OVERVIEW: At The University of Toledo (“UT”), all chartered aircraft needs are handled by the Purchasing Department. Purchasing works with departments, as well as the Office of Legal Affairs, to ensure departmental needs are met, qualified contractors are utilized and UT’s interests are protected.
The following are contracting requirements regarding the provision of insurance. Contractors must meet or exceed these requirements. Any questions or deviations from these guidelines should be discussed with the Administrator for Risk Management.
INSURANCE REQUIREMENTS: Contractor shall 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 shall be at least as broad as:
1. Comprehensive Airline Liability (CAL) will be on an “occurrence” basis, including comprehensive general liability, bodily injury and property damage to third parties, passenger liability, contractual liability, baggage liability, completed operations liability, with limits no less than $5,000,000 per passenger.
2. Personal injury to third parties, other than passengers, with limits no less than $25,000,000 per occurrence and in the aggregate.
3. Workers’ Compensation will be with Statutory Limits and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
B. Higher Limits: If the Contractor maintains higher limits than the minimums shown above, UT requires and shall 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 shall 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 with respect to the operations of the aircraft by or on behalf of the Contractor. This is evidenced on the Certificate 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 shall 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 shall be excess of the Contractor’s insurance and shall not contribute with it.
E. Exclusion from University 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 University insurance policy.
F. Notice of Cancellation: Each insurance policy required above shall provide that coverage shall 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 contract work.
K. Subcontractors: Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that University is an additional insured on insurance required from subcontractors.
L. Verification of Coverage: Contractor shall 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 shall 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