The University of Alberta enters into hundreds of contracts each year for research, construction, supply of services, etc. Some of these contracts are as simple as a granting agency or industry providing funds to support University research. Other contracts are complex and may involve multiple parties (industry, government and the University), joint research activities here or at another educational institution, testing of new products, and terms and conditions which relate to commercial development and applications of new technology.
All contracts typically contain important terms relating to indemnification, liability and insurance and may contain terms that place the University and, in the case of research contracts, the individual research at risk.
In conjunction with Legal Council, Insurance & Risk Assessment reviews the insurance requirements, liability and indemnification provisions contained in any contract, lease or waiver document. Generally speaking, indemnification refers to one party agreeing to fully reimburse the other party for claims, costs or damages arising from the contract. These clauses need to be scrutinized to ensure the University is not accepting any reasonable degree of risk.