Risk Management & Insurance


UC Insurance

waiver definition

Waiver of UC Insurance Requirements

Business & Finance Bulletin BUS‐63 states that “Under the terms and conditions of any contract, purchase order, or other agreement, the non‐University entity is required to show evidence of adequate insurance coverage by furnishing Certificate(s) of Insurance indicating compliance with all requirements.” Insurance protects the University by reducing its exposure to the liability of providers from whom it obtains goods and services. Risk exposure is a consequence of the goods and services that the University is obtaining from the provider, not their cost. Exposure to risk arises from the possibility of loss and the probable severity of injuries or property damage if loss occurs. Go to UCSB: Insurance Requirements for more information.

Exemption Criteria

Policy allows exceptions to the University’s insurance requirements if the possibility of loss arising from a provider’s liability is negligible. Only the campus Risk Management office has the authority to make exceptions, to reduce or waive the University’s insurance requirements. At UCSB, departments can ask Risk Management to waive the insurance requirements if the purchase involves low risk goods and services that create little exposure to liability. The following minimum criteria must be met:

  1. The service has not yet been provided.
  2. The contract is between an academic/research/administrative unit/department and a service provider.
  3. The service provider is speaking at a campus event that takes place on a UC-owned, leased or rented property where the department is providing direct on-site supervision by an employee acting within the course and scope of employment.
  4. The service provider is providing one or more of the following services: copy editing, clothing repair, interpreting, data entry, note taking, assistance to a disabled individual, translation.
  5. The service provided does not include training, demonstrations, physical activity, transportation or travel, interaction with minors, or any other factor that may create liability.
  6. The services provided cost less than $4,999.
  7. The service provider has not contracted with the campus for a total of $4,999 or more during the current calendar year.
  8. All other standard University requirements for executing a contract of this type are met.
  9. The following indemnification clause is included in the contract and accepted by the service provider without modification: “….[NAME OF SERVICE PROVIDER] shall defend, indemnify and hold THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, its officers, employees and agents harmless from and against any and all liability, loss, expense, including reasonable attorneys' fees, or claims for injury or damages arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of [NAME OF SERVICE PROVIDER], its officers, agents or employees….”.

Department Will Pay All Costs

If the request for an insurance waiver is approved, the service provider will have no insurance coverage for any losses, including claims and lawsuits, arising out of or caused by the goods or services that are provided to the University. The department that requested the waiver will become financially responsible for any costs for which the University becomes liable that are not covered by insurance.

Vendor/Contractor Insurance

It is University policy to require vendors and contractors who provide services to the University to carry insurance. Exceptions to policy are exactly that – exceptions. It is the practice of the Risk Management office to discourage waivers and not approve them unless they meet strict exemption criteria. Before a Department submits a request to waive the University’s insurance requirements, it would be well advised to consider that vendors and contractors who do not meet the University’s General Liability Insurance requirements can purchase low-cost Vendor/Contractor Insurance from the CampusConnexions Program. This insurance meets all University insurance requirements and eliminates the need for a waiver. An annual policy for any University work costs $500. Go to UCSB: Vendor/Contractor Insurance Program for more information about this coverage.

Request for Waiver of UC Insurance Requirements

Departments who are procuring low risk goods or services that meet the exemption criteria described above, can submit a Request for Waiver of UC Insurance Requirements to the Risk Management office. The Risk Management office will review the Request and if it agrees that the goods and services will create little exposure to liability, it has the authority to approve the Request. A Request can be submitted as follows:

  1. Complete, sign and submit the Request for Waiver of UC Insurance Requirements form to the Risk Management office.
  2. PLEASE NOTE: A department control point (Dean, Director, Chair, etc.) must sign the Waiver Request.
  3. Submit a copy of the Procurement Services Request for Services and a copy of the contract, agreement, or other relevant documentation.
  4. Risk Management will review the application. It may ask additional questions to clarify the scope of work.
  5. If appropriate, Risk Management will approve the waiver, sign and return it to the applicant.
  6. If the scope of work upon which the waiver was approved is changed, the waiver is void.