About Supplier Insurance Requirements

This webpage is for campus departments and units.

This webpage has information relating to suppliers and insurance requirements. Suppliers include independent contractors, consultants, vendors, or other service providers providing goods or services under a contract, purchase order or other written agreement with the university. 

The Supplier Insurance Requirements webpage summarizes the insurance requirements for suppliers. 

-> Essentially, UC system-wide policy requires all suppliers to have insurance and to present a certificate of insurance. 

How to request an exception to the university's insurance requirements 

The campus unit, department or division making the purchase can request an exception to the university's insurance requirements. 

  • Before asking for an exception, consider the availability of insurance. CampusConnexions can help some suppliers meet the university's insurance requirements. 
  • A request for an exception should only be made after confirmation that the supplier does not have insurance unless there is a compelling reason that the requisition needs to move forward without addressing insurance. For example, a compelling reason might be that an emergency service is needed to ensure life safety or preservation of valuable assets.

-> When requesting an exception, address each point (1, 2, 3, 4, 5, 6) in your exception request. 

Depending on the scope of work, the comment can be very brief as long as each point is addressed.  

  1. Start with, "1. An insurance exception request is being made by <<name of campus employee>>, <<title of campus employee>> for <<campus org>> ." 
  2. Give the reason for the exception request including the supplier's insurance status. For example, the supplier does not have insurance and it appears they will be performing a low risk service.
  3. Give a brief description of the good or service being provided to the university.
  4. State whether the supplier is being used for the first time or for continuing business.
  5. Describe what could go wrong and explain how risk is being controlled.
  6. Include the name and position of the employee who has authority to accept financial risk and authorized the exception request. The financial consequences of using an under-insured or uninsured supplier are often difficult to anticipate. In some cases, the university's own insurance programs might provide funding for a loss or the supplier might pay out of pocket for the loss. However, the campus organization making the purchase might be financially responsible for funding the loss directly or for obtaining funding.  

Frequently Asked Questions

The information presented here is for general information only for campus units and departments. No information on this website changes the terms or conditions for a supplier. 

What are the Cyber Liability insurance requirements?
The university's cyber liability insurance requirements are contained within the UC Terms and Conditions of Purchase, Article 9 Insurance.
  • For P1 and P2, if Appendix DS* is not incorporated into the purchase order or other contracting documents, then cyber liability insurance is not required. All other insurance requirements remain unchanged.
  • For P3 and P4, cyber liability insurance is required. The data security terms and conditions are likely to be included in either Appendix DS* or other contracting documents. All other insurance requirements remain unchanged.
  • *Appendix DS in this context refers to a contracting document between UC and the supplier. Appendix DS in this context does not refer to Exhibit 1 submitted with a CruzBuy requisition for the purpose of classifying P level.
Cyber liability is one type of insurance. Other types of required insurance include general liability, auto liability, workers' compensation, professional liability, etc. The lack of a cyber liability insurance requirement does not mean that other insurance will not be required. 
Is Workers' Compensation required?
  • Workers' Compensation is required as required by applicable state law and Employer’s Liability with limits of one million dollars ($1,000,000) per occurrence. Some suppliers might not be legally required to carry Workers' Compensation; otherwise, Workers' Compensation is required.
Is Auto Liability insurance required?
  • Auto liability is only required when supplier's vehicles will be used for purposes other than commute purposes.