Supply Agreement Insurance

As COVID-19 continues to have a negative impact on supply chains, the parties should carefully review their contracts and consult with the Commission in the event of uncertainty. Once the insurance certificate is received, the contracting procurement and services team updates the list of suppliers to the university`s financial system, the Kuali Financial System (KFS). KFS does not authorize the submission of an application if a remedy is provided, if the supplier`s insurance is missing or out of date. The supplier`s insurance certificate must be submitted to the UC Davis Procurement and Contracting Services Department before work begins. An insurance certificate is a document issued by insurance agencies as proof of insurance coverage. If the supplier does not provide an insurance certificate on request, there are significant delays in processing orders. The contract can also determine the corrective measures and damages you have. For example, an exclusive supplier contract may allow you to establish a relationship with another supplier if the broken supplier does not meet the minimum purchase/delivery quantities. Similarly, assess your own potential contractual insurance obligations to cover or compensate supply chain partners for the risks associated with the COVID 19 crisis. Carefully identify and check insurance policies that may provide coverage for your business slowdowns and interruptions or business transactions or customers of your suppliers or customers, or check contracts with suppliers and customers to verify insurance requirements and compensation clauses. Many customers and providers carry out insurance policies that can reduce the financial losses you suffer as a result of your COVID-19 violations or performance issues. In fact, the contract may require them to maintain insurance coverage. The nature and amount of contract insurance coverage generally depends on the nature of the parties and the contract itself.

If some insurance associations are general and require only “sufficient insurance coverage,” other types and amounts of insurance coverage could be indicated, such as. B as general business liability, work allowance or roof insurance. Similarly, the contract may require a supplier or customer to compensate you if they violate your obligations to third parties. If you think you are entitled to insurance coverage or compensation for the risks associated with the supply chain partner crisis, you should request and verify copies of the corresponding policies – not just insurance certificates – and evaluate potential coverage. It goes without saying that you must also ensure that air carriers are informed of claims arising from potentially applicable directives or agreements. An in-depth discussion of insurance coverage for COVID-19 losses can be reached in our previous covid-19 update “Coronavirus Loss Insurance Coverage.” Does the contract require you, a supplier or a customer, to maintain insurance or compensate you? University requirements that involve a repair service require an insurance certificate. The supplier`s insurance certificate must be sent to UC Davis Procurement and Contracting Services.

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