Insurance Standards for Core Goods and Services

In addition to the University's Contract Risk Management Standards, these minimum insurance coverages and other terms and conditions are intended to apply to all vendor contracts governing the provision of general goods and services* to the University by outside vendors and independent contractors.

[ *see Insurance Standards for Professional Services Agreements for terms and conditions applicable to consultant contracts]

Basic Coverage:

Workers Compensation and Employers Liability

Workers Compensation: Statutory limits

Employers Liability:

  • $500,000 Each Accident for Bodily Injury by Accident
  • $500,000 Each Employee for Bodily Injury by Disease
  • $500,000 Policy Limit for Bodily Injury by Disease

Commercial General Liability

  • $1,000,000 Each Occurrence
  • $1,000,000 Personal and Advertising Injury
  • $2,000,000 Products-Completed Operations Aggregate
  • $2,000,000 General Aggregate

Umbrella/Excess Liability

  • $1,000,000 Each Occurrence
  • $1,000,000 Products-Completed Operations Aggregate

Additional Coverages:

  1. Vendors and independent contractors who rent any portion of or otherwise temporarily occupy Harvard premises must also maintain:

Damage to Rented Premises Liability - $1,000,000 Any One Premises

2. Vendors and independent contractors who will be operating a vehicle on Harvard premises must maintain:

Automobile Liability - $1,000,000 Each Accident, applicable to all owned, non-owned and hired vehicles

3. Vendors and independent contractors who will be bringing tools, equipment, supplies, materials, inventory or other property onto Harvard premises must maintain:

Property Insurance - "Special form" or "All Risk" property insurance covering no less than the current replacement cost value for all property owned, leased, rented or borrowed by vendor brought onto Harvard premises

4. Vendors and independent contractors who will be selling, serving, or furnishing alcoholic beverages must maintain:

Liquor Liability - $1,000,000 Per Occurrence, $2,000,000 Aggregate

Applicable Coverage Terms and Conditions:

  • All required insurance must be purchased from companies with an A.M. Best Company financial strength rating of A minus: VII or better and be authorized to transact the respective class of insurance in the jurisdiction(s) in which work is to be performed, or products are to be delivered.
  • All vendors and independent contractors must provide Harvard with written notice at least 30 days prior to any non-renewal, cancellation or material change in insurance which will result in their failing to comply with Harvard's insurance standards.
  • If any of the required insurance is subject to a deductible greater than $25,000, the vendor or contractor must attest in writing that it possesses the necessary amount of unencumbered liquid assets to finance its responsibility for losses within the deductible.
  • Any liability insurance purchased on a "claims-made" basis must be continuously maintained for a period equal to the applicable statute of repose [but no less than 3 years] following final delivery of goods or termination of services either through the continued purchase of insurance or the purchase of an extended reporting period. The retroactive date applicable to such "claims-made" insurance, if any, must precede the first date on which services are to be performed and/or product is to be delivered.
  • All required liability insurances shall specifically name as additional insureds, with respect to the goods and/or services delivered, "President and Fellows of Harvard College, its subsidiary and affiliated companies, and officers, directors, members of governing boards, employees and agents of any of them." 
  • Any endorsements granting additional insured status must state the insurance afforded these additional insureds applies on a primary basis with respect to any other insurance or program of self-insurance available to the additional insureds, which will apply only on an excess and non-contributory basis.  Additional insured status provided under an endorsement granting such status on a blanket, " required by written contract..." basis (in lieu of specifically identifying the additional insureds) is not acceptable unless the contract or agreement includes a specific requirement for additional insured status for the persons and entities specified above.  Also the contract must be executed prior to the first date on which services are performed and/or product is delivered.
  • The vendor’s or independent contractor’s Workers’ Compensation & Employer’s Liability insurance policy must contain a waiver of the right of the insurer to obtain a recovery for claim payments made by the insurer.
  • The vendor’s or independent contractor’s Property insurance policy must contain a waiver of the insurer’s right to make a recovery for claim payments made by the insurer.