Contracts Risk Management
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 ensure that an outside organization maintains reasonable insurance protection with regard to:
- General liability
- Automobile liability
- 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
- Data breach expenses
- Property
- Equipment breakdown
- Fine arts
- Other specialized insurance that may be appropriate
- In most instances 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 from 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 addition 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 (COI) 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 (COI) 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, they should contact the Office of Risk Management directly for advice at (434) 592-3582 (leave a message and someone will return your call as soon as possible).