121.1 Risk Management and Insurance
- The Head of Law and Corporate Governance will monitor the effective negotiation of all claims, in consultation with other officers where necessary.
121.2
- The Head of Law and Corporate Governance must be notified of anything that may impact on the Authority’s assessment of a list of insurances, including;
Losses
Liabilities
Damage
New risks, properties or assets
Alterations to assets
Any information or explanation required by the Council’s insurers
121.3 Contractors Insurance Limits
All contracts entered into by the Council, must require the other party to protect itself by way of appropriate insurance cover.
- Employers Liability Cover must be maintained with a minimum limit of indemnity of £10m (unless the other party is exempt from the requirements of the Employers Liability Act 1969).
- The minimum limit of indemnity for Public Liability should be arrived at by a formal risk assessment of the contract activity. The minimum amount noted within the contract should not be less than £5 million, unless justified by the risk assessment.
- If a contract specification includes some element of contractor design or professional advice a requirement must be included for Professional Indemnity cover to be held. Due to the way in which this type of cover is written, it is important to stipulate in the contract the period following completion of any works that the cover must remain in force. This should allow sufficient time for any defects to become apparent and a claim presented against the identified negligent party. The limit of indemnity for this cover will be determined by a risk assessment.
A limit lower than that specified within the risk assessment for either Public Liability or Professional Indemnity insurance cover (i.e. where the level of cover is not commercially available or viable) will only be permitted where such limit has been agreed by the relevant Business Unit Head in consultation with the Head of Law and Corporate Governance.
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