An “accident” is an unexpected event that causes a loss from bodily injury, damage, or harm.

Actual cash value

The value of property, less any depreciation.


A person who projects losses based on exposure and previous loss history.

Appraised value

Value placed on property by a qualified expert.

Auto physical damage

Damage to university-owned vehicles.


Guarantee to pay if specific conditions are not met.

Business interruption

Coverage for lost revenue due to a covered occurrence.

Captive insurance company

A subsidiary company providing insurance to its parent.

Certificates of insurance

Form that evidences insurance including insurer, coverage and limits.


A type of physical damage to automobiles resulting from collision with another vehicle or other object.


A type of physical damage to automobiles not resulting from collision.

Directors and officers

Provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties.

Disability management

Assistance provided to employees to minimize the effects of illness and injuries while encouraging a safe and expedient return to work.

Excess insurance

A layer of insurance coverage that is second to the primary insurance.


The loss record of a department or line of insurance coverage. Classified statistics showing what has happened in the past.

Fine arts

Assets whose value increases over time due to their rarity or intrinsic value.

Hold Harmless

An agreement between parties in which one assumes the potential liability for injury that may arise from a situation and thus relieves the other of liability.


Agreement wherein one party agrees to pay for the loss or damage it causes to another.


An “incident” is any unexpected event that does not result in serious injury or illness, but could cause property damage.


Legal obligation to reimburse for damages to third parties.


An adverse accident or event neither expected nor intended.


Any insurable event that causes property damage or loss.


Amounts charged for insurance coverage. Premium factors include loss experience and exposure. Calculation methodology varies by coverage.

Primary insurance
The first layer of insurance coverage.
Replacement cost

The cost incurred to replace property with like, kind, and quality.


The amount estimated to be paid to resolve a claim.


Proceeds recovered from a third party as recovery for damages or losses incurred by the university.


The deductible amount of an insurance policy.


A term used to denote the exposure to damages involving human or physical assets.


Any proceeds from the repaired, recovered, or scrapped property.


Funds NSHE sets aside to pay for its losses.


Any proceeds of negotiations or legal action taken against negligent third parties.

Time element

Coverage for lost revenue due to a covered occurrence.

Total incurred

The sum of amounts paid and reserved for a claim.

Umbrella coverage

A layer of insurance coverage that is second to more than one layer of primary insurance.

A person providing authorized services to NSHE without compensation.


What is Risk Management?

Risk management is a process to deal with risks and opportunities by identifying, analyzing, controlling, financing, and administering events and other uncertainties that could affect the organizations health to provide reasonable assurance of the objectives considering the leaderships risk appetite.

What is Enterprise Risk Management?

Enterprise risk management is a process, effected by an entity’s senior leadership, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

Four Tenets of Risk Management
  1. Don't retain more than you can afford to lose
  2. Don't risk a lot for a little
  3. Consider the probabilities
  4. Don't treat insurance as a substitute for Loss Control/Safety
Why risk management is important within all levels of every organization
  • Helps better manage and understand risk exposure
  • Helps provide informed decisions
  • Helps allocate resources and understand risks vs. benefits
What is a Loss?

A loss as it relates to risk management is: The basis of a claim for damages under the terms of an insurance policy.

Loss of assets resulting from an event. Broadly categorized, the types of losses of concern to risk managers include personnel loss, property loss, time element loss, and legal liability loss.

What is loss control?

Loss Control also known as Risk Control is a risk management technique that seeks to reduce the possibility that a loss will occur and reduce the severity of those that do occur. Some loss control techniques include safety training, building sprinkler systems, and personal protection devices.

What is insurance and how it relates to risk management?

A risk management technique or tool by transferring and mitigating a potential loss entering into a contractual relationship between the insurer for a consideration (the premium) who agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils).

Logical Classifications of Risk and Reviews:
  • Human Resources
  • Property
  • Liability
  • Net Income
When reviewing each classification, four subjects that need to be explored are:
  • Exposures
  • Perils
  • Hazards
  • Losses