Contractual Risk Management

Contracts are a key tool for transferring risk associated with goods and services. California State University, Northridge requires contractors to assume appropriate liability for activities defined in the agreement, as they are typically best positioned to manage those risks.

Improperly drafted contracts can shift unintended risk to the University. To mitigate this, all external agreements must be reviewed and processed through Purchasing & Contracts Administration. Vendors and contractors are required to coordinate with this office and review the Vendors & Contractors Guide before conducting business with the University.

Insurance

Insurance provisions ensure that contractors and other external parties are financially responsible for claims arising from their operations, products, or use of university facilities.

Contractors must comply with CSU insurance requirements, Policy RM2012-01. Required coverage must protect not only the contractor, but also the State of California, the Trustees of the California State University, the University, and their respective officers, employees, representatives, volunteers, and agents.

Vendor Insurance Requirements

Acceptable Evidence and Approval

All vendors and contractors are required to submit insurance documentation electronically.

CSUN utilizes Evident, its online insurance compliance system, to facilitate efficient submission, review, and storage of insurance records. Evident uses the industry-standard ACORD 25 Certificate of Liability Insurance in electronic format.

Key benefits of Evident include:

  • Standardized and universally accepted documentation
  • 24/7 paperless submission and approval processing
  • Built-in security and compliance verification

For timely approval, vendors are strongly encouraged to have their insurance broker or agent submit the required documentation directly through Evident.

Required Insurance Documentation

The Contractor shall provide a Certificate of Insurance meeting the following requirements:

  • Thirty (30) days’ written notice of cancellation
  • Primary and Noncontributory coverage
  • Waiver of Subrogation
  • Additional Insured Endorsement naming:
    The State of California, the Trustees of the California State University, California State University, Northridge, and their officers, employees, agents, and volunteers

If the policy includes a blanket or automatic additional insured endorsement, the certificate must explicitly confirm that CSUN is covered under such endorsement.

For property insurance policies, the Contractor must provide an endorsement naming CSUN as:

  • Additional Named Insured, and
  • Loss Payee (“as its interests may appear”)

All certificates must be issued and signed by an individual authorized to bind coverage (agent, broker, or underwriter).

 Coverage Requirements

 

  1. Coverage Limits

The Contractor shall maintain insurance for the duration of the contract with minimum limits as follows:

  • Commercial General Liability (CGL):
    $2,000,000 per occurrence / $4,000,000 aggregate
  • Automobile Liability:
    $1,000,000 per accident (all owned, hired, and non-owned vehicles)
    $5,000,000 required for transportation services (e.g., buses, shuttles)
  • Workers’ Compensation:
    Statutory limits (State of California)
    Employer’s Liability: $1,000,000 per accident
  • Professional Liability (Errors & Omissions) – if applicable:
    $2,000,000 per claim / $4,000,000 aggregate
  • Cyber Liability – if applicable:
    Minimum $5,000,000 per occurrence/aggregate, including coverage for data breaches, privacy violations, cyber extortion, regulatory fines, and notification costs
  • Sexual Abuse and Molestation (SAM) Liability – if applicable:
    Minimum $1,000,000 per occurrence (if not included in CGL)
  1.  Policy Provisions and Endorsements

All required policies must include the following provisions:

a. Additional Insured
The University (as defined above) must be included as an additional insured for liability arising out of the Contractor’s operations.

b. Primary and Non-Contributory
Contractor’s insurance shall be primary. Any insurance maintained by the University shall be excess and non-contributory.

c. Waiver of Subrogation
Contractor shall waive all rights of subrogation against the University and ensure appropriate endorsements are included.

d. Notice of Cancellation
Policies must provide 30 days’ prior written notice of cancellation to the University.

3. Insurer Qualifications

All insurance must be placed with carriers holding a minimum A.M. Best rating of A: VII.

4. Certificate Holder

California State University, Northridge
Attn: Risk Management
18111 Nordhoff Street
Northridge, CA 91330-8458

Renewals

Upon renewal of coverage, the Contractor’s broker or agent must submit an updated ACORD 25 Certificate and all required endorsements via the Evident system using the secure link provided by email.

  • The link is valid for 30 days
  • The link may be used once

Questions and Support

For assistance with submissions, contact: Evident Support: support@evidentid.com

For questions regarding requirements, refer to CSU Policy 2012-01 and CSUN Risk Management.

Independent contractor & Guest Lecturers

 

Guidelines and procedures for the proper classification of independent contractors and the engagement of guest lecturers at California State University, Northridge (CSUN). It ensures compliance with applicable federal and state laws, as well as California State University (CSU) policies

Independent Contractor Classification

The term independent contractor does not have a single fixed definition. An independent contractor may include, but is not limited to:

  • An individual
  • A sole proprietor
  • A corporation
  • Another established business entity

Classification is not determined by title or designation. Instead, status is assessed based on applicable legal standards, including:

  • Relevant case law
  • Statutory and regulatory criteria

CSUN adheres strictly to all governing laws and CSU policies to ensure accurate classification.

Oversight and Authority

Responsibility for the independent contractor review process is shared among:

  • Human Resources
  • Procurement

This process is conducted in accordance with:

Each CSU campus, including CSUN, is responsible for making independent contractor determinations in compliance with these requirements.

Independent Contractor Review Process

  1. All independent contractor requests must be submitted through the appropriate registration process.
  2. Requests undergo a multi-step review conducted by Procurement in collaboration with Human Resources.
  3. Determinations are made on a case-by-case basis.
  4. Upon completion of the review, the requesting department or division will receive formal notification of the final decision.

Guest Lecturer Guidelines

 Non-Paid Guest Lecturers

Occasional Participation (1–2 sessions per semester):

  • No General Waiver form is required.
  • Activities are considered low risk.

Ongoing Participation (regular sessions throughout the semester):

  • Must register with Human Resources as an official volunteer.
  • Once registered:
    • Covered under the University’s Workers’ Compensation policy
    • Not required to sign a General Waiver

 Paid Guest Lecturers

Paid guest lecturers are required to:

  • Complete the Guest/Special Lecturer Invoice (Form C-710)
  • Provide all necessary payment information
  • Acknowledge and agree to the Hold Harmless / Waiver / Release clause included in the form

 

For questions or assistance regarding independent contractor classification procedures, please contact:

  • Human Resources
  • Procurement Office