The Office of Risk Management (ORM) provides up to the first $25,000 in hull coverage on State-
owned aircraft and up to the first $50,000 in hull coverage on water vessels (over 26 feet in
length). ORM then secures excess hull coverage through the commercial insurance market for all
amounts above these limits up to the value of the aircraft or water vessel. The agency is
responsible for the $250 deductible on any hull claim.
Before an aircraft or water vessel is repaired, it is mandatory that the loss be reported to the ORM
Claims Transportation Unit, which then reports the claim to the respective commercial insurance
company. Next, the assigned adjusters from both ORM and the commercial insurance company
make recommendations on the procedures and/or actions to be taken to repair the aircraft or water
The ORM Claims Transportation Unit must be contacted immediately if a dispute arises between the
repairer and the commercial insurance company adjuster. If the agency attempts to repair the
aircraft or water vessel before ORM and/or the commercial insurance company adjuster has been
made aware of the claim and has had the opportunity to inspect the damage, coverage by both
ORM and the insurance company is jeopardized. ORM and the insurance company have the
authority to deny a claim if a repair is made without its knowledge or if the recommended
procedures for a repair are not followed. The agency will be fully responsible for any payments due on the repaired aircraft or water vessel if ORM or the insurance company refuses to pay the claim.
If you have any questions or need additional information, please contact Walter Lockhart in the
Claims Transportation Unit at (504) 342-8466.