It's not uncommon for universal chucks to not run perfectly, although for a small chuck, .005" does seem extreme. A universal would be described as any chuck that moves all jaws in unison.
If your chuck has a backing plate that is held to the front portion of the chuck by screws, it's possible to re-orient the two such that the chuck might run closer, but be advised that it's also common for different diameters to run differently. The scroll that propels the jaws may not be perfectly centered, or perhaps has a slightly drunken thread itself, so as the position changes according to size, so to does the level of concentricity. Armed with that knowledge, before attempting any adjustments, try gripping a range of sizes to ascertain if you chuck is consistent----always high in the same place. If so, it's a candidate for either grinding of the jaws, or re-registering the front half with the back half.
If you find the chuck is consistent, and you'd like to grind the jaws, it's best to pose another question in that regard. Jaws, in order to be ground successfully, must be loaded properly. Right now, that's beyond the scope of this discussion, for it may not be the problem.
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