Self-Insurance for Outside Entities
We don't want to hold you up! Please submit your request for a Certificate of Self-Insurance
at least 15 days prior to your event!
Contractual agreements with outside entities often do more than document the activity; they typically contain provisions addressing who is responsible if an adverse event occurs. Provisions that address this responsibility include indemnification or hold harmless clauses and insurance requirements.
Entities that we contract with will usually require that we show proof that we have insurance in the form of a Certificate of Insurance. Certificates of Insurance are standard documents that are prepared by insurance companies, or their agents, to show evidence of insurance coverage. The University of Alaska is self-insured, which means that we have no primary insurance carrier. Therefore, when asked for a Certificate of Insurance, the System Office of Risk Services will prepare and issue a similar form called a Certificate of Self-Insurance.
Only the System Office of Risk Services has the authority to issue a Certificate of Self-Insurance on behalf of the University of Alaska.
Steps for Obtaining a Certificate of Self-Insurance:
Contact your local risk management office
Provide them with a copy of the pertinent document (contract, MOA, MOU, permit, lease, purchase order, etc.). Your local office will do the preliminary review of the contract and address any questions or concerns pertaining to risk exposures. Your local office will coordinate the acquisition of a Certificate of Self-Insurance with the System Office of Risk Services.
- Review the document for risk transfer provisions
You, your local risk management office, Procurement, or Grants and Contracts will check for provisions that transfer liability to, or require the University to insure, certain liabilities. You will negotiate, with the contracting agency, revisions that are necessary to either protect the University from inappropriate transfer of risk and/or correct sections that are inapplicable to us due to the nature of our insurance programs.
Common problems include the following:
Hold Harmless or Indemnification Provisions
These types of provisions usually transfer liability for loss or damage from one party to another. Only the General Counsel’s office can agree to bind the University of Alaska to these types of provisions. Therefore, if your contract contains one of these, try to have it removed. If the contracting agency is unwilling to remove it, you will need to contact General Counsel’s office for approval of the language. Send them a complete copy of the contracting document.
Additional Insured Requirement
Insurance companies are able to, at the request of their insured, add another party to an insurance policy as an “additional insured”. Because the University of Alaska does not carry primary insurance and is self-insured to limits typically well above what the contracting agency requires, the University cannot add them to an insurance policy as there IS no insurance policy. This language must be removed. Most entities do not object to removing this once they realize we are self-insured.
Waiver of Subrogation
This is another common insurance policy endorsement. At the request of their insured, an insurance carrier can agree, in advance, not to file recovery claims against another entity with whom their insured has contracted and who may, at some point, be potentially at fault for an accident or loss. Again, as a self-insured, the University does not have an insurance policy under which we can provide a Waiver of Subrogation. This language must be removed. Most entities do not object to removing this language once they understand that we are self-insured.
The System Office of Risk Services will perform a final review for compliance on the above provisions, assist with any outstanding issues, and issue the Certificate of Self-Insurance as directed by the contracting authority.