Risk Management: Insurance Requirements for Agreements, Contracts, and Purchases

CSU Executive Order No. 849 assigns responsibility to each campus president to implement insurance requirements for agreements, contracts, and purchases.  In the practice of good risk management, we attempt to transfer the risk of accidental loss to vendors, suppliers, contractors, and users of campus facilities by requiring them to insure themselves and the campus against claims associated with their products, services, and activities.

This transfer of risk is not effected until the other party issues the required policies and endorsements at required coverage limits.*  The insurer must meet or exceed requirements for balance sheet strength and operating performance and be admitted (licensed) to conduct business in California.

In addition to meeting insurance requirements, the other party shall agree to specific contract provisions to hold harmless and indemnify and defend the University.  Written agreements between the University and another party shall be reviewed by Procurement and Contract Services, and all requirements shall be met before work commences, before products are delivered, or before facilities are occupied.  The University Risk Management department and Procurement and Contract Services will assist you in complying with EO 849 and securing the products and services you need.

*  The minimum insurance limits were established for common low-risk activities.  Higher-risk activities may require higher levels of coverage as determined by the Risk Manager after reviewing the scope of work and conducting a risk assessment.

• Auxiliary Operation Agreement
• Facilities Use Agreements (campus facilities use by off-campus organizations)
• Food Service Providers
• Hazardous Substances and Waste Removal Services
• Placement Agreements
• Public Works Construction Contracts
• Service Agreements, Contracts, and Purchases (including Vendors and Contractors)