Risk Management and Workers' Compensation


The purpose of this website is to serve as a guide in developing proper insurance requirements in contracts. This guideline explains insurance requirements that should be incorporated in most contracts, including those with contractors, service providers, vendors, and chartered transportation providers (collectively “Contractors”).   It is also important to verify Contractor compliance with those requirements during the term of the contract, so drafting good contract language is only the initial step in protecting the assets of the University.

Why bother? Requesting and verifying insurance coverage is time consuming and often does not seem to make a difference since most contracts are executed without problem. However, if a problem does develop, having appropriate Contractor’s insurance in place can save the University millions of dollars. Contractor liability can become University liability, particularly if the contractor is uninsured or underinsured.

It should be noted, however, that risk management is more of an art than a science, and therefore, although this information will provide guidance in 90% of the cases encountered, there will also be exceptions to the rules. Special service contracts, such as computer programming, accounting services, etc., require unique coverage and insurance requirements can be crafted for the specific situation at hand. If you encounter situations that fall outside these recommendations, please do not hesitate contacting Risk Management.


Click on the following samples of contract language for insurance requirements:

Exhibit 1: Contractors – includes contractors, suppliers and vendors providing non-construction services to the University.

Exhibit 2: Chartered Aircraft– includes the hiring of professional aircraft providers for group transportation. Use of personal aircraft or commercial airlines is not included.

Exhibit 3: Chartered Ground Transportation– includes the hiring of non-University vans, limousines, buses or road coaches and other forms of ground transportation for group transport.

Exhibit 4: Construction/Renovation Services– includes local, University funded construction and renovation projects.

Last Updated: 6/27/22