Contracts Risk Mangement

Contracts, agreements, and procurement provisions are reviewed by the Office of Risk Management in an effort to protect the University from potential financial losses in its interactions with outside organizations. To do this, the following issues are reviewed:

  • Documents are reviewed to determine whether the appropriate insurance provisions are incorporated to insure that an outside organization maintains reasonable insurance protection with regard to general liability, automobile liability and workers compensation. Likewise, when applicable, other insurance coverage is required for such exposures as medical malpractice, errors & omissions liability, crime, employee dishonesty, pollution liability, professional liability, directors & officers, cyber risk liability and data breach expenses, property, equipment breakdown, fine arts, and other specialized insurance that may be appropriate.
  • In most instance where there is a contract we will require as a part of the contract for an outside organization to add the University to its general liability coverage as an additional insured, which will protect the University and its employees for claims or lawsuits arising out of the other organization's negligent activities. In cases where the outside party is using University property or equipment, the University is to be added as a loss payee on its fine arts or other property insurance as appropriate in additional to being added as an additional insured.
  • We review indemnification clauses whereby an organization may attempt to transfer its risk of loss to the University, and make recommendations to General Counsel since these clauses may not always be acceptable. Conversely, when appropriate we may recommend that an indemnification clause be added that would protect the University from vicarious liability arising from another organization's activities.
  • We will generally require that executed agreements with outside organizations require a certificate of insurance be provided by that organization, which will provide proof to the University that it is maintaining the appropriate types and levels of insurance coverage. Likewise, we provide such proof of coverage on behalf of the University to outside entities when necessary.
  • The Office of Risk Management's review process is normally coordinated through University departments that manages University contracts and agreements, such as Procurement, Office of General Counsel, Financial Administration, etc. However, if a University unit has an agreement it is working with that is not being coordinated by a University contract or procurement office, it should contact the Property & Liability Risk Management Office directly for advice.

Please see the Procurement Department's Contracts Policy page for additional information regarding contract use at Liberty University.