Vendor/Contractor Insurance Requirements

Workers’ Compensation

Workers’ Compensation insurance shall be in compliance with the laws of the state in which the company is domiciled. Employer’s Liability shall be included with a minimum limit of $1,000,000 per accident/per disease/per employee. If Contractor/vendor is exempt from workers’ compensation or fails to provide appropriate coverage, then the Contractor/vendor is or agrees to be solely responsible and hold harmless the University for the injuries of any owners, agents, volunteers, or employees during the course of the agreement.

Commercial General Liability (CGL)

Commercial General Liability insurance shall be maintained on an “occurrence” basis, including property damage, bodily injury, products & completed operations, and personal & advertising injury with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate on Insurance Services Office Form CG 00 01, ISO 2007 edition or equivalent.

Automobile Liability

Automobile Liability Insurance shall have a minimum combined single limit per accident of $1,000,000 on ISO form number CA 00 01 or equivalent. This insurance shall include third-party bodily injury and property damage liability for owned, hired and non-owned vehicles.

Excess Insurance

Umbrella or Excess insurance may be used to meet the minimum limit requirements for liability insurance.

Professional Liability

Not less than $1,000,000 per occurrence and aggregate to be maintained for the duration of the agreement and three years following its termination. This insurance requirement applies when a supplier has a professional designation or license and/or is providing professional services.  The minimum limit for architects and engineers is $2,000,000 per occurrence and in the aggregate and may be increased depending upon the nature of the services to be provided to the University.

Umbrella or Excess Liability Coverage

Not less than $5,000,000 per occurrence and in the aggregate. This coverage typically sits above the underlying General Liability, Automobile Liability and Professional Liability policies. Depending upon the scope and work to be performed in the proposed agreement, this policy may be required in order for the vendor to be able to meet the minimum insurance requirements.

Cyber Risk Insurance

Not less than $2,000,000 per claim to be maintained for the duration of the agreement and three years following its termination. This insurance requirement applies when a third party will be using, storing or accessing private, confidential or protected information.  

Environmental Liability

Not less than $2,000,000 per claim and in the aggregate. This insurance requirement applies when a vendor will be performing environmental clean-up work (decontamination/remediation), will be working with hazardous substance or waste, or may have similar such exposures while performing work under the proposed agreement. Higher limits of environmental liability coverage may be required depending upon the scope of work.

Vendors and contractors shall name Louisiana State University as an additional insured on its general liability insurance policy as it pertains to the work done/service provided/product delivered to the University and shall provide a 30-day notice of cancellation or non-renewal of coverage to the University. Such insurance must be primary as to any other valid and collectible insurance.

Additional Insured Status

The University is to be listed as an Additional Insured on the Commercial General Liability (must use an endorsement at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10 and CG 20 37 forms with edition date 2004 if later revisions used). See Verification of Coverage section on how the University should be listed as an Additional Insured.

Waiver of Subrogation/Recovery

All insurances shall include a waiver of subrogation/recovery in favor of the University.

Primary Coverage and Limits of Insurance

For any claims related to work performed for or on behalf of the University or related to an agreement/purchase order, the contractor/vendor’s insurance coverage shall be primary insurance as respects to the University. Any applicable insurance or self-insurance maintained by the University shall be excess of the Contractor/vendor’s insurance and shall not contribute with it.

Subcontractors

Subcontractors of the Contractor/vendor shall be subject to all of the requirements stated herein. Contractor/vendor shall include all subcontractors as insureds under its policies or shall be responsible for verifying insurance coverages and limits and maintaining Certificates of Insurance for each subcontractor. The University reserves the right to receive from the Contractor/vendor copies of subcontractors’ certificates.

Deductibles and Self-Insured Retentions

Any deductibles or self-insured retentions above $25,000 must be approved by the University or reduced prior to the commencement of work. The University may require the Contractor/vendor to provide proof of ability to pay losses related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A- VII, unless otherwise approved by the University.

Verification of Coverage

The University shall be listed as Additional Insured and Certificate Holder as follows:

The Board of Supervisors of Louisiana State University and Agricultural & Mechanical College
213 Thomas Boyd Hall
Baton Rouge, LA 70803

Certificates of Insurance shall be furnished to the University evidencing the insurance required herein including amendatory endorsements. The University’s failure to obtain the required documents prior to the work beginning or acceptance of a non-compliant certificate shall not waive the Contractor/vendor’s obligation to have in place the required insurances or to provide the certificate. The University reserves the right to require certified copies of all the insurance policies, including endorsements.

Special Risks or Circumstances

LSU reserves the right to consider alternate coverage or limits and to modify these requirements, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

The standard insurance requirements on this page may be incorporated into a purchase order, contract, or agreement by reference. When incorporated by reference, the requirements are set out in standalone documents called the LSU Standard Insurance Terms. The purchase order, contract, or agreement names the applicable Standard Insurance Terms document and identifies where it is posted, making the document part of the purchase order, contract, or agreement without restating it in full. The version of the named document in effect on the date the purchase order was issued or the contract or agreement was executed applies.

The official versions of the Standard Insurance Terms are posted on the Insurance Terms page.

Insurance Terms

The standard insurance requirements are designed for routine transactions and are not appropriate for every situation. Do not rely on the standard requirements, and consult the Office of Risk Management for tailored insurance requirements, for the following:

• Aircraft, watercraft, or charter transportation services (air, water, or ground)
• Agreements requiring Board of Supervisors approval, including affiliation agreements and property leases
• Medical, clinical, or health-related services
• Supplemental staffing, temporary labor, or employee leasing services
• Programs or activities involving minors
• Services involving access to sensitive University data or systems
• Construction, renovation, or demolition projects
• Purchase orders, contracts, or agreements valued at more than $5 million
• Any other transaction or activity that may present unique or elevated risk