MCCCD Legal Services Department - Insurance Certificate Decision Steps

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Insurance Certificate Decision Steps
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SELECT A CATEGORY:

Facilities Use, Construction, Maintenance, Operations and Equipment
Executive, Academic, and Professional Services
Student Services

Facilities Use, Construction, Maintenance, Operations and Equipment
Instances in which insurance certificate adding MCCCD as additional insured should always be obtained:
EXAMPLES	Tree cutting; window washing; repair or maintenance of HVAC, roof, electrical systems, telecommunications, computers, elevators, plumbing; equipment installation; use of MCCCD facilities by outside party.
ISSUES	These services involve activities that require the use or handling of something dangerous, or something that, if damaged by the vendor, could cause significant harm.
Insurance certificate adding MCCCD as additional insured should always be obtained.

Executive, Academic, and Professional Services
Instances in which insurance certificate adding MCCCD as additional insured should always be obtained:
EXAMPLES	Transportation; domestic and international travel services; conference management services involving the selection of transportation or lodging; catering services; design services of something structural or that will be physically installed; hazardous waste removal; instructional, health, cultural or artistic activities involving touching or hazardous conditions; clinical or other experiential education agreements.¹
ISSUES	Some of these services involve decision-making on the vendor’s part about things affecting personal safety, such as mode of transportation, place of lodging, food preparation or disposal of items like biological waste. Other services in this category involve decision-making in the creation of a design – such as of a building, a wall, a bench, or a piece of artwork – that, if the design is poor, could injure a person or MCCCD property.
Instances in which, depending on the circumstances, risk analysis may suggest that additional insured requirements may be waived:
EXAMPLES	Professional speakers, grants writers, consultants, instructors, community-based speakers, programmers.
ISSUES	In performing the risk analysis, ask the following questions, as applicable: Is the vendor being compensated for the services or is its full-time business providing the services? How long will the vendor provide the services? At what location will the vendor provide the services? At MCCCD or elsewhere? For speakers, who is the audience? Is it limited, such as a classroom? Or is it larger? Is the speaker likely to say anything inflammatory or defamatory? Is the consultant, writer or programmer making any recommendations that we intend to rely on? What will happen if the recommendations are defective or, in the case of a professional like a programmer, its work is defective? What type of class is the instructor teaching? Does it involve any potentially harmful activities, or controversial materials? What is the value to your program of having the vendor provide the service? If something goes wrong and the vendor’s insurance doesn’t cover the loss, will the vendor itself have the resources to pay for the loss?

¹ In selected instances, there is a process in place for obtaining a waiver of the requirement that MCCCD be added as an additional insured under some agreements for experiential education or clinical experience. Contact the Legal Services Department.

Student Services
Instances in which insurance certificate adding MCCCD as additional insured should always be obtained:
EXAMPLES	Vendors supplying rides or game or food booths at fairs; fireworks displays; catering services; health, cultural or artistic activities involving touching or hazardous activities.
ISSUES	The services in this category involve activities that affect personal safety.
Instances in which, depending on the circumstances, risk analysis may suggest that additional insured requirements may be waived:
EXAMPLES	Bands; solo artists; other performers; disk jockeys, karaoke, health, cultural or artistic activities not involving touching, carnival or student fair vendors selling goods.
ISSUES	In performing the risk analysis, ask the following questions, as applicable: How much equipment will the band, disk jockeys or performers be bringing? Will they be bringing it to MCCCD? Could it hurt someone if it fell or was improperly used? For vendors at carnivals and fairs selling goods, are the vendors in the full-time business of selling their wares so that their obligations to their customers are on-going? What is the value to your program of having the vendor provide the service? If something goes wrong and the vendor’s insurance doesn’t cover the loss, will the vendor itself have the resources to pay for the loss?

Questions or comments?
Contact Ruth Unks @ 480.731.8879

Office of General Counsel
2411 West 14th Street
Tempe, AZ 85281-6942
480.731.8877 / 480.731.8890 fax

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Page Updated 05/23/06