Property Losses: State Equipment in County Locations

August 24th, 2012

It has come to the EIA’s attention through a claim on a County Child Support Services (CSS) location that the State often supplies certain equipment such as computers, printers, and servers to CSS. The equipment in question has State of California inventory tags. In this CSS loss, the CSS building burned down which resulted in the loss of the state supplied equipment. It was determined there was no written agreement in place on whether the State or the County was responsible for the loss of the equipment. In the particular claim, the State is not filing a claim for the equipment and will absorb the loss.

Going forward, it is recommend that there should be an agreement in place between the State and the County on who is responsible for insuring State supplied equipment that resides with the County.  If the County is responsible, the property should be scheduled on the Statement of Values.  If the County is not responsible or there is no written agreement in place, the County should advise the State that even though the computers, printers, and servers are in their care, custody, and control, the equipment is not being insured under the EIA policy.

For more information please contact Tom Bryson or Bob Fry.