Guidance drafting (see Section 25.2 of SoPC4) as follows:

55.1 The Contractor shall, prior to the carrying out of any building or demolition work on a Site, take out and maintain or procure the maintenance of the insurances described in Part 1 of Schedule 10 (Required Insurances) and any other insurances as may be required by law. These insurances must be effective in each case not later than the date on which the relevant risk commences.110

55.2 The Contractor shall during the Services Period take out and maintain or procure the maintenance of the insurances described in Part 2 of Schedule 10 (Required Insurances) and any other insurances as may be required by law.111

55.3 No party to this Contract shall take any action or fail to take any reasonable action, or (insofar as it is reasonably within its power) permit anything to occur in relation to it, which would entitle any insurer to refuse to pay any claim under any insurance policy in which that party is an insured, a co-insured or additional insured person.

55.4 With the exception of the insurances required by law, the insurances referred to in Clauses 55.1 and 55.2 shall:

55.4.1 subject to Clause 55.5 below, name the Contractor as co-insured with any other party maintaining the insurance;

55.4.2 provide for non-vitiation protection in respect of any claim made by the Authority as co-insured in accordance with Endorsement 2 in Part 3 of Schedule 10 (Required Insurances);112

55.4.3 contain a Clause waiving the insurers' subrogation rights against the Authority, its employees and agents in accordance with Endorsement 2 in Part 3 of Schedule 10 (Required Insurances);

55.4.4 provide for thirty (30) Business Days prior written notice of their cancellation, non-renewal or amendment to be given to the Authority113 in accordance with Endorsement 1 in Part 3 of Schedule 10 (Required Insurances); and

55.4.5 in respect of the Physical Damage Policies, provide for payment of any proceeds received by the Contractor to be applied in accordance with Clause 56 (Reinstatement).

55.5 Wherever possible, where the Authority is to be a co-insured party in accordance with Schedule 10 (Required Insurances), the insurances referred to in Clauses 55.1 and 55.2 shall name the Authority as a co-insured for its separate interest.114

55.6 The Contractor shall provide to the Authority:

55.6.1 copies on request of all insurance policies referred to in Clauses 55.1 and 55.2 (together with any other information reasonably requested by the Authority relating to such insurance policies) and the Authority shall be entitled to inspect them during ordinary business hours; and

55.6.2 evidence that the premiums payable under all insurance policies have been paid and that the insurances are in full force and effect in accordance with the requirements of this Clause 55 (Required Insurances) and Schedule 10 (Required Insurances).

55.7 Renewal certificates or such other evidence of renewal as may be acceptable to the Authority in relation to the insurances referred to in Clauses 55.1 and 55.2 shall be obtained as and when necessary and copies (certified in a manner acceptable to the Authority) shall be forwarded to the Authority as soon as possible but in any event on or before the renewal date.

55.8 If the Contractor is in breach of Clauses 55.1 and 55.2 above, the Authority may pay any premiums, fees, broker's costs or other expenses required to keep such insurance in force or itself procure such insurance and may in either case recover such amounts from the Contractor on written demand.115

55.9 The Contractor shall give the Authority notification within twenty (20) Business Days after any claim in excess of £[ ] (Indexed) on any of the insurance policies referred to in this Clause accompanied by full details of the incident giving rise to the claim.116

55.10 Neither failure to comply nor full compliance with the insurance provisions of this Contract shall limit or relieve the Contractor of its liabilities and obligations under this Contract.

55.11 Subject to the provisions of Part 5 of Schedule 10 (Required Insurances), the insurance premiums in respect of the insurances referred to in Clauses 55.1 and 55.2 shall be the responsibility of the Contractor.

55.12 The insurances referred to in this Clause shall be effected with insurers approved by the Authority such approval not to be unreasonably withheld or delayed.117

55.13 The limit of indemnity and the maximum deductibles for each of the Required Insurances shall be Indexed, provided such limits of indemnity and maximum deductibles shall only be increased on each renewal date such that the limit that is Indexed does not become equal to or exceed the whole insurable amount or deductible (as the case may be) available in the insurance market.

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109 If the project is corporately financed or the Contractor is proposing to use existing group insurance policies please refer to the guidance in Section 37.5.3 of SoPC4 and also consider what information the Authority will need to assess the adequacy of the proposed insurances.

110 These are the construction or development phase insurances and must be Required Insurances. The insurance schedule should specify the dates by which these insurances should be effective.

111 These are the operational insurances and must be necessary insurances only. In some projects the operational phase may overlap with the construction phase and insurance requirements will need to be tailored accordingly.

112 For certain projects where there is significant Authority interface it may be appropriate for the Employer's Liability Insurance Policy to contain a similar wavier of subrogation.

113 To the extent that the Authority has an insurable interest.

114 This will only be possible for policies in which the Authority has an insurable interest (not, for example, professional indemnity insurance) or where the policy has an "indemnity to principals" provision (for example, in an employers liability insurance).

115 These amounts can be set off under Clause (Set-off).

116 On projects on which many claims are expected, the Authority can agree a minimum amount below which it is not notified. If this is done, it may be necessary for the Authority to be notified of important claims (e.g. accident and injury based claims).

117 No obligation to obtain Professional Indemnity Insurance has been included, however Authorities should use their due diligence over the subcontracts to confirm that the Construction Sub-Contractor has adequate cover.