Contracts, agreements, and procurement provisions are reviewed by the Property & Liability Risk Management staff in an effort to protect the University from potential financial losses in its interactions with outside organizations.
Contracts, agreements, and procurement provisions are reviewed by the Property & Liability Risk Management staff in an effort to protect the University from potential financial losses in its interactions with outside organizations. To do this, the following issues outlined below are reviewed.
Documents are reviewed to determine whether the appropriate insurance provisions are incorporated to insure that an outside organization maintains reasonable insurance protection with regard to general liability, automobile liability and workers compensation. Likewise, when applicable, other insurance coverage is required for such exposures as medical malpractice, errors & omissions liability, crime, employee dishonesty, pollution liability, professional liability, directors & officers, cyber risk liability and data breach expenses, property, equipment breakdown, fine arts, and other specialized insurance that may be appropriate.
There may be instances where we will require an outside organization to add the University to its general liability coverage as an additional insured, which will protect the University and its employees for claims or lawsuits arising out of the other organization's negligent activities. In such cases, the University will be named as an Additional Insured, and the proper name is: "The Commonwealth of Virginia, and the Rector and Visitors of the University of Virginia, its officers, employees, and agents". In relation to property coverage, we may expect the other organization to add the University as a loss payee on its fine arts or other property insurance when appropriate.
We review indemnification clauses whereby an organization may attempt to transfer its risk of loss to the University, and we will require that the clause be dropped or reworded by General Counsel since these clauses are not acceptable. Conversely, when appropriate we may recommend that an indemnification clause be added that would protect the University from vicarious liability arising from another organization's activities.
We will generally require that executed agreements with outside organizations require a certificate of insurance be provided by that organization, which will provide proof to the University that it is maintaining the appropriate types and levels of insurance coverage. Likewise, we provide such proof of coverage on behalf of the University to outside entities when necessary.
The Contract Policy provides more information on University Contracts.