Minimum Insurance Requirements for Contracts

Recommended Minimum Insurance Requirements

[See note below: International Contracts]

The following insurance requirements should be included in University contracts with third parties.

  • These are minimum insurance requirements. The requirement is not intended to limit the responsibility or liability of the vendor.
  • If any subcontractor is used, they or the vendor acting on their behalf, are required to carry the same coverage and insurance outlined below. It shall be the vendor's responsibility to ensure compliance of this requirement.
  • Additional requirements may be recommended under some circumstances by Purchasing, Office of University Counsel, or others who are familiar with the risks of a given situation.
  • It is preferred that commercial insurance providers have a minimum A.M. Best A- 7 rating or higher.
  • This insurance must be Primary and Non-Contributory [i.e. Contractor's insurance pays first if responsible for the loss] to any insurance or self-insurance carried or administered by the University of Pittsburgh.
  • Contracts should require Certificates of Insurance to be forwarded to the department or responsibility center in control of the contract. The name and address of the contact person should be provided in the contract.
    • Retain copies of all Certificates of Insurance with the contract documents and be prepared to provide them to the Office of Risk Management in the event of a claim.
  • With the exception of Workers' Compensation and Professional Liability, the Certificate of Insurance (COI) must state that "The University of Pittsburgh, its trustees, officers, agents and employees are Additional Insured to the extent permitted by law."
    • This language must appear in the COI section entitled "DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS."

Commercial General Liability

  • $1,000,000 Each Occurrence
  • $2,000,000 General Aggregate
  • $1,000,000 Products/Completed Operations
  • $1,000,000 Personal & Advertising Injury
  • $100,000 Fire Damage (any one fire)
  • $10,000 Medical Expense (any one person)

Automobile Liability

  • $1,000,000 Combined Single Limit for Bodily Injury and Property Damage per Accident
  • Coverage to include hired car and non-owned automobiles

Workers' Compensation

  • Statutory (unlimited payments)

Employer's Liability

  • $1,000,000 Each Accident
  • $1,000,000 Disease-Policy Limit
  • $1,000,000 Disease-Each Employee


[International Contracts: Individual countries laws and customs differ. For example, we know that minimum insurance commonly recommended and carried by US-based contractors may not be readily available. Most international contracts will require case-by-case review. Consult with Purchasing/OOR/OUC or the appropriate reviewer of the contract proposal; who can draw ORM in if necessary.]