ABSTRACT
The indemnity protects the employer in that, if an injured party brings an action against the employer, rather than against the contractor, the contractor will bear the consequences of the claim. The contractor’s liability in respect of personal injury or death of employees is met by an employer’s liability policy. The employer brought a claim for loss of profits, increased cost of working and consultants’ fees, all of which were consequential losses. The policy must be in joint names and placed with insurers approved by the employer. The policy and receipt are to be deposited with the employer. The insurance monies paid to the employer, minus the part of it to cover professional fees, but without any removal of retention, should be included in separate reinstatement work statements as the work is carried out, issued at the same time as the usual payment notices.
