Insurance Standards for Special Situations

In addition to the contract risk management basics and insurance coverages dictated under the associated insurance standards, there are occasionally situations that call for special insurance coverages typically needed only when a particular exposure arises from the individual engagement.  The types and levels of coverage noted below should be viewed as "in addition to" not in lieu of other coverage amounts, terms and conditions described on those other pages.

 

Workers Compensation and Employers Liability

Longshore and Harbor Workers Coverage Extension - requirement for any vendor or contractor with employees engaged in maritime activities, including any person considered to be involved in longshoring operations, haborworkers conducting ship repair, shipbuilding and shipbreaker activities.

Defense Base Act Coverage Endorsement - required for vendors and contractors performing work at overseas military bases, in a territory or possession of the U.S. or in a foreign country.  It also is needed for vendors and contractors handling public works contracts outside the continental U.S. such as construction or maintenance work for embassies.

 

Aircraft Liability*

Applies to vendors providing charter aircraft services or utilizing any non-owned chartered or private aircraft* to provide services to or transport Harvard staff, students or guests.  The coverage also applies to the owners/operators of private aircraft used by any person while acting within the scope of their responsibilities as a Harvard University student, faculty member, staff member, volunteer, etc.  Minimum levels of insurance coverage, depending on aircraft type and passenger capacity, are:

Light Turboprop AircraftLight Jet AircraftJet Aircraft

$25,000,000 each occurrence with minimum
$1,000,000 each passenger

$50,000,000 each occurrence with minimum
$1,000,000 each passenger

$3,000,000 each passenger 

$5,000 Medical Payments/each passenger

$5,000 Medical Payments/each passenger$5,000 Medical Payments/each passenger

- Light Jet Aircraft means any aircraft at 41,000 lbs or less certified take off weight and seating capacity of fewer than 10 passengers
- Jet Aircraft means any aircraft at more than 41,000 lbs certified take off weight and seating capacity of 10 passengers or more.  It also includes any aircraft operated outside the continental U.S.

In addition to these insurance guidelines, we strongly suggest departments insist that any aircraft charter provider or charter agent also be required to comply with the 'Chartered and Private Aircraft' risk control practices outlined under the Risk Research menu of the Risk Financing and Insurance department's web site.

*Contact Risk Financing and Insurance for specific requirements prior to contracting for the use of, any drone/UAV, balloon, helicopter, hang glider, ultralight, home built, blimp, or any other aircraft that is not an airplane (as defined by the FAA).

Shipowner's (Protection & Indemnity) Liability

Applies to vendors providing watercraft charter services to or utilizing any non-owned chartered or private vessel to transport Harvard staff, students or guests in any navigable waterway.  The coverage also applies to the owners/operators of privately-owned watercraft used by an individual in the performance of their official duties/responsibilities as a Harvard University student, faculty member, staff member, volunteer, etc.  Insurance shall provide comprehensive coverage for legal liabilities to third parties arising from ownership or operation of seagoing ships, including third party liability cover in respect of pollution, crew and other personal injury, collisions, cargo liabilities, dock/property damage, wreck removal and fines.

< 20 gross tonnage< 50 gross tonnage> 50 gross tonnage

$10,000/passenger with minimum
$1,000,000 each occurrence

$20,000/passenger with minimum
$3,000,000 each occurrence

$30,000/passenger with minimum
$10,000,000 each occurrence

Pollution Liability - Remediation Contractors, including Transportation and Non-owned Disposal Site Liabilities

Applies to vendors and contractors handling on-site remediation and/or off-site transporting of regulated hazardous virgin and/or waste materials.  Also applies to the liabilities arising from the use of non-owned hazardous materials disposal sites (NODS).  Policy shall cover third party bodily injury, property damages, and clean-up costs from sudden and gradual pollution conditions, including from exacerbation of know or unknown existing conditions.  Policy shall have no limitations for contractual liability, mold, asbestos, or natural resource damages.

  • $5,000,000 Each Loss; $5,000,000 Aggregate

Pollution Liability - Owners / Operators of Disposal Sites

Applies to owners and operators of regulated hazardous materials disposal sites.  Policy shall cover legal liabilities for third party bodily injury, property damages, and clean-up costs from sudden and gradual pollution conditions, including from exacerbation of know or unknown existing conditions.  Policy shall have no limitations for contractual liability, third party diminution of property value, naturally occurring substances, or natural resource damages.

  • $10,000,000 Each Loss; $10,000,000 Aggregate

Environmental Consultant's Professional Liability

Applies to firms providing professional services related to air & noise pollution control, biological assessments, compliance monitoring, conservation planning, endangered species permitting, environmental permitting (NEPA/CEQA), environmental impact statement preparation, groundwater resource management, habitat restoration planning, industrial hygiene, environmental assessments (Phase 1, 2, 3 investigations; RCRA, CERCLA, SARA), lead inspections and testing, mold inspections and testing, PCB assessments and testing, recycling / removal services, UST / LUST assessments, water resource management, water supply and wastewater treatment consulting.

Policy shall afford coverage for liability arising out of an act, error or omission in the rendering or failure to render professional services related to environmental consulting, contracting, etc. or for failure of the consultant's work to perform as promised in the contract.  Policy shall have no limitations or exclusions related to asbestos, lead, mold, PCBs, or dioxins and should be endorsed accordingly to provide additional insured status, grant a waiver of subrogation, and respond on a primary and non-contributory basis.

  • $5,000,000 Each Loss; $5,000,000 Aggregate

Governmental, Quasi-governmental, and other Entities with Statutory or Tort Immunity

Generally, governmental (states, cities, towns, etc.) and quasi-governmental entities (housing authorities, transit authorities, other state universities, etc.) cannot be held legally liable for torts in accordance with the principle of sovereign immunity.  Additionally, applicable state statutes may prohibit Harvard from enforcing any indemnification clause that may be contained in the procurement agreement.  Because of this, a governmental or quasi-governmental entity asserting immunity from liability matters may not maintain any or only de minimus levels of the required insurance coverages.  However, many states, including Massachusetts, have enacted statutes that provide for waiver of such immunity for certain types of tort actions by government employees.  When contemplating engaging in a sourcing relationship with a governmental or quasi-governmental entity, the Office of the General Counsel (OCG) or Strategic Procurement should be consulted to determine the most appropriate course of action for the University.

Recommended practice is to include the insurance requirements, noted elsewhere on this site, in the agreement regardless of the potential enforceability of such immunity statutes.  It is also recommended practice that the contracting TUB  request that the entity waive in writing their assertion of full or partial sovereign immunity.

If the entity asserts full sovereign immunity and refuses to waive such, the contracting TUB, in conjunction with the OGC, should perform the appropriate level of analysis to assess the risks associated with the work that such entity will be performing, the likelihood of an act, error or omission committed by the entity, the potential magnitude of it, particularly the direct and indirect financial consquences the TUB may be assuming.  The analysis should consider the legal, regulatory/compliance, operational, financial and reputational risks associated with the work described within the applicable contract.

If the entity asserts a limitation of liability through a state or federal tort claims act, the OGC should be asked to evaluate whether the applicable tort claims act of the given state “waives” immunity for the liability that would be created by the improper performance of the applicable activities by the contractor/vendor and whether there are any liability “caps” included in the statute.  If the entity can be held liable and there are no liability “caps”, the insurance requirements are satisfied.

If the entity can be held liable but there are liability “caps” that are less than the prescribed insurance requirements herein, the applicable contracting TUB, in conjunction with the OGC, must decide whether to accept the financial risk arising from an underinsured loss or the entity's failure to otherwise perform the contracted services per the terms of the agreement.

Cyber Security / Data Breach Liability

Applies to vendors, independent contractors or firms collecting, storing, processing, transmitting or otherwise handling Harvard Level 3 or 4 information.  The coverage also applies to cloud service providers that will be offering application hosting, platform, or infrastructure services that will contain Harvard confidential information.  Coverage shall be written to protect against claims for loss caused by the provider's failure to prevent unauthorized access to, or use of, systems or networks containing private or confidential information of the University, its students, staff, customers, donors, patients, or other identified or unidentified affiliated third parties.  The policy shall protect against claims caused by the provider's failure to prevent the transmission of a computer virus and for failure to provide authorized users access to the University's website, applications, or communications network.  Additionally, the insurance will reimburse the University for costs incurred to provide notification of a security breach as required under any data breach notification law.

  • $100/record that is stored, processed, or transmitted on the vendor's, contractor's or firm's IT systems or is otherwise under the control of such provider or any of their subcontractor's;
  • subject to a minimum of $1,000,000 each claim and a maximum of $25,000,000 each claim and in the aggregate.

Motor Carrier Liability (Coach or Charter Bus Transportation)

Applies to vendors providing commercial motorcoach charter services (i.e. owner-operators as for-hire carrier of passengers) and to (non-owner-operator) vendors retained to arrange luxury motorcoach or bus transport to ferry Harvard staff, students or guests over any public or private roadway in vehicles with a capacity of greater than 12 passengers*.  Vendor shall maintain auto liability insurance affording comprehensive coverage for legal liabilities to third parties arising from ownership or operation of coaches or buses, including liability cover as respects damage to passenger cargo/personal property.  Minimum levels of insurance are determined by vehicle capacity as follows:

 

< 16 passenger seating capacity*30 passenger seating capacity*> 30 passenger seating capacity*

$500,000/passenger with minimum
$5,000,000 each occurrence

$500,000/passenger with minimum
$15,000,000 each occurrence

$500,000/passenger with minimum
$50,000,000 each occurrence

$5,000 Medical Payments/each passenger

$5,000 Medical Payments/each passenger

$5,000 Medical Payments/each passenger

* including the driver.  Vehicles with a capacity of less than 12 passengers and do not transport interstate are considered limousine or livery activities.  Motorcoach charter operators and/or agents providing more than one vehicle for contracted service are required to maintain the minimum levels of insurance coverage on EACH vehicle subject to a maximum of $50,000,000 aggregate for all vehicles supplied under the agreement.

Sports, Recreational and Educational Camps (where participants are children/minors)

Applies to all third-party owners/operators of sports, recreational and educational camps conducted on any Harvard campus regardless of duration. As either a supplement to the commercial general liability package or under a separate, stand-alone placement, the policy shall afford coverage for 1) the actual, alleged, or threatened abuse, molestation, harassment, mistreatment, or maltreatment of a sexual or physical nature, directed to third parties, 2) loss arising from actual or alleged negligent employment, supervision, training, or retention of a person who commits such conduct, and 3) the failure to report such conduct to the proper authorities. In addition to the required risk management practices, the camp owner/operator's policy shall afford limits no less than:

  • $1,000,000 each occurrence
  • $2,000,000 aggregate limit per policy period

Sports, Recreational and Educational Camps (involving contact activities)

Unless fully integrated, without reductions, limitations or special exclusions, into the required commercial liability insurance, camp owner/operator's must provide a minimum $2,000,000 per occurrence of bodily injury coverage arising out concussions or head injuries that may lead to a claim alleging traumatic brain injury. This coverage is required for all camps that engage in any activity where contact between or among participants is expected, regardless of the participant's age.