2.4  Indemnity Insurance

The Construction Contractor warrants to the Authority that:

(a)  the Construction Contractor shall without prejudice to its obligations under this Agreement and/or at law and/or otherwise take out and maintain:

(i)  such insurance as the Construction Contractor is required to take out and maintain pursuant to the terms of the Construction Contract;

(ii)  professional indemnity insurance with a well established insurance company or underwriter of repute in an amount of not less than [ten] million pounds (£[10,000,000]) per annum from the date of commencement of the Works until twelve years after the date of practical completion of the Development for the purposes of the Construction Contract to cover the Construction Contractor's obligations and liabilities relating to design under or in connection with this Agreement,

provided always that such insurance is available in the market at commercially reasonable rates and the Construction Contractor agrees to inform immediately the Authority if such insurance ceases to be available at commercially reasonable rates and both parties shall enter into meaningful discussions as to how the Authority can be protected in the absence of such insurance and the Construction Contractor hereby agrees to effect such alternative protection for the Authority's benefit and that as and when it is reasonably requested to do so by the Authority the Construction Contractor shall provide for inspection documentary evidence that such insurances are being properly maintained; and

(b)  the provisions of this Agreement have been disclosed to the Construction Contractor's professional indemnity insurer.