Contractor Insurance Requirements
The following insurance limits and insurance requirements represent the minimum required by contractors. This information is being provided as a general overview and may not represent the actual insurance requirements for a specific contract. The NSHE or Business Center North Risk Manager may make exceptions (for higher or lower limits) if it is determined that the exposure is more or less than contemplated by these requirements.
General Insurance Requirements
Commercial General Liability: (Minimum Limits)
Each Occurrence $1,000,000
Products/Completed Operations Aggregate $1,000,000
Personal and Advertising Injury $1,000,000
General Aggregate $1,000,000
Business Automobile Liability: (Minimum Liability Limits)
Owned, Non-Owned, or Hired Automobiles $ 1,000,000 per accident combined single limit.
Workers Compensation and Employer's Liability Insurance
Workers' Compensation and Employer's Liability Insurance is always required for any contractor who uses employees or subcontractors. Nevada law allows the following to reject workers' compensation coverage if they do not use employees or subcontractors in the performance of work under the contract:
- Sole proprietors (NRS 616B.627 and NRS 617.210)
- Unpaid officers of quasi-public, private or nonprofit corporations (NRS 616B.624 and NRS 617.207)
- Unpaid managers of limited liability companies (NRS 616B.624 and NRS 617.207)
- An officer or manager of a corporation or limited liability company who owns the corporation or company (NRS 616B.624 and NRS617.207)
If a contractor has rejected workers' compensation coverage under applicable Nevada law, the contractor must indicate the basis for the rejection of coverage and complete, sign and have notarized an Affidavit of Rejection of Coverage. The Affidavit must be completed, signed and notarized prior to performance of any work.
Commercial Aircraft
All aircraft chartered by a NSHE institution must carry bodily injury and property damage combined single limits of $3,000,000 per occurrence times the number of passenger seats. Liability for passengers must be included. This means $18,000,000 or more per occurrence for a six seat passenger aircraft and $300,000,000 per occurrence or more for a 100 passenger seat aircraft.
Private Aircraft (General Aviation Only) used on NSHE business
Aircraft Liability Insurance with Bodily Injury, Property Damage, including coverage for passengers of $2,000,000 Combined Single Limit per occurrence for each passenger seat. This means $8,000,000 per occurrence Combined Single Limit for four passenger seats.
Chartered Bus, Van, Private Passenger and Other Ground Transportation Rented with a Driver
If the bus has 7 to 20 passenger seats:
Business Automobile Liability Insurance with $5,000,000 Combined Single Limit per occurrence, including Bodily Injury Liability and Property Damage Liability.
If the bus has 21 or more passenger seats:
Business Automobile Liability Insurance with $10,000,000 Combined Single Limit per occurrence, including Bodily Injury Liability and Property Damage Liability.
Watercraft
Non-owned commercial watercraft rented with crew shall be insured on a Protection and Indemnity policy that includes Collision Liability Coverage. The policy must have appropriate navigation limits. Coverage can also be provided on a Commercial General Liability policy endorsed to provide coverage for watercraft with limits as follows:
- 1 to 6 passenger seats - $2,000,000 Combined Single Limit per occurrence.
- 7 to 16 passenger seats - $5,000,000 Combined Single Limit per occurrence.
- 17 to 23 passenger seats - $10,000,000 Combined Single Limit per occurrence.
- More than 23 passenger seats - Limits to be determined by the NSHE Risk Manager.
Privately-Owned Small Watercraft (not exceeding 30 feet) used on NSHE business shall have Protection and Indemnity with Collision Liability Coverage or an equivalent form of Commercial General Liability endorsed for small watercraft with limits as follows: $1,000,000 combined single limit.
Privately-Owned Watercraft (exceeding 30 feet) used on NSHE business shall have limits to be determined by the NSHE Risk Manager.
Umbrella or Excess Liability Insurance
Umbrella or Excess Liability insurance may be used to achieve the above minimum liability limits. The Umbrella or Excess Liability insurance policy must be endorsed to include NSHE as being "As Broad as Primary Policy".
Additional Requirements
Evidence of Insurance
Proof of the required insurance is evidenced by a Certificate of Insurance on an Acord 25 form provided by the contractor's insurance agent or broker and must be in the possession of the Nevada System of Higher Education (NSHE) before the work or activity starts. The Certificate of Insurance must be filed with the contract so that it can be found in the event of a claim. See sample Certificate of Insurance.
Additional Insured Endorsement
The Additional Insured Endorsement is required on all general, umbrella or excess liability policies. Request the endorsement to read as follows: Board of Regents, of the Nevada System of Higher Education shall be named as an additional insured for all liability arising from the contract. See sample Certificate of Insurance.
Waiver of Subrogation
Each liability insurance policy shall provide for waiver of subrogation against the Board of Regents, of the Nevada System of Higher Education.
Cross-Liability
All liability policies shall provide cross-liability coverage.
Policy Cancellation Endorsement
Except for ten (10) days notice for non-payment of premium, each insurance policy shall be endorsed to specify that without thirty (30) days prior written notice to the Board of Regents, of the Nevada System of Higher Education, the policy shall not be canceled, non-renewed, or coverage and/or limits reduced or materially altered, and shall provide that notices required by this paragraph shall be sent by certified mail to the address specified herein. A copy of this signed endorsement must be attached to the Certificate of Insurance.
Deductibles and Self-Insured Retentions
Insurance maintained by Contractor shall apply on a first dollar basis without application of a deductible or self-insured retention unless otherwise specifically agreed to by the Board of Regents, of the Nevada System of Higher Education. Such approval shall not relieve Contractor from the obligation to pay any deductible or self-insured retention. Any deductible or self-insured retention shall not exceed $5,000.00 per occurrence, unless otherwise approved by the NSHE's Risk Manager.
Approved Insurer
Each insurance policy shall be issued by insurance companies authorized to do business in the State of Nevada or eligible surplus lines insurers acceptable to the State and having agents in Nevada upon whom service of process may be made, and currently rated by A.M. Best as "(A-) IX" or better.