Professional indemnity (PI)
Professional indemnity (PI) insurance provides protection for businesses and professional persons in respect of legal liability arising from the conduct of their practice or business.
Where design work forms part of a professional services contract under SM030 the consultant will be required to take out PI insurance cover.
Further information can be found within section 3.1 and 3.2 of the Conditions of Contract of NZ Transport Agency's Contract proforma manual (SM030) .
Public liability (PL)
Public liability insurance is established to provide financial coverage to the insured where they are judged liable under common law for injury or damage sustained by a third party as a result of the insured’s breach of their duty of care.
All HNO PS contracts require the establishment of public liability insurance cover. The NZ Transport Agency has minimum requirements for the level of PL.
Further information on this can be found within section 3.3 of the Conditions of Contract of NZ Transport Agency's Contract proforma manual (SM030) .
Risk and insurance sub-VAC approval
Some contracts require approval from the risk and insurance sub-VAC prior to advertising of tender.
Refer to section 2.6 of NZ Transport Agency's Contract procedures manual (SM021) for professional services requirements.
Appendix XXIII contains the relevant insurance approval request forms (PS, PW, ECI and D&C).
The required and default level of professional services insurances can be found in Section E General and Special Conditions of Contract within NZ Transport Agency's Professional services contract proforma manual (SM030) .
The project manager/contract manager is required to discuss their proposal with the Transport Agency's broker (Marsh), gain their sign off and thereafter submit the completed Appendix XXIII to the risk and insurance sub-VAC for approval (via insurance@nzta.govt.nz ).
For further information contact insurance@nzta.govt.nz .
Uninsured suppliers engaged in minor contracts
Where NZ Transport Agency has entered into a contract where the supplier does not hold any public liability or professional indemnity (PL/PI) insurance and the contract value is under $100,000 and of less than 12 months duration, the Regional Manager may decrease or waive the PL and/or PI insurance requirement depending upon the scale of the deliverables.
The Regional Manager may request the NZ Transport Agency broker to establish policy cover for the supplier on our behalf. There is a small cost for provision of this cover which will need to be charged to the requester's cost code.
Further information on this can be found within section 2.6 of NZ Transport Agency's Contract procedures manual (SM021) for further details.
Where this option is selected, the following form is to be completed and forwarded to the NZ Transport Agency broker and copied to insurance@nzta.govt.nz .
Download the Policy request form .
Risk and insurance sub-VAC approval
Some contracts require approval from the risk and insurance sub-VAC prior to advertising of tender.
Refer to section 2.6 of NZ Transport Agency's Contract procedures manual (SM021) for professional services requirements.
Appendix XXIII contains the relevant insurance approval request forms (PS, PW, ECI and D&C).
The required and default level of professional services insurances can be found in Section E General and Special Conditions of Contract within NZ Transport Agency's Professional services contract proforma manual (SM030) .
The project manager/contract manager is required to discuss their proposal with the Transport Agency's broker (Marsh), gain their sign off and thereafter submit the completed Appendix XXIII to the risk and insurance sub-VAC for approval (via insurance@nzta.govt.nz ).
For further information contact insurance@nzta.govt.nz .