SEARCH:  
  SEARCH:
HOME | GATEWAYS | ACADEMICS | ADMISSION | DEPARTMENTS | DIRECTORIES | VISIT | LOG IN | SITE INDEX

Insurance
Purchasing Department

Insurance
Purchasing Department

General Information

Prior to any permit being issued or any contract, including purchase orders, being entered into, New York State procurement regulations require evidence of a variety of insurance coverages by vendors at the time a contract is entered into. Except when specifically noted, the State of New York, the State University of New York and SUNY ESF must be listed as additional insureds on all insurance policies.

The nature of the procurement will dictate the type and minimum levels of insurance that are required. In addition, the evidence needed to support the insurance is dependent on the insurance type. The insurance shall be kept in force for the duration and term of the agreement. The insurance required shall be obtained from insurance company (ies) licensed to do business in the State of New York.

The first table below provides information on the types of insurance that apply to all procurements. The second table provides information on insurance that may be required depending on the nature of the procurement. Please note that each procurement is a unique event and the insurance needs will be dictated by the nature of that particular procurement.  Please contact the Office of Purchasing and Contracts at 315-470-6687 before you engage a vendor in providing a commodity or service.

Insurance Required for All Procurements

Type

Definition

Minimum Level

Acceptable Documentation

Commercial General Liability(bodily injury & (including Protective & property damage); Contractor Liability, Single limit-each occurrence)  

Covers claims of bodily injury or other physical injury or property damage. It is frequently offered in a package with Property insurance to protect your business against incidents that may occur on your premises or at other covered locations where you normally conduct business. Commercial General Liability enables your business to continue operations while it faces real or fraudulent claims of certain types of negligence or wrongdoing

$1,000,000 — each occurrence combined; $2,000,000 Aggregate;

ACORD Form

Automobile Liability (owned, leased, hired and non-owned vehicles);

Coverage, if an insured is legally liable for bodily injury or property damage caused by an automobile. The policy covers owned, leased, hired and non-owned vehicles.

$1,000,000 — each occurrence;

ACORD Form

Owners Protective Liability (bodily injury and property damage)

Covers bodily injury and property damage liability arising out of an independent contractor' operations for another party.

$1,000,000 combined single limit per occurrence; $2,000,000 aggregate

ACORD Form

Product Liability Insurance combined (bodily injury and property damage)

Coverage for claims related to the manufacture or sale of products, food, medicines or other goods to the public.

$1,000,000 each occurrence

ACORD Form

Procurement Driven Insurance Needs

Type

Definition

Minimum Level

Acceptable Documentation

Bid Bond

Ensures that on acceptance of a bid that the contractor will proceed with the contract. A bid bond is replaced with a performance bond.

Varies

Bid Bond

Builders Risk Insurance

Covers property owners and builders for projects under construction, renovation or repair.

Varies

ACORD Form

Disability*

Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. It provides for weekly cash benefits to replace, in part, wages lost due to injuries or illnesses that do not arise out of or in the course of employment. Disability benefits are also paid to an unemployed worker to replace unemployment insurance benefits lost because of illness or injury.

As required by New York State

CE-200;Form DB-120.1;Form DB-155

Excess (Umbrella) Insurance

Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.

Varies

ACORD Form

Installation (Floater) Insurance

Provides temporary property insurance to protect the value of labor and materials of the work in progress in the event that it is damaged by theft, vandalism, fire, windstorm, etc. Coverage starts while the materials are in transit to the jobsite and ends once the job is completed or the owner accepts the work.

Varies

ACORD Form

Performance Bond

Ensures the payment of a sum of money in the event the contractor fails in the full performance of the contract.

Varies

Performance Bond

Professional Liability Insurance

Provides protection against claims that the policyholder becomes legally obligated to pay as a result of an error or omission in his professional work.

Varies

ACORD Form

Workers’ Compensation*

Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment.

As required by New York State

CE-200; Form C-105.2; Form U-26.3; Form SI-12; Form GSI-105.2

* Workers’ Compensation and Disability Insurance are discussed below in further detail.

Certificates of Insurance

Prior to any permit being issued or any contract, including purchase orders, being entered into for work, the University requires acceptable proof of insurance. The acceptable proof of insurance is driven by the insurance type.

As noted above, an ACORD form is acceptable proof of insurance for most insurance types. The ACORD form is provided to the University by insurance agent of the business. The New York State Workers’ Compensation Board has mandated that certain forms from New York State licensed Disability and Workers’ Compensation private insurance companies or from New York State agencies are acceptable. These forms are discussed below in the Workers’ Compensation and Disability section.

All certificates of insurance must contain a thirty (30) day written notice of any cancellation, change, or termination of coverage. In addition, at the time the contract is entered into each insurance carrier must be rated at least "A-"Class "VII" in the most recently published A.M. Best Insurance Report. If an insurance carrier is not rated at least “A-“Class “VII”, the vendor must replace that insurance carrier with an insurance carrier who meets the “A-“Class “VII” criteria. This must be done prior to the commencement of the contract. If during the term of the policy, a carriers rating falls below "A-"Class "VII", the insurance must be replaced no later than the renewal date of the policy with an insurer acceptable to the University.

Workers’ Compensation and Disability Insurance LAW

Sections 57 & 220 Subd. 8

In accordance with teh Workers' Compensation Law, prior to any permit being issued or any contract, including purchase orders, being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured workers’ compensation insurance and disability insurance coverage for all its employees. This requirement applies to NYS businesses and to non-New York State businesses with employees working in New York.

Workers’ Compensation

Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment. Employers must continuously provide for workers’ compensation benefits to all employees.
Section 57 of the New York State Workers’ Compensation dictates the steps the University is take prior to entering into any contract, including purchase orders. Section 57 reads as follows: 

Restriction on issue of permits and the entering into contracts unless compensation is secured.

  1. The head of a state or municipal department, board, commission or office authorized or required by law to issue any permit for or in connection with any work involving the employment of employees in hazardous employment defined by this chapter, and notwithstanding any general or specific statute requiring or authorizing the issue of such permits, shall not issue such permit unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that compensation for all employees has been secured as provided by this chapter. Nothing herein, however, shall be construed as creating any liability on the part of such state or municipal department, board, commission or office to pay any compensation to any such employee if so employed.
  2. The head of a state or municipal department, board, commission or office authorized or required by law to enter into any contract for or in connection with any work involving the employment of employees in a hazardous employment defined by this chapter, notwithstanding any general or special statute requiring or authorizing any such contract, shall not enter into any such contract unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that compensation for all employees has been secured as provided by this chapter. 

In order to comply with New York State Workers’ Compensation regulation, a business must provide evidence to the University one of the following:

  1. they are legally exempt; or
  2. they have obtained coverage from insurance carrier; or
  3. they are self-insured or part of a group insurance plan.

Proof that the business falls into one of the three above categories must be provided prior to any permit being issued or any contract, including purchase orders, being entered into.

  1. Legally Exempt: A business is legally exempt from workers’ compensation insurance if it is a sole proprietorship, or a partnership, or a one or two person corporation with those individuals owning all of the stock and holding all the officerships with each person owning at least one share of stock and between them all shares of stock in the corporation. Regardless of the structure of the business it must not have any employees, day laborers, leased employees, borrowed employees, part-time employees, unpaid volunteers (including family members) or subcontractors. In addition, businesses with no New York State locations are exempt. The only acceptable proof of legal exemption is a Form CE-200 Certification of Attestation of Exemption from Workers’ Compensation and/or Disability Benefits Coverage which is provided by the Workers’ Compensation Board. A new CE-200 must be completed for each and every new or renewed permit, license or contract issued by the University. The CE-200 can be completed online.
  2. Coverage from Insurance Carrier: Private insurance carriers licensed to write NYS workers’ compensation insurance policies, their licensed NYS Agents or the New York State Insurance Fund can provide proof of workers’ compensation insurance. Private insurance carriers must provide the University with Form C-105.2, Certificate of Workers’ Compensation Insurance. Insurance brokers are NOT authorized to issue it.

    If the business obtains workers’ compensation from the New York State Insurance Fund, the business must provide the University with Form U-26.3, Certificate of Workers’ Compensation Insurance. Upon receipt the University will verify the coverage by going to the New York State Insurance Fund site and entering the requested information.

  3. Self-Insured: A business can be either self-insured or be part of a group self-insurance policy. If a business is self-insured, they are to provide the University with Form SI-12, Certificate of Workers’ Compensation Self-Insurance which is obtained from the Workers’ Compensation Board Office of Self-Insurance. The Board must have approved the business for self-insurance.  In order to obtain Form SI-12. The business will need to contact the Board’s Office of Self-Insurance 518-402-0247. If the business is part of a group self-insurance policy the must provide Form GSI-105.2, Certificate of Participation in Workers’ Compensation Group Self-Insurance, as evidence.   Form GSI-105.2 must be completed by the Insurance Administrator of the Group and provided to the University by the Insurance Administrator of the Group. Additional information can be obtained by contacting the Board’s Office of Self-Insurance at 518-402-0247.

Disability Insurance

Disability benefits are temporary cash benefits paid to an eligible wage earner, when he/she is disabled by an off the job injury or illness. It provides for weekly cash benefits to replace, in part, wages lost due to injuries or illnesses that do not arise out of or in the course of employment. Disability benefits are also paid to an unemployed worker to replace unemployment insurance benefits lost because of illness or injury. Disability benefits include cash payments only.

Paragraph 8 of Section 220 of the New York State Workers’ Compensation dictates the steps the University is to take prior to entering into any contract, including purchase orders. Paragraph 8 of Section 220 reads as follows:

  1. The head of a state or municipal department, board, commission or office authorized or required by law to issue any permit for or in connection with any work involving the employment of employees in employment as defined in this article, and notwithstanding any general or special statute requiring or authorizing the issue of such permits, shall not issue such permit unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that the payment of disability benefits for all employees has been secured as provided by this article. Nothing herein, however, shall be construed as creating any liability on the part of such state or municipal department, board, commission or office to pay any disability benefits to any such employee if so employed.
  2. The head of a state or municipal department, board, commission or office authorized or required by law to enter into any contract for or in connection with any work involving the employment of employees in employment as defined in this article, and notwithstanding any general or special statute requiring or authorizing any such contract, shall not enter into any such contract unless proof duly subscribed by an insurance carrier is produced in a form satisfactory to the chair, that the payment of disability benefits for all employees has been secured as provided by this article.

In order to comply with New York State Disability Insurance regulation, a business must provide evidence to the University one of the following:

  1. they are legally exempt; or
  2. they have obtained coverage from insurance carrier; or
  3. they are self-insured or part of a group insurance plan.

Proof that the business falls into one of the three above categories must be provided prior to any permit being issued or any contract, including purchase orders, being entered into.

  1. Legally Exempt: A  business is legally exempt from disability insurance if it is a sole proprietorship, or a partnership, or a one or two person corporation with those individuals owning all of the stock and holding all the officerships with each person owning at least one share of stock and between them all shares of stock in the corporation. Regardless of the structure of the business it must not have any employees, day laborers, leased employees, borrowed employees, part-time employees, unpaid volunteers (including family members) or subcontractors. In addition, businesses with no New York State locations are exempt. The only acceptable proof of legal exemption is a Form CE-200 Certification of Attestation of Exemption from Workers’ Compensation and/or Disability Benefits Coverage which is provided by the Workers’ Compensation Board. A new CE-200 must be completed for each and every new or renewed permit, license or contract issued by the University. The CE-200 can be completed online.
  2. Coverage from Insurance Carrier: Private insurance carriers licensed to write New York State disability benefits insurance policies and New York State licensed agents of those insurance carriers can provide the University with Form DB-120.1 Certificate of Disability Benefits Insurance. This is the only acceptable form of proof of insurance coverage. Insurance brokers are NOT authorized to issue the DB-120.1. A DB-120.1 can be obtained from Bureau of Compliance.
  3. Self-Insured: If a business is self-insured they will need to provide the University with Form DB-155 Certificate of Disability Benefits Self-Insurance, as evidence that they are self-insured. In order to obtain Form DB-155 from the Workers’ Compensation Board Office of Self-Insurance the business must have been approved by the Board. The business will need to contact the Board’s Office of Self-Insurance 518-402-0247. The Board’s Office of Self-Insurance will complete the DB-155. Additional information can be obtained by contacting the Board’s Office of Self-Insurance at 518-402-0247.

Disability Insurance and Workers’ Compensation Forms

For a sample of the above listed forms, please click on the name of the form listed below.

Workers’ Compensation Forms:

  • CE-200: Certification of Attestation of Exemption from Workers’ Compensation and/or Disability Insurance
  • Form C-105.2: Certificate of Workers’ Compensation Insurance
  • Form U-26.3: Certificate of Workers’ Compensation Insurance
  • Form SI-12: Certificate of Workers’ Compensation Self-Insurance
  • Form GSI-105.2: Certificate in Participation in Workers’ Compensation Group Self-Insurance

Disability Insurance Forms:

  • CE-200: Certification of Attestation of Exemption from Workers’ Compensation and/or Disability Insurance
  • Form DB-120.1: Certificate of Disability Benefits Insurance
  • Form DB-155: Certificate of Disability Benefits Self-Insurance

The Role of the Office of Purchasing and Contracts

As the office of record for contracts entered into by the University the Office of Purchasing and Contracts plays a central role in verifying a business’s workers’ compensation and disability insurance coverage.

hese responsibilities include obtaining the proper documentation prior to entering into a contract/purchase order, verifying that the information provided is correct and maintaining the documents as part of the overall procurement record. Under no circumstances will the Office of Purchasing and Contracts issue a contract/purchase order without the proper documentation being received and verified.

Among the steps that the Office of Purchasing and Contracts takes is to determine if the business which is being contracted with will be utilizing employees or independent contractors, as defined above. If it is determined that the business is using employees the business will need to provide evidence of workers’ compensation and disability insurance. If independent contractors are performing the work the independent contractor will need to provide evidence that they either have workers’ compensation insurance and disability insurance or are legally exempt, as defined above, from carrying workers’ compensation insurance and disability insurance. Regardless of the status of the workers the Office of Purchasing and Contracts will not enter into any contract/purchase order without proof of workers’ compensation and disability insurance or proof of exemption.

Upon receipt of documentation the Office of Purchasing and Contracts verifies the authenticity of the document with the insurance carrier and/or the Workers’ Compensation Board. The Workers’ Compensation Board allows users to verify if a vendor is exempt from carrying workers’ compensaiton or disability insurance or whether the information showing coverage is correct.
Delay in providing proper documentation will result in a delay in the contract being finalized and in the work being started.

If you require additional information or have any questions, please call the Office of Purchasing and Contracts at 470-6687.


SUNY-ESF
State University of New York College of Environmental Science and Forestry
SUNY-ESF |
1 Forestry Drive | Syracuse, NY 13210 | 315-470-6500
Copyright © 2014 | Admissions Information | Webmaster