Actuarially determined reserves are accrued to cover the expected ultimate cost of claims. Coverage provided includes general, automobile, civil rights, errors and omissions and malpractice liability. Claims are adjusted by in-house adjusters and lawsuits are defended by the Attorney General's Office. Insurance markets are periodically assessed to determine whether excess liability insurance is financially attractive, in view of the state's governmental immunity caps and past experience. This program allows Risk Management to handle claims in a manner consistent with the state's philosophy and agency concerns.
Commercial insurance is purchased with a per building limit in excess of the greatest exposure.
Risk Management determines building replacement values based on reported criteria and Marshall Swift multipliers. Aircraft physical damage and liability coverage is commercially insured because of the cost and availability in the market. By statute, workers compensation is covered for the state through the Workers Compensation Fund of Utah.