Risk Management Insurance Programs

Indemnification and Insurance Requirements

Introduction

Indemnification and insurance requirements are necessary to protect Southern Illinois University (SIU) from risk exposures related to (1) securing goods and services through vendors, contractors, consultants, and service providers; and (2) permitting outside organizations and individuals the use of SIU premises and/or facilities.  SIU requires vendors, contractors, consultants, service providers and outside users of SIU premises and/or facilities to maintain liability and other insurance in adequate amounts to reasonably protect SIU’s financial interests.  SIU requires evidence in the form of a Certificate of Insurance from such parties prior to the commencement of any work and/or scheduled event.

Definitions

1. Providers/Users.  Individuals or organizations that either (1) provide goods or services to SIU, such as vendors, contractors, consultants and service providers; or (2) use SIU premises and/or facilities*.

Indemnification and Insurance Requirements

1. Indemnification.  SIU requires Providers/Users to indemnify and hold harmless the Board of Trustees of Southern Illinois University, and its employees, from any claims, demands, or actions for injury or death of any person, or damage to or destruction of any property, which arises out of such agreements.  This requirement should be stipulated on all agreements with Providers/Users including purchase orders, contracts, facility use agreements and other written agreements.
2. Modifications to Indemnification Language.  The Office of General Counsel may make modifications to the indemnification language when appropriate.
3. Minimum Insurance Requirements.  SIU requires Providers/Users to meet the following minimum insurance requirements:
   

   A.	Workers’ Compensation and Occupational Diseases Employer’s Liability	Illinois Statutory Limit $500,000 per occurrence
   B.	Commercial General Liability General Aggregate	$1,000,000 per occurrence $3,000,000
   	Umbrella liability insurance may be used to meet the general liability coverage limit requirements.
   C.	Commercial Auto Liability (including owned, hired and non-owned)
   	Combined Single Limit or Bodily Injury Property Damage	$1,000,000 per occurrence $1,000,000 per occurrence $500,000 per occurrence

• Providers/Users must procure and maintain the required insurance for the duration of services/contract.
• The insurance companies providing coverage must have a A-:VII or better rating in the current edition of Best’s Key Rating Guide.
• Coverage must include contract liability.
• Subcontractors must comply with the same insurance coverage requirements as Providers/Users.  Subcontractors shall submit the required Certificate of Insurance through the primary provider.
• The Board of Trustees of Southern Illinois University shall be named as additional insured on commercial general liability policies.  The following wording shall appear on any Certificate of Insurance provided:  “The Board of Trustees of Southern Illinois University is an additional insured for any liability arising from the activities of the Providers/Users and/or subcontractors performing work on behalf of the Provider.”
• If a policy is written on a claims-made basis and that policy is replaced or renewed, any retroactive date must coincide with, or precede commencement of services by Provider or sub-contractor under this Contract.  A claims-made policy that is replaced or not renewed must have an extended reporting period of not less than two (2) years.
• Providers/Users shall furnish all original Certificate(s) of Insurance evidencing the required coverage to be in force on the date of this contract no less than three business days prior to the event.  The receipt of any certificate does not constitute an agreement by SIU that insurance requirements have been met.  Failure of SIU to obtain certificates or other insurance evidence from the vendor shall not be deemed a waiver by the University.
• When an agreement includes professional services, i.e. services of doctors, dentists, nurses, social workers, architects, engineers, etc., Professional Liability coverage is required.
  

  D.	Professional Liability General Aggregate	$1,000,000 per occurrence $3,000,000
  	Umbrella liability insurance may be used to meet the general liability coverage limit requirements.

• When an agreement includes software, Technology Errors and Omissions coverage is required.
  

  E.

  Technology Errors and Omissions General Aggregate

  $1,000,000 per occurrence $3,000,000

• When an agreement includes liquor, Liquor Liability coverage is required.
  

  F.

  Liquor Liability General Aggregate

  $1,000,000 per occurrence $3,000,000

Departments should provide the Providers/Users these minimum requirements, so the Providers/Users may forward it to their insurance agent or broker for compliance with the requirements.

4. Exceptions to Minimum Insurance Requirements.  Exceptions to the minimum insurance requirements may be developed by SIU, following a process of risk identification and evaluation.  SIU may determine additional risk is involved and additional coverage may be required.  It may also be determined with coordination from University Risk Management and/or Office of General Counsel that little risk is involved, in which case, the requirements may be lowered.
5. Certificates of Insurance.  The proof of insurance from the Providers/Users should generally be in the form of a Certificate of Insurance.  Large companies with self-insurance liability programs may not be able to provide a Certificate of Insurance or may have non-standard forms.  In these cases, consult University Risk Management to assist in evaluating the acceptability of such a program.

*Tenants, or users of SIU premises and/or facilities, who do not already meet the minimum insurance requirements can obtain insurance through a variety of sources.  One source is through an insurance agent or broker.  The tenant can use an insurance agent or broker through which they currently conduct business or may contact any insurance agent or broker of their choosing.  An additional source is through the Risk Management Insurance Programs and Insurance Association’s Tenant-User Liability Insurance Program (TULIP). 

For questions, please contact Peggy Ittner at 618-536-3475 or pittner@siu.edu.