PROPERTY INSURANCE PROTECTION PLAN (PIPP)

The Risk Management and Insurance Department is responsible for obtaining insurance as one means of protecting the assets of Weill Cornell Medical College. In order to obtain this insurance at a reasonable cost, we usually assume some part of any loss in the form of a deductible. In the case of our property insurance, this deductible is currently $100,000. In basic terms, this means that for every property loss, the department in which the loss occurred pays the first $100,000 of the loss.

We recognize that an unfunded $100,000 loss can wreak havoc with departmental budgets, so a number of years ago Risk Management developed a program to help departments lower this deductible. This program is known as the Property Insurance Protection Plan (PIPP) and it allows participating departments to lower their deductibles to a more manageable dollar amount.

Highlights of the program for the 2012 fiscal year are:

  1. Coverage is on an actual cash value (ACV) basis, NOT replacement cost.
  2. Items valued at $200,000 or more must be scheduled with Risk Management in order to be covered. The following information needs to be provided: type of equipment; manufacturers name; location where equipment is installed; and value (form is available in the “Forms” section of the Risk Management web page).
  3. Choice between full blanket and partial blanket coverage (see below for further information and rates.
  4. Enrollment can be done electronically by utilizing the Enrollment form on the “Forms” section of the Risk Management web page.
  5. Newly acquired property during the fiscal year is automatically covered, but equipment valued at $200,000 or more must be reported to Risk Management within 30 days of installation (see point 2, above).
  6. Coverage selection needs to be made no later than June 10, 2010 for the coverage period fiscal year 2012 (July 1, 2010 to June 30, 2011).
  7. If you choose to not participate in this program, you will be self-insured in the amount of $100,000 for each and every loss.

If your department participated in the program for FY 2011, it will be assumed that you will also participate in FY 2012 (under the same SAP account number) unless you inform us to the contrary by June 10, 2011.

EXPLANATION OF OPTIONS AND RATES

Option 1 – Full Blanket Coverage
This option provides coverage for eligible equipment without regard to the total value of all equipment within the department. Any single piece of equipment with a value of $200,000 or more must be scheduled with Risk Management in order to be covered under this option.

Notes for Option 1 (See FAQ for more complete information)

  1. Coverage is actual cash value (ACV) NOT replacement cost.
  2. Coverage is for all risks including theft.
  3. Eligible property includes cameras, equipment, scientific instruments, computers, furniture, fine arts and library books.
  4. Personal property such as clothes, shoes, backpacks, cell phones etc. is NOT covered.
  5. Individual items with a replacement cost of $200,000 or more must be scheduled with Risk Management in order to be covered.
  6. Costs for repairs are covered up to 75% of the value of the damaged equipment or $100,000 whichever is less.
  7. Deductible for each loss less than $50,000 is $250.
  8. Deductible for each loss $50,000 or more is $1,000.
  9. Deductible for theft varies from $0 - $750 depending upon security device installed.
  10. All claims must be reported to Risk Management in a timely manner. In the event of a theft loss, a copy of the incident report must be included in order for claim to be processed.

Option 2 – Partial Blanket Coverage

Notes for Option 2 (See FAQ for more complete information)

  1. Coverage is actual cash value (ACV) NOT replacement cost.
  2. Coverage is for all risks including theft.
  3. Eligible property includes cameras, equipment, scientific instruments, computers, furniture, fine arts and library books.
  4. Personal property such as clothes, shoes, backpacks, cell phones etc. is NOT covered.
  5. Individual items with a replacement cost of $200,000 or more must be scheduled with Risk Management in order to be covered.
  6. Costs for repairs are covered up to 75% of value of the damaged equipment or $100,000 whichever is less.
  7. Deductible for each loss less than $50,000 is $250.
  8. Deductible for each loss $50,000 or more is $1,000.
  9. Deductible for theft varies from $0 - $750 depending upon security device installed.
  10. When limit selected is less than the total eligible values at risk, loss recovery is subject to a co-insurance penalty of 20%.
  11. All claims must be reported to Risk Management in a timely manner. In the event of a theft loss, a copy of the incident report must be sent to Risk Management in order for the claim to be processed.
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