Contractor Insurance
Prior to any permit being issued or any contract being entered into (including purchase orders), New York State procurement regulations require evidence the vendor carries various types of insurance. Except when specifically noted, the State of New York, the State University of New York and 黑料视频 must be listed as endorsed additional insureds on all insurance policies.
Role of Purchasing and Contracts
As the office of record for contracts entered into by the University, the Purchasing Office plays a central role in verifying a business's workers' compensation and disability insurance coverage.
These responsibilities include obtaining the proper documentation prior to entering into a contract/purchase order, verifying that the information provided is correct and maintaining the documents as part of the overall procurement record. Under no circumstances will the Purchasing Office issue a contract/purchase order without the proper documentation being received and verified.
Among the steps that the Purchasing Office takes is to determine if the business which is being contracted with will be utilizing employees or independent contractors. If it is determined that the business is using employees the business will need to provide evidence of workers' compensation and disability insurance. If independent contractors are performing the work the independent contractor will need to provide evidence that they either have workers' compensation insurance and disability insurance or are legally exempt, as defined above, from carrying workers' compensation insurance and disability insurance. Regardless of the status of the workers, the Purchasing Office will not enter into any contract/purchase order without proof of disability insurance and workers' compensation or proof of exemption.
Upon receipt of documentation, the Purchasing Office verifies the authenticity of the document with the insurance carrier and/or the Workers' Compensation Board. The Workers' Compensation Board allows users to verify if a vendor is from carrying workers' compensation or disability insurance or whether the information showing is correct.
Delay in providing proper documentation will result in a delay in the contract being finalized and in the work being started.
Insurance Required for All Procurements
The nature of the procurement will dictate the required types and minimum levels of insurance. In addition, the evidence to support the insurance is dependent on the insurance type. The insurance shall be kept in force for the duration and term of the agreement. The insurance required shall be obtained from an insurance company licensed to do business in the State of New York.
The table below provides information on the types of insurance that apply to all procurements plus those where the insurance is dependent upon the nature of the procurement. If you have any questions or concerns regarding insurance needs, please contact the Purchasing Office at (607) 777-2184 before you engage a vendor in providing a commodity or service.
|
Type |
Definition |
Minimum Level |
|---|---|---|
|
Automobile Liability |
Coverage, if an insured is legally liable for bodily injury or property damage caused by an automobile. The policy covers owned, leased, hired and non-owned vehicles. |
$2,000,000 - each occurrence; Charter Bus Service requires a minimum of $5,000,000 |
|
Commercial General Liability |
Covers claims of bodily injury or other physical injury or property damage. Such liability coverage shall include but not be limited to on-premises operations, independent contractors, products-completed operations, broad form property damage. |
Please see table 1a or 1b below. |
|
Disability (1) |
Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. It provides for weekly cash benefits to replace, in part, wages lost due to injuries or illnesses that do not arise out of or in the course of employment. Disability benefits are also paid to an unemployed worker to replace unemployment insurance benefits lost because of illness or injury. |
As required by New York State |
|
Workers' Compensation (1) |
Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment. |
As required by New York State |
(1) Workers' Compensation and Disability Insurance are discussed below in further detail.
Required if Contractor's Policy Amounts for Automobile and/or Commercial General Do Not Meet Minimum Requirements
|
Type |
Definition |
Minimum Level |
|---|---|---|
|
Excess/Umbrella Liability |
Provides protection for catastrophic liability losses. Excess liability insurance is an umbrella policy that generally sits top of an automobile policy and commercial general liability policy. Payments start when a covered loss depletes the policy's per occurrence or aggregate limit. |
Varies |
Procurement Driven Insurance Needs
|
Type |
Definition |
Minimum Level |
|---|---|---|
|
Builders Risk Insurance |
Coverage that protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause. This insurance only applies to Construction contracts that involve buildings or structures being constructed, erected, renovation or fabricated. The insurance does not apply to road construction. The Contractor shall provide a Builders Risk Insurance policy in an amount equal to the total insurable contract amount as calculated on the University's provided Builders Risk Insurance Value Form. |
Varies |
|
Employer's Practices Liability Insurance |
Covers discrimination, wrongful termination, sexual harassment and other employment related issues. It covers the Contractor plus the directors and officers of the Contractor. The Contractor's insurance company will derive the minimum amount of Employer's Practices Liability Insurance based on a number of factors, including business size, business type and associated risk of employment practices. |
Varies |
|
Garage Liability |
Covers liability for the premises and operations, products and completed operations. Contractor shall provide a Garage Liability policy, including Garagekeepers' liability insurance coverage, if any of the following occur:
|
$1,000,000 for garage operations; Garagekeepers - $100,000 for each vehicle in custody and $500,000 aggregate on direct primary basis. |
|
Owners and Contractors Protective Liability Insurance |
Provides coverage for bodily injury and property damage liability arising out of contractors operation for the University. |
$3,000,000 per occurrence/$5,000,000 aggregate; (Bodily and Property Damage) |
|
Pollution Legal Liability Insurance/Environmental Liability Insurance |
Provides property owners and operators coverage for pollution conditions associated with owned/operated properties, disposal sites, contracting operations and transportation exposures. Coverage is required when the work involves pollution risk to the environment. |
Please see table 1a or 1b below. |
|
Professional Liability (Errors and Omissions) |
Contractor is required to carry Professional Liability Insurance whenever the services provided are required to be certified, licensed or registered by a regulatory entity and/or where the provider's error in, judgment, planning, or design results in a financial loss to the University. Such insurance shall be maintained during the life of the Contract and for a period of three years after the completion of the Contract by the Professional and any professional subcontractor hired by the Professional. |
Please see table 2a or 2b below. |
|
Property Insurance (Contractor's Equipment) |
Protection against the loss of owned, borrowed or rented equipment and tools. Contractor shall secure, pay for and maintain the necessary amount of Property Insurance. The failure to secure such insurance or maintain adequate coverage levels shall not render the additional insureds or their officers, agents and employees responsible for any losses; and the additional insureds, their officers, agents and employees shall have no such liability. |
Varies |
Table 1a - Minimum Levels for Commercial General Liability and Pollution Legal Liability for Below Procurement Types
|
Contract Value |
Other Services * |
|
Up to $500,000 |
$1,000,000/$2,000,000 |
|
$500,001 to $1,000,000 |
$2,000,000/$3,000,000 |
|
Greater than $1,000,000 |
$3,000,000/$4,000,000 |
*Other services include but are not limited to abatement, accounting, information technology, legal, maintenance, repair, replacement, removal, testing and other non-A&E services.
Table 1b - Minimum Levels for Commercial General Liability and Pollution Legal Liability for Below Procurement Types
|
Contract Value |
Design (A/E) |
Construction Management |
Construction |
|---|---|---|---|
|
<$5,000,000 |
$1,000,000/$2,000,000 |
$2,000,000/$3,000,000 |
$3,000,000/$4,000,000 |
|
$5,000,001 to $10,000,000 |
$2,000,001/$3,000,000 |
$3,000,001/$5,000,000 |
$4,000,001/$5,000,000 |
|
$10,000,001 to $50,000,000 |
$3,000,001/$5,000,000 |
$5,000,001/$10,000,000 |
$7,000,000/$10,000,000 |
|
>$50,000,000 |
$4,000,000/$6,000,000 |
$10,000,000/$15,000,000 |
$15,000,000/$25,000,000 |
Table 2a - Minimum Levels for Professional Liability/Errors and Omissions for Below Procurement Types
|
Contact Value |
Other Professional Services ** |
|---|---|
|
Up to $500,000 |
$1,000,000/$2,000,000 |
|
Greater than $500,001 |
$3,000,000/$4,000,000 |
**Other professional services include but are not limited to accounting, legal, and services required to be licensed or registered by a regulatory entity.
Table 2b - Minimum Levels for Professional Liability/Errors and Omissions for Below Procurement Types
|
Contract Value |
Design (A/E) |
|---|---|
|
Up to $25,000,000 |
$3,000,000/$5,000,000 |
|
Greater than $25,000,000 |
$4,000,000/$6,000,000 |
Certificates of Insurance
Prior to any permit being issued or any contract being entered into for work (including purchase orders), the University requires acceptable proof of insurance. The acceptable proof of insurance is driven by the insurance type.
The Contractor's insurance agent will need to complete and issue a Certificate of Insurance and forward to the Purchasing Office. The New York State Workers' Compensation Board has mandated that certain forms from New York State licensed Disability and Workers' Compensation private insurance companies or from New York State agencies are acceptable. These forms are discussed below in the Disability and Workers' Compensation section.
All certificates of insurance must contain a thirty (30) day written notice of any cancellation, change, or termination of coverage. In addition, at the time the contract is entered into each insurance carrier must be rated at least "A-" in the most recently published . If an insurance carrier is not rated at least "A-", the vendor must replace that insurance carrier with an insurance carrier who meets the "A-" criteria. This must be done prior to the commencement of the contract. If during the term of the policy, a carriers rating falls below "A-", the insurance must be replaced no later than the renewal date of the policy with an insurer acceptable to the University.
Disability Insurance and Workers' Compensation Insurance
Prior to any permit being issued or any contract, including purchase orders, being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured disability insurance coverage and workers' compensation insurance for all its employees. This requirement applies to NYS businesses and to non-New York State businesses with employees working in New York.
Disability Insurance
Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. It provides for weekly cash benefits to replace, in part, wages lost due to injuries or illnesses that do not arise out of or in the course of employment. Disability benefits are also paid to an unemployed worker to replace unemployment insurance benefits lost because of illness or injury. Disability benefits include cash payments only.
Paragraph 8 of Section 220 of the New York State Workers' Compensation dictates the steps the University is to take prior to entering into any contract, including purchase orders. Paragraph 8 of Section 220 reads as follows:
- The head of a state or municipal department, board, commission or office authorized or required by law to issue any permit for or in connection with any work involving the employment of employees in employment as defined in this article, and notwithstanding any general or special statute requiring or authorizing the issue of such permits, shall not issue such permit unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that the payment of disability benefits for all employees has been secured as provided by this article. Nothing herein, however, shall be construed as creating any liability on the part of such state or municipal department, board, commission or office to pay any disability benefits to any such employee if so employed.
- The head of a state or municipal department, board, commission or office authorized or required by law to enter into any contract for or in connection with any work involving the employment of employees in employment as defined in this article, and notwithstanding any general or special statute requiring or authorizing any such contract, shall not enter into any such contract unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that the payment of disability benefits for all employees has been secured as provided by this article.
In order to comply with New York State Disability Insurance regulation, a business must provide evidence to the University one of the following:
- they are legally exempt; or
- they have obtained coverage from insurance carrier; or
- they are self-insured or part of a group insurance plan.
Proof that the business falls into one of the three above categories must be provided prior to any permit being issued or any contract, including purchase orders, being entered into.
- Legally Exempt: A business is legally exempt from disability insurance if it is a sole proprietorship, or a partnership, or a one or two-person corporation with those individuals owning all of the stock and holding all the officerships with each person owning at least one share of stock and between them all shares of stock in the corporation. Regardless of the structure of the business it must not have any employees, day laborers, leased employees, borrowed employees, part-time employees, unpaid volunteers (including family members) or subcontractors. In addition, businesses with no New York State locations are exempt. The only acceptable proof of legal exemption is a Form CE-200 Certification of Attestation of Exemption from Workers' Compensation and/or Disability Benefits Coverage which is provided by the Workers' Compensation Board. A new CE-200 must be completed for each and every new or renewed permit, license or contract issued by the University. The CE-200 can be completed .
- Coverage from Insurance Carrier: Private insurance carriers licensed to write New York State disability benefits insurance policies and New York State licensed agents of those insurance carriers can provide the University with Form DB-120.1 Certificate of Disability Benefits Insurance. This is the only acceptable form of proof of insurance coverage. Insurance brokers are NOT authorized to issue the DB-120.1.
- Self-Insured: If a business is self-insured they will need to provide the University with Form DB-155 Certificate of Disability Benefits Self-Insurance, as evidence that they are self-insured. In order to obtain Form DB-155 from the Workers' Compensation Board Office of Self-Insurance the business must have been approved by the Board. The business will need to contact the Board's Office of Self-Insurance 518-402-0247. The Board's Office of Self-Insurance will complete the DB-155. Additional information can be obtained by contacting the Board's Office of Self-Insurance at 518-402-0247.
Workers' Compensation
Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment. Employers must continuously provide for workers' compensation benefits to all employees.
Section 57 of the New York State Workers' Compensation dictates the steps the University is take prior to entering into any contract, including purchase orders. Section 57 reads as follows:
"Restriction on issue of permits and the entering into contracts unless compensation is secured.
- The head of a state or municipal department, board, commission or office authorized or required by law to issue any permit for or in connection with any work involving the employment of employees in hazardous employment defined by this chapter, and notwithstanding any general or specific statute requiring or authorizing the issue of such permits, shall not issue such permit unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that compensation for all employees has been secured as provided by this chapter. Nothing herein, however, shall be construed as creating any liability on the part of such state or municipal department, board, commission or office to pay any compensation to any such employee if so employed.
- The head of a state or municipal department, board, commission or office authorized or required by law to enter into any contract for or in connection with any work involving the employment of employees in a hazardous employment defined by this chapter, notwithstanding any general or special statute requiring or authorizing any such contract, shall not enter into any such contract unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that compensation for all employees has been secured as provided by this chapter.
In order to comply with New York State Workers' Compensation regulation, a business must provide evidence to the University one of the following:
- they are legally exempt; or
- they have obtained coverage from insurance carrier; or
- they are self-insured or part of a group insurance plan.
Proof that the business falls into one of the three above categories must be provided prior to any permit being issued or any contract, including purchase orders, being entered into.
- Legally Exempt: A business is legally exempt from workers' compensation insurance if it is a sole proprietorship, or a partnership, or a one or two-person corporation with those individuals owning all of the stock and holding all the officerships with each person owning at least one share of stock and between them all shares of stock in the corporation. Regardless of the structure of the business it must not have any employees, day laborers, leased employees, borrowed employees, part-time employees, unpaid volunteers (including family members) or subcontractors. In addition, businesses with no New York State locations are exempt. The only acceptable proof of legal exemption is a Form CE-200 Certification of Attestation of Exemption from Workers' Compensation and/or Disability Benefits Coverage which is provided by the Workers' Compensation Board. A new CE-200 must be completed for each and every new or renewed permit, license or contract issued by the University. The CE-200 can be completed .
- Coverage from Insurance Carrier: Private insurance carriers licensed to write NYS
workers' compensation insurance policies, their licensed NYS Agents or the New York
State Insurance Fund can provide proof of workers' compensation insurance. Private
insurance carriers must provide the University with Form C-105.2, Certificate of Workers'
Compensation Insurance. Insurance brokers are NOT authorized to issue it.
If the business obtains workers' compensation from the New York State Insurance Fund, the business must provide the University with Form U-26.3, Certificate of Workers' Compensation Insurance. Upon receipt the University will verify the coverage by going to the site and entering the requested information.
- Self-Insured: A business can be either self-insured or be part of a group self-insurance policy. If a business is self-insured, they are to provide the University with Form SI-12, Certificate of Workers' Compensation Self-Insurance which is obtained from the Workers' Compensation Board Office of Self-Insurance. The Board must have approved the business for self-insurance. In order to obtain Form SI-12. The business will need to contact the Board's Office of Self-Insurance 518-402-0247. If the business is part of a group self-insurance policy the must provide Form GSI-105.2, Certificate of Participation in Workers' Compensation Group Self-Insurance, as evidence. Form GSI-105.2 must be completed by the Insurance Administrator of the Group and provided to the University by the Insurance Administrator of the Group. Additional information can be obtained by contacting the Board's Office of Self-Insurance at 518-402-0247.
Disability and Workers' Compensation Forms
Disability Insurance Forms:
- Form DB-120.1: Certificate of Disability Benefits Insurance
- Form DB-155: Certificate of Disability Benefits Self-Insurance
Workers' Compensation Forms:
- Form C-105.2: Certificate of Workers' Compensation Insurance
- Form GSI-105.2: Certificate in Participation in Workers' Compensation Group Self-Insurance
- Form SI-12: Certificate of Workers' Compensation Self-Insurance
- Form U-26.3: Certificate of Workers' Compensation Insurance
For additional information regarding these forms, please contact the Purchasing Office at (607) 777-2184.
Surety Bonds
A surety bond provides a guarantee that the work contracted for will be completed. Often referred to as a performance bond, the surety bond guarantees that the contractor has the financial resources to complete the job from start to finish.
The University will often require a contractor to obtain a surety bond as of the start date of work on a University project. The bond must remain in full force and effect throughout the life of the project.
There are four types of surety bonds:
- Bid Bond: Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
- Payment Bond (Labor and Material Bond): Ensures suppliers and subcontractors are paid for work performed under the contract.
- Performance Bond: Ensures the contract will be completed in accordance with the terms and conditions of the contract.
- Ancillary Bond: Ensures requirements integral to the contract, but not directly performance related, are performed.
Additional information can be obtained by contacting the Purchasing Office at (607) 777-2184.