Risk Management and Insurance

The Research Foundation Risk Management department is responsible for the management of organizational risk and reporting, general liability and property loss claims as well as organizational insurance programs including the purchasing of high hazard travel insurance.

Risk Management oversees the third party administrator relationship as it pertains to claims management and directs, oversees, and manages all general liability and property insurance issues that may expose the Research Foundation to litigation or insurance claims. This includes but is not limited to identifying, evaluating, controlling and minimizing the Research Foundation’s exposure to loss or damage to physical assets, fidelity losses, and losses arising out of liability claims. In addition, Risk Management is responsible for managing all automobile liability, fire, and property damage claims, communications with attorneys, claim reviews, investigations, and negotiations of settlements.

The Risk Management team is available to review project ideas or proposals during development and inform principal investigators of insurance matters that may impact project budgets, such as on-campus special events or activities that involve the participation of minors. Activities such as these require the purchase of additional insurance.

To protect its assets against losses or damages that may result during the course of conducting business, the Research Foundation purchases property and casual liability insurance to cover cost that the organization would be legally obligated to pay. General liability insurance should be secured during the pre-award phase of grant administration.

Please note that the insurance may not cover activities that are considered outside the scope of Research Foundation business.

Risk Prevention Analysis

Research Foundation Risk Management attempts to identify areas of concern regarding potential risk while also providing preventative measures to minimize potential risk. Research Foundation Risk Management works with SJSU Campus Risk Management and Research Foundation Human Resources to provide education, training, and assessment of risk areas.

Insurance Coverage

Insurance is needed to ensure sufficient protection against losses or claims arising out of the activities or business ventures with contractors, sub-recipients, and business entities. The cost for insurance premiums is the responsibility of the research project and/or department. The minimum deductible is $5,000 for incidents involving theft, loss, or damage to property.

Liability Insurance

Commercial General Liability – covers damages that may occur due to negligence, which results in personal injury and/or property damage to others, subject to policy exclusions. In the event of an accident, an investigation will be conducted by Research Foundation Risk Management. No admission of responsibility or commitment to pay for damages should be made by any other person. Contractual Liability – covers damages that may occur as a result of an insured contract.Product Liability – covers damages that may occur as a result of loss involving a product designed, manufactured, or distributed by the Research Foundation. Exclusions do apply.

Contractual Liability – covers damages that may occur as a result of an insured contract.

Product Liability – covers damages that may occur as a result of loss involving a product designed, manufactured, or distributed by the Research Foundation. Exclusions do apply.

Automobile & Vessel Insurance

Comprehensive – covers damages to the vehicle caused by events that are generally out of the driver’s control, and includes the cost of the repair or replacement with “like kind and quality” for physical damage other than collision. This coverage does not include personal effects or other property carried in or on the vehicle.

Collision – covers the vehicle repair or replacement with “like kind and quality” when accidents are caused by collisions with another vehicle, a stationary object (such as a fence or a tree) or in single vehicle accidents that involve rollovers.

Liability – covers damages that the Research Foundation would be legally obligated to pay to third parties in accidents involving vehicles or vessels owned by the Research Foundation or rented vehicles used to conduct Research Foundation business. Please note that to obtain insurance from AORMA, Research Foundation Risk Management must be notified when vehicles or vessels are acquired. The following vehicle or vessel purchase information is required to secure insurance:

- Purchase Invoice (Purchase Order or Bill of Sale)

- Certificate of Title

- DMV Registration (if received when purchased from dealership)

- Transfer of Liability (if the vehicle or vessel was pre-owned)

Coverage for Personal Vehicle Usage – Should an accident occur when a personal vehicle is being used to conduct Research Foundation or research project business, the vehicle owner’s personal automobile insurance will be primary. If a claim is made against the Research Foundation as a result of the accident, SJSU Research Foundation’s insurance coverage will only apply if the claim exceeds the vehicle owner’s personal liability insurance coverage. Please note that if a private vehicle is to be used on a regular basis as a means of transportation to conduct Research Foundation business, the employee should notify her or his insurance carrier.

Rented Vehicles – The Research Foundation provides insurance coverage for vehicles rented by Research Foundation employees, PIs, and project staff who are employed by the Research Foundation and are participating in Research Foundation-related business activities. All rented vehicles for business purposes should be rented through Enterprise Rental Car using the CSU Business Account. General vehicle liability coverages are covered under the CSU Enterprise Business account. All uninsured losses will be charged to the department or project.

Vendor & Subcontractor Insurance

The subrecipient or subcontractor must procure and maintain for the duration of the agreement contract insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the work under the agreement and the results of that work by the subrecipient or contractor, its agents, representatives, employees or subcontractors.

Non-CSU subrecipient or subcontractors certifies that they have met or will meet the insurance requirements below:

Workers Compensation and Employer Liability

- Workers compensation insurance as required by the State of California

- Employers’ liability insurance for injury or death of $1,000,000 each accident

Commercial General Liability

- General Liability: Including operations, products and completed operations as applicable, $2,000,000 per occurrence/$4,000,000 policy aggregate for bodily injury, personal injury and property damage

- Automobile Insurance: $1,000,000 per accident for bodily injury and property damage

- Pollution/Asbestos Liability and/or Errors and Omissions: $2,000,000 each occurrence/$2,000,000 policy aggregate, if applicable.

For assistance with additional insurance requirements for the items listed below, contact Research Foundation Risk Management at: Research-Foundation-Risk-Management@sjsu.edu

- Unmanned Aerial Vehicles (UAV/Drone) and/or Aircraft

- Watercraft

- Pyrotechnics

As defined by the California State University Risk Management Authority (CSURMA), “Coverage shall by additional insured endorsement, add as insured the State of California, the California State University, the Trustees of the California State University, San José State University, the San José State University Research Foundation, and the officers, employees, volunteers, and agents of each of them (all of which are hereinafter referred to as “State”) with respect to liability arising out of or connected with the work performed by or for the subrecipient or contractor.”

Certificate of Insurance and Additional Insured

To ensure sufficient protection against losses or claims arising out of the activities or business ventures with contractors, subrecipients, and business entities, the Research Foundation may determine that an activity warrants additional protection against certain risks. In such cases, the Research Foundation may request that the organization with which it is conducting business, provide a certificate of insurance.

This certificate should include an attached “additional insured endorsement” clearly indicating that the CSU, San José State University, and the SJSU Research Foundation are additional insured under the contractor, subrecipient, or vendor insurance policy. The certificate should be sent to Research Foundation Risk Management by the contractor, subrecipient, or vendor. Research Foundation Risk Management will send a copy of the certificate to the designated Research Foundation sponsored programs manager who is overseeing the project account.

Certificate of Insurance Requests

Requests for a certificate of insurance from the Research Foundation should be directed to Research Foundation Risk Management. Principal investigators should provide the information that is required to complete the certificate of insurance request form to the designated sponsored programs manager. The sponsored programs manager will complete and submit the form to Research Foundation Risk Management. The form should include the following information:

- Requestor’s name, department, telephone number, and email address,

- Name and address of the company that is to receive the certificate,

- Contact person’s name, address, and phone number and email address,

- Description of the activity for which the certificate is needed (include purpose, activity location, and timeframe),

- Items to be insured (if property coverage is requested),

- List and value of property to be insured,

- Type of insurance and limits as stated in the contract,

- Agreement terms,

- Copy of the finalized contract or agreement between the organization and the Research Foundation.

Property Insurance

Research Foundation insurance requirements for property insurance are as follows:

Leased/Rented Equipment and Vehicles

Leasing and rental agencies may require that the Research Foundation provide them with a certificate of insurance. In such cases, the PI is responsible for submitting the request for the certificate of insurance to Research Foundation Risk Management. The following information must be provided at the time of the request:

- a detailed description of equipment (to include manufacturer, model, color etc.),

- equipment value,

- the insurance requirements as defined in the leasing/rental agencies terms and conditions.

Loaned or Borrowed Equipment and Vehicles

A company or individual may require that the Research Foundation provide them with a certificate of insurance. In such cases, the department/project will request a certificate of insurance from Research Foundation Risk Management. The following information must be provided at the time of the request:

- a detailed description of equipment (to include manufacturer, model, color etc.),

- proof of ownership,

- age/year originally purchased,

- purchase price,

- current value,

- a photo and condition report if at all possible).

Participant Accident Insurance

Participant Accident Insurance (PAI) is additional medical insurance that covers minors in the event of an accident. In compliance with California State University policy, participant accident insurance must be secured when working with participants who are minors.

If the contract is awarded, the cost of PAI insurance is based on the number of minor participants, scope of work, and the duration (days) of the project (price of PAI varies when hosting camps and/or overnight trips). Research Foundation Risk Management processes and secures PAI insurance for all SJSU programs. Participant Accident Insurance should be secured in post award grant administration.

NOTE: Damage to Research Foundation property, third party persons, or property during any phase of the research project should be reported immediately to the Risk Management team at: Research-Foundation-Risk-Management@sjsu.edu

International Travel Insurance

When planning travel to international destinations employees and project participants of the Research Foundation, must complete the Request for Approval of Travel Form. The form must be signed by the traveler, the supervisor, and by the authorized account signer, and must be submitted to the Research Foundation at least 45 days in advance of the departure date in order for Research Foundation Risk Management to arrange travel insurance. To allow time for travel insurance to be arranged when traveling to countries listed as war risks or high hazard countries, Research Foundation employees, project participants, SJSU faculty, students, and staff must submit authorization forms at least 60 days in advance of the intended departure date.

Incident Reports (Claims)

If insurance was obtained through Research Foundation Risk Management, all incidents involving personal injury, potential injury or property damage must be reported to Research Foundation Risk Management immediately at Research-Foundation-Risk-Management@sjsu.edu. If insurance was obtained through SJSU Campus Risk Management, incidents should be reported to their designated contact.