Contracts Risk Management

Documents are examined to ensure appropriate insurance requirements are included and that outside organizations maintain adequate protection. Standard coverage typically reviewed includes:

• General liability
• Automobile liability
• Workers’ compensation

When applicable, additional insurance coverage may also be required for exposures such as:

• Medical malpractice
• Errors and omissions liability
• Crime coverage
• Employee dishonesty
• Pollution liability
• Professional liability (including directors and officers)
• Cyber risk liability
• Data breach expenses
• Property insurance
• Equipment breakdown
• Fine arts coverage
• Other specialized insurance as appropriate

In most contractual arrangements, the University requires the outside organization to list the University as an additional insured on its general liability policy. This helps protect the University and its employees from claims or lawsuits arising from the other organization’s negligent actions.

When an outside party uses University property or equipment, the University may also need to be listed as a loss payee on the organization’s fine arts or property insurance policy, in addition to being named as an additional insured when appropriate.

Indemnification provisions are reviewed to identify situations where an organization may attempt to shift its liability or risk of loss to the University. When such provisions arise, recommendations are provided to the Office of General Counsel since these clauses may not always be acceptable.

Conversely, when appropriate, Risk Management may recommend adding an indemnification clause to protect the University from liability that could arise from another organization’s actions.

Most agreements with outside organizations require the organization to provide a Certificate of Insurance (COI) as proof that the required types and levels of insurance coverage are in place.

Similarly, the University may provide a COI to outside entities when proof of the University’s coverage is required.

The Office of Risk Management’s contract review process is typically coordinated through University departments responsible for managing contracts and agreements, including:

• Procurement
• Office of General Counsel
• Financial Administration