Procedures for Self-Insurance
Reimbursements for Property Claims

Please note:

Step 1: Discovery of Missing or Damaged Property

Notify your supervisor if property is damaged or not where it should be. (Risk Management should be immediately notified for any claim estimated to exceed $25,000.)

Step 2: Verify Last Known Location.

The supervisor or designee must:

1. Verify the last known location of the property as recorded in the CFS Fixed Assets System.
2. Contact all staff and faculty members to determine if anyone has moved the property without completing the proper paperwork.
3. Determine if the property has been sent to surplus.
   

If the property has not been located at this point, College Safety must be notified so they can initiate an incident investigation.

Step 3: College Safety Confirms Property is Missing or Damaged

College Safety will begin their investigation:

• Interview witnesses
• Photograph or videotape area of disappearance or damage
• Complete an Incident Report
• If property is missing, notify local police department
  

Step 4: Property Loss Claim is submitted

If the property was stolen or damaged, the supervisor or designee must complete a Property Loss Claim Form and have it signed by the Vice President of Administration or Vice Chancellor of Business Services.

The fully completed and signed Property Claim form with all supporting documentation should be submitted to Risk Management within 30 days of discovery of the lost or damaged property.

Step 5: Risk Management Reviews Claim Form

Risk Management will review all fully completed Property Loss Claim forms and will determine whether the claim will be approved or denied, in whole or in part.  Claims may be denied if:

1. The Property Loss Claim form is not filled out completely and accurately, including proper signatures.
   
2. The claim was not filed within 30 days of discovery of the lost or damaged property.
   
3. All supporting documentation was not submitted with the claim form or provided within a reasonable time period when requested by Risk Management.
4. It is determined that the claimant did not take all necessary and reasonable steps to protect the lost or damaged property (including, but not limited to, proper security and asset tracking).
5. It is determined that the claim involves any violation of state or federal law, and/or MCCCD policies, procedures, or administrative regulations.
6. The lost or damaged property is the result of anything expressly excluded by MCCCD's property insurer.
   

When a determination has been made, Risk Management will send a copy of the approved or denied Property Loss Claim form to the supervisor or designee who submitted the form AND to the Property Accounting Department.  Property Accounting will then remove the lost or damaged property from inventory (as appropriate) and transfer funds for approved claims (total claim value less the $1,000 deductible).  Please contact your assigned Property Accountant if you have any questions about funds transfer.

Subrogation (Recovery of funds)

If a third party is at fault for the lost or damaged property, Risk Management will subrogate the claim.  This means we will attempt to collect the full amount of loss from the at-fault third party.  If subrogation is successful, the college/department that made the claim will receive a refund of its $1,000 deductible.  In order to subrogate, we must have clear evidence that the third party was at fault.  No action needs to be taken by the supervisor or designee to initiate the subrogation process.  Risk Management's policy is to automatically subrogate property claims with an at-fault third party.

Risk Management will also subrogate property claims that are less than $1,000 and, therefore, not eligible for self-insurance reimbursement.  If you would like Risk Management to subrogate a property claim for you, please contact the Risk Analyst at6 480-731-8698.

If you have questions about these procedures, please contact Risk Management at 480-731-8698.