Insurance Requirements for Vendors and Contractors
All contractors and vendors (service providers, suppliers, building or maintenance contractors, etc.) coming on to Loyola's premises to do work are required to carry insurance to protect themselves and Loyola University New Orleans. Insurance is necessary to cover any claims or losses for which the contractor or vendor may be responsible.
All contractors and vendors must procure, pay for, and maintain the required insurance coverage for the entire term of the purchase agreement or contract. All insurance policies are subject to the approval of the University and must be issued by insurance companies authorized to do business in the State of Louisiana and with an A.M. Best rating of A-:VIII or better. All insurance policies will contain a waiver of subrogation in favor of the University, and, except for Workers Compensation, shall name Loyola University New Orleans as additional insured.
Required Coverages
The types of insurance coverage and standard limits required by Loyola are described
below. Loyola reserves the right to increase the minimum acceptable limits of coverage
depending upon the activity involved in the contract or service.
The size and scope of the contract and the potential risk exposures involved will dictate the minimum limits of coverage required. The University's standard requirements are divided into three sets, indicating typical risk levels:
Commercial General Liability (Broad Form)
Must include appropriate Personal Injury Liability, Independent Contractor's Liability, Contractual Liability, Product Liability, Completed Operations Liability and Property Damage Liability with a minimum limit of liability of $1,000,000 per occurrence for bodily injury and property damage.Workers Compensation & Employers Liability
As required by the State of Louisiana covering the requirements for all of the contractor/vendor's employees performing duties under a purchase agreement or contract. If any work is sublet, the contractor or vendor shall require all subcontractors to provide Workers Compensation Insurance for all of the latter's employees, unless such employees are covered by the protection afforded by the contractor or vendor. Employers Liability coverage must have a minimum limit of liability of $500,000 per occurrence.Automobile Liability
Required of any contractor or vendor utilizing a vehicle in the performance of any purchase agreement or contract. Must cover, but not be limited to, hired and non-owned vehicles with a minimum combined single limit of liability of $1,000,000 per occurrence for bodily injury, death, and/or property damage.Professional Liability - Errors and Omissions
Required of various professional service providers such as architects, engineers, consultants, etc.Builder's Risk Insurance
Required for facility improvement, renovation and construction projects.Excess, Umbrella and Specialized Insurance
Required for projects and contracts that have special circumstances or hazards or are of large scope.
Evidence of Coverage
A Certificate of Insurance is a standard document issued by an insurance company
to provide proof of an insurance policy. Departments should request Certificates
of Insurance from contractors/vendors immediately upon an agreement to pursue
a purchase or contract. Copies of the certificates must be forwarded to the Risk
Management Office (Box 11) for approval.
Certificates must be received and approved by the University before work commences. Certificates must verify waiver of subrogation in favor of the University, shall indicate the University as additional insured, and shall specify that in the event of cancellation or material change in coverage, at least thirty (30) days prior written notice will be given to the University concerning such event.
Acceptability of Coverage
If at any time any of the insurance policies shall become unsatisfactory to the
University as to form or substance, or if a company issuing any such policy shall
become unsatisfactory to the University, the contractor or vendor shall obtain
a new policy and submit a new certificate of insurance.
Subcontractors
The contractor or vendor shall include all subcontractors as insureds under its
policies or shall furnish separate certificates for each subcontractor. All coverages
for subcontractors shall be subject to all of the requirements stated herein.
Facility Improvements
The Physical Plant department must review any purchase agreements or contracts
for operations or services involving repairs, maintenance or alteration to the
University's buildings or equipment. Any department considering this type of
activity is advised to contact Physical Plant prior to making financial commitments.
Risk Management will review the scope of the project to determine additional
insurance requirements, if required. The Facility Improvements standard insurance
requirements should be used.
Construction and Renovation Projects
Construction or renovation projects with limited scope and with a cost of less
than $100,000 are subject to the Facility Improvements standard. These minimum
requirements may be increased depending upon the scope and specific hazards related
to the project.
Construction or renovation projects exceeding $100,000 in cost are subject to the Construction Projects standard. Physical Plant and Risk Management will work closely to ensure the University's interests are properly protected.
Exhibits
