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Insurance Requirements for Goods & Services
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When Westmont College purchases goods and services, we gain confidence that our suppliers will be able to fund any problems they cause by asking for proof of insurance. The coverage limits required take into account to the risk exposure created by the activities involved with the supplier. This Fact Sheet gives a quick overview of Westmont’s insurance requirements when we obtain goods and services from outside sources under typical circumstances. For specific coverage requirements consult with the Risk Management office (805-565-6633; risk@westmont.edu). If a supplier is unable to provide proof of coverage at the required limits, check with Risk Management to determine how to proceed.
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Certificates of insurance must be mailed to Risk Management at the college address or emailed to: risk@westmont.edu
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LOW RISK EXPOSURE
Goods & Services		MODERATE RISK EXPOSURE
Goods & Services		HIGH RISK EXPOSURE*
Goods & Services
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General Liability InsuranceGeneral Liability Insurance
General Liability Insurance
Limits will vary at or above $2,000,000 based on risk severity and loss exposure
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• Per Occurrence $0• Per Occurrence $2,000,000• Per Occurrence
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• Products-Completed Ops $0• Products-Completed Ops $2,000,000• Products-Completed Ops
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• Personal-Advertising Injury $0• Personal-Advertising Injury $2,000,000• Personal-Advertising Injury
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• General Aggregate $0• General Aggregate$2,000,000• General Aggregate
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Auto Liability Insurance variesAuto Liability Insurance $1,000,000Auto Liability Insurance
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Workers’ Comp StatutoryWorkers’ Comp. Statutory required;
$1,000,000 recommended		Workers’ Comp.
Statutory required;
$1,000,000 recommended
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Clothing repair
Data entry
Editing Interpreters
Note taking
Transcription
Translation		Westmont named Additional Insured and included as
a Loss Payee**
Written Notice of Cancellation		Westmont named Additional Insured and included as
a Loss Payee**
Written Notice of Cancellation
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Air conditioning
Appliances/repair
Art
Athletic equipment
Audio equipment
Automobiles
Bedding/soft goods
Beverage equipment
Boats/boat maintenance
Building equipment
Building supplies
Catering
Cell phones
Computer/Info systems
Computer repair
Compressors
Copiers
Delivery services
Electrical
Electronic
Equipment rental
Exhibitions
Filming
Fire equipment
Fire supplies
Floor coverings
Food equipment
Food services
Furniture		Furniture Repair
Gardening
Janitorial supplies
Janitorial services
Laundry
Moving services
Nonhazard. materials
Pavement striping
Personnel services
Plumbing equipment
Plumbing supplies
Program management
Project management
Pumps
Refrigeration
Safety equipment/supplies
Sec. servs-unarmed
Waste recycling
Telecom equipment
Telecom services
Towing
Trailers
Tree trimming
Valves and fittings
Vending machines
Vehicles/repair
Water service
Water treatment
Window cleaning
Air Charters
Airport/aviation
Alcohol
Ambulance services
Bleachers/seating
Boat charters
Bus charters
Chemicals
Child care
Construction
Crane rental/services
Drugs
Elevator maintenance		Fuel/lubricants
Gases
Harbor/marine
Hazmat/waste
Health care services
Lab equipment
Lab supplies
Medical equipment
Medical supplies
Office trailers
Pest control
Professional services*
Services to minors
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SPEAKING ENGAGEMENTS
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Speaking engagements by coaches and trainers (non-athletic), lecturers, facilitators, speakers, group leaders, team building trainers/facilitators, or instructors that take place in a classroom or lecture hall setting MAY be exempt from Westmont insurance requirements. The following criteria must be met at a minimum:
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• Primary activity speaking/listening.
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• No professional training in the use of
ifesaving or technical equipment.		PROFESSIONAL SERVICES
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• No physical activities or lab activities.
• No field trips or driving.
• On Westmont owned, leased or rented
property.
• No controversial social or political issues.
• Using Westmont owned & controlled equipment.		Professional services create a completely different category of high-risk exposures. The College requires businesses that provide professional services to carry professional liability insurance. Professional liability insurance is required to cover the exposure to the possibility of bodily injury and property damage that arise when a provider of professional services is negligent in the performance of their professional duties. Professional liability insurance can also include coverage for exposures such as infringement of intellectual property rights, slander, libel, release of confidential personal or financial information, invasion of privacy, etc. Contact the Risk Management office about required limits of professional liability insurance for specific professions.
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RISK EXPOSUREAdvertising
Analytical chemists
Arhcitects
Appraisers
Athletic trainers
Attorneys
Auditors
Counselors
Credit card services
Dentists
Doctors
Engineering
Medical services		Notaries
Nurses
Pharmacists
Photography
Printing/Publishing
Psychiatrists
Psychologists
Pyrotechnics
Software design
Software development
Software programming
Testing labs
Web design
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Insurance limits are based on Westmont’s exposure to risk when it obtains goods and services from outside vendors. Insurance protects the College by reducing its exposure to the liability of vendors. Risk exposure is dependent upon the specific goods and services, not their cost. Exposure to risk arises from the possibility of loss and the probable severity of injuries or property damage if a loss occurs. Risk exposure assessment is based on experience, case law, common sense, and intuition.
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RISK EXPOSURE FACTORS
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High: Moderate chance of loss; severe injuries and property damage could occur. Contact with non-Westmont persons. Activities in public realm. Services to minors.
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Moderate: Low to moderate chance of loss; moderate injuries or property damage could occur. Contact with non-Westmont persons. Activities in public realm.
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Low:• The likelihood of an accident is negligible
• The likelihood of injury or damage is negligible if an accident occurs.
• The likelihood that an accident will result in a lawsuit is negligible.
• No work performed more than 6’-0” off the ground.
• No construction work, no electrical or plumbing work.
• In general, does not occur in “public realm.”
• Products are standard, “off the shelf” products.		*When obtaining these types of services. check with the Risk Management office about appropriate insurance coverage.
**Proof of this may be provided by either a copy of the policy wording showing it will provide Additional Insured's per contract or an endorsement to the policy.
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Fact Sheet: Insurance Requirements for Goods & Services • rev. 11/2015Thanks to UCSB for allowing us to replicate their Fact SheetRisk Management, Westmont
westmont.edu/_offices/risk/
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Additional comments from our broker (Arthur J Gallagher & Co):
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The coverages should include the following extensions, and the arrangement should include the specified expectations (as applicable)

1. General Liability (Umbrella): ­ Your company should be included as an additional Insured. Proof of this may be provided by either a copy of the
policy wording showing it will provide Additional Insured’s per contract or an endorsement to the policy.
a. Please note that virtually all insurance policies require that you have a written contract with the other party specifying that your company is added as an additional insured in order to gain this status.
b. If this is a contracting / service project than the General Liability should include an endorsement to extend the A/I to completed Work.

2. Employee Dishonesty: ­ Your company should be included as an Loss Payee. Proof of this may be provided by either a copy of the policy wording showing it will provide Loss Payee status per contract or an endorsement to the policy.

3. General Liability, (Umbrella) and Workers Compensation – Amend the rights of recovery section to waive any rights against your company aka Waiver of Subrogation

4. General Liability (Umbrella), Crime & Workers Compensation – Should be endorsed so that coverage provided by the named insured is primary and non­contributory as respects your company.
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5. All Coverages
a. As a general rule, you should require that limits of liability be equal to or greater than your own.
b. An insurance carrier with adequate financial ratings should provide coverage. i.e. AM Best A X or higher c. These are suggested minimum insurance requirements. The contract should also include a statement that these limits will not limit any payment to your company for any claim etc. New ISO policy wording could limit your recovery without this language.

6. Indemnity & Hold Harmless Agreement
Your legal counsel can draft an indemnity agreement which will require that certificate provider be responsible for all bodily injury and property damage resulting from their activities and the defense costs for any claims resulting from such injury or damage. This agreement should encompass both insurable losses and non­insurable losses.

7. Certificate of Insurance – A certificate of insurance should be provided every year that evidences the above coverages.
The proper use of Certificates of Insurance, along with the appropriate Indemnification language is a very effective loss control technique. Certificates of Insurance should be requested from any vendor, contractor, subcontractor or service provider you hire who may create a liability for you. Without a Certificate of Insurance with the proper wording, you could end up paying for an incident created by the negligence of another party.
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