ABSTRACT
The Client should consider his liabilities in respect of neighbouring owners who may be affected by the works and if necessary either instruct the Contractor to provide such insurance, or take it out himself. Insurance is the principle of many paying in for the few to be compensated. It is basically a contract between the 'insured' who offers to pay an agreed sum, a premium, to the 'insurer' who warrants to pay out an agreed sum should a particular and specified event occur, damage to property and death or injury. Where the Contractor is designing parts of the works, for example under a Task Order, which is unlikely within a term service contract, it would be advisable for the Client to include a requirement for Professional Indemnity Insurance. Contractor's All Risks Insurance normally covers damage to property, such as damage to buildings, infrastructure or other structures being worked on.
