Cornell requires contractors, consultants, and other third-party professional service providers to evidence professional liability coverage.  Risk Management recommends that units select contractors that have professional liability insurance.

Professional Liability (E&O): Also known as errors & omissions provide coverage for suits/claims alleging financial loss for the wrongful/negligent act, error, and/or omission that may arise from the performance of service. The insurance can cover the following: Negligence; Personal Injury (Libel & Slander); Claims for work that was completed in the past; employees and independent contractors.

Two types of Professional Liability Insurance

1. Miscellaneous Professional Liability (MPL): is intended for non-specialist service providers such as Consultants, Property Managers, photographers,  Event Planners, Artists, Massage Therapist etc.
2. Traditional Professional liability: is intended for specialists such as lawyers, doctors, accountants, architects, and engineers, etc.

Cornell’s Professional Liability Minimum Insurance Requirements for Non-Specialists:

• Independent Consultant/Contractors: $1,000,000 each claim and $2,000,000 annual aggregate.

Please note: For services involving minors, the contractor must evidence Sexual Abuse and/or sexual misconduct coverage in an amount no less than $2,000,000 per occurrence and shall NOT include an employee exclusion.

As a consultant/contractor, you might be required to provide evidence of additional insurance such as the following:

• General liability insurance – Provides coverage for bodily injury, property damage, and personal & advertising injury (i.e. slips, trips, falls, libel, slander copyright infringement, etc.)
• Workers’ Compensation – Provides coverage for medical expenses, and lost wages for work-related illnesses, without regard to fault.
• Business Personal Property Coverage (optional) – Coverage for all essential equipment (i.e. cell phone, tablet, laptop, tools, equipment). The University is NOT responsible for any equipment or property that is lost, stolen, damaged, or left behind

Corporations and other legal business entities are NOT eligible for a waiver if required coverages are considered standard business insurance requirements.

Insurance Resources for Independent Contractors

Many online companies can provide insurance coverage for independent contractors and small businesses. The following is a list of insurers that offer products tailored to independent contractors/ consultants:

1. biBERK
2. The Hartford
3. Hiscox
4. Insureon

The above list does not indicate endorsement of any company by Cornell, rather it is meant to serve as a resource for Independent Contractors. Contractors are free to use any insurance carrier that they wish.

Insurance Waiver

If the consultant you are working with is not able to meet the minimum insurance requirements, RMI will be able to grant a one-time waiver if the risk to the university is minimal or the insurance is not available at a reasonable cost.  Please be advised that if a waiver is granted, the contractor will still be responsible for his/her negligent acts and will be expected to indemnify the University. To modify or waive Cornell’s insurance requirements, please provide RMI with all requested information under Request for Waiver or Modification of Cornell’s Insurance Requirements.

Under no circumstances will RMI grant a waiver(s) for a project/service that has already started or completed.

Questions? Contact Risk Management