19.1.6. GENERAL LIABILITY POLICIES

A. Introduction

General liability insurance policies cover claims arising from an insured’s liability due to damage or injury during performance of his or her duties or business. General liability insurance protects the insured against risks imposed by lawsuits or similar claims that fall within the scope of coverage under the insurance policy. The liability insurer has two major duties to the insured:

• the duty to defend if the insured is sued
• the duty to indemnify, or pay all sums for which the insured is held liable, up to the set policy limits

B. Tort Immunity

The Texas Legislature provides sovereign immunity for state organizations, including The University of Texas System and The University of Texas at Austin. As such, UT System’s Office of General Counsel has prepared a Tort Immunity summary statement which specifies the university’s liability limits, primarily within the state of Texas. For questions about general liability outside the state of Texas, contact The Office of the Vice President for Legal Affairs.

C. Exceptions

The University of Texas at Austin occasionally purchases general liability coverage for the insured’s exposure (vulnerability to loss) inside and outside the state of Texas, if coverage is required by contract or if the Tort Immunity summary statement language will not be accepted. For more information, contact The Office of the Vice President for Legal Affairs.

D. Claims Reporting

Third-party claims can occur as a result of injuries or damages sustained by a third party and allegedly caused by the university. UT System’s Office of General Counsel requires immediate notice of the essential details of any possible claim that may arise under the Texas Civil Practice and Remedies Code, Chapter 101. Tort Claims, also known as the Texas Tort Claims Act.

Prompt reporting of claims or possible claims arising under the Texas Tort Claims Act is necessary so that potential legal action can be identified; complete facts required for the assessment, resolution, and/or defense of such a claim can be obtained; and any required third-party notifications, including notice to the Attorney General's office or any applicable insurance carriers, can be made in a timely manner.

The Office of the Senior Vice President and Chief Financial Officer needs to be notified of the essential details of any possible claim under the Texas Tort Claims Act within three days of the reported incident. Use the Preliminary Summary Report to submit this information. Additional information regarding Tort Claims is found at the UT System Policy Library.

Part 19. Risk Management - Table of Contents