Definition: | In order to protect the university's resources and minimize its exposure to inappropriate liability and workers' compensation claims, California State University San Marcos requires that all vendors with whom it contracts, assume as much liability as is reasonable for their activities and products, including those of their employees and subcontractors. The campus will establish insurance requirements based upon the level of potential risk exposure to the campus during performance of a contract. In all instances, the campus shall recommend transferring all possible liability for an activity that is not a routine part of its daily operations and/or is not primarily controlled and/or performed by campus employees. Periodically, the campus will review established guidelines, including the rules and regulations of The CSU and the State of California, to determine the appropriateness of its insurance requirements. The campus President has designated specific individuals to approve all campus purchases and contractual agreements. These individuals are: the Director of Procurement, Contracts & Materials Management, the Associate Vice President for Finance and Administrative Services, and the Vice President for Finance and Administrative Services. Accordingly, the ability to waive any insurance requirements for university contracts is restricted to these individuals. |
Authority: | California State University Executive Orders 849, 715 and 669; State University Administrative Manual |
Scope: | This policy and subsequent procedures applies to all areas of the campus community. It does not apply to minor and major capital projects, which are guided by existing State and CSU system terms and conditions. |
Responsible Division: | Finance & Administrative Services |
Approval Date: | 02/28/2000 |
Originally Implemented: | 01/01/2000 |
Signature Page/PDF: | View Signatures for Insurance Requirements For Contracts Policy |
I. BACKGROUND
A CSUSM task force was formed to identify the level of risk exposure to the campus by project type, determine high and low risk, and to establish when insurance will be required and what type(s) will be required. These projects were broken down into three (3) categories:
The task force did not consider minor or major capital projects, which are deferred to general contract conditions as required by the CSU and the State of California.
II. PURPOSE
A) California State University San Marcos requires that all vendors with whom it contracts, assume as much liability as is reasonable for their activities and products, including those of their employees and subcontractors, in order to protect the university's resources from liability and workers' compensation claims. The only individuals who may waive these requirements are also designated by the campus President to approve all campus purchases and contractual agreements. Those individuals are: the Vice President for Finance and Administrative Services, Associate Vice President for Finance and Administrative Services, and the Director of Procurement, Contracts & Materials Management.
B) The following outlines the insurance requirements for specific types of contracts. These requirements are based upon the level of potential risk exposure to the campus during the performance of the contract. In all instances, the campus recommends transferring all possible liability for an activity that is not a routine part of its daily operations and/or is not mainly controlled and/or performed by campus employees.
III. INSURANCE REQUIREMENTS FOR CONTRACTS BY TYPE
A) Guest Lecturers / Speakers / Performers / Independent Contractors
B) High Risk Projects, Including Services
C) Low Risk Projects, Including Services
Based upon review of the event and/or services provided, the contractor may be required to provide verification of general liability, auto, and workers' compensation coverage in the amounts required by the campus, as determined by the Director of Procurement, Contracts & Materials Management and campus guidelines.
The Director of Procurement, Contracts & Materials Management, following campus guidelines, may determine that the activity, although normally considered low risk, has a greater degree of exposure to risk. In such cases, the high-risk criteria may be applied.