The University of Alabama, Division of Finance and Operations

Facility and Grounds Use Insurance Policy

Unit:  Risk Management
Contact: Wade Bond
Title:  Director of Risk Management
Effective Date: 7/31/2013
Revision Date: 05/07/2019



The University of Alabama (“University”) is exposed to a financial risk from negligent/wrongful acts when Third Party Entities use facilities and/or grounds owned by or under the control of the University. To reduce this financial exposure, the University requires Third Party Entities using University facilities and/or grounds to maintain insurance to reasonably protect the financial interests of the University. Some of the activities that may give rise to financial exposure include, but are not limited to:

  • Youth Programs or Activities – Including overnight camps, day camps, workshops, classes, lessons, etc.
  • Amusement Devices (e.g. inflatables, dunk tank, rides, climbing walls, etc.)
  • Recreational Activities (e.g. walks, runs, dances, etc.)
  • Competition Sports and Team Activities (e.g. flag football, laser tag, dodge ball, etc.)
  • Concerts, Dances & Events with Live or Amplified Music
  • Arts & Crafts Displays or Shows
  • Sale of Goods to the Public
  • Demonstrations & Inter-Active Displays
  • Food Preparation & Sales to the Public – Including Competitive Cook-Offs or Food Festivals
  • Parades, Festivals, Vigils, Protests and Other Notable Public Gatherings Unrelated to University Sponsored Events.

This Policy does not apply to business meetings and casual gatherings that do not involve any notable activities (refer to list above) or large crowds (over 500 persons) and are largely held in the form of a seminar, educational session, reception or display of goods/services (w/o demonstration).


Subject to the exceptions described in this Policy, all Third Party Entities hosting events and/or conducting operations at the facilities or on the grounds owned or operated by the University must provide evidence of comprehensive general liability insurance and may also be required to offer evidence of automobile liability and workers’ compensation insurance.

Where the financial exposure is deemed either insignificant or more significant, the University will review the proposed operation or activity and may require or make adjustments to the insurance requirements to fit the situation.

This Policy does not apply to University-sponsored open public events such as scheduled sporting events (including pre/post game activities) and other University-sponsored events unless an outside non-University organization or individual will provide a service or conduct some form of activity which poses an increased risk not typically associated with events which are social or educational in nature and which may include the routine consumption of food and beverages.

General Insurance Requirements

Unless adjusted or waived by the University, outside non-University organizations and individuals must obtain and maintain in force for the duration of the event or activity the following insurance coverages:

Commercial General Liability (“CGL”)

Each Occurrence – Premises/Operations & Personal Injury $1,000,000

General Aggregate $2,000,000

Fire Damage Liability $100,000

Commercial Business Automobile Liability

(Required if operating vehicles on UA property beyond the routine transportation of persons to and from the event.)

Combined Single Limit $1,000,000

Workers’ Compensation and Employer’s Liability

(Required if the requesting party has employees working on UA Property.)

Workers Compensation (Coverage Part A) Statutory

Employer’s Liability (Coverage Part B)- Per Occurrence $500,000

Sexual Abuse and Molestation

(Required for Youth Programs or Activities conducted by Third Party Entities.)

Each Occurrence $1,000,000

General Aggregate $2,000,000

Insurance Carriers

The policies must be issued by an insurance company licensed in the State of Alabama carrying a minimum A.M. Best’s rating of A- VII.

Certificates of Insurance

The University must receive a Certificate of Insurance prior to the scheduled event. The certificate of insurance must include the following elements:

  • Insured Entity
  • Insurance Carrier(s)
  • Policy Effective and Expiration Dates
  • Policy Number(s)
  • Policy Limits
  • Cancellation Notice Provision (Min. 10 days for non-payment - 30 days otherwise)
  • Additional Insured and Waiver of Subrogation Language as Follows:

The Board of Trustees of the University of Alabama, its individual trustees, officers, directors, employees, agents and representatives are included as an additional insured on the Commercial General Liability policy. Unless precluded by law, all policies waive the right to recovery or subrogation against the Board of Trustees of the University of Alabama, its individual trustees, officers, directors, employees, agents and representatives.

Insurance Requirement Waivers

In certain cases, the University may waive, reduce, increase, or allow exceptions to the general insurance requirements listed above. For the sake of example only, but not in limitation, a basis for an adjustment to the insurance requirements might include the following:

  1. Entities with the financial strength to self-insure part or all of insurance requirements outlined above as evidenced in audited financials reflecting a net worth adequate to absorb self-insured losses.
  2. If an entity elects to participate in a self-insured workers’ compensation program, the insurance requirement may be waived if the self-insured entity or group trust is in good standing with the authorizing agency.
  3. If an individual or entity is exempted from the workers’ compensation statutory requirements due to the limited number of employees, the coverage requirement may be waived if the event or activity does not otherwise generate a risk or hazard which the University deems unacceptable. A waiver and/or release of liability may be required if a workers’ compensation exemption is allowed.
  4. Any entity or group associated or affiliated with the State of Alabama or United States agency is typically exempt from all insurance requirements. The University will review on a case-by-case basis requests by other governmental entities seeking such an exemption.


Third Party Entities – Outside, non-University organizations or individuals

Youth Participant – Any individual under the age of 19 or an individual under 21 years old who is incapable of self-care because of a mental or physical disability.

Youth Programs or Activities - Any: (1) event, operation, or endeavor operated, conducted, or organized by any unit or organization supported by or affiliated with the University or occurring on University property, (2) that includes Youth Participants, and (3) during which parents or guardians are not expected to be responsible for the care, custody, or control of the minors.


This policy applies to all faculty, staff, students, contractors, and vendors.


Office of the Vice President of Finance and Operations

Approved by Cheryl Mowdy, Assistance Vice President for Finance and Operations, 05/07/2019