Requirements for Vendors

All contractors and vendors performing work for, or selling or distributing products to Harvard University or on Harvard premises are required to maintain minimum levels of insurance covering loss arising out of their operations and/or products.  These minimum insurance requirements also apply to all persons and/or entities performing work or providing services on behalf of a contractor or vendor ("subcontractors").  Contractors and firms providing design or engineering services for construction and building maintenance projects must maintain the insurance specified in Harvard’s Standard Construction and Design contracts which are available on the CAPS website.  All other vendors must maintain, at a minimum, the following types and amounts of insurance:

Workers Compensation and Employers Liability

Workers Compensation:   Statutory limits

Employers Liability:         $500,000 Each Accident for Bodily Injury by Accident
                                              $500,000 Each Employee for Bodily Injury by Disease
                                              $500,000 Policy Limit for Bodily Injury by Disease

Commercial General Liability
                                              $1,000,000 Each Occurrence
                                              $1,000,000 Personal and Advertising Injury
                                              $2,000,000 Products-Completed Operations Aggregate
                                              $2,000,000 General Aggregate

Automobile Liability  Requirement for any vendor operating a vehicle on Harvard premises

                                              $1,000,000 Each Accident, applicable to all owned, non-owned and hired vehicles

Liquor Liability            Requirement for any vendor selling, serving or furnishing alcoholic beverages

                                              $1,000,000 Each Person
                                              $1,000,000 Per Occurrence
                                              $2,000,000 Aggregate

Property Insurance    Requirement for any vendor bringing tools, supplies, materials, inventory or other property onto Harvard
                                              premises

                                               "Special form" or "All Risk" property insurance covering all property
                                               brought onto Harvard premises in an amount no less than the current
                                               replacement cost of such property

Professional Liability  Requirement for any vendor providing a professional service (e.g. appraisal, accounting/bookkeeping,                                              human resources, legal, engineering, real estate transactional services, IT development or licensing, etc.)

                                             $1,000,000 Each Claim
                                             $2,000,000 Aggregate

Aircraft Liability         Requirement for any vendor providing charter aircraft services or utilizing an aircraft to perform work or                                              provide services, and any person using a private aircraft while acting within the scope of their responsibilities                                              as a Harvard University student, faculty member, staff member, volunteer, etc.

                                            $1,000,000 Each Occurrence
                                            $100,000 Each Passenger
                                            $5,000 Medical Expense Each Person

                                           Higher limits of insurance are required for aircraft:

  • With seating capacity of 8 or greater (including crew); and/or
  • Operated outside the Continental United States; and/or
  •  Used for any of the following:
    • Sports Team Transport
    • Filming
    • Aerial Photography
    • Medivac

    Contact the Insurance Department for specific requirements when higher limits of insurance are required as specified above, or if contracting for the use of, or utilizing a balloon, helicopter, hang glider, ultralight, home built, blimp, or any other aircraft that is not an airplane (as defined by the FAA)

General Insurance Requirements

All required insurance must be purchased from insurance companies with an A.M. Best Company financial strength rating/financial size category of A-:VII or better authorized to transact the class of insurance purchased in the jurisdiction(s) in which work is to be performed, services are to be provided, or products are to be delivered.

  • All vendors must provide Harvard with written notice at least 30 days prior to any non-renewal, cancellation or material change in insurance which will result in their failing to comply with the minimum requirements specified above.  In the event of cancellation because of non-payment of premium, vendors must provide Harvard with written notice of the insurer’s intent to cancel within 3 business days of receipt of such notice from the vendor’s insurer.

  • If any of the required insurance is subject to a deductible or self-insured retention greater than $25,000, the contractor or vendor must attest in writing that it possesses the necessary amount of unencumbered liquid assets to finance its responsibility to self-insure loss within the self-insured retention or deductible.

  • Should any vendor purchase liability insurance on a "claims-made" basis, such insurance must be continuously maintained for a period equal to the applicable statute of repose [but no less than 3 years] following termination of work/services or delivery of product either through the continued purchase of insurance or the purchase of an extended reporting period. The retroactive date applicable to such "claims-made" insurance, if any, must precede the first date on which work/services are to be performed or product is to be delivered

  •  "President and Fellows of Harvard College, its subsidiary and affiliated companies, and officers, directors, members of governing boards, employees and agents of any of them" are to be:

    • Specifically named as additional insureds with respect to the work performed/ service provided/product delivered on the vendor’s Commercial General Liability, Liquor Liability (if applicable) and Aircraft Liability (if applicable) insurance policies.  The endorsement granting additional insured status must state the insurance afforded these additional insureds applies on a primary basis with respect to any other insurance or self-insurance available to the additional insureds, which will apply only on an excess and non-contributory basis (this requirement does not apply to Aircraft Liability Insurance). Additional insured status provided under an endorsement granting such status on a blanket, "...as required by written contract..." basis (in lieu of specifically indentifying the additional insureds) is not acceptable.

      • Typically ISO Endorsement CG 20 26 Additional Insured – Designated Person or Organization will be used to grant additional insured status under Commercial General Liability policies.  The endorsements used to grant additional insured status on Liquor Liability and Aircraft Libility insurance policies may vary by insurer.

    • Granted a waiver (under NCCI Endorsement WC 00 03 13 "Waiver of Our Right to Recover from Others Endorsement" or equivalent) of the right of the vendor’s Workers Compensation & Employers Liability insurer to obtain a recovery for claim payments made by the insurer.

    • Granted a waiver of the vendor’s property insurer’s right to make a recovery for claim payments made by the insurer.

CERTIFICATES OF INSURANCE

The school or administrative unit executing a contract with a contractor or vendor should obtain certificates of insurance evidencing compliance with the applicable requirements prior to the start of work/services or delivery of product(s) by the contractor, vendor or any subcontractor.  A copy of the endorsements granting additional insured status and waiver of the insurer’s right to recover from Harvard must be attached to the certificate(s).  Thereafter, certificates should continue to be obtained prior to the expiration of any insurance evidenced under a previous certificate.

EXCEPTIONS TO THE MINIMUM REQUIREMENTS

The requirements listed above reflect the types and amounts of insurance typically purchased by contractors and vendors covering the insurable loss that may arise out of their work and/or products.  Exceptions to these minimum requirements may be allowed by the Insurance Department prior the start of work or delivery of product(s), but will only be considered upon receipt of a risk-based evaluation of the loss exposures arising out of the contract and the controls in place to mitigate any potential loss.

Conversely, the operations and/or products of some contractors and vendors (e.g. environmental consultants, charter bus service providers, daycare center operators, riggers/crane service providers, etc.) may expose Harvard to unusual risks or an exceptional amount of risk for which the insurance listed above may not provide adequate protection.  When hiring such contractors and vendors, the Insurance Department should be contacted as early as possible to assist in developing insurance requirements specifically tailored to protect the University from financial loss arising out of the exposures presented by their operations and/or products.

These requirements (current as of January 2012) are subject to periodic review and modification.  Please check back on this page regularly for updates.
Ed. 1/19/12