush; (e) breakdown
of any electronic data processing equipment;
(f) breakdown
of any structure or foundation supporting
the object or any part thereof; (g) any explosion of gas or
unconsumed
fuel within the furnace of any object or
within the passages from the furnace of said object to the atmosphere;
nor
(h) the functioning of any safety device
or protective device.
PROCEDURES: Any sudden and accidental
breakdown of an insured "Object" must
be reported immediately to the Risk Management
Division, who will
complete the "Claim
Form for Boiler/Machinery Damage/Loss" and report
the incident to both the Claims Unit - Insurance Division
of the State Treasurer's Office and the Commercial Insurance
carrier to set up and coordinate the necessary inspection
by the the "Boiler and Machinery" Technical
Specialist. The Technical Specialist
examines the damage and prepares a report
for the Claims Unit related to
the coverage for the loss. It is the
responsibility of the appropriate Facilities
Management mechanical representative
to identify an appropriate contractor
to repair the boiler and to verify charges
related to labor and equipment.
The original invoice must be forwarded
to the Risk Management Division for submission
to the Claims Unit - Insurance
Division for payment directly to the vendor.
