Outside Vendors, Providers, Contractors
Required Certificate of Insurance
The University can be exposed to risk when using contractors, consultants, service providers, and/or vendors to provide goods or services or when outside organizations and individuals use University premises and/or facilities. University policy requires that contractors, consultants, service providers, and/or vendors doing business with the University, as well as outside organizations and individuals using University premises and/or facilities, maintain liability insurance and other insurance as necessary to reasonably protect the University's financial interests, and in amounts deemed adequate by the University. In order to protect the University's interests, and other parties as necessary, the University must receive a Certificate of Insurance prior to the commencement of any work and/or scheduled event.
Indemnification
Contractors, consultants, service providers and/or vendors who provide goods or services to the University, as well as outside organizations and individuals who use University premises and/or facilities, shall indemnify the University against all loss, damage, and expense which it may sustain or for which it will become liable on account of injury to or death of persons, or on account of damage to or destruction of property resulting from the performance of work, the provision of goods or services, and/or the use of University premises and/or facilities, or due to or arising in any manner from Providers'/Users' wrongful acts or negligence, or of any employee of any of them.
Minimum Insurance Requirements
Types and amount of coverage have been established by the University for all parties required to show evidence of satisfactory insurance coverage. Details of these requirements are provided in Section 6, Minimum Insurance Requirements for Vendors of the Business and Financial Policies and Procedures manual.
Professional & Artistic Services Contracts less than $5,000
To facilitate the contracting process University Risk Management has categorized these types of contractors as either low, medium, or high-risk contractors.
Risk Matrix Table
Insurance Requirement
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Low Risk – Contractor is a sole proprietor.
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Medium Risk – liability limits are minimums that are required
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High Risk – liability limits are minimums that are required
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General Liability
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Waived
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$500,000 per occurrence
(May be waived using the Exceptions process)
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$1 million/occurrence and $2 million aggregate
(May be waived using the Exceptions process)
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Workers’ Compensation
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Waived, if a contractor is a sole proprietor
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Waived, if contractor is a sole proprietor
Or, amounts as required by State Statute, and $100,000/$500,000/$100,000 employer liability limits
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Waived, if contractor is a sole proprietor
Or, amounts as required by State Statute, and $500,000/$500,000/$500,000 employer liability limits.
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NOTE: If a company is in the construction business, trucking business operating at a construction site, or other extra hazardous occupation, 820 ILCS 185 of the Illinois Combined Statutes requires that even "sole proprietors" must obtain insurance.
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Auto Liability
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Personal auto liability as per Illinois State law, but no evidence is required
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$500,000 Combined Single Limit
Or, personal auto liability as per Illinois State law, but no evidence is required
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$1 million Combined Single Limit
Or, personal auto liability as per Illinois State law, but no evidence is required
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Professional Liability
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Waived
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Waived
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$1 million per occurrence (unless Risk Management grants a waiver)
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Examples of the types of contractors who might fit these risk categories are provided in Classifications of Contractors (PDF).
Requests for exceptions to these limits are discouraged, however, if a unit feels they have a compelling reason to ask for an insurance waiver they may use the Exceptions form. Please see Exceptions Form for P&A Services contract under $5,000 (MS Word).
UORM Services
UORM staff can assist University units with:
- Review of contract language, especially relating to insurance and indemnification provisions
- Issuance of a University certificate of insurance when a University unit is required to produce one; see Insurance Certificate Requests
For additional and detailed information please review Section 6, Minimum Insurance Requirements for Vendors of the Business and Financial Policies and Procedures manual.
Who to Contact