If a risk which the Board requires the Contractor to insure against under the Contract becomes uninsurable, the Contractor will no longer have an obligation to insure against it. "Uninsurable" means the unavailability of insurance for a particular risk or that the premiums being charged are at a level which is not commercially viable.
Generally speaking, if a risk becomes uninsurable through no fault of the Contractor, the parties try to agree a way of dealing with it moving forward. Failing agreement the risk goes back to the Board and the Monthly Service Payment is reduced to reflect the fact that the Contractor is no longer paying to issue the uninsurable risk. Upon occurrence of the risk, the Board can either pay the insurance proceeds which would have been paid had the risk been issued, or terminate the Contract and pay compensation at the same level as it would have done had the Contract been terminated for Force Majeure (see Appendix 2).
In the case of third party insurance becoming uninsurable (through no default of the Contractor) and the parties are unable to agree how to manage the risk (as above) the Authority can elect to self issue (as with the other risks) or terminate there and then paying compensation at the same level as it would have done had the Contract been terminated for Force Majeure (see Appendix 2).