The Office of Risk Management and Procurement Services work collaboratively to ensure all Vendors carry the required type(s) and level of insurance coverage. The university requires that our Vendors maintain adequate levels of insurance to ensure financial protection, risk mitigation, and compliance with legal requirements.
A helpful analogy to consider is the requirement for all drivers to hold auto insurance for their personal vehicles. Not only is this a legal requirement in Ontario, but it also helps protect everyone financially in the event of an accident. We would not want to share the road with an uninsured driver. Similarly, it would not be responsible to procure goods or services from an inadequately insured Vendor. By ensuring Vendors have appropriate insurance, we collectively support a safe and responsible campus environment.
Risks Related to Lack of Insurance
The university’s insurance requirements ensure that we are doing business with Vendors who can support their contractual obligations even in the event of an unforeseen issue. It is the Vendor’s responsibility to ensure they carry the required types and levels of insurance for the duration of the contract. This is part of the costs of running a business that supports the Vendor’s ability to safely conduct operations for all their clients, not just the university.
Risks to engaging with Vendors who do not hold adequate insurance for their business may include the following.
- Legal and Regulatory Requirements: The Vendor may be required by law or other regulations to carry specific types and amounts of insurance. Operating without meeting these requirements could lead to fines, penalties, or legal actions.
- Business Continuity: In the event of a major incident, inadequate insurance could jeopardize the Vendor’s ability to continue operating. This may lead to delays in project completion, termination of the contract during the project, or other additional costs.
- Financial Liability: Without adequate insurance coverage, the Vendor may be personally liable for any property damage or injuries that occur during the work, even if that is an individual owner. This can lead to significant financial strain, including legal costs, medical costs, settlements, or judgments against the Vendor. It may also mean insufficient coverage to pay for repairs to university property or to complete the project.
- Loss of Reputation: Operating without adequate insurance can damage the Vendor’s reputation. Clients may view them as unreliable or unprofessional, potentially impacting future business opportunities.
Types of Insurance
| Insurance Type | What it Covers | When it’s Required |
| Commercial Automobile Liability | Protects against claims for bodily injury and property damage resulting from accidents involving vehicles used by the Vendor during the work. | When the Vendor will operate a vehicle on campus. |
| Commercial General Liability | Protects against claims for bodily injury, property damage, and personal injury that may arise during the work. | For all procurements of any goods or services. |
| Errors & Omissions (Professional Liability) | Protects against claims resulting from professional errors, negligence, or omissions. | When the Vendor is part of a professional designation such as accountants, lawyers, architects, or engineers. |
| Equipment Breakdown (Boiler & Machinery) | Coverage for repairing or replacing damaged equipment which is critical to facilities operations. Critical equipment will cause significant disruptions to campus operations as well as potential financial losses in the event of a breakdown or malfunction (e.g. boilers, HVAC systems). | When the Vendor will be completing work on critical facilities equipment, or work that may impact those systems. |
| Network Privacy & Cyber Security Liability | Coverage for financial losses resulting from data breaches, cyber-attacks, or unauthorized access to information. | When the Vendor will have access to the university’s IT infrastructure. |
| Surety Bonds | A financial guarantee in the Construction industry that the Contractor will complete their obligations under the Contract.
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Contractors performing construction activities on campus where the project’s construction costs exceed $100,000 CAD. |
| Workers’ Compensation (WSIB) | Mandatory coverage in Ontario to provide collective liability insurance for work-related illness or injury. | When the Vendor will perform any work other than delivery of low-risk goods to campus. This includes delivery of large equipment, installation of equipment, and any services performed on- or off-campus. |
| Wrap-up Liability & Builders’ Risk | Protects an entire project, including the Vendors and university personnel.
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Where construction costs exceed $5,000,000 CAD, the university will take out Wrap-Up Liability & Builders Risk insurance. |