For Service Agreements, Contracts, and Purchases (including Vendors & Contractors)
The majority of service orders and contracts necessitate general insurance requirements as follows:
- 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 State Law.
- Errors and Omission: required for professional service consultants and professional service design architects/engineers.
- Hold Harmless Provision: reference CSU General Provisions for Service Agreements as maintained in the Contract Resource Library.
Vendors are required to provide evidence of satisfactory coverage prior to the commencement of any services.
Exceptions: The limits shown above will generally be required for service providers involved in low-risk activities. Higher limits will be required for service providers performing potentially high-risk activities.
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). The 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; Chico State Enterprises; and the officers, employees, volunteers and agents of each of them are included as additional insureds.
- Coverage shall not be canceled, modified, or reduced without thirty (30) days advance written notice to the University, delivered by certified mail, return receipt requested.
- Business (or Commercial) AutomobileProvides coverage for business automobiles regardless of whether they are owned, leased, hired or borrowed.
- Employer Liability/Workers Compensation InsuranceProvides four types of benefits for job related injuries or disease. They are medical care, disability, death, and rehabilitation.
- Environmental Impairment (Pollution)Covers negligent acts and/or omissions by the individual or organization resulting in damage to the environment.
- Equipment FloaterCovers equipment that moves from location to location from perils of nature or collision.
- Errors and OmissionsCoverage for various professions that require protection of negligent acts and/or omissions resulting in bodily injury, personal injury, and/or property damage liability to a client. Typically architects are required to carry Errors and Omissions.
- Excess InsuranceCoverage above the primary amount of insurance coverage.
- Fidelity BondCoverage that guarantees that the insurance company will pay the insured business for money or other property lost because of dishonest acts of its employees. The bond covers dishonest acts such as larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, or willful misapplication.
- Garage or Garage Keepers InsuranceCoverage for injury, property damage or destruction for which the insured garage or its representative become legally liable resulting from the operation of the garage.
- General LiabilityCoverage for an insured when negligent acts and/or omissions result in bodily injury and/or property damage when someone is injured as the result of using the product manufactured or distributed by a business or when someone is injured in the general operations of a business.
- Liquor LiabilityLegislation that makes an establishment or individual selling liquor responsible for injuries caused by its customers to a third party.
- Professional Liability InsuranceCoverage for specialists in various professional fields that work with the general public and have greater than average expertise in particular areas, for example lawyers, surgeons, druggists, and insurance agents.
- Property InsuranceIndemnifies an insured whose property is stolen, damaged or destroyed by a covered peril.