The excess layer is a group purchased commercial policy. Coverage is provided for MCO's insurable interest for any direct physical loss of real or business property due to a covered cause of loss. Listed causes of loss include fire, lightning, explosion, riot or civil commotion, vandalism and earthquake. There is also a business income interruption endorsement which protects against lost income due to suspension of operations caused by a covered loss. The exclusion list is quite extensive.
Exclusions are also specific to the particular loss at hand.
In general, property not covered includes the land, currency, vehicles, property of students, and pollution not caused by a covered loss. Exclusions also include losses due to dishonest or criminal acts by employees, and wear and tear. Liability Control needs to be notified of any property loss. A determination then will be made as to whether it is a covered loss and whether the loss falls within the deductible. The deductible or the entire loss if it is not covered by the insurance policy, is self-insured and will become an budgetary expense for the department incurring the loss.