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Vendor Insurance Requirements

General information about the insurance requirements for suppliers of goods and services doing business with the University of California, Merced.

Standard Insurance Requirements

The University of California's policy is that all suppliers doing business with the university carry insurance. This includes both suppliers that provide services and suppliers that provide goods. The information below summarizes standard insurance requirements for suppliers, including types of insurance coverage and the amount of insurance coverage suppliers need to carry.

Standard Minimum Insurance Coverage Requirements for UC Merced

Commercial General  Liability  
Each Occurrence $1,000,000.00
Products/Completed Operations Aggregate $2,000,000.00
Personal and Advertising Injury $1,000,000.00
Fire Damage


Medical Expenses $5,000.00
General Aggregate $2,000,000.00
Workers' Compensation as required by California State Law.  
Worker's Compensation is required if a supplier has any employees. If a supplier does not have any employees then the supplier is exempt from this requirement.  
Business Auto Liability - specific cases only $1,000,000.00
Business Auto Liability is required when a vendor is operating a vehicle on university premises for other than commute purposes. (combined single limit)
Professional Liability - specific cases only  
Each Occurrence $2,000,000.00
Aggregate $2,000,000.00
Professional Liability policies are designed to cover errors and omissions and the failure to render professional services. Therefore, Professional Liability is appropriate for actuaries, architects, engineers, physicians, lawyers, environmental consultants and other professionals.  

Insurance Limits required by the University

Insurance limits are required for outside vendors, contractors and consultants based on the scope of work and associated risks to the University. The applicable insurance limits should be inserted in the insurance section of the contract. The exhibits below provide additional information. For assistance, contact

Exhibit A – General Insurance Limits

Exhibit B - Construction Insurance Limits

Exhibit C – Transportation Insurance Limits

Exhibit D – Health Related Insurance Limits

All Certificates of Insurance Issued to the University:

  • Require advance written notice to the University in accordance with policy provision of any modification, change, or cancelation of any component of the insurance coverage;

  • Indicate that The Regents of the University of California are an additional insured as described in the contract, except for Professional Liability and Workers’ Compensation Insurance;
  • Include certification that the insurance policy for Professional Liability includes contractual liability coverage for liability that would exist in the absence of the contract;
  • Include certification that the General Liability contains a Severability of Interest provision and shall be primary insurance as respects the University, its officers, agents and employees, and that any insurance or self-insurance maintained by the University shall be excess of and non-contributory with such insurance.


When a Certificate of Insurance is required, Procurement will ensure that this requirement has been met before the commencement date of the purchase order.

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