Insurance Coverages Explained

Workers’ Compensation: A state-mandated insurance program that covers an employer’s statutory financial obligation to pay the costs (medical treatment and lost wages) associated with employees’ work-related injuries and illnesses, without regard to fault.

Employers‘ Liability Insurance: Provides coverage for losses caused by a job-related injury or illness not covered by workers’ compensation, or in cases where an employee feels the coverage under workers’ compensation was inadequate to cover the medical cost or lost wages, and that the employer was negligent.  All contractors/vendors are required to evidence Workers’ Compensation and Employer’s Liability insurance. The contractor must provide documentation that they are exempt from the statutory requirements of having Workers’ Compensation insurance.

Commercial General Liability: Provides coverage against third-party claims alleging bodily injury, property damage, or personal and advertising injury.  This coverage is designed to cover non-professional negligent acts. Any Contractor/vendor that wants to do business with the university is required to provide evidence of commercial general liability insurance and to name Cornell University as an additional insured.  The minimum insurance limits required will be based on the level of risk involved with the type of service provided and the scope and nature of the project.  The university reserve the right to increase the limit if the scope and/or risk associated with the contractor’s activities is greater than the normal university activities/projects.

Business Automobile Liability: Provides coverage against third-party claims for bodily injury and/or property damage arising out of the ownership, maintenance, or use of automobiles. If a contractor is transporting hazardous materials, it will be subject to the Motor Carrier Act of 1980, in addition to other state and federal regulations.

Professional Liability (E&O): Also known as errors & omissions provides coverage for the wrongful/negligent act, error, and/or omission that may arise from services provided by consultants to the university. Without professional liability insurance consultants are generally not able to meet their indemnification obligations should a financial loss occurs. The university will be forced to pay for the loss out of the operating funds intended to support other university projects. Crime Insurance: Provides coverage for theft by anyone, including employees and third parties. If a contractor’s services involve the handling or having access to university money, securities, and other negotiable instruments, the contractor is required to evidence Crime coverage.

Cyber Liability Insurance: Provides protection (first-party coverage) against damages resulting from electronic threats to the university’s computer systems Data recovery or data. Coverage includes Data Breaches, Computer Attacks, Cyber Extortion, Business Interruption, Identity Recovery.  This insurance also provides coverage against claims from third parties, as well as fines and penalties from regulators. Third-party coverage options could include coverage for Data Compromise Liability, Network Security/Privacy Liability and/or Media Liability

Indemnification or Hold Harmless Clause: An indemnification clause is the obligation of one contracting party to financially compensate another party for losses or damages caused by that contracting party.  Hold Harmless Clause is a legal provision that requires one party not to hold the other party responsible for any legal liabilities, loss, or damages for any injuries or damage that may arise during the term of the agreement.