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Vendor Onboarding & Insurance Waiver Process

BOB DAYRE, Director Procurement Operations

KAREN MERCER, Assco. Director, University Insurance Programs

CECIL BROWN, Risk Manager, University Insurance Programs

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TOPICS

Procurement Process

Supplier Profiles in iBuy
Common Errors while Registering
Insurance Questions

Insurance Process

Standard Minimum Insurance Requirements
Overview of a Waiver
Reasons Why a Waiver May be Declined
An Individual Engaging Directly with NYU Still Needs Insurance
Waiver Process

Resources

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SUPPLIER PROFILES IN IBUY

There are 3 categories that Suppliers can be enrolled as:

ENTITY

Companies, entities, organizations, partnerships
NOT an Individual
Insurance questions must be answered

INDIVIDUAL

Individual providing services to NYU
Could be a Single Member LLC or Sole Proprietorship
NYU issues a PO to supplier prior to work commencing
Supplier will issue an invoice to NYU to be paid
Insurance questions must be answered

HONORARIUM �EXPENSE REIMBURSEMENT

Vendor is being paid a nominal fee (honoraria) for their service
Speaking engagements, panel participation, royalty payments
Reimbursement of out of pocket expenses
Must be a reasonable amount - All Honorarium payments are reviewed by Accounts Payable
Subject to federal, state and city guidelines regarding “disguised payments”

NOTE: Do not use the honorarium form to evade the insurance process!!

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COMMON ERRORS DURING IBUY REGISTRATION

BY NYU SCHOOL/DEPARTMENT

Choosing the wrong supplier profile (Entity, Individual or Honorarium)
Sending multiple invitations to same person/company
Registering the wrong name or in an incorrect format

If an individual : Last Name, First Name is the correct format

Requesting and registering the supplier after the engagement has started or is already completed
Not informing vendor of the registration process

BY VENDOR

Not answering insurance questions honestly or accurately
Do you provide “Professional Services” to the University?
Examples: Research, Copyediting, Web Design
Vendor not clicking on terms & conditions of PO to READ the insurance requirements BEFORE agreeing to them

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Will your firm or its employees render services or deliver goods to New York University at a location or locations occupied, owned or leased by New York University? (Do not answer Yes for one time speaking or panel engagements)
Are you a restaurant or caterer where an event takes place at a location or locations occupied, owned or leased by New York University?
Will Alcohol be served?

INSURANCE QUESTIONS DURING IBUY REGISTRATION

Will your firm or its employees engage in installation, maintenance work and/or construction related work at a location or locations occupied, owned or leased by New York University?
Do you provide professional services (Architectural, accounting, consulting, or IT related) for New York University?
Will your firm or its employees handle hazardous materials at a location or locations occupied, owned or leased by New York University?

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Vendors should click on the Purchase Order Terms and Conditions link to review
Vendor should answer honestly if they can or cannot meet the insurance requirements

Answering No will not delay the registration process

INSURANCE QUESTIONS DURING IBUY REGISTRATION

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STANDARD MINIMUM INSURANCE REQUIREMENTS

Will vary by risk profile
Standard MINIMUM Requirement

General Liability : $2 million per occurrence, $2 million general aggregate

Including Products/Completed Operations coverage, which may be covered under a separate policy
No Exclusion for Sexual Abuse or Molestation

Automobile Liability : $1 million combined single limit

Including coverage for Owned, Hired and Non-Owned Autos

Workers’ Compensation : Statutory Limits

Does not apply outside the United States

Employer’s Liability : $500k each accident/each employee
“New York University, its affiliates and subsidiaries” are included as additional insureds

Additional required coverages may include Professional Liability and Cyber Liability

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OVERVIEW OF AN INSURANCE WAIVER

WHAT A WAIVER IS:

NYU agreeing to assume all financial risk associated with a contract
One-Time approval to reduce or remove insurance requirements from a contract of low exposure to the University
Relating to a specific project or statement of work
Has a specific start and end date; not an open-ended project

WHAT A WAIVER IS NOT:

Open-ended removal of insurance requirements
Admission that there is no risk involved
Release of the vendor from liability should a loss occur

Vendor still has legal liability for their actions

Guarantee future work by the same vendor will also be granted a waiver
Guarantee vendors performing similar work will also be granted a waiver

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WHEN TO REQUEST A WAIVER:

Before the contract has been signed
Before goods or services have been delivered

Requests for waivers will not be accepted if work has already begun

Minimum of 15 business days prior to the start of vendor’s engagement

REQUIRED CONDITIONS FOR A WAIVER:

One-time contract
Assessed as low risk for the University
Vendor has a unique service and/or price that cannot be replaced by an insured competitor

WHEN DO WE LEARN A VENDOR DOESN’T HAVE INSURANCE?

Vendor may respond to insurance language in NYU standard contracts
Vendor reaches out to NYU requestor when they encounter insurance questions during iBuy registration process
Registered vendors are contacted by EBIX if certificate of insurance has not been received

OVERVIEW OF AN INSURANCE WAIVER

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WHO SHOULD REQUEST A WAIVER

The School/Department signing the contract must request the waiver - NOT the vendor

HOW TO REQUEST A WAIVER

Vendor must be registered in iBuy prior to requesting waiver and have a Supplier ID assigned

Vendor cannot be registered as an Honorarium

ServiceLink form located on Insurance Programs website

Copy of DRAFT contract and statement of work must be attached

Waivers will not be granted for SIGNED contracts

If using the NYU Independent Contractor Form, the contract must be locked and unedited

OVERVIEW OF AN INSURANCE WAIVER

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REASONS WHY AN INSURANCE WAIVER MAY BE DECLINED

A Waiver may be declined because:�

The Vendor’s engagement poses significant risk to the University - or -�
The contract value creates a large financial risk for NYU - or -�
Vendor has repeat engagements with NYU, in the past or going forward - or -�
The project involves working with minors - or -�
The project has already started or finished - or -�
The project involves funds from a grant where the subcontractors are required to be insured and indemnify the grantor

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AN INDIVIDUAL ENGAGING DIRECTLY WITH NYU STILL NEEDS INSURANCE

CONSIDERATIONS:

Individuals often do no have robust policies/procedures (HR, fraud, cyber, etc.)
NYU may have limited oversight/control over vendor’s work
At times, individuals may claim to be representing NYU when performing their work
In the case of individuals, it is sometimes difficult to verify indemnification resources

EXAMPLES OF CLAIMS ARISING FROM UNINSURED INDIVIDUALS:

An IT consultant inserted a back door into our systems to allow them entry after their engagement was over
An illustrator sold us a piece that he previously sold to another client, and the other client presented us with cease and desist order
A subcontracted researcher working on a grant used faulty methodology in a study published by NYU
A consultant working with minors is accused of impropriety
A photographer posts a photo sold to NYU on their own website without our permission