Office of Risk Management
Facilities Management Building
411 Pioneer Drive
Rochester, MI 48309-4482
(map)
(248) 370-4929
Fax: (248) 370-2601
riskmgmt@oakland.edu

Frequently Asked Questions

Frequently Asked Questions
  1. What does “Additional Insured” mean?
    An additional insured is a person or organization also entitled to the benefits and protections extended under an insurance policy purchased by a vendor. An endorsement to the vendor’s policy is typically required to achieve the additional insured status. The additional insured is only insured under claims that arise out of operations performed by or on behalf of the additional insured.

  2. Who should be listed on the Certificate of Insurance as the “Certificate Holder”?
    The certificate holder is the entity to whom the certificate of insurance is issued. Oakland University and the Board of Trustees, 2200 North Squirrel Road, Rochester, MI, 48309-4401 should always be listed as the certificate holder.  

  3. If a Waiver or release has been signed by event participants, are insurance certificates with OU listed as additional insured still required of the vendor?
    Yes. Activities requiring a signed waiver MUST still comply with the minimum insurance requirements listed on Risk Management’s website. Note: If Risk Management waives the insurance requirements for a specific contract, no insurance certificate will be required. See Risk Management website for such waiver requests.

  4. Why do I need an Umbrella/Excess policy?
    Umbrella/Excess liability provides additional insurance limits coverage above a vendor’s primary general liability (CGL) and/or commercial automobile liability (AL) policy. Umbrella/Excess insurance is designed to protect against serious losses which might ultimately jeopardize the vendor’s financial stability.

  5. Why do I need Professional Liability Coverage?
    Professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they may cause to another person or business.

  6. I’m a consultant, do I need insurance?
    Yes. While the type of insurance required depends upon the scope of work specified within the contract terms and conditions, at a minimum consultants must provide proof of a small business commercial liability insurance policy with minimum limits of $1mm.

  7. What is the difference between Cyber Liability, Technology Errors and Omissions (E&O), and Crime Insurance?
    Cyber liability covers a business’s liability for a data breach when customers’ personal identifiable information (PII) such as social security or credit card numbers are either inadvertently exposed or stolen by someone who has gained access to the company’s electronic network. Examples include: data breaches from hospital or medical insurance company websites, and major retailers such as Target, Home Depot, American Express, etc. Cyber liability indemnifies a company for its obligation to pay for the remediation costs attributed to the data breach (i.e. credit monitoring services).

    Technology E&O insurance coverage protects a company when its technology services and/or products fail to perform as specified. Examples include: If a software product or electronic data processing system operates incorrectly or not at all, the company’s client may suffer financial loss from downtime or lost business. If a lawsuit or claim for damages results from an alleged error or omission, the technology E&O coverage can provide defense costs and financial damages that the policyholder may be legally obligated to pay.

    Commercial crime insurance typically provides reimbursement to the University for any damages related to: employee dishonesty, forgery or alteration, computer fraud, funds transfer fraud, counterfeit money, and mysterious disappearance of money and securities.
Frequently Used
Insurance Terminology

Automobile Liability (AL) – Provides legal defense and payment of bodily injury and/or property damage arising out of the negligent operation, maintenance or use of a vehicle. Any vendor or contractor driving on OU’s campus must provide proof of (AL) coverage with minimum limits of $1mm.

Claims-Made Policy – The incident that gives rise to a claim must occur during the insurance policy period AND the claim must also be reported to the insurer during the policy period in order for coverage to be triggered.

Commercial General Liability (CGL)– Covers amounts a vendor may be legally obligated to pay (including defense costs) for personal injury and/or property damage claims to a third party arising from the vendor’s premises or operations, products, or completed operations.

Employers Liability (EL) - Protects employers from the liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.

Garage Keepers Legal Liability (GKLL) – This unique insurance product extends coverage for damages to customers’ vehicles while in the vendor’s care, custody and control. Generally, this specific insurance coverage applies to auto service facility vendors, valet parking operations, and car haulers.

Occurrence Policy – Regardless of when a third party personal injury and/or property damage is made or reported to the insurer, the applicable insurance coverage terms and conditions triggered dates back to the original date of the incident.

Pollution Liability - Offered on a claims-made or occurrence basis, this insurance provides third-party legal defense and clean-up costs as well as third party bodily injury and property damage claim costs resulting from pollution conditions (sudden/accidental and gradual) arising from operations performed by or on behalf of the vendor/contractor.

Professional Liability – Provides legal defense and indemnity coverage when sued for alleged negligent performance of services.

Umbrella/Excess Liability – Provides legal defense and payment for third party personal injury and/or property damage awards which exceed the total available insurance limits under a vendor’s primary insurance program. Umbrella/excess coverage protects against catastrophic related losses which could conceivably bankrupt a vendor.

Workers’ Compensation (WC) - Provides coverage for employees’ medical and wage loss expenses arising from bodily injury or disease that occur in the normal course and scope of the employees’ work duties.