[Purchasing] [Purchasing Manual] Certificates of Insurance

Definition: A certificate of insurance is verification that a vendor’s insurance limit meets or exceeds state requirements to contract with the University.

Policy: All vendors are required to submit a certificate of insurance prior to the start of work on campus. Acknowledged certificates are filed in Business Services.

Procedure: The vendor shall not commence work under the contract until they have obtained all the insurance described below and Business Services has approved such insurance. All policies and certificates shall provide that the policies shall remain in force and effect throughout the term of the contract.

POLICY REQUIREMENTS

1. Workers' Compensation Insurance:
   1. Statutory Compensation Coverage
   2. Coverage B Employers Liability with limits of not less than:
      • $100,000 Bodily Injury by Disease per Employee
      • $500,000 Bodily Injury by Disease Aggregate
      • $100,000 Bodily Injury by Accident
2. Automobile Liability Insurance
   1. Minimum Limits of Liability:
      • $1,000,000 Per Occurrence - Bodily Injury and Property Damage Combined Limit
   2. Coverages:
      • Owned Automobile, if any
      • Non-owned Automobile
      • Hired Automobile
3. General Liability Insurance
   1. Minimum Limits of Liability:
      • $1,000,000 - Per Occurrence
      • $2,000,000 - Annual Aggregate
      • $2,000,000 - Annual Aggregate applying to Products/Completed Operations
   2. Coverages:
      • Premises and Operations Bodily Injury and Property Damage
      • Personal & Advertising Injury
      • Blanket Contractual
      • Products and Completed Operations
      • Other: Please List_________________________________

      Named as Additional Insured: The Board of Trustees of the Minnesota State Colleges and Universities and its officers and members, to include St. Cloud State University, the State of Minnesota, officers and employees of the State of Minnesota, the Architect and its agents (if applicable) shall be named as Additional Insureds. The Additional Insured coverage is limited to insured claims arising out of the Contractor’s negligence or the negligence of those for whom the Contractor is responsible, excluding coverage for the Additional Insureds’ separate or independent negligence.
      
      Contractor's policy(ies) shall be primary insurance to any other valid and collectible insurance available to the Owner and all Insured Parties with respect to any claim arising out of this contract. The Contractor will provide Owner and all Insured Parties with thirty (30) days advance written notice of cancellations, non-renewals or reduction in limits or coverage or other material change.Contractor is responsible for payment of insurance deductibles. If Contractor is self-insured, a Certification of Self-Insurance must be attached.
      
      Insurance Companies must have an "AM Best" rating of A-, class VII or better, and be authorized to do business in the State of Minnesota. 

4. Professional Liability/Miscellaneous Liability Insurance (Only necessary if there is a professional liability exposure)
   Coverage for negligent acts, errors or omissions arising out of the performance of professional services included in the contract: coverage shall continue for a minimum of  five (5) years.
   1. Minimum Limits of Liability:
      • $1,000,000 - Per Occurrence
      • $1,000,000 - Annual Aggregate
   2. Deductible not to exceed $5,000 (if in excess, submit certified financial statement)
   3. If Claims-Made, please complete the following:
      If prior acts coverage is restricted, advise the retroactive date of coverage: ________
      
      Extended discovery provisions:
      • If the insurance company cancels, how long is the period of extended discovery? ___________;
      • Percentage of annual premium cost to purchase the extended discovery? ____________.
   Contractor’s policy(ies) shall be primary insurance to any other valid and collectible insurance available to the Owner and all Insured Parties with respect to any claim arising out of this contract, and provide the owner and all Insured Parties with thirty (30) days advance written notice of cancellations, non-renewals or reduction in limits or coverage or other material change.
   
   Contractor is responsible for payment of insurance deductibles. If Contractor is self-insured, a Certification of Self-Insurance must be attached.
   
   Insurance Companies must have an “AM Best” rating of A-, class VII or better, and be authorized to do business in the State of Minnesota.
   
   Links:
   Risk Management (Admin Minnesota PDF)
   Sample Form (MnSCU PDF)