Risk Management and Workers' Compensation

Exhibit 1: Insurance Requirements for Contractors - Non Construction

OVERVIEW: For the purpose of this Requirement, a Contractor is considered any contractor (other than for construction), supplier or vendor providing a service to The University of Toledo (“UT”). See Exhibit 4 for Construction/Renovation Services.

Any department entering into a Contractor Service Contract needs to forward the Contract to UT’s Purchasing Department. UT needs to be aware of all such Contracts. Purchasing works with departments, as well as the Office of Legal Affairs, to assure that UT’s interests are protected.

The following are contracting requirements regarding the provision of insurance that should be included in the Contract. Keep in mind; these are minimum limits that should be increased for any activities that are considered having a higher risk. Any questions or deviations from these guidelines should be discussed with the Administrator for Risk Management.


INSURANCE REQUIREMENTS: Contractor will procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, or the Contractor’s agents, representatives, employees or subcontractors.

A.  Minimum Scope and Limit of Insurance: Coverage will be at least as broad as:

1. Commercial General Liability (CGL) will be on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit will apply separately to this project/location or the general aggregate limit will be twice the required occurrence limit.

2. Automobile Liability will have no less than $1,000,000 combined single limit per accident for bodily injury and property damage.

3. Workers’ Compensation will be with Statutory Limits and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease. (Not required if Contractor provides written verification it has no employees)

4. Professional Liability (Errors and Omissions): Insurance appropriate to the Contractor’s profession, with limits no less than $1,000,000 per occurrence or claim, $3,000,000 aggregate. (If applicable – see end note.)

5. Cyber Liability, if applicable, will include Technology Errors and Omissions, Cyber-Risk and Privacy Liability covering liabilities for financial loss resulting or arising from acts, errors or omissions in rendering services, or from data damage/destruction/corruption, including without limitation, failure to protect privacy, unauthorized access, unauthorized use, virus transmission, denial of service and loss of income from network security failures in connection with the services provided, with a minimum limits of $5,000,000 per occurrence or claim and $10,000,000 aggregate.

B.  Higher Limits: If the Contractor maintains higher limits than the minimums shown above, UT requires and will be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage will be available to UT.

C.  Additional Insured Status: The State of Ohio, The University of Toledo, its Trustees, officers, employees, students and volunteers are to be covered as additional insureds on the auto policy with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. This is evidenced on the Certificates of Insurance as well as a copy of an endorsement to the Contractor’s insurance.

D.  Primary Coverage: For any claims related to the Contract, the Contractor’s insurance coverage will be primary insurance as respects to the State of Ohio, UT, its Trustees, officers, employees, students and volunteers. Any insurance or self-insurance maintained by The State of Ohio, UT, its Trustees, officers, employees, students and volunteers will be excess of the Contractor’s insurance and will not contribute with it.

E.  Exclusion from UT Insurance Coverage: The Contractor agrees and acknowledges that it and any of its employees, agents, subcontractors providing service to UT are 1) independent contractors; 2) are not employees, agents or representatives of UT; and 3) are not controlled or supervised by UT, and therefore, are specifically excluded from any coverage under any insurance policy of UT.

F.  Notice of Cancellation: Each insurance policy required above will provide that coverage will not be canceled, except after a thirty (30) day notice to UT.

G.  Waiver of Subrogation: Contractor must grant to UT a waiver of any right to subrogation which any insurer of said Contractor may acquire against UT by virtue of the payment of any loss under such insurance. Contractor must agree to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not UT has received a waiver of subrogation endorsement from the insurer.

H.  Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared to and approved by UT. UT may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

I.  Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to Risk Management.

J.  Claims Made Policies: If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown, and must be before the date of the Contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract work.

3. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract work.

K.  Subcontractors: Contractor will require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor will ensure that UT is an additional insured on insurance required from subcontractors.

L.  Verification of Coverage: Contractor will furnish UT with original Certificates of Insurance and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by UT before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Contractor’s obligation to provide them. UT reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Certificate Holder on Certificates of Insurance should read:

            The University of Toledo

            Attn: Purchasing Department

            Mail Stop 460

            2801 West Bancroft Street

            Toledo, OH 43606


Note: Professional liability insurance coverage is required if the Contractor is providing a professional service regulated by the state. (Examples of Contractors regulated by the state are insurance agents, professional architects and engineers, doctors, certified public accountants, lawyers, etc.). However, other professional Contractors, such as computer or software designers, and services providers such as claims administrators, should also have professional liability. If in doubt, consult with the Administrator for Risk Management.


Last Updated: 11/29/17