Insurance Requirements

INSURANCE – Below are the University’s core insurance requirements.  The University may have additional insurance requirements based on the scope of work with the University (such as, but not limited to Excess/Umbrella Liability, Professional Liability (Errors & Omissions), Cyber/Privacy/Information Security, Medical Professional, Pollution/Environmental, Sexual Molestation & Abuse, Property).

The Seller shall maintain the following insurances:

The Supplier and any Subcontractor thereof, shall, at its own expense, carry and maintain the following insurance during the term of the Agreement, in amounts not less than that specified for each type. A self-insured program may be substituted for an insured program only after such self-insured program is reviewed and approved by the University's Risk Management Office.

Such insurance or self-insurance shall be primary and non-contributory to the University's insurance and self-insurance coverage.  

The limits required for the Employers' Liability, Automobile Liability and Commercial General Liability coverages may be satisfied through primary insurance or a combination of primary and umbrella/excess liability insurance as long as the umbrella/excess liability insurance follows the form of the primary coverage.

Failure to procure, carry, and maintain the following insurance or self-insurance shall not relieve the Supplier, and any Subcontractor thereof, of any obligation or liability assumed under the Agreement, nor of any obligation or liability imposed by law. 

In no event shall the liability of the Supplier be limited to the extent of any insurance or self-insurance, or the minimum limits required herein.  

Any self-insured retentions, deductibles, and exclusions in coverage in the insurance required shall be assumed by and at the sole risk of the Supplier.  

The Supplier or its insurers must provide thirty (30) days advanced written notice to the University of any cancellation or material reduction in the required insurance or self-insurance programs below.

All insurance policies except the Workers' Compensation must contain a waiver of subrogation against the University.

All insurance coverages (except those that are self-insured and approved by the University) must be written with an insurer licensed to conduct business in Pennsylvania and rated not less than A- by A.M. Best.

In the event the Supplier fails to maintain and keep in force the insurance coverages required, the University shall have the right to immediately terminate the Agreement.

The insurance requirements shall be subject to University review and approval, on an annual basis, during the term of this Agreement.

i. Workers Compensation for statutory obligations imposed by workers' compensation and occupational disease laws. Employers Liability insurance shall be provided with limits of not less than $500,000 for each subcategory of coverage.  

ii. Automobile Liability insurance (Bodily Injury Liability and Property Damage Liability) for all owned, leased, hired, non-owned vehicles with limits not less than $500,000 Combined Single Limit.    

iii. Commercial General Liability insurance including coverage for bodily injury, property damage, and personal injury for premises and operations, products and completed operations, and contractual liability arising from all operations, written on an occurrence basis with limits not less than $1,000,000 and which must apply to ongoing operations.  Medical Expense coverage must be written with a limit of not less than $10,000 per person.   "The Pennsylvania State University" must be named or listed as an additional insured.

iv. An Insurance Certificate evidencing the above required coverages, limits, primary and non-contributory provisions, the Commercial General Liability additional insured provision, excess following form provisions, and waiver of subrogation provisions, must be provided to the University, with the Certificate Holder as follows:   

The Pennsylvania State University
101 Procurement Services Building
University Park, PA  16802

Prior to commencing work, the supplier must provide an insurance certificate, referencing the purchase order number, to the attention of the purchasing agent.