The Loss Prevention Working Group has been in communication with the NEC4 drafting committee regarding the extent of professional indemnity insurance cover required under the Professional Services Contract.  NEC are to provide additional guidance on how to complete Contract Data for the insurances within the published guidance notes. At present, guidance on this insurance in Volume 2 simply recommends that the advice of an insurance specialist be obtained. NEC now propose to add the following.

When insurance cover is restricted for certain work required under the contract, for example advice in relation to land affected by contamination where an aggregate limit has been imposed, the compiler should include the entry “….. in respect of each claim without limit to the number of claims, but subject to an aggregate limit of …. In respect of claims relating to …”. The same approach should be followed where other restrictions are placed on the cover which Consultants are able to obtain for services under the contract.

This will allow consultants to be covered by their usual policies which usually limit cover relating to contamination to be in the annual aggregate.

Neil Parry, Director at Geotechnical Engineering on behalf of the AGS Loss Prevention Working Group