Risk Management reviews and approves the insurance and indemnification language in campus contracts, and issues certificates of insurance to entities doing business with UC Davis.
About Certificates of Insurance
- How do you obtain a UC Certificate of Insurance (COI)?
- Entities doing business with the University require proof of insurance from The Regents, often in the form of certificates of insurance. Risk Management can issue such a certificate on receipt of complete contractual documentation. Submit all documents to the appropriate campus contracting office (e.g., Contracting Services, Sponsored Programs, Real Estate Services) for review and approval. Once the documents are approved, the contracting office will request a UC Certificate of Insurance from Risk Management.
- What is a Certificate of Insurance?
- A Certificate of Insurance verifies that the contractor, consultant, vendor, or facility user has purchased an insurance policy and that the insurance requirements of the contract have been met. It provides evidence that the insured can satisfy obligations to (1) pay for loss of or damage to property, (2) pay judgments or settlements, (3) protect The Regents if costs are incurred as a result of the insured's negligent acts or omissions, and/or (4) support the indemnification provisions of the contract.
- Why are Certificates of Insurance important?
- Proof of insurance is required to demonstrate that the contractor, consultant, vendor, or facility user can meet their obligations under the indemnification provision. A Certificate of Insurance is proof that an insurance policy has been purchased and that the Regents have certain rights under that policy. Absent such proof of insurance, the University might have to rely on a contractor's assets to pay for losses caused by the contractor, consultant, facility user, etc. The value of assets and their liquidity makes reliance on them untenable. In the event of a loss for which the contractor, consultant, or facility user has no insurance, the University might find itself paying the costs of the loss itself. In short, Certificates of Insurance are required if the University is to protect its own assets from exposure to losses created by the liability of those with whom it does business.
- What is an additional insured?
- The University may be included as an additional insured, meaning that the University has coverage under the vendor's insurance policy for claims and suits alleging negligent acts or omissions arising out of the contract. Additional insured coverage means that the University will have legal representation for a claim or lawsuit in which the University is named, but was not negligent. Without this coverage, the University would have to provide its own defense if it was named in a suit that arose out of the negligent acts or omissions of the party with which it was doing business. This protection is very important, because defense costs incurred by litigation often exceed the costs of settlements and judgments.
Certificates of Insurance should name The Regents of the University of California as additional insured.
Policy BFB-BUS-63: Insurance Requirements and Certificates of Insurance
Risk Management reviews and approves the insurance and indemnification language in campus contracts. Only those individuals with designated authority may sign contracts on behalf of the University. Contracts can take the form of purchase orders, waivers, permits, leases, memorandums of understanding (MOU), grants, applications, agreements, charters, and just about any other kind of written agreement that contains terms and conditions that obligate the Regents.
Policy BFB-BUS-63 Recommends
Specific types of insurance coverage and minimum limits are recommended when the University enters into agreements with outside contractors, consultants, vendors, or facility users. Risk Management can work with departments to develop appropriate coverages for instances not specifically addressed in the policy. The campus Risk Manager may modify insurance requirements, after risk analysis and evaluation and on a case-by-case basis. Such review can lead to a determination that risks are low and requirements may be lowered or eliminated or, conversely, that risks are high and higher limits are appropriate.