California State University, Chico

A Department of Business & Finance

Risk Management: Minimum Insurance Requirements for Auxiliary Operation Agreement

Risk Management is committed to minimizing losses that may arise from or interfere with California State University, Chico's pursuit of its mission to educate students.

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Auxiliary Operation Agreement from Executive Order No. 849

  • General Liability:  comprehensive or commercial form minimum limits each occurrence $1,000,000, General Aggregate $2,000,000.
  • Employer Liability:  $1,000,000.
  • Business Automobile Liability:  minimum limits for Owned, Scheduled, Non-Owned, or Hired Automobiles with a combined single limit of not less than $1,000,000 per occurrence.
  • Workers' Compensation:  as required under California law.
  • Hold Harmless Provision:  Auxiliary agrees to indemnify, defend, and save harmless the State of California, the Trustees of The California State University, California State University, Chico and the officers, employees, volunteers and agents of each of them (all of which are hereinafter referred to as "State") from any and all loss, damage, or liability that may be suffered or incurred by State, caused by, arising out of, or in any way connected with the operations of Auxiliary.

Long-term leases of real property require case-by-case analysis to determine insurance requirements and will vary depending on the nature of the agreement.  Insurance requirements should be commensurate with the activities associated with the lease that may cause damage to person or property.

Evidence of Adequate Coverage - Insurance Requirements

Evidence of adequate insurance coverage is required by furnishing to the University a certificate of insurance that includes an additional insured endorsement and each insurer shall have an A.M. Best (or equivalent) rating of at least A:VII unless otherwise agreed to by the University.

An additional insured endorsement must accompany each certificate (workers' compensation excepted).  Standard insurance form #CG 20 10 10 01 is accepted - Endorsement is to be on a separate page and the wording on the endorsement is to be exactly as follows:

  • The State of California; the Trustees of The California State University; California State University, Chico; and the officers, employees, volunteers and agents of each of them are included as additional insureds.
  • Coverage shall not be cancelled, modified, or reduced without thirty (30) days advance written notice to the University, delivered by certified mail, return receipt requested.