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Insurance against Personal Injury and Property Damage

• 1 Without prejudice to his obligation to indemnify the Employer under clauses 6.1 and 6.2, the Contractor shall take out and maintain insurance in respect of claims arising out of his liability referred to in clauses 6.1 and 6.2 which:
  • 1 in respect of claims for personal injury to or the death of any employee of the Contractor arising out of and in the course of such person’s employment, shall comply with all relevant legislation; and
  • 2 for all other claims to which clause 6.4.1 applies,1 shall indemnify the Employer in like manner to the Contractor (but only to the extent that the Contractor may be liable to indemnify the Employer under the terms of this Contract) and shall be in a sum not less than that stated in the Contract Particulars for any one occurrence or series of occurrences arising out of one event.2
• 2 As and when reasonably required to do so by the Employer, the Contractor shall send to the Architect/Contract Administrator for inspection by the Employer documentary evidence that the insurances required by clause 6.4.1 have been taken out and are being maintained, and at any time the Employer may (but shall not unreasonably or vexatiously) require that the relevant policy or policies and related premium receipts be sent to the Architect/Contract Administrator for such inspection.
• 3 If the Contractor defaults in taking out or in maintaining insurance in accordance with clause 6.4.1 the Employer may himself insure against any liability or expense which he may incur as a result of such default and the amount paid or payable by him in respect of premiums therefor may be deducted from any sums due or to become due to the Contractor under this Contract or shall be recoverable from the Contractor as a debt.

• 1 If the Contract Particulars state that insurance under clause 6.5.1 may be required, the Contractor shall, if instructed by the Architect/Contract Administrator, take out a policy of insurance in the names of the Employer and the Contractor3 for the amount of indemnity there stated in respect of any expense, liability, loss, claim or proceedings which the Employer may incur or sustain by reason of injury or damage to any property caused by collapse, subsidence, heave, vibration, weakening or removal of support or lowering of ground water arising out of or in the course of or by reason of the carrying out of the Works, excluding injury or damage:
  • 1 for which the Contractor is liable under clause 6.2; or
  • 2 which is attributable to errors or omissions in the designing of the Works; or
  • 3 which can reasonably be foreseen to be inevitable having regard to the nature of the work to be executed and the manner of its execution; or
  • 4 (if Insurance Option C applies) which it is the responsibility of the Employer to insure under paragraph C.1 of Schedule 3; or

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    5 to the Works and Site Materials except where the Practical Completion Certificate has been issued or in so far as any Section is the subject of a Section Completion Certificate; or
  • 6 which arises from any consequence of war, invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, rebellion or revolution, insurrection or military or usurped power; or
  • 7 which is directly or indirectly caused by or contributed to by or arises from the Excepted Risks; or
  • 8 which is directly or indirectly caused by or arises out of pollution or contamination of buildings or other structures or of water or land or the atmosphere happening during the period of insurance, save that this exception shall not apply in respect of pollution or contamination caused by a sudden identifiable, unintended and unexpected incident which takes place in its entirety at a specific moment in time and place during the period of insurance (all pollution or contamination which arises out of one incident being considered for the purpose of this insurance to have occurred at the time such incident takes place); or
  • 9 which results in any costs or expenses being incurred by the Employer or in any other sums being payable by the Employer in respect of damages for breach of contract, except to the extent that such costs or expenses or damages would have attached in the absence of any contract.
• 2 Any insurance under clause 6.5.1 shall be placed with insurers approved by the
• 3 Employer, and the Contractor shall send to the Architect/Contract Administrator for deposit with the Employer the policy or policies and related premium receipts. 3 The amounts expended by the Contractor to take out and maintain the insurance referred to in clause 6.5.1 shall be added to the Contract Sum.

• (a) property which is defective due to:
  • (i) wear and tear,
  • (ii) obsolescence, or
  • (iii) deterioration, rust or mildew;
• (b) any work executed or any Site Materials lost or damaged as a result of its own defect in design, plan, specification, material or workmanship or any other work executed which is lost or damaged in consequence thereof where such work relied for its support or stability on such work which was defective6;
• (c) loss or damage caused by or arising from:
  • (i) any consequence of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, confiscation, commandeering, nationalisation or requisition or loss or destruction of or damage to any property by or under the order of any government de jure or de facto or public, municipal or local authority,
  • (ii) disappearance or shortage if such disappearance or shortage is only revealed when an inventory is made or is not traceable to an identifiable event, or
  • (iii) an Excepted Risk.

• (a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof (other than such risk insofar, but only insofar, as it is included in the Terrorism Cover from time to time required to be taken out and maintained under this Contract);
• (b) pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds; and
• (c) any act of terrorism that is not within the Terrorism Cover from time to time required to be taken out and maintained under this Contract.

Joint Names Policy: a policy of insurance which includes the Employer and the Contractor as composite insured and under which the insurers have no right of recourse against any person named as an insured, or, pursuant to clause 6.9, recognised as an insured thereunder.