Auburn University Minimum Insurance Requirements for Vendors
Notice to Contractors/Vendors/Facility users/Other Parties
Insurance coverage serves as part of the financial backing for the liability assumed by a contracting party through the indemnification language in a contract. Instead of intentionally utilizing its own assets to support the liability, the contracting party is transferring the risk to the insurance company in return for payment of the insurance premium. Without insurance, most contractors / vendors would not be able to meet their indemnification obligations when a significant loss occurs.
Auburn University (herein referred to as the “University”) has established insurance requirements which must be included in contracts between Contractors/Vendors/Facility Users/Other Parties providing services (herein referred to as “Vendors”) and the university. These requirements must be included in any agreement as a contractual obligation which the Vendor must be in compliance with before commencing work, providing goods, or using University facilities. Full requirements can be found in the INSURANCE REQUIREMENTS FOR THIRD PARTIES CONDUCTING BUSINESS WITH AUBURN UNIVERSITY POLICY.
I. Insurance Requirements
•Commercial General Liability:
$1MM Each Occurrence
$2MM Products & Completed Operations Aggregate
$1MM Personal & Advertising Injury
$100K Fire Damage (Any One Fire)
$5K Medical Expense (Any One Person)
•Commercial Auto Liability: (Required if driving on University-owned property or driving University personnel - may be waived if contract does not involve use of motor vehicle)
$1MM Combined Single Limit
Statutory Limits Plus
$1MM/$1MM/$1MM Minimum Employers Liability Limits
•Professional Liability/Errors & Omissions: (Required if vendor is providing professional, technical service (medical, engineering, legal, business/marketing consultants, architecture etc.)
$1MM Each Occurrence/$1MM Aggregate, including proof of coverage for up to three years after completion of the project
II. Additional coverage may be necessary depending on the activity involved in the contract. Please consult Risk Management & Safety for recommended limits with regards to high risk activities such as those involving alcohol, or charter services, aircraft, watercraft, health consultants, engineering, environmental hazards, or information technology. See RMS “high risk contractor” document.
III. Exemptions are granted for the following vendor categories qualifying as sole proprietors, or government entities:
- Competition Judge
- Nonprofessional Entertainer
- Event/Meeting Planner
- Fund Raiser Consultant
- Guest Lecturer
- Guest Speaker
- Nonprofessional Musician
- Seminar Facilitator/Leader
- Small gatherings of private citizens
- Translator (depending on content)
- Government entities
IV. Certificates of Insurance
All vendors parties must provide a Certificate of Insurance stating that there is insurance in effect with the minimum limits required by the University. The Auburn University Insurance Limits Expanded Requirements Guide can assist you reviewing all coverage requirements. All completed Certificates of Insurance shall be sent to the attention of the Auburn University department negotiating the contract.
Examples of when certificates of insurance are required:
- Promotional Vendors
- Business vendors including those performing a service
- Third parties using or renting campus facilities
- Non-profits hosting events on campus
- Anyone hosting a large-scale event on campus
- Caterers or other food vendors. For Caterers, please see the Registration and Licensing Procedures for Caterers/Bartending Services.
The Certificate of Insurance must:
- Demonstrate that insurance policies are underwritten by a carrier rated at least “A-” in A.M Best Key Rating Guide.
- Contain a provision that a thirty (30) day prior written notice of cancellation shall be sent to the University (or else obtain in writing from the broker/insured that they will notify you within 7 days after any notice from the insurer).
- Include an endorsement adding Auburn University, its Board of Trustees, Administrators, Faculty, Staff and Agents as additional insured.
- Include an endorsement stating that this Insurance is primary as to any other valid and collectible insurance or self-insurance in force, or have the “primary” insurance box checked off on the Certificate of Insurance.
- Have current policy period dates.
- Indicate what types of coverages are being provided, and specify limits which confirm to the contract.
- If the project or activity is considered "high risk", send the Certificate of Insurance to Risk Management & Safety for review at AURMI@auburn.edu.
Sample Certificate of Insurance & Endorsements: