Professional indemnity (PI) insurance provides protection for businesses and professional persons in respect of legal liability arising from the conduct of their practice or business.
Where design work forms part of a professional services contract under SM030 the consultant will be required to take out PI insurance cover.
Public liability insurance is established to provide financial coverage to the insured where they are judged liable under common law for injury or damage sustained by a third party as a result of the insured’s breach of their duty of care. All HNO PS contracts require the establishment of public liability insurance cover. The Transport Agency has minimum requirements for the level of PL.
Some contracts require approval of the insurance level in accordance with sections 1.8 and 1.9 of the Contract procedures manual (SM021) prior to advertising of tender.
Templates XXIII Request for approval of insurance amounts contain the relevant insurance approval request forms.
The required and default level of professional services insurances can be found in Section E General and Special Conditions of Contract within Professional services contract proforma manual (SM030).
The project manager/contract manager is required to submit their insurance proposal for approval in accordance with the process outlined in sections 1.8 and 1.9 of the Contract procedures manual (SM021).
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