The Office of Insurance and Legal Affairs serves the Institute's needs for addressing property and casualty insurance exposures and claims and in responding to a variety of legal issues.
During the year, the Institute suffered two substantial losses at its new Cogeneration Facility. The two failures represent a combined loss of $2.8 million. Technical analysis of the failures is still being conducted to determine the extent of reimbursement that will be afforded under MIT 's blanket property insurance policy and to explore the subrogation potential against the manufacturer of the gas turbine.
Heavy rains during the year caused extensive damage in two areas of the campus with losses incurred in excess of $850,000. A chemistry lab in Building 2, filled with lasers and electronic equipment, was hit the hardest with damages of $760,000. The Parsons Lab, Building 48, also suffered major damage.
Additional property losses throughout the year totaled $105,838, of which 56 percent were attributed to computer thefts. Premiums for all lines of insurance remained level during the year within a budget of $3.3 million.
Two major lawsuits filed by MIT were settled during the year. MIT's claim against Lloyd's of London, for failure to reimburse the Institute for legal expenses incurred in the defense of the anti-trust lawsuit, was settled for $4,925,000. The Office of Insurance and Legal Affairs also assisted the Technology Licensing Office in settling a claim based on a patent license.
Insurance coverage was provided for several employment-related claims, totaling over $1 million, including legal defense.
Over 100 students were provided guidance for a wide spectrum of legal-related problems or questions.
Thomas R. Henneberry
MIT Reports to the President 1996-97