Purchasing and Contracts

Prior to any permit being issued or any contract, including purchase orders, being entered into, New York State procurement regulations require evidence of a variety of insurance coverages by vendors at the time a contract is entered into. Except when specifically noted, the State of New York, the State University of New York and the University at Albany must be listed as additional insureds on all insurance policies.

The nature of the procurement will dictate the type and minimum levels of insurance that are 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 first table below provides information on the types of insurance that apply to all procurements. The second table provides information on insurance that may be required depending on the nature of the procurement. 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.

Insurance Required for All Procurements
Type	Definition	Minimum Level	Acceptable Documentation
Commercial General Liability(bodily injury & (including Protective & property damage); Contractor Liability, Single limit-each occurrence)	Covers claims of bodily injury or other physical injury or property damage. It is frequently offered in a package with Property insurance to protect your business against incidents that may occur on your premises or at other covered locations where you normally conduct business. Commercial General Liability enables your business to continue operations while it faces real or fraudulent claims of certain types of negligence or wrongdoing	$1,000,000 — each occurrence combined; $2,000,000 Aggregate;	ACORD Form
Automobile Liability (owned, leased, hired and non-owned vehicles);	Coverage, if an insured is legally liable for bodily injury or property damage caused by an automobile. The policy covers owned, leased, hired and non-owned vehicles.	$1,000,000 — each occurrence;	ACORD Form
Owners Protective Liability (bodily injury and property damage)	Covers bodily injury and property damage liability arising out of an independent contractor' operations for another party.	$1,000,000 combined single limit per occurrence; $2,000,000 aggregate	ACORD Form
Product Liability Insurance combined (bodily injury and property damage)	Coverage for claims related to the manufacture or sale of products, food, medicines or other goods to the public.	$1,000,000 each occurrence	ACORD Form
Procurement Driven Insurance Needs
Type	Definition	Minimum Level	Acceptable Documentation
Bid Bond	Ensures that on acceptance of a bid that the contractor will proceed with the contract. A bid bond is replaced with a performance bond.	Varies	Bid Bond
Builders Risk Insurance	Covers property owners and builders for projects under construction, renovation or repair.	Varies	ACORD Form
Disability*	Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. It provides for weekly cash benefits to replace, in part, wages lost due to injuries or illnesses that do not arise out of or in the course of employment. Disability benefits are also paid to an unemployed worker to replace unemployment insurance benefits lost because of illness or injury.	As required by New York State	CE-200; Form DB-120.1;Form DB-155
Excess (Umbrella) Insurance	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.	Varies	ACORD Form
Installation (Floater) Insurance	Provides temporary property insurance to protect the value of labor and materials of the work in progress in the event that it is damaged by theft, vandalism, fire, windstorm, etc. Coverage starts while the materials are in transit to the jobsite and ends once the job is completed or the owner accepts the work.	Varies	ACORD Form
Performance Bond	Ensures the payment of a sum of money in the event the contractor fails in the full performance of the contract.	Varies	Performance Bond
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.	Varies	ACORD Form
Workers’ Compensation*	Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment.	As required by New York State	CE-200; Form C-105.2; Form U-26.3; Form SI-12; Form GSI-105.2

* Workers’ Compensation and Disability Insurance are discussed below in further detail.

Prior to any permit being issued or any contract, including purchase orders, being entered into for work, the University requires acceptable proof of insurance. The acceptable proof of insurance is driven by the insurance type.

As noted above, an ACORD form is acceptable proof of insurance for most insurance types. The ACORD form is provided to the University by insurance agent of the business. The New York State Workers’ Compensation Board has mandated that certain forms from New York State licensed Disability and Workers’ Compensation private insurance companies or from New York State agencies are acceptable. These forms are discussed below in the Workers’ Compensation and Disability section.

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.

Prior to any permit being issued or any contract, including purchase orders, being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured workers’ compensation insurance and disability insurance coverage for all its employees. This requirement applies to NYS businesses and to non-New York State businesses with employees working in New York.

Workers’ Compensation

Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment. Employers must continuously provide for workers’ compensation benefits to all employees.

Section 57 of the New York State Workers’ Compensation dictates the steps the University is take prior to entering into any contract, including purchase orders. Section 57 reads as follows:

Restriction on issue of permits and the entering into contracts unless compensation is secured.