CALIFORNIA STATE UNIVERSITY, NORTHRIDGE UNIVERSITY STUDENT UNION, INC. Risk Management and Contracts Policy & Procedure

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1 SUBJECT: REFERENCE: Campus Plicy N Risk Management (effective 04/01/2008) POLICY PURPOSE: INSURANCE OVERVIEW It is the plicy f the University Student Unin, Inc. (USU) t cnduct prgrams and activities in a manner that des nt pse an unreasnable risk f injury r lss. The purpse f the USU Risk Management Prgram is t develp practive prgrams that will reduce the frequency and severity f incidents leading t injury and lss and t minimize assciated csts. Auxiliary rganizatins are required t develp prgrams t manage risk related t activities in which the rganizatins are engaged. The CSU has established a jint pwers agency t perate a variety f risk management prgrams. This prgram includes features that enable auxiliary rganizatins t btain insurance cverage fr certain risk prgrams at lw rates. The prgram is called the Auxiliary Organizatin Risk Management Alliance (AORMA) established under the authrity f the Califrnia State University Risk Management Authrity (CSURMA). RESPONSIBILITIES It is the respnsibility f the USU management team t ensure that USU emplyees are familiar with USU risk management plicies and prcedures. The management team will cnsult with the campus Risk Manager when ptential cnflicts with campus risk management plicies r prcedures arise. The USU management team will ensure that bligatins in cntract dcuments are mnitred and implemented. USU department managers and emplyees are respnsible fr adhering t USU risk management prcedures and fr ntifying their supervisr r the management team when ptential cnflicts with USU plicy and prcedures arise. RISK MANAGEMENT METHODOLOGY The fllwing methdlgy will be used t identify and manage risks that may impact the USU: Identificatin f Risk: Cnduct a systematic review f an activity r event t determine the ptential risk t life r prperty that culd result thrugh negligence r accident. Evaluatin f Risk: Examine the event r activity t determine the seriusness f the lss expsure and methds mitigating the expsure. Selectin f the Best Risk Management Technique: After a risk has been identified and evaluated, a risk management technique r cmbinatin f techniques is selected t minimize the prbability f lss r the severity f lss. Techniques may include the use f waivers; additinal insurance; training; r mdificatin f the event. 1

2 Implementatin f the Best Risk Management Technique: Once the best risk management technique is selected, the USU management team will ensure that it is implemented. Mnitr and Evaluate the Results: The USU management team will cntinually mnitr and evaluate the effectiveness f chsen risk management techniques. As part f this prcess, risk management techniques may be mdified t imprve risk mitigatin r t limit impact n campus event r activity. INSURANCE OVERVIEW A. Required Insurance Cverage that the USU Must Purchase: Cmmercial General Liability Business Autmbile Liability Cverage Wrkers Cmpensatin All Risk Prperty Participant Accident Insurance Fiduciary Liability Cmmercial Crime Requests fr the University Student Unin s (USU) certificate f insurance frm third parties must be ruted thrugh the management team which serves as the liaisn between USU staff and the USU s insurance brker. B. Insurance Requirements fr USU Cntractrs & Clients In rder t manage risk, the USU requires that cntractrs and certain clients ding business with the USU carry insurance. The cntractr r client must prvide an insurance certificate evidencing the required cverage. If a cntractr is nt able t cmply with minimum insurance requirements, the USU cannt d business with that cntractr unless a risk assessment is perfrmed. C. Insurance Certificates Insurance certificates must be btained frm cntractrs r clients t shw evidence f minimum insurance cverage cited in Sectin E. Insurance certificates are issued as a matter f infrmatin nly and cnfer n rights n the USU (certificate hlder). The certificate des nt amend, extend, r alter the cverage affrded by the plicies listed in the certificate. D. Risk Assessments A risk assessment must be perfrmed fr any cntractr r client unable t meet the USU minimum insurance requirements described in Sectin E. The purpse f the assessment is t determine if it is acceptable fr the USU t assume risk that wuld nrmally be assumed by the 2

3 cntractr r client. The risk assessment frm must be apprved by a USU management team member. E. USU Insurance Requirement List USU cntractrs and clients must meet the fllwing insurance requirements unless a risk assessment is cmpleted: Insurance Certificate Hlder - The University Student Unin, Inc. f Califrnia State University Nrthridge is named as the certificate hlder General Liability - cmprehensive r cmmercial frm minimum limits Each Occurrence $1,000,000 General Aggregate $2,000,000 Business Autmbile Liability - minimum limits n Owned, Scheduled, Nn-Owned, r Hired Autmbiles with a cmbined single limit f nt less than $1,000,000 per ccurrence. Prf f aut liability cverage is required if the vendr uses its vehicle r autmbile in prviding its service t the USU. Prf f aut liability cverage is nt required if the vendr is nly using its vehicle r autmbile t transprt itself between its place f business and the USU r if the vendr is nly parking their vehicle r autmbile in a campus parking lt. Wrker s Cmpensatin - as required under Califrnia State Law. Prf f wrkers cmpensatin cverage is nt required if the vendr des nt have any emplyees r uses independent cntractrs t prvide its services t the USU. An wner r sle prprietr f a business is nt required t have wrkers cmpensatin cverage fr him r herself. Prfessinal Liability Insurance nly required fr cntractrs wh prvide prfessinal services. Examples are actuarial cnsultants, retirement plan cnsultants, third party administratrs, external audit firms, investment advisrs, architects, and facility planners. Insurance Cmpany Ratings - insurance shall be placed with insurers with a current A.M. Best s financial strength rating f n less than A- and a financial size categry rating f n less than VII. Minimum A.M. Best ratings ensure that the cntractr s insurance cmpany is capable f paying claims. Additinal Insured Endrsements & Endrsement Language - the general liability and autmbile liability plicies are t include additinal insured endrsements that cntain the fllwing prvisins: The University Student Unin, Inc., Califrnia State University, Nrthridge; The State f Califrnia; the Trustees f the Califrnia State University; Califrnia State University, Nrthridge; and their fficers, agents, vlunteers and emplyees (hereinafter referred t as the University Student Unin) are t be included as additinal insured with respect t liability arising ut f autmbiles wned, leased, hired r brrwed by r n behalf f the vendr/cntractr; and with respect t 3

4 liability arising ut f wrk r peratins perfrmed by r n behalf f the Vendr/cntractr including materials, parts r equipment furnished in cnnectin with such wrk r peratins, general liability cverage is t be prvided in an endrsement t the vendr/cntractr's insurance, r as a separate wner's plicy. Primary - fr any claims related t any prject, the cntractr's insurance cverage shall be primary insurance as respects the University Student Unin. Any insurance r selfinsurance maintained by the University Student Unin shall be excess f r the cntractr's insurance and shall nt cntribute with it. Subrgatin - All rights f subrgatin under the insurance plicies have been waived against the University Student Unin. This means the cntractr s insurance cmpany is waiving the right t sue the USU t recver damages. Plicy Cancellatin Ntificatin - each insurance plicy shall be endrsed t state that cverage shall nt be cancelled by either party, except after thirty (30) days prir written ntice by certified mail, return receipt requested, has been given t the University Student Unin. Apprved by the USU BOD n June 11, 2012 USU CONTRACT PROCEDURES Cntracts are required fr thse individuals defined as nn-emplyees and fr thse rganizatins that prvide cntractual services t the USU. A cntract is required when there is the ptential that a cntractr s r client s activities culd result in an insurance claim against the USU frm injured third parties. USU cntractrs and clients are required t indemnify the USU, ensure that their subcntractrs meet USU minimum insurance requirements, and prtect USU cnfidential data. Indemnificatin - The cntractr agrees t indemnify and save harmless the USU, the State f Califrnia, the Trustees f the State University, Califrnia State University, Nrthridge, and their fficers, agents and emplyees frm damages, liabilities, lsses, csts and expenses arising frm third party claims and sustained r incurred by any f the freging indemnities, but nly t the extent that such damages, liabilities, lsses, csts and expenses are caused by the negligent acts, errrs and/r missins f the cntractr, r any persn r entity fr whm the cntractr is legally liable, in the perfrmance f services under this agreement. Subcntractr s Insurance - cntractr shall ensure that its subcntractrs are cvered by insurance f the types required by the agreement, and that the amunt f insurance fr each subcntractr is apprpriate fr the subcntractr s wrk. Cntractr shall nt allw any subcntractr t cmmence wrk n its subcntract until the insurance has been btained. Cnfidentiality f Data - all financial, statistical, persnal, technical and ther data and infrmatin relating t the USU's peratin which are designated cnfidential by the USU and 4

5 nt therwise subject t disclsure under the Califrnia Public Recrds Act, and made available t the cntractr in rder t carry ut this cntract, r which becme available t the cntractr in carrying ut this cntract, shall be prtected by the cntractr using the same level f care in preventing unauthrized disclsure r use f the cnfidential infrmatin that it takes t prtects its wn infrmatin f a similar nature, but in n event less than reasnable care. The cntractr shall nt be required under the prvisins f this clause t keep cnfidential any data r infrmatin that is r becmes publicly available, is already rightfully in the cntractr's pssessin, is independently develped by the cntractr utside the scpe f this cntract, r is rightfully btained frm third parties. A. USU Cntract Types Standard Agreements used fr cntracts between the USU and cntractrs (excludes perfrmers, entertainers, and lecturers). With very limited exceptins, a purchase rder is always required t be issued with a standard agreement. Perfrmance Cntracts used fr agreements between the USU and perfrmers, entertainers, lecturers, and ther entertainment-related entities. With very limited exceptins, a purchase rder is always required t be issued with a perfrmance cntract. Terms f Reservatin Agreement used slely between the USU and clients wh rent meeting rms. These cntracts are administered by the USU Reservatins & Events department. Matadr Mall Agreement used slely between the USU and clients wh rent USU and CSUN space n daily r weekly basis t sell their apprved prducts. The vendr als signs a Matadr Mall Rules & Regulatins dcument in which the vendr fair participant agrees t indemnify the USU et al. against any and all liability, lss, damage, expense, csts f every nature, and causes f actin arising ut f r in cnnectin with the use by vendr f said prperty. It is nt practical r administratively feasible t btain insurance certificates frm the Matadr Mall participants wh sell at the fair. The majrity f the Matadr Mall participants d nt have the financial capacity t meet the USU s minimum insurance requirements. Sublease Agreements used t lease physical space lcated in the USU t an n-campus r ff campus entity. The sublease agreement is mdeled after the Auxiliary Organizatin Sublease template lcated n the Chancellr s Office website at The template can be custmized t needs f the USU. Sublease agreements are administered by the Cmmercial Services Manager. Generally speaking, cntracts are required when the cntractr perfrms its services n USU and/r CSUN premises. Hwever, prfessinal services perfrmed by a cntractr ffsite als may require a cntract. B. Examples f Services Perfrmed Onsite (nt an exhaustive list) 5

6 Facility-Related Maintenance r Repairs: Heat, Ventilatin, and Air Cnditining (HVAC) Grunds maintenance Building maintenance Elevatr repairs Janitrial services Cpier maintenance Perfrmance and Entertainment Services: Musical acts Speakers & lecturers Cmedy acts Off-campus catering services as defined in Sectin III.A.c. Rental f Meeting Services Rms Matadr Mall Rental Space C. Examples f Services Perfrmed Offsite (Standard Agreements Only) Sftware licensing Payrll services Cnsulting Facility planning Architects Audit & accunting firms Legal Services (includes retainers) Actuarial services Retirement planning services Investment & financial planning services Third party administratin f retirement services Cntracts are nt required fr the rutine purchase f materials and supplies (ffice supplies, maintenance supplies, prgramming supplies, etc.) D. Cntractr Agreements It is nt uncmmn fr a cntractr t request the USU t sign its cntract. It is permissible fr the USU t sign the cntactr s agreement and fr the cntractr t sign the USU s agreement as lng as the terms f bth agreements d nt cnflict. It is the respnsibility f the USU cntract preparer t ensure there is n cnflict between cntracts. It is als permissible fr the USU t sign the cntractr s agreement in lieu f the USU agreement as lng as the USU s insurance, indemnificatin, subcntractr insurance, and cnfidentiality f data requirements are included in the cntractr s agreement. There are ccasins where the cntractr will refuse t sign the USU s cntract r add the USU s term and cnditins t its agreement. If this ccurs, the USU cannt d business with this cntractr unless ne r mre f the fllwing cnditins are met: 6

7 Apprval f the Executive Directr/designee The service prvided by the cntractr is critical t business and administrative peratins f the USU Cmpletin f a risk assessment with a determinatin that the risk invlved is acceptable fr the USU t assume. RISK MANAGEMENT PROCEDURES FOR FOOD & BEVERAGE CONTRACTORS Nte: this sectin des nt apply t prepackaged fd as described in the USU Fd & Beverage Plicy & Prcedure. A. Off-Campus Caterers An ff-campus caterer is defined as a fd and beverage cntractr wh physically cmes n t USU r CSUN premises t prepare and/r serve fd at a USU spnsred event. It is custmary fr the caterer t prvide persnnel t prepare and serve the fd. The fllwing dcumentatin is required befre a caterer is allwed t cme n campus t serve fd and beverages: Standard Agreement Purchase Order Prf f meeting USU minimum insurance requirements Current Health Operating Permit (HOP) frm the Cunty Department f Health where the caterer s business resides. A minimum rating f an A frm the Cunty Department f Health. Ratings fr caterers and fd and beverage prviders in Ls Angeles Cunty can be btained nline at Nte: Only caterers that have physical eating establishments will have a rating. Reference Sectin III.C. n hw t handle caterers utilized by USU Reservatin & Events clients. B. Delivered Fd and Picked Up Fd and Beverages The USU des nt require that fd and beverage cntractrs meet minimum insurance requirements fr fd that is either delivered t the USU r picked up by a USU staff member at the cntractr s place f business. This applies t fd and beverages purchased fr studentriented events r internal staff training. Once fd is delivered r picked up by a staff member, risk fr any damages caused by the fd is transferred t the USU frm the fd and beverage cntractr. The fllwing dcuments are nt required fr delivered fd r fd picked up at the cntractr s place f business: Standard Agreement Purchase Order Prf f meeting USU minimum insurance requirements Department f Health Operating Permit 7

8 Hwever, it is required that the fd and beverage cntractr have a minimum f an A rating frm the Cunty Department f Health where the fd and beverage cntractr resides. Prf f the cntractr s rating must be attached t any cntractr invice, check request, American Express bill, r petty cash receipt used t pay the cntractr. It is highly encuraged t use the crprate American Express card t purchase fd fr studentriented events and internal staff trainings. Als, it is best practice that the cntractr deliver the fd directly t the USU (even if delivery charges are assessed) in rder t minimize risk management issues assciated with emplyees wh wuld utilize their persnal vehicle t pick up the fd. C. Fd rdered by USU Reservatins & Events Clients USU Reservatin & Events clients cmmnly bring in fd as part f their events. Clients may prvide fd and beverages fr their events nly with prir apprval frm the USU Reservatins & Events Office. The sale f any fd r beverage items is prhibited. Clients may use The University Crpratin lcated n campus r an ff-campus fd and beverage cntractr, r bring in stre-bught prepackaged fd. Prf f insurance and health perating permits are nt required if the client utilizes The University Crpratin. The Terms f Reservatin Agreement (signed by the client) explicitly states that the USU is nt respnsible fr the quality f fds r the health f and safety f peple cnsuming such fd prducts brught int the facility. Clients wh bring in fd must prvide the fllwing dcumentatin frm the fd and beverage cntractr prir t the date f the event: Certificate f insurance evidencing prf f general liability cverage Public Health Operating Permit. Debra L. Hammnd, Executive Directr Date 8