Providing state insurance and risk mitigation services
The State of Tennessee is self-insured for general liability, auto liability, malpractice, and workers’ compensation through the Risk Management Fund. To reduce the state’s exposure to loss, the Tennessee Department of Treasury, Division of Claims and Risk Management works to protect the financial integrity of all state-owned assets and maintain a safe working environment for state and higher education employees and the general public.
General oversight of Tennessee’s self-insurance and insurance policies is approved by the Board of Claims.
Use the State of TN Certificate to provide verification of self-insurance coverage.
Download the State of TN Certificate of Insurance
The State contracts with brokers to research the property insurance market and targets only highly-rated insurance carriers which are capable and willing to provide competitive insurance quotes for the state’s various lines of coverage.This ensures the best possible coverage at the best rates, year after year. These ongoing efforts produce insurance coverage for all State-owned buildings and contents.
The Risk Management Fund pays for building and content losses for all state entities between $25,000 and $7.5 million. Additional coverage for losses between $7.5 million and $800 million is provided by contract with excess insurance policies, which are also paid out of the Risk Management Fund.
Under state law, all liability insurance and/or governmental self-insurance purchased on behalf of the State must be authorized by the Director of Claims and Risk Management, and approved by the Board of Claims. The determination of whether to purchase insurance or self-retain the various risks of the State through the Risk Management Fund requires analysis, a statewide perspective, and risk financing expertise.
These are the types of insurance coverage and services offered for State of Tennessee entities:
For state-owned buildings and contents, including public institutions of higher education.
Boiler and machinery insurance provides coverage for physical damage to and financial loss from equipment breakdown. Also called equipment breakdown insurance, it covers the cost of repairing or replacing damaged equipment and business losses incurred from non-functioning equipment.
Insurance coverage is charged directly to specific entities that have aviation risks. Due to the catastrophic nature of aviation risks, this exposure is funded through the purchase of commercial insurance coverage, not the Risk Management Fund.
This policy covers fine arts and collectible objects of every description, including but not limited to:
Coverage protects computer or technology related losses, which could be due to a phishing or ransomware attack, or because a laptop containing sensitive information was lost or stolen.
Coverage protects organizations against direct loss from dishonest or fraudulent acts committed by their employees.
Coverage provides compensation in the event of a terrorist act. This can be one act or a series of acts of an insured event arising out of the same cause during any period of 72 consecutive hours, commencing at the time of the first such act, and within a radius of 10 miles of the location of the first such act of terrorism. Coverage includes business interruption, denial of access, service interruption, pollution cleanup, damage to property at any unspecified third party site, transit, looting, brand rehabilitation. Exclusions: chemical, biological, nuclear, radiological, cyber, hoaxes and threats.
If your agency needs coverage beyond those mentioned above, please contact The Division at 615-741-2734 or Risk.Management@tn.gov.
A Certificate of Insurance is a written verification of the existence of insurance, the policy amount, the insured(s), and the period for which the coverage is effective. If an agency or state entity needs to provide verification of coverage for the state’s Aviation, Fine Arts, Boiler and Machinery, or Property coverage, contact the Treasury Division of Claims and Risk Management for assistance.
Asset management is a key function of the risk management offices throughout the State. Annually, each agency is required to complete the necessary property valuation. The State of Tennessee currently uses a Risk Management Information System (RMIS) for data collection. Property control through the use of valid inventory systems is a major goal for all agencies. Property can be added and removed throughout the year. Reach out to the Division of Claims and Risk Management for assistance.
The Division of Claims & Risk Management provides loss control services and risk mitigation training for agencies and state entities to better understand areas of vulnerabilities and mitigate exposure to risk. Each agency and institution has a risk management contact person to implement risk management techniques and act as a liaison to the Division of Claims and Risk Management.
Taking proactive steps to prevent accidents and losses lowers the likelihood of claims being made, which in turn will save your agency and the State money. Training can be conducted online or onsite for the requesting agency. Contact the Division to schedule your training at 615-741-2734 or Risk.Management@tn.gov.
At an agency’s request, Treasury will conduct a loss control audit. These audits are designed to assist in the identification of exposures to property, liability, or workers’ compensation losses and provide corrective actions to minimize these losses.
The water intrusion plan is a loss control plan that can include training to reduce/mitigate water-related property damage. The severity and financial impact of water damage can be reduced with proper preventative maintenance, loss control measures, and audits. Failure to mitigate water losses and provide appropriate preventative maintenance documentation, per the water intrusion plan, may result in denial of water damage-related claims.
The loss control program is focused on reducing significant property losses that involve research specimens for higher learning institutions. The program is designed to ensure higher learning institutions identify and implement controls with their critical research specimens stored in freezers for the purpose of preventing significant loss for research projects covered by the State of Tennessee’s property program.
The State’s Risk Management Fund requires Builder’s Risk coverage for all buildings that are under construction.
Coverage is provided only during the construction period and should be made effective at the time the first construction materials are delivered to the site. The coverage period does not end until the work is completed, and no workers remain on site. This means there will be a period of “double” coverage, both by the State and Builder’s Risk.
The state property coverage begins when the agency receives the certificate of occupancy. The state policy covers risks that are not a direct result of the construction or negligence onsite as a result of construction workers.
This procedure applies to State Government and Higher Education employees who are driving a vehicle on official State business. All state vehicles are covered for liability only. These vehicles do not need to be registered with the Division of Claims & Risk Management, but an itemized list must be maintained by the agency and is subject to audit.
If you need training and materials for your agency or institution, please contact us at Risk.Management@tn.gov. If you are someone who has been allegedly damaged by the State and would like to file a claim, click the button.
Claims Against the State
If you have been involved in a workplace injury, please visit the Workers’ Compensation page and follow the steps to ensure a successful claims process.
The Division of Claims & Risk Management also provides online and onsite training for agencies on our programs upon request. Contact the Division to schedule your training at 615-741-2734 or Risk.Management@tn.gov.
A volunteer who temporarily or routinely provides services to a state agency or institution, but who is not a paid employee, may be afforded some coverage provided by the Risk Management Fund. State agency and higher education volunteers must be registered with the Department of Claims and Risk Management prior to service. State agencies can reach out to the Division for assistance with registration at 615-741-2734 or Risk.Management@tn.gov.
For this consideration and related provisions, T.C.A. 8-42-101(3)(B) defines a state employee as “any person designated by a department or agency head as a participant in a volunteer program authorized by the department or agency head.”
Registered volunteers are not considered state employees for the purposes of workers’ compensation, and will not be approved for work comp benefits if they are personally hurt in the performance of their volunteer duties. The only exception to this is healthcare volunteers who meet the criteria found in T.C.A. 58-2-812.
For more information, contact 615-741-2734 or Risk.Management@tn.gov.
Services at a Glance
Criminal Injuries Compensation
Cyber Incident Response Plan
Electronic Monitoring Indigency Fund
Risk Management
SAFE Program (for Medical Professionals)
Teacher's Excess Liability Coverage
TORT Liability
Workers' Compensation
Have questions about Claims and Risk Management? We're here to help!
(615) 741.2734
risk.management@tn.gov
502 Deaderick StreetNashville, TN 37243-0202