Improving Contracting on Campus: Allocating Risks Between Parties

Risk Research Bulletin | December 2015 | 0 Comments  Average 5 out of 5

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About This Resource

Poor contracting practices could expose your institution to unnecessary risk. Taking steps to ensure that your school follows some contracting best practices can help limit your exposure to liability. EduRisk explains risk allocation practices to help your institution avoid unpredictable risks from its contracts. Learn more about these recommended practices:

  • Require proof of insurance to confirm that a contracting party has the finances to pay for losses
  • Require an additional insured endorsement to gain coverage under another party’s insurance
  • Review the other party’s insurance to make sure it covers the most common risks
  • Reinforce your school’s insurance requirements through good contracting practices

 To make sure that your contracts are properly allocating risk between your institution and its contractors:

  • Make sure your contracting policy includes model indemnity language and a process for approving and deviating from that language
  • Update form agreements to include the model indemnity language
  • Inform potential contracting parties of insurance requirements to prevent disqualifying contractors who cannot meet your institution’s requirements
  • Review your contracting party’s insurance documents before signing the contract
  • Periodically review a multiyear contract for any changes in insurance coverage
  • Implement a centralized document storage and monitoring system to keep track of documents

Read the report for more information on contracting practices that will help your institution limit risks.


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