Insurance Requirements for Contractors
All contractors and vendors (service providers, suppliers, building or maintenance contractors, etc.) coming on to Loyola's premises to do work are required to carry insurance to protect themselves and Loyola University New Orleans. Insurance is necessary to cover any claims or losses for which the contractor or vendor may be responsible.
All contractors and vendors must procure, pay for, and maintain the required insurance coverage for the entire term of the purchase agreement or contract. All insurance policies are subject to the approval of the University and must be issued by insurance companies authorized to do business in the State of Louisiana and with an A.M. Best rating of A- VIII or better. All insurance policies will contain a waiver of subrogation in favor of the University, and, except for Workers Compensation, shall name Loyola University New Orleans as additional insured for both ongoing and continued operations.
Required Coverages
The types of insurance coverage and standard limits required by Loyola are described below. Loyola reserves the right to increase the minimum acceptable limits of coverage depending upon the activity involved in the contract or service.
The size and scope of the contract and the potential risk exposures involved will dictate the minimum limits of coverage required. The University's standard requirements are divided into three sets, indicating typical risk levels:
Commercial General Liability (Broad Form)
Must include but not limited to Personal Injury Liability, Independent Contractor's Liability, Contractual Liability, Products Liability, Ongoing and Completed Operations Liability, and Property Damage Liability with a minimum limit of liability of $1,000,000 per occurrence/ $3,000,000 aggregate for bodily injury and property damage.
Contractors conducting programs involving youth must ensure that they have Sexual Abuse and Molestation insurance with a minimum limit of liability of $1,000,000 per occurrence/ $3,000,000 aggregate, and/or that such coverage is not specifically excluded under their policy or subject to limits of less than $1,000,000 per occurrence/ $3,000,000 aggregate.
Workers Compensation & Employers Liability
Must be provided for all of the contractor's/vendors performing duties under a purchase agreement or contract which shall cover the Contractor, their employees, and including any subcontractors and its employees for injuries and/or diseases arising under all applicable Workers’ Compensation laws including statutory limits in accordance with Louisiana’s Workers’ Compensation Act. Employers' Liability coverage shall be included with a minimum limit of liability of $1,000,000 per occurrence.
Automobile Liability and Property Damage Insurance
Required of any contractor or vendor utilizing a vehicle in the performance of any purchase agreement or contract. Must provide Symbol 1, including hired and non-owned vehicles with a minimum combined single limit of liability of $1,000,000 per occurrence for bodily injury, death, and/or property damage.
Professional Liability - Errors and Omissions
Required of various professional service providers such as architects, engineers, consultants, etc. Insurance must be provided covering acts, errors, mistakes, omissions arising out of the work or services performed by the Contractor, or any person employed by the Contractor, with a limit of not less than $1,000,000 each claim.
Builder's Risk Insurance
Required for facility improvement, renovation, and construction projects.
Excess, Umbrella, and Specialized Insurance
Required for projects and contracts that have special circumstances or hazards or are of large scope.
Evidence of Coverage
A Certificate of Insurance is a standard document issued by an insurance company to provide proof of an insurance policy. Departments should request Certificates of Insurance from contractors/vendors immediately upon an agreement to pursue a purchase or contract.
The Contractor must furnish Loyola University New Orleans with certificates of insurance evidencing the above insurance requirements prior to commencement of operations under the contract. Additional Insured endorsements and Waivers of Subrogation must name Loyola University New Orleans as follows: Loyola University New Orleans, its Board of Trustees, officers, representatives, agents, and employees. If the Contractor is conducting a program involving youth, the certificate shall also evidence Sexual Abuse and Molestation insurance as required above. Certificates shall specify that in the event of cancellation or material change in coverage, written notice of such cancellation must be given in accordance with policy provisions. All coverage of the Contractor must be primary without contribution from Loyola University New Orleans. Failure of Loyola University New Orleans to request a certificate of insurance or acceptance of a non-conforming certificate does not waive the insurance requirements under this agreement. All certificates of insurance should be mailed to: Loyola University New Orleans, Attn: Risk Management, 6363 St. Charles Ave., New Orleans, LA 70118. Facsimile: (504) 865-2999.
Acceptability of Coverage
If at any time any of the insurance policies shall become unsatisfactory to the University as to form or substance, or if a company issuing any such policy shall become unsatisfactory to the University, the contractor or vendor shall obtain a new policy and submit a new certificate of insurance.
Additional Requirements
Providing and maintaining the adequate insurance coverage is a material obligation of the Contractor and is a condition precedent to the contract. All such insurance shall satisfy all applicable laws of the State of Louisiana. Such insurance coverage shall be obtained from companies that are authorized to provide such coverage and that are authorized by the Commissioner of Insurance to do business in Louisiana. The Contractor shall at all times comply with the terms of such insurance policies, and all requirements of the insurer under any such insurance policies, except as they may conflict with existing Louisiana laws or this contract. The limits of coverage under each insurance policy maintained by the Contractor shall not serve to limit the Contractor’s liability to the Loyola University New Orleans under the contract.
Subcontractors
The contractor or vendor shall include all subcontractors as insureds under its policies or shall furnish separate certificates for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
Facility Improvements
The Physical Plant department must review any purchase agreements or contracts for operations or services involving repairs, maintenance, or alteration to the University's buildings or equipment. Any department considering this type of activity is advised to contact Physical Plant prior to making financial commitments. Risk Management will review the scope of the project to determine additional insurance requirements if required. The Facility Improvements standard insurance requirements should be used.
Construction and Renovation Projects
Construction or renovation projects with limited scope and with a cost of less than $100,000 are subject to the Facility Improvements standard. These minimum requirements may be increased depending upon the scope and specific hazards related to the project.
Construction or renovation projects exceeding $100,000 in cost are subject to the Construction Projects standard. Physical Plant and Risk Management will work closely to ensure the University's interests are properly protected.