In order to protect the interests of New York State, the University and those of the vendor community, the procurement regulations of New York State require evidence of various forms of insurance by vendors at the time the contract is entered into.  The State of New York, the State University of New York and the University at Albany must be listed as additional insureds on all procurements.

The nature of the procurement will dictate the type and minimum level of insurance that is required.  In addition, the evidence needed to support the insurance is dependent on the insurance type.  The insurance shall be kept in force for the duration and term of the agreement.  The insurance required shall be obtained from insurance company (ies) licensed to do business in the State of New York.

The table below provides brief information on some of the more common types of insurance that may be needed.  Please note that each procurement is a unique event and the insurance needs will be dictated by the nature of that particular procurement.  Please contact the Office of Purchasing and Contracts at 437-4579 before you engage a vendor in providing a commodity or service.

Other common types of insurance are product liability insurance and professional liability insurance.

Definitions:

1. Comprehensive General Liability Policy:a policy covering a variety of general liability exposures, including Premises and Operations (OL&T or M&C), Completed Operations, Products Liability, and Owners and Contractors Protective.
2. Automobile Liability Insurance: coverage if an insured is legally liable for bodily injury or property damage caused by an automobile.
3. Excess (Umbrella) Policy: coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.
4. Workers’ Compensation: coverage for job related accidents, injuries and illnesses. Benefits include all related medical expenses plus 2/3 of the average weekly wage, $600 per week effective 7/1/09 and 2/3 of the State’s average weekly wage effective 7/1/10 and thereafter.
5. Disability Insurance: covers non-job related accidents, injuries and illnesses. Benefits are 1/2 average weekly wage up to $170 per week for a maximum of 26 weeks.  Does not cover medical expenses.
6. Owners Protective Liability: covers bodily injury and property damage liability arising out of an independemnt contractor' operations for another party.
7. Product Liability Insurance:  coverage for claims related to the manufacture or sale of products, food, medicines or other goods to the public.
8. Professional Liability Insurance:provides protection against claims that the policyholder becomes legally obligated to pay as a result of an error or omission in his professional work.

All certificates of insurance must contain a thirty (30) day written notice of any cancellation, change, or termination of coverage.  In addition, at the time the contract is entered into each insurance carrier must be rated at least "A-" Class "VII" in the most recently published A.M. Best Insurance Report.  If an insurance carrier is not rated at least A- Class VII, the vendor must replace that insurance carrier with an insurance carrier who meets the A- Class VII criteria. This must be done prior to the commencement of the contract. If during the term of the policy, a carriers rating falls below "A-" Class "VII", the insurance must be replaced no later than the renewal date of the policy with an insurer acceptable to the University.