University Insurance Requirements Policy

Policy Section
Insurance and Risk Management

Effective Date
February 25, 2011
Last Updated
October 3, 2019
Responsible Executive
Vice President for Finance and Treasurer
Responsible Office
Office of Risk Management
Contacts
Megan Adams
Assistant Treasurer and Director of risk management
(609) 258-2169

I. Summary

The University requires outside parties that will be performing work or providing services to the University, or those using University facilities, to provide evidence of certain types of insurance coverage at specified minimum limits. In most instances, outside parties are required to name the University as an additional insured and to provide a certificate of insurance (COI) before commencing work or before using a University facility.

Please see also the University’s contracting website.

II. Who is Affected by this Policy

Any faculty, staff, alumni, or student contracting with outside parties to provide work or services to the University.

Any outside party providing work or services to the University.

III. Definitions

Certificate of Insurance

A document issued by an insurance broker or agent providing details regarding insurance maintained by the insured. The document is provided to a third party to satisfy certain contractual requirements.

General Liability Insurance (GL)

A form of insurance that provides coverage for claims of negligence resulting in bodily injury, property damage or loss, personal injury, and advertising.

Professional Legal Liability

Insurance coverage protecting against legal liability resulting from negligence, carelessness, or a failure to act causing bodily injury or property damage.

Worker’s Compensation

A form of insurance that provides wage replacement and medical benefits for employees who are injured or become ill in the course and scope of employment.

IV. Policy

INSURANCE REQUIREMENTS FOR OUTSIDE PARTIES
In general, all outside parties that provide work or services, or that use University facilities, are required to carry the following types and amounts of insurance coverage.

General Liability (GL)
The University requires all third-parties who will be performing work or providing services to or those using University facilities to carry general liability insurance that includes:

  • Bodily injury and property damage;
  • Personal and advertising injury;
  • Contractual liability;
  • Products and completed operations; and
  • Per occurrence/aggregate limit.

The coverage limits are specified in this table are minimum amounts based on the type of work, service, or activity. The University reserves the right to require higher limits from a particular contractor or vendor for a particular project or event.

Note: General liability insurance is not required for educational speakers or instructors for academic presentations.

Worker’s Compensation
Contractors and suppliers with employees must carry the State statutory minimum worker’s compensation coverage limits and $500,000 for employer’s liability. This coverage only applies when required by state law.

Automobile Liability
If the outside party’s use of a vehicle is integral to the work to be performed or for the services to be provided to the University, the outside party must carry auto liability coverage that includes:

  • Bodily injury and property damage;
  • $1,000,000 combined single limit per occurrence; and
  • Includes owned, non-owned and hired vehicle coverage.

Professional Liability
When a supplier has a professional designation or license and/or is providing professional services, the University often requires this coverage in the following minimum limits:

  • $1,000,000 per occurrence; and
  • $1,000,000 in aggregate.

This coverage is required in addition to general liability (GL) coverage. The minimum limit for architects and engineers is $2,000,000 and may be increased depending upon the nature of the services to be provided.

Insurance Language in Contracts & Agreements
The University has established standard language regarding its insurance requirements for outside supplier contracts and agreements. Please find complete details on the University’s contracting website. If you have questions about insurance requirements or any modifications to standard contracting insurance provisions, please contact risk management.

Certificate of Insurance Requirements
A certificate of insurance (COI) is a document that shows proof of insurance coverage. Contractors, suppliers, or other outside parties who will be performing work for or services to the University, or using University facilities are required to provide evidence of the insurance required by the University by submitting a certificate of insurance to risk management.

The certificate of insurance must:

  • Name the Trustees of Princeton University, including its officers, agents and employees as an additional insured under the outside party’s general liability policy, and state that the policy is primary to any other valid or collectable insurance in force.
  • Demonstrate that insurance policies are underwritten by a carrier rated at least "A" by Best Rating Agency.
  • Contain a provision that a thirty (30) day prior written notice of cancellation shall be sent to the University.

For any athletic or sporting event, the COI must also contain the following language:

“This Insurance does not exclude coverage for bodily injury to any person while observing, practicing, or participating in any sports or athletic contest or exhibition sponsored by the Named Insured.”

V. Procedures

N/A

Revision Log

10/3/19 - Updated Contact Role/ Title.

10/1/18 - Updated Executive Sponsor listing.

2/25/11 - No change to policy or substance; revised organization and language for web-based policy library.