Contract Insurance Provisions

The Office of Risk Management assists units with the review and negotiation of appropriate insurance requirements within contracts and agreements. Contracts between the University and other entities should address risk allocation through insurance requirements. In most agreements, one party has control of the activity and typically should maintain adequate insurance to protect both parties.

The Office of Risk Management has developed insurance requirement templates for contracts that are used by Office of Legal Counsel, Central Purchasing and Payment Services, Facilities Services, University Research Administration and others. Units operating independently of these central administrative functions will occasionally encounter contracts directly. In these cases, the units should refer the contract to the Risk Management for review to determine the proposed contract contains appropriate insurance requirements. To help facilitate the review process, please provide a copy of the contract to ensure that the insurance information is complete.

Insurance Requirements on Vendors

Units may be involved in agreements to purchase goods and services, professional services, rental agreements, entertainment and catering agreements. Vendors and contractors performing work for the University of Chicago must maintain certain amounts of insurance. Typically, at a minimum, the vendor should provide proof of general liability, automobile liability and workers compensation insurance when doing business with the University. In certain cases, if the vendor is providing professional services, such as technology services or architectural work, they should also carry errors and omissions insurance. The University of Chicago and its affiliates should be added as an additional insured to the general and automobile liability policies and all policies should waive rights against the University. The unit should request insurance certificates to verify that the vendor or contractor carries the required insurance.

Insurance Requirements on the University

Sometimes, the appropriate allocation of risk results in the University maintaining insurance. When the University is renting space or hosting an event away from the University, we will generally be required to show proof of insurance. The Office of Risk Management should review any contractual insurance terms put on the University to ensure the University can meet the contractual insurance obligations and that the unit is in compliance with the contract provisions.

Occasionally, vendors or contractors will attempt to place unreasonable, inappropriate or extraordinary insurance requirements on the unit. In some cases, the University could be obligated to purchase special insurance to meet the requirements. In these cases, the cost of this insurance is the obligation of the unit.