ABSTRACT
The purpose of insurance is to ensure that those covered are compensated should the covered risks materialise. In the Royal Institute of British Architects Building Contracts, as with most building contracts, the insurance provisions are linked to specific liabilities, and ideally the insurance policies should reflect precisely those liabilities. The contractor’s liability for injury and death of employees is met by its employer’s liability insurance. The client will need to check if any existing building insurance it has will cover this risk; if it does not, the client needs to arrange for it to be extended, or take out a policy. A professional indemnity policy insures a firm providing services against losses it suffers due to claims against it for negligence. This type of insurance protects the firm, but consequentially reduces the risk for the client.
