Insurance Requirements

The system-wide Technical Letter RM 2012-01 defines policy and insurance requirements required by the California State University. The insurance limits and hold harmless provisions as specified in this letter are required unless the campus, after following the “risk identification and evaluation” procedure as described herein, determines that the limits should be altered. For construction projects, The California State University established a Builders Risk Insurance Program (BRIP; aka: Course of Construction (COC) insurance) through which campuses enroll their major projects for course of construction insurance coverage and an Owner Controlled Insurance Program (OCIP) through which campuses enroll their major projects for general liability and workers compensation insurance coverage. Also available are Owners Protective Professional Indemnity and Contractor’s Pollution Liability coverages.

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 all insurance requirements 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.