Obtaining Professional Indemnity (PI) insurance is a risk for the Contractor to manage. For this reason, the WIDP Contract does not specifically require the Contractor to obtain such insurance.
The Authority will have satisfied itself before entering into the Contract that the Construction Sub-Contractor has adequate PI insurance cover. This will be reflected in the Collateral Warranty entered into by the Authority and Construction Sub-Contractor, included in standard form at Part 1 of Schedule 25. There, the Construction Sub-Contractor agrees to take out and maintain appropriate PI insurance for twelve years after practical completion of the Works and agrees to give the Authority advance notice of its cancellation.
The WIDP Contract is written on the basis that PI insurance does not feature as a Required Insurance in the Contract and so could not benefit from the uninsurability protection available under Clause 57. It would not be appropriate for the Authority to provide uninsurability protection for PI insurance. This would have the effect of the Authority insuring the Contractor against claims that relate to the negligence of the Contractor or a Sub-Contractor.