Contractors performing services on the University campus MUST have insurance coverage meeting the minimum insurance requirements. Any job may have unique features that suggest a change in these minimum requirements.
NOTE: Construction jobs require more insurance and higher limits.
The State of Texas does not require business owners to carry workers' compensation insurance. The insurance requirements for contractors performing service on the University campus are an SFA requirement.
Insurance must be provided as stated in the bid, purchase order, contract, etc. The only insurance requirement that includes an alternate option is workers' compensation coverage which can be interchanged for Employer's Liability with a $1 million limit.
Workers' Compensation can be waived, but ONLY for independent/sole proprietors (meaning they're the single and only person working on the job - no helpers, no family, etc.). However, this requirement cannot be waived if it was included in a solicitation document.
If needed, the State Office of Risk Management endorses The Texas Mutual Insurance Company to provide workers' compensation coverage that meets SFA's requirements and is competitively priced. Contractors are guaranteed acceptance and coverage begins within 24-48 hours depending on how quickly the first premium is paid.
The Texas Mutual Insurance Company
(may be a shorter process)
(may be a longer process)
If a department cannot find a vendor with appropriate insurance to perform a service, other options for meeting the department's needs include:
- Hire student workers
- Hire a worker(s) through the university's temporary services contract
- Hire a worker(s) through HR as a casual employee
- Use existing personnel