Guide Standard conditions of contract

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22. Insurance

Without prejudice to its liability to indemnify the Buyer, the Supplier shall take out and maintain the following insurances with reputable insurers lawfully carrying on such insurance business in the United Kingdom:-

(a)          in respect of liability for personal injury or death of any person under a contract of service or apprenticeship with the Supplier and arising out of or in the course of such person’s employment, where such insurance shall comply with all relevant legislation;


(b)          in respect of liability for personal injury or death of any other person, and loss or damage to real or personal property belonging to any person, such as is necessary to cover the liability of the Supplier and without prejudice to that requirement, where the Supplier is working at an Buyer’s facility, such cover shall be for not less than £5 million for any occurrence or series of occurrences;


(c)           in respect of the Service and any unfixed materials or goods intended to form an intrinsic part of the Service, including those delivered to or placed adjacent to the Facility until delivery is accepted by the Buyer, against loss and damage by fire, lightning, explosion, storm, tempest, flood, bursting or overflowing water tanks or pipes, earthquake, aerial devices and articles dropped there from, theft, riot and civil commotion, for the full reinstatement value thereof plus 15% to cover professional fees, such insurance to be in the joint names of the Supplier and the Buyer unless this requirement is waived in writing by the Buyer;


(d)          where the Service is in the nature of consultancy or advice, professional indemnity insurance covering (without limitation) all liability under the Contract upon customary and usual terms and conditions prevailing for the time being in the insurance market, with the amount in cover being not less than one million pounds (or as otherwise agreed in writing by the Buyer) for any occurrence or series of occurrences, for a period expiring no earlier than 12 years after the end of the Contract, provided always that such insurance is available at commercially reasonable rates in the insurance market at large. Any increased or additional premium required by insurers by reason of the Supplier’s own claims record or other acts, omissions, matters or things particular to the Supplier shall be deemed to be within commercially reasonable rates.