Contracts
- Overview
- Standard Terms and Conditions
- Insurance Requirements for Vendor Contracts
- Insurance Requirements for Independent Contractors
All departments seeking to procure goods and services should begin by contacting the Purchasing & Contracts department.
Overview
Every contract has risks that must be reviewed from the perspective of protecting Georgetown University from financial loss. This section is designed to provide you with guidelines to help you manage risk when you contract products and services on behalf of Georgetown University. Our objective is to help the University community understand insurance requirements as they relate to contracts.
Standard Terms and Conditions
The majority of contracts that are reviewed by Risk Management are vendor agreements. In an attempt to standardize these agreements, Georgetown University has developed “Standard Terms and Conditions” language. The Standard Terms and Conditions must be presented to every vendor as part of the contracting process.
Insurance Requirements for Vendor Contracts
The University has established standard language regarding its insurance requirements for outside vendor contracts and agreements. You can find details on Georgetown’s Standard Terms & Conditions for vendor agreements on the University’s Financial Affairs website.
If you have questions about insurance requirements or any modifications to the University’s standard contracting insurance provisions, contact Risk Management. The University’s Standard Terms & Conditions require outside vendors/contractors to provide evidence of certain types of insurance coverage at specified minimum limits.
The following minimum insurance standards shall apply to all vendors/contractors performing services at Georgetown University:
- Workers’ Compensation
- Commercial General Liability
- Automobile Liability
- Professional Liability
- Cyber Liability
Workers’ Compensation
Workers’ Compensation and Employers Liability coverage is required for all vendors/contractors to ensure that their employees are covered for workplace accidents and on-the-job injuries. Workers’ Compensation insurance provides coverage for medical expenses and lost wages resulting from an on-the-job injury.
- Workers Compensation Insurance Requirement: Statutory Limits/ $500,000 Employers liability.
Commercial General Liability
General liability insurance coverage is required for any vendor/contractor who physically performs services on any of Georgetown’s campuses. Vendor/contractor services performed on Georgetown’s premises, buildings, or locations establishes the need for general liability coverage. A general liability insurance policy provides protection against liability claims for bodily injury and property damage.
- General liability Insurance requirement: $1,000,000 per occurrence/ $2,000,000 aggregate.
- The general liability insurance policy shall list Georgetown University as an Additional Insured with respect to liability arising from the performance of the Agreement.
Automobile Liability
Automobile liability insurance is required for any vendor/contractor whose use of a vehicle in the course of performing services for the University and/or to travel to and from campus is required. Automobile liability covers damage to a company vehicle and bodily injuries in the event of a collision, stolen vehicle, vandalized vehicle, or otherwise damaged vehicle.
- Automobile Liability Insurance requirements: $1,000,000 combined single limit.
- For Charter Bus Companies, the minimum Automobile Liability coverage required is $5,000,000.
- The automobile liability insurance policy shall list Georgetown University as an Additional Insured with respect to liability arising from the performance of the Agreement.
Professional Liability
Professional Liability or Errors & Omissions insurance is required for all vendors/contractors that provide advice or professional services to the University community. This includes a broad spectrum of professionals such as: (architects, engineers, lawyers, physicians, management consultants, advertising professionals, researchers, commercial printers, web hosting companies, designers, travel agents).
Professional liability insurance provides protection for Vendors in the event the University holds the vendor/contractor accountable for services provided, failed to provide, or that did not have the expected or promised results.
- Professional liability Insurance requirement: $1,000,000 per occurrence/claim.
- If the professional services represent an unusual or increased risk, the University may require higher insurance limits.
Cyber Liability
Cyber liability insurance is required for vendors/contractors that provide IT-related services and/or collect, process, manage or store sensitive patient data, personal or financial data, or if they have access to University networks/systems. Cyber liability policy provides coverage of a variety of expenses associated with data breaches, including notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft.
- Cyber liability Insurance requirement: $1,000,000 per claim/ $2,000,000 aggregate.
Insurance Waiver Process
If a vendor/contractor requests that University’s insurance requirements be waived, they can complete an Application for Waiver of Insurance Requirement to initiate the process. Once the form is completed in its entirety, the waiver will be submitted with Contracts Packet through GMS. Once submitted it is reviewed by the Office of Risk Management.
Certificate of Insurance Requirements
A certificate of insurance (COI) is a document that shows proof of the vendor’s/contractor’s insurance coverage. Vendors/contractors, or other outside parties who are providing services to the University or using University facilities, are required to provide evidence of the insurance required by the University by submitting a Certificate of Insurance (COI) to Risk Management before commencing work.
- Vendors/Contractors are required to list Georgetown University as an additional insured on the General Liability and Automobile Liability policies.
- The University does not need to be named as an Additional Insured on the Workers’ Compensation, Professional Liability, or Cyber Liability policies.
- Email certificates evidencing required insurance coverage to Risk Management or forwarded to Georgetown University, Office of Risk Management, Box 571167, Washington, DC 20057.
Insurance Requirements for Independent Contractors
Georgetown University requires that all Independent Contractors (IC’s) who perform work for Georgetown maintain insurance to satisfy the indemnification obligations in their Independent contractor agreement. Specifically, IC’s are required to maintain the following types of insurance:
Applicability of the University’s IC insurance requirements is dependent on the scope of work and nature of the services performed.
General Liability
General liability insurance coverage is required for IC’s who physically perform services on any of Georgetown’s campuses. IC services performed on Georgetown’s premises, buildings, or locations establishes the need for general liability coverage. A general liability insurance policy provides protection against liability claims for bodily injury and property damage.
- General liability Insurance requirement: $1,000,000 per occurrence/ $2,000,000 aggregate.
(The annual cost for a general liability policy with $1M per occurrence/$2M aggregate ranges from $350.00 to 500.00).
Automobile Liability
Automobile liability insurance is required for any IC’s who use a vehicle in the course of performing services for the University and/or to travel to and from campus. Evidence of the IC’s personal automobile liability insurance may satisfy the requirement if a personal vehicle is used in the performance of services.
- Automobile Liability Insurance requirement: $1,000,000 combined single limit.
Professional Liability
Professional Liability or Errors & Omissions insurance is required for all IC’s that provide advice or professional services to the University community. This includes a broad spectrum of professionals such as: (architects, engineers, lawyers, physicians, management consultants, advertising professionals, researchers, commercial printers, web hosting companies, designers, travel agents). Professional liability insurance provides protection for IC’s in the event the University holds them accountable for services provided, failed to provide, or that did not have the expected or promised results.
- Professional liability Insurance requirement: $1,000,000 per claim.
(The annual cost for a professional liability policy with $1M policy limit is approximately $750.00).
The University may consider waiving the professional liability insurance requirements for IC’s doing routine, low dollar, lower risk tasks. Examples include:
- Writing/editorial work products that undergo final review and approval by the University
- Writing/editorial work products that give the writer access to public information only.
- Designing public-facing papers, pamphlets, or brochures.
It is unlikely that Risk Management would consider waiving the professional liability insurance requirements for independent contractors performing complex, high dollar, higher risk tasks. Examples include:
- Work that involves access to network systems and sensitive data.
- Professional advice and guidance that is relied upon and incorporated into existing business processes (procurement, accounting, human resources, etc.)
- Design and performance of clinical trials.
Cyber Liability
Cyber liability insurance is required for IC’s that provide IT-related services and/or collect, process, manage or store sensitive patient data, personal or financial data, or if they have access to University networks/systems.
- Cyber liability Insurance requirement: $1,000,000 per claim/ $2,000,000 aggregate.
Insurance Waiver Process
If an IC requests that University’s insurance requirements be waived, they can complete an Application for Waiver of Insurance Requirement to initiate the process. Once the form is completed in its entirety, it is reviewed by the Office of Risk Management.
Insurance Resources for IC’s
Many companies can provide insurance coverage for independent contractors and small businesses. Below is a list of insurers that offer products tailored to independent consultants/small business owners to protect against the most common types of business risks. Inclusion in this list does not indicate endorsement of the company by the University, rather it is meant to serve as a resource for IC’s.
Questions? Contact Risk Management at (202) 687-6622