Vendor Forms Guide: Technology Services Insurance Requirements

Vendor shall obtain and maintain, for the duration of this Agreement or longer, the minimum insurance coverage set forth below. General Liability, Auto Liability and Excess/Umbrella Liability insurance shall be written on an occurrence basis. All coverage shall be underwritten by companies authorized to do business in the State of Texas or eligible surplus lines insurers operating in accordance with the Texas Insurance Code and have a current financial strength rating of A- or better and a financial strength rating of VII or better as measured by A.M. Best Company or otherwise acceptable to East Texas A&M University (ETAMU). By requiring such minimum insurance, the ETAMU shall not be deemed or construed to have assessed the risk that may be applicable to Vendor under this Agreement. Vendor shall assess its own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverage. Vendor is not relieved of any liability or other obligations assumed pursuant to this Agreement by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types. No policy will be canceled without unconditional written notice to ETAMU at least ten days before the effective date of the cancellation.

A. Worker's Compensation

Worker's compensation insurance with the following minimum limits of coverage:

Workers' compensation policy must include under Item 3.A., on the information page of the workers' compensation policy, the state in which work is to be performed for ETAMU. Workers' compensation insurance is required, and no “alternative” forms of insurance will be permitted.
If this coverage is waived by System Risk Management, Vendor, his/her employees and subcontractors must sign a hold harmless and indemnification agreement.

B. Automobile Liability Insurance

Business auto liability insurance covering all owned, non-owned or hired
automobiles, with limits of not less than $1,000,000 combined single limit of liability
per accident for bodily injury and property damage;

C. Commercial General Liability Insurance

Commercial general liability insurance with the following minimum limits of
coverage:

The required commercial general liability policy must be issued on a form that insures Vendor's or its subcontractors' liability for bodily injury (including death), property damage, personal and advertising injury assumed under the terms of this Agreement.

D. Excess/Umbrella Liability Insurance

Vendor shall maintain excess/umbrella liability insurance providing coverage in excess of all insurance required under this Agreement. Such coverage shall apply on a follow-form basis, or at a minimum, provide coverage no less broad than the underlying primary policies, including coverage for additional insureds where required. The policy shall be written with limits sufficient to ensure a combined total limit of not less than $5,000,000 per occurrence and in the aggregate, as applicable, for the underlying policies.

E. Cyber Liability Insurance

Cyber Liability insurance with limits no less than $2,000,000 per claim and in the aggregate. Coverage shall be sufficiently broad enough to cover and respond to the duties and obligations of Vendor under this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information or personally identifiable information (PII), alteration of electronic information, extortion, and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties, and credit monitoring expenses with limits sufficient to respond to the aforementioned within this Section.

F. Technology Errors and Omissions Insurance

Vendor shall maintain technology errors and omissions insurance that insures against professional errors and omissions that may result from providing technology services and products in the minimum amount of $2,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of the start of work, and Vendor agrees to maintain continuous coverage through a period no less than five (5) years after completion of the work.

G. Vendor shall deliver to ETAMU the evidence of insurance on a Texas Department of Insurance approved certificate form, Acord form, letter of self-insurance or its equivalent verifying the existence and actual limits of all insurance prior to the execution and delivery of this Agreement and prior to the performance of any services and/or Services by Vendor under this Agreement. Vendor shall provide additional evidence of insurance on an approved certificate form verifying the continued existence of all required insurance no later than thirty (30) days after each annual insurance policy renewal.

H. Commercial General Liability and Auto Liability policies must be endorsed to name the Board of Regents for and on behalf of The Texas A&M University System, The Texas A&M University System and its member institutions, universities, and agencies as additional insureds up to the actual liability limits of the policies maintained by Vendor. The commercial general liability additional insured endorsements must include on-going and completed operations. Commercial general liability and business auto liability policies must be written on a primary and non-contributory basis. Copies of each endorsement must be submitted with the certificate of insurance upon request.

I. Vendor hereby waives any and all rights of subrogation against the Board of Regents, The Texas A&M University System and its member institutions, universities, and agencies. All insurance policies must be endorsed to provide a waiver of subrogation in favor of the Board of Regents for and on behalf of The Texas A&M University System, The Texas A&M University System and its member institutions, universities, and agencies. Vendor's waiver under this Section shall apply regardless of whether Vendor has obtained the required waiver of subrogation endorsement from its insurer.

J. Any insurance written on a claims-made basis must show a retroactive date prior to the execution date of this Agreement or the start date of services/work performed, whichever date is earlier. Insurance must be maintained and evidence of insurance must be provided for [at least five (5) years after completion of contract work]. If coverage is cancelled or non-renewed and not replaced with another claims-made policy form with the same retroactive, Vendor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.Vendor shall send written notice to Certificate Holder ten (10) days prior to the effective date of cancellation, material change, or nonrenewal relating to any insurance policy required hereunder.

K. Vendor shall pay any deductible or self-insured retention for any loss.

L. Certificates of insurance and additional insured endorsements as required by this Agreement must be submitted/emailed to the following Certificate Holder and/or ETAMU contact:

• Certificate Holder
  East Texas A&M University
  Procurement Services
  PO Box 3011
  Commerce, TX 75429

Email Address: [email protected]

M. The insurance coverage required by this Agreement must be kept in force until all services and/or Services have been fully performed and accepted by ETAMU in writing.

N. ETAMU reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.