Contract Approval Requirements

The university can be exposed to risk when using contractors, consultants, service providers, and/or vendors providing goods and/or services or when outside organizations and individuals use university premises and/or facilities.  University policy requires that contractors, subcontractors, consultants, service providers and/or vendors, as well as outside organizations and individuals using University premises and/or facilities, to maintain liability insurance and other insurance as necessary to reasonably protect the university’s financial interests in amounts deemed adequate by the university. 

 

Contract Approval Requirements

1. The contract must meet University Minimum Insurance Requirements

Standard Insurance Coverage Requirements:

  • Chart A demonstrates the minimum required coverage for general contracts.  The University reserves the right to require higher limits from a particular contractor or vendor for a particular project or event.  Additional limits are required for arrangements depicted in Graph B. 
  • Exceptions to the University Minimum Insurance Requirements may be developed by the University’s Insurance Committee, in conjunction with an individual unit or third party, following a process of risk identification and evaluation.  In such situations, it may be determined that little or no risk is involved, in which case the limits may be lowered or the requirement eliminated.  Conversely, it may be determined that additional risk is involved, in which case the limits may be raised.

 

Chart A: Standard Limits (Non-High Risk Service Vendors)

COVERAGE TYPEMINIMUM LIMIT

Employer’s Liability

$500,000 per occurrence

Commercial General Liability

$1,000,000.00 per occurrence

$3,000,000.00 in the aggregate

Auto

$1,000,000.00 per occurrence

$3,000,000.00 in the aggregate

Bodily Injury

$1,000,000.00 per occurrence

 

High Risk Service Vendors Insurance Requirements

High Risk Services Procurement means a contract or procurement that significantly increases the possibility of loss or exposure to loss to the University from a third party.

The Standard Limits are the minimum acceptable for any vendor, but there are specific requirements for vendors of high risk services that supersede the Standard Limits.

Criteria of High Risk Services

  • Service presents a severe risk of injury or death to students, faculty, staff, and visitors.
  • Service presents a severe risk of extensive property damage to institutionally or privately owned property.
  • Service has a history of negligently causing injury or damage to property.
  • Likelihood is great the service provider will have difficulty procuring and maintaining insurance because of the hazards of the work.

 

Chart B: Limits for High Risk Service Vendors

COVERAGE TYPE

MINIMUM LIMIT

Air Charter - $20M

General Liability of at least $10M

Architect/Engineer (not new construction)

General Liability of $2.5 M per occurrence/aggregate

Asbestos Abatement                

General Liability of $5,000,000.00 per occurrence/aggregate

Athletic Facilities/Related Activities – Airplane Charter ($20M)

General Liability of at least $100M

Athletic Facilities/Related Activities – Independent Consultant Coach

General Liability of $1,000,000.00 per occurrence/aggregate

Athletic Facilities/Related Activities – Tournaments, Practices, Competitions, Athletic Demonstrations

General Liability of $2M per occurrence/aggregate

Bus Charter ($20M) – Review the “Charter Bus Transportation Recommendations” prior to hiring a bus company         

General Liability of at least $10M

Consulting (General Management, Software)

 

May require additional Professional and/or Errors (E&O) coverage  

General Liability of $1,000,000.00 per occurrence/aggregate

Custodial Services

General Liability of $1,000,000.00 per occurrence/aggregate

Electrician (not new construction)

General Liability of $2.5 million per occurrence/aggregate

Elevator Maintenance – this applies to all passenger & freight elevators

General Liability of $5,000,000.00 per occurrence/aggregate

Exterior Contractor (i.e. facades, sidewalks, concrete work)

General Liability of $2.5 million per occurrence/aggregate

Exterminator

General Liability of $2.5 million per occurrence/aggregate

Floor refinisher

General Liability of $1,000,000.00 per occurrence/aggregate

Food Service (food supply, vending, manual/catered)

General Liability of $1,000,000.00 per occurrence/aggregate

Hazardous Waste

Any contractor is required to have adequate pollution, solid or hazardous material/waste, bio hazard or asbestos coverage(s) if working anywhere associated with those exposures (transportation, disposal, recycling providing remediation, repair, working adjacent to areas containing hazardous components)

General Liability of $5,000,000 per occurrence (Loss)/aggregate

High Risk Entertainers/Speakers – this applies to a broad range of contracted services including, but not limited to pyrotechnical displays, controversial speakers, and the like.

General Liability of $1,000,000.00 per occurrence/aggregate

Independent Consultant Coach

General Liability of $1,000,000.00 per occurrence/aggregate

Industrial Food Service Vendor

General Liability of $5,000,000 per occurrence (Loss)/aggregate

Inflatable Attraction & Amusement Rental (i.e. carnival attractions, mechanical bull, hot air balloon rides)

General Liability of $2,000,000.00 per occurrence/aggregate

Outdoor concerts

General Liability of $2,000,000.00 per occurrence/aggregate

Products, processes & design

May require Trademark & Intellectual Property (IP) coverage

Professional Health Service Provider (MD, RN, Therapist)

General Liability of $2,000,000.00 per occurrence/aggregate

Photographer/Videographer

General Liability of $1,000,000.00 per occurrence/aggregate

Repair/Maintenance/Onsite Installation Work

General Liability of $2,000,000.00 per occurrence/aggregate

Roofer & Scaffolding Work

General Liability of $5,000,000 per occurrence/aggregate

Transportation Services – this applies primarily to people, if air transport, see Air Charter (i.e. limo, car with driver)

General Liability of $2,000,000.00 per occurrence/aggregate

Vendor will utilize/view PII and/or PHI

Cybersecurity ad privacy coverage should be carried by the contracting party to protect PII and/or PHI.  The University may require cybersecurity coverage for all media (electronic data either on a removable device/media) depending on the scope of the service being provided.

General Liability of $5,000,000 per occurrence (Loss)/aggregate

2. A Certificate of Insurance (COI) or Memorandum of Insurance (MOI) must be in place

What is a COI or MOI?

  • A COI is proof of coverage for liability for a given event or activity; however, it is not a substitute for the actual insurance policy.  In effect, it provides evidence of insurance to meet the requirements stipulated in a contract.
  • A MOI must be issued to demonstrate compliance with the insurance required to do business with the University. 

 

Why do we need one?

  • A COI or MOI is critical to assure that the University has the insurance protections afforded by the contractual requirements.

 

Does the University have to prove it has general liability insurance protections in place?

  • Yes, the University frequently must prove it has general liability insurance protections in place by presenting the University Liability COI          

 

Does the University have to prove it has property insurance protections in place?

    

Do students have to prove they have professional insurance in place?

  • Yes, students frequently must prove professional insurance is in place prior to clinical rotations, training, practicums, etc. by presenting the Student “In Practicum” COI

 

COI or MOI requirements

  • The COI or MOI must:
    • Be on an Accord Form or equivalent.
    • Provide occurrence coverage.  If a contractor has claims made coverage, instead of occurrence coverage, the contracting unit for the University must require the contractor to name The Ohio State University and its Board of Trustees as an additional insured under the Contractor’s General Liability Policy.
    • Demonstrate that the insurance policy is underwritten by a carrier rated at least “A” in Best’s Key Rating Guide or “A” as indicated by A.M. Best Ratings.  The rating shall be the rating at the time of submission, and the contractor, vendor or service provider must agree to maintain such insurance for the duration of the project or the term for which services will be rendered.
    • State that the insurance of the contractor is primary as to any other valid and collectable insurance in force.  The contractor’s insurance policy is primary and any coverage the University carries is excess and noncontributory.
    • Statement that the contractor’s policy is extended to cover the liability assumed by the insured under the terms of its contract with the University.
    • The contractor will include a waiver of subrogation in the University’s favor and they will indemnify the University.

 

When do we need a COI or MOI?

  • On notification of award and prior to issuance of a contract, the contractor (vendor) shall provide the ORM with the requirements listed above.

 

Where should the COI or MOI be forwarded?

  • University contracts and agreements that are centrally controlled should have the Certificate of Insurance forwarded to the following address:

The Ohio State University, Risk Management & Insurance, 1961 Tuttle Park Place, 2nd Floor (Ohio Stadium), Rm. 215D, Columbus, Ohio 43210

3. Contracts must have an additional Insured Endorsement   

The University and its Board of Trustees must be named as an additional insured.  An offer to name the University as a certificate holder is not acceptable. The agreement must state that the contractor’s insurance is primary as to any other valid and collectible insurance in force.

4. Contracts must be reviewed by Legal Affairs

All contracts for services provided to the University must be reviewed and approved per the guidelines from Legal Affairs.  If unsure as to whether or not a contact or agreement should be reviewed by Legal Affairs, contact 292-0611 for assistance. 

5. Contracts are to be signed only by those with delegated contract signature authority

A person with delegated contract signature authority is formally designated through a letter signed by the Senior Vice President for Business and Finance.

6. Contracts must contain an Indemnification/Hold Harmless provision

Contractors, (including subcontractors), consultants, service providers and/or vendors who provide goods or services to the University, as well as outside organizations and individuals who use university premises and/or facilities, (collectively referred to as Providers/Users) shall indemnify the University against all loss, damage, and expense which it may sustain or for which it will become liable on account of injury to or death of persons, or on account of damage to or destruction of property resulting from the performance of work, the provision of goods or services, and/or the use of University premises and/or facilities, or due to or arising in any manner from Providers’/Users’ wrongful acts or negligence, or of any employee of any of them. University guidelines state the following parties will defend and hold the University harmless from any loss, injury, or damage occurring during the performance of any work or activity and to indemnify the university and its Board of Trustees for any loss sustained as a result of negligence

  • Independent contractors or consultants (including their employees, agents or subcontractors) performing work under contracts, service agreements, and/or Memorandums of Understanding; 
  • Outside organizations and individuals (including their employees, agents or subcontractors) using University’s premises or facilities; and
  • Businesses (including their employees, agents or sub-contractors) providing services to the University.

7. Contracts are required to contain Cancellation Clause Conditions

Contracts must state that if any of the required insurance policies are canceled or have a material change in coverage before the expiration date of the contract or agreement, the issuing insurance company shall provide for thirty (30) days prior written notice to the University.