Risk Management

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.

Types of Insurance - Basic Definitions

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