Contracts & Liability insurance 

All embedded program development will need a contract with a Partner (review the full Customized Programs Partner Policy). When working with a Partner (i.e., private educational entity, a full-service program provider, institutional/university partner, non-profit organization, travel logistics company) to arrange logistics and critical program components for the embedded program, a fully executed contract must be in place between Penn State and the Partner(s). 

The following page outlines general information about the contract approval process. Prior to submitting a contract, please refer to the outlined considerations and requirements. 

preparation

• Financial Considerations - Considering financial exposure and liability involved with embedded travel.

• International Restricted Travel Committee (IRTC) Decision - Determining whether the embedded program involves travel to a restricted country which requires additional steps.

Insurance Requirements 

Determining whether the Partner for embedded travel meets University insurance requirements. 

Master Service Agreements 

Is there a master service agreement with a Partner? If so, the contracts process could be streamlined. See the table below.

Contract Review 

Submitting a contract to the Office of Central Procurement once requirements are met.

Financial Considerations 

Prior to signing any contracts with a Partner, academic units should consider their financial exposure. The academic unit is responsible for all financial risk related to the embedded program; including but not limited to full program cancellations, failure to meet minimum student requirements, travel disruptions for students and/or program leaders, itinerary adjustments, inflation, dollar conversion changes, and emergency management. Since Penn State Global does not manage embedded program budgets, we do not assume any financial risk related to the planning and execution of embedded programs.  

International Restricted Travel committee (IRTC) Decision 

• All destinations on the University's Restricted Travel List (for students), must have their program proposals reviewed and approved by the International Restricted Travel Committee (IRTC) as described in the University's Travel Policy TR01. 

• This process typically takes place 3 months prior to travel to ensure the most up-to-date information for your destination. 

• Please contact EmbeddedPrograms@psu.edu with specific questions about the IRTC process and approval. 

UPDATED 2025: Effective immediately, partners, third-party providers, vendors, suppliers, or tour providers for Education Abroad Programs, can use these updated limits for commercial liability insurance. 

Per the Penn State Central Procurement Office requirements, a prospective Partner of contracted services for a customized embedded and freestanding program must maintain the following insurance coverages: 

• U.S.-based provider = $3 million general liability, $1 million auto*, + worker’s compensation insurance**

• Offshore provider = $2 million general liability + $1 million auto*

*If the Partner is not providing/subcontracting auto services, this requirement is not necessary. Procurement will request evidence of all insurance policies, including auto, when included.

**Workers' compensation can be waived with this waiver being completed/signed: Workers' Compensation Waiver (pdf)

Exceptions

If the provider does not maintain the above required insurance coverages exceptions can be made on a case-by-case basis. To determine if a lower general liability insurance requirement can be authorized, the proposer/leader must submit the requested trip information below to the Assistant Vice Provost for Global Learning by emailing embeddedprograms@psu.edu. 

• Penn State Global will review the general liability insurance rubric to determine the potential for an exception, negotiation, etc.

• Please note that if a Partner was previously given an exception, it does not guarantee that Penn State will want to take on that liability again.

Information to Submit for the Insurance Rubric Review 

1. Number of participants going on the program?

2. Are there homestays involved with the trip?

3. Do any of the Penn State employees serving program leaders have previous experience in the host country(ies)?

   • If yes, provide some details.

4. What is the level of service being provided by the provider? Select from the option that best applies to the trip.

   • Only 1 minor service component offered by partner not totaling more than 1 day (Does not include transportation)

   • No more than 3 minor service components provided by the partner.  (Transportation provided is only for 1 discreet overnight trip.)

   • More than 3 service components provided by the partner including multiple private transportation events (e.g. not public transportation)

   • A significant majority of the program elements provided by partner, including multiple private transportation events (e.g. not public transportation)

   • Vast majority of program elements provided by partner - including multiple private transportation events - the program could not function or find alternative services without considerable time and effort

The University has existing Master Service Agreements (MSA) with a number of Partners. Using one of these Partners will guarantee that the Partner has the required amount of insurance coverage. In addition to insurance, the contract process is streamlined for individual trips contracted under a MSA since the University has already agreed to overall standard terms and conditions. Typically, a Partner will issue a document to be signed that references the MSA and outlines the specifics of the individual trip (i.e., dates, location, pricing and services provided). This document should be submitted with the Contract Request Intake Form. Using a Partner with a MSA is not required. 

Partners with Existing Master Service Agreements 

• American Universities of International Programs (AUIP) 

• Council on International Educational Exchange (CIEE) 

• Central European Education Connection (CzechMates) 

• College Year in Athens (CYA)

• EduTravel 

• Education First (EF Tours)

• Institute for the International Education of Students (IES) 

• Masaryk University 

• WorldStrides (ISA)

After completing the preparatory considerations above the contract is ready to be reviewed.

To submit a contract for review, a Contract Intake Form will need to be submitted to the Office of Central Procurement. To do so, please reference Non-PO Invoice Payments, which can be found on the Central Procurement Office's New Contracts website. Select the Procurement Contract Request Intake Form and fill out the form. Be sure to attach the contract and any supporting documentation to the intake form. 

For general contract and services questions please visit the Office of Central Procurement website for the most up-to-date information and contact PSUcontracts@psu.edu with specific questions relating to your Partner contract.  

For all other questions related to embedded program development, IRTC, or general support, please contact EmbeddedPrograms@psu.edu.