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Waiver of UC Insurance Requirements 

Business & Finance Bulletin BUS‐63 states that “Under the terms and conditions of any contract, purchase order, or other agreement, the non‐University entity is required to show evidence of adequate insurance coverage by furnishing Certificate(s) of Insurance indicating compliance with all requirements.” Insurance protects the University by reducing its exposure to the liability of providers from whom it obtains goods and services. Risk exposure is a consequence of the goods and services that the University is obtaining from the provider, not their cost. Exposure to risk arises from the possibility of loss and the probable severity of injuries or property damage if loss occurs. Go to Insurance Requirements for more information.

Vendor or Contractor Insurance

It is University policy to require vendors and contractors who provide services to the University to carry insurance. Exceptions to policy are exactly that – exceptions. It is the practice of the Risk Management office to discourage waivers and not approve them unless they meet strict exemption criteria. Before a Department submits a request to waive the University’s insurance requirements, it would be well advised to consider that vendors and contractors who do not meet the University’s General Liability Insurance requirements can purchase low-cost Vendor/Contractor Insurance from the CampusConnexions Program. This insurance meets all University insurance requirements and eliminates the need for a waiver. An annual policy for any University work costs $750. Visit CampusConnexions for more information about this coverage.

Exemption Criteria

Policy allows exceptions to the University’s insurance requirements if the possibility of loss arising from a provider’s liability is negligible. Only Risk Management has the authority to make exceptions, to reduce or waive the University’s insurance requirements. Departments can ask Risk Management to waive the insurance requirements if the purchase involves low risk goods and services that create little exposure to liability. The following conditions must be met for an exemption to be considered:

  1. The service has not yet been provided.
  2. A certificate of insurance was requested from the service provider; however, they do not carry appropriate insurance.
  3. The service being provided are in the following areas: copy editing, clothing repair, interpreting, data entry, note taking, translation, speaking engagements or performances.
  4. The service provided does not include training, demonstrations, physical activity, transportation or travel, interaction with minors, or any other factor that may create liability.
  5. All other standard University requirements for executing a contract of this type are met.
Department will pay all costs

If the request for a waiver of insurance requirements is approved, the service provider will have no insurance coverage for any losses, including claims and lawsuits, arising out of or caused by the goods or services that are provided to the University. The department that requested the waiver will become financially responsible for any costs for which the University becomes liable that are not covered by insurance.

Request for Waiver of UC Insurance Requirements

Departments who are procuring low risk goods or services that meet the exemption criteria described above, can submit a Request for Waiver of UC Insurance Requirements to the Risk Management office. Risk Management will review the Request and if it agrees that the goods and services will create little exposure to liability, it has the authority to approve the Request. A Request can be submitted as follows:

  1. Have the service provider sign a No Insurance Acknowledgement (NIA) attesting to not maintaining the UC required commercial general liability insurance. 
  2. Complete the Request for Waiver of UC Insurance Requirements.
    PLEASE NOTE: A department control point (Dean, Director, Chair, etc.) must sign the Request for Waiver.
  3. Submit request to Risk Management ( via e-mail containing:
    a. Completed copy of the Request for Waiver of UC Insurance Requirements
    b. Copy of the purchase order/contract/agreement and/or a detailed scope of work
    c. Signed copy of the No Insurance Acknowledgement (NIA) 

Risk Management will review the application. It may ask additional questions to clarify the scope of work. If appropriate, Risk Management will approve the waiver, sign and return it to the applicant. 

If the scope of work upon which the waiver was approved is changed, the waiver is void.

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