Frequently Asked Questions

We are the project manager on an NEC3 Engineering and Construction Contract (ECC). Do we need to submit policies and certificates for the contractor’s all risk insurance and professional indemnity insurance to the client for acceptance?

The contractor is only required to provide certificates for insurances that the contract requires it to provide, see clause 85.1. It may have other insurances but, if the contract does not require them, then they are not required.

The insurance table sets out the standard insurances required, see clauses 84.1 and 84.2. This does not include professional indemnity insurance, unless the contract data part one states that is required. See the last paragraph of 84.1 and the relevant entry in the contract data.

It is you, not the client, who decides whether the insurance should be accepted or not and notify the contractor of your decision, see clause 85.1. Of course, you may discuss the insurance with the client and/or its insurers or brokers to get their opinion.

If you do not accept the insurances for a reason not in the contract, that will be a compensation event under clause 60.1(9). The only relevant reason in the contract for not accepting the certificates is they do not comply with the contract.

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