Total liability premiums for all liability policies (including excess, umbrella, and professional liability) were $1.3 million, while losses paid out by insurers, including the Barton Insurance Co. (wholly-owned by MIT), were $154,239. This loss figure included the settlement of four significant claims, totaling $123,500 which covered lawsuits for hazardous waste, bodily injury, and employment-related matters. This year, almost $900,000 in reimbursements for legal expenses related to prior litigation was recovered.
The Institute paid $326,559 for Automobile and Aircraft insurance this year. Automobile losses paid by the Institute's insurer were $15,546, while MIT paid $33,798 in losses from accidents involving rental cars, which MIT self-insures for collision damage. Regular training for pilots and stringent maintenance and safety programs have helped MIT to maintain a clean record for its aircraft activities. The possibility of self-insuring for all auto losses is being examined.
The Institute's self-insured workers' compensation program paid over $719,000 for losses and expenses on open claims. Of that amount, only $350,000 represented last year's losses; state mandated fees and excess coverage cost $386,630.
In summary, the "cost of risk" for MIT was $3,707,439. This amount represents payments for all insurance premiums plus payments that fell within self-insurance or deductible levels. However, this does not include the costs of safety, security, legal, and other measures taken proactively to avoid losses.
The office continued to provide a broad range of legal guidance to over 100 students again this year.
Thomas R. Henneberry
MIT Reports to the President 1994-95