Professional indemnity (PI)
Professional indemnity (PI) insurance provides protection for businesses and professional persons in respect of legal liability arising from the conduct of their practice or business.
Where design work forms part of a professional services contract under SM030 the consultant will be required to take out PI insurance cover.
Further information can be found within section 3.1 and 3.2 of the Conditions of Contract of NZ Transport Agency's Contract proforma manual (SM030) .
Public liability (PL)
Public liability insurance is established to provide financial coverage to the insured where they are judged liable under common law for injury or damage sustained by a third party as a result of the insured’s breach of their duty of care.
All HNO PS contracts require the establishment of public liability insurance cover. The NZ Transport Agency has minimum requirements for the level of PL.
Further information on this can be found within section 3.3 of the Conditions of Contract of NZ Transport Agency's Contract proforma manual (SM030) .
Risk and insurance sub-VAC approval
Some contracts require approval from the risk and insurance sub-VAC prior to advertising of tender.
Refer to section 2.6 of NZ Transport Agency's Contract procedures manual (SM021) for professional services requirements.
Appendix XXIIIAppendix XXIII contains the relevant insurance approval request forms (PS, PW, ECI and D&C).
The required and default level of professional services insurances can be found in Section E General and Special Conditions of Contract within NZ Transport Agency's Professional services contract proforma manual (SM030) .
The project manager/contract manager is required to discuss their proposal with the Transport Agency's broker (Marsh), gain their sign off and thereafter submit the completed Appendix XXIII to the risk and insurance sub-VAC for approval (via insurance@nzta.govt.nz ).
For further information contact insurance@nzta.govt.nz .