Minimum Insurance Requirements for Construction and Professional Design Contracts

This site is informational. It does not supercede our construction contract.

There may be some variation between types of projects. Refer to the documentation provided (to the contractor) for details.

Depending on the insurance company, their forms may or may not be ISO standard forms. We rely on the agent to provide proof that our requirements are met. Work cannot begin until our requirements are met.

It is very helpful if the agent includes their telephone number and email address on the certificate.

Note: Where a dollar amount is specified below, each entry should be read as prefaced by “at least.”

We reserve the right to require increased limits of coverage if, in our opinion, the project is hazardous in nature or poses a higher than usual risk.

If you are a contractor you must be aware that you are required to meet the insurance specifications during the time of construction and during the warranty period, usually five years after the project is accepted by us.

Insurance companies: All insurance companies selected by contractor must be rated “A-” or above in the most recent edition of the A.M. Best’s Key Rating Guide.

Requirements Document

Obligations of Contractors and Consultants

emphasis added

Contractors and Construction Professional Design Consultants (whether corporation, sole proprietorship or partnership) shall procure and maintain during the term of the contract continuing through the warranty period (usually five years), insurance of the types of coverages and minimum limits as identified here and shall provide the Owner with Certificate(s) of Insurance evidencing these coverages prior to beginning work. With the exception of their “hold harmless” obligations, which are addressed separately below, Contractors and Consultants shall be referred to herein as “Contractor,” irrespective of their area of expertise.

• It is the responsibility of the Contractor and Subcontractors to become familiar with Owner’s insurance requirements and to ensure that they can meet these requirements prior to submitting a bid to perform the work. Please provide this exhibit to your insurance agent so the correct certificate can be issued without delay.
• No Contractor or Subcontractor of any tier shall be on the jobsite or proceed with work, and shall not be paid for any work performed, until proper certificate(s) of insurance have been submitted to and approved by the Owner. All required insurance policies shall be written by a company(s) authorized to do business in Indiana. The Owner shall not be liable to any person for the failure of the Contractor or any Subcontractor to carry specified insurance.
• It is the responsibility of all Contractors to ensure that all of its Subcontractors also meet these insurance requirements.
• If any part of any coverage includes a deductible, self insurance, a captive insurance company or a fronting arrangement, the amount so covered must be disclosed on the certificate or in a separate letter from the Contractor. Owner reserves the right to approve of this coverage.
• NOTE: Contractor is required to meet the insurance specifications during the time of construction and during the warranty period, usually five years after the project is accepted by Owner. 

CERTIFICATE HOLDER:
The Trustees of Indiana University
2901 E. Discovery Parkway
Bloomington, In. 47408

Check your contract for the address required. This may vary depending on which section of the University is issuing the contract.

Insurance Requirements

1. General Liability
   • Construction Contracts
     • Each occurrence: $1 million
     • General aggregate: $2 million
     • Products and Completed Operations: $1 million
     • The “COMMERCIAL GENERAL LIABILITY” box must be checked
     • The “OCCUR” box must be checked
     • Per Project must be checked
   • Design/Consultant Contracts
     • Each occurrence: $1 million
     • General aggregate: $2 million
     • The “COMMERCIAL GENERAL LIABILITY” box must be checked
     • The “OCCUR” box must be checked
2. Pollution Liability
   • Construction Contracts (Highlights, only. Full details are in the contract.)
     • Applies to all General Contractors, Prime Contractors or Construction Managers At Risk
     • Limit
       • For projects of $1 million or less: $1 million incident, aggregate $1 million.
       • For projects over $1 million to $5 million: minimum limit (per incident and aggregate) equal to cost of project, rounded up to the next million. (E.g., a $2.3 million project requires $3 million pollution liability.)
       • For projects over $5 million to $10 million: $5 million minimum limit (per incident and aggregate).
       • For projects over $10 million to $25 million: $5 million minimum limit per incident, $10 million aggregate.
       • For projects over $25 million: $10 million minimum limit (per incident and aggregate).
     • The policy shall contain or shall be endorsed to contain a provision extending coverage for completed operations hazard losses for as long as there is exposure to claims under the Indiana Statute of Repose, Ind. Code 32 -30-1.
     • The policy shall cover sums that
       • the insured becomes legally obligated to pay to a third party or
       • for the investigation, removal, remediation (including associated monitoring) or disposal of soil, surface water, groundwater or other contamination to the extent required by environmental laws (together “clean-up costs”) caused by pollution conditions resulting from covered operations, subject to the policy terms and conditions, including bodily injury, property damage (including natural resource damages), clean-up costs, and legal defense costs.
     • Coverage shall apply to sudden and non-sudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste materials, or other irritants, contaminants, or pollutants.
     • The policy shall contain a severability provision.
3. Automobile Liability
   • The box(es) that is/are checked must include a check in the box for Any Auto or All Owned, Hired and Non-Owned Autos
   • Combined Single Limit coverage: $1 million.
   • If separate Bodily Injury and Property Damage limits are purchased, each must be $1 million.
4. Excess/Umbrella
   • Excess coverage per se is not required. However, any of the dollar amount requirements can be met by a combination of primary and excess coverage.
   • Excess/umbrella coverage must be per occurrence coverage.
5. Professional Liability Insurance
   • Any type of design or consulting contract requires Professional Liability coverage of at least $1 million..
   • Owner reserves the right to require increased limits of coverage if, in the opinion of the Owner, project is hazardous in nature or poses a higher than usual risk. (This applies to all coverages.)
6. Workers Compensation
   1. The Contractor shall procure and maintain a Workers’ Compensation policy to cover its obligation under the applicable laws of any state or federal government to its employees employed on the jobsite or elsewhere on this project, including its liability as an employer under common law (commonly known as Employer’s Liability Coverage “B”) with limits of not less than that listed below. Before commencing work, IU must be able to verify the company’s worker’s compensation coverage at https://www.ewccv.com/cvs/. If the Contractor is not required to carry workers compensation insurance then a Certificate of Exemption must be obtained from the State. See Indiana DOR page. Form WCE-1 can be obtained at https://forms.in.gov/download.aspx?id=7134 (check your browser for the downloaded form).

      Worker’s Compensation:	Statutory
      Employer’s Liability:	$1,000,000 each accident or disease $1,000,000 policy limit $1,000,000 each employee

Insurance Policy Endorsements

All insurance policies must provide the following endorsements to the policy and must be noted on the certificate(s):

1. Additional Insured Endorsement (CG2010 10 01 and CG2037) or equivalent form required on General Liability, Automobile Liability and Excess/Umbrella Liability policies naming the Owner and/or Other Parties as defined in Owner’s Contract and including coverage for completed operations. Owner shall be identified as: “The Trustees of Indiana University, its officers, agents and employees.” If additional insured status is automatically granted by the insurance form “where required by written contract” then it is sufficient to note that on the certificate with a reference to the form number. This must include information about the Excess/Umbrella coverage, e.g., “Excess coverage is following form.”
2. Aggregate Per–Project Endorsement (CG2503) to the General Liability Policy indicating that the general aggregate applies separately to each project except certificates being sent for the Consultants Master Agreement.
3. Waiver of Subrogation on General Liability, Automobile Liability, and Employer’s Liability/Workers’ Compensation Policies in favor of the Owner.
4. The general and auto liability (and excess/umbrella, if used) insurance policies shall be primary and non-contributing with respect to any insurance carried by the Owner, and shall contain a severability of interests clause in respect to liability, protecting each insured as though a separate policy had been issued to each.
5. All policies shall contain an endorsement requiring (30) days written notice by the insurer to the Indiana University Office of Insurance, Loss Control & Claims before cancellation, reduction or other modifications of coverage for any reason, whenever possible.

Certificate Details

Description of Operations

Insurance Companies

All insurance carriers selected by contractor must be rated “A-” or above in the most recent edition of the “A.M. Best’s Key Rating Guide.”

Hold Harmless Agreement

Contractor shall indemnify and save harmless the Owner from any and all losses, costs, damages, liability and expenses, including reasonable attorney fees (“Losses”), arising out of or in conjunction with claims or suits for damage to any property not included in the scope of work and/or injury to persons, including Contractor’s employees and all Subcontractor’s employees of any tier, including death, alleged or claimed to have been caused by or through the performance of the work or operations incidental to the work by the Contractor, its agents or employees, or by its Subcontractors of any tier, their agents or employees, whether through negligence or willful act; and Contractor shall, at the request of Owner, undertake to investigate and defend any and all such claims or suits against Owner.

Hold Harmless Agreement — Consultants

Questions may be addressed to Kutina England or Tom Murphy via email to inlocc@iu.edu.