Defence-related contracts can contain detailed insurance and risk allocation requirements.

These should ideally be reviewed before the contract is signed.

What insurance requirements can appear? #

Depending on the contract, requirements may include:

• Professional Indemnity Insurance.
• Public Liability Insurance.
• Product Liability Insurance.
• Workers Compensation Insurance.
• Cyber Insurance.
• Property or Contract Works Insurance.
• Required policy limits.
• Minimum periods for maintaining cover.
• Certificates of Currency.
• Subcontractor insurance obligations.

Not every contract contains the same requirements.

What liability clauses should be reviewed? #

Insurance provisions should be considered alongside clauses dealing with:

• Indemnities.
• Liability caps.
• Consequential loss.
• Warranties.
• Fitness for purpose.
• Intellectual property.
• Subcontractors.
• Confidentiality and data.

Meeting the stated policy limit does not mean every contractual liability is insured.

What about Defence security requirements? #

Security requirements are separate from insurance.

Depending on the work and contractual requirements, a business may need an appropriate level of membership in the Defence Industry Security Program (DISP).

DISP requirements can also apply to subcontractors performing relevant Defence work.

Does having DISP membership mean my insurance complies with the contract? #

No.

DISP deals with Defence security obligations, while insurance policies deal with specified financial risks and liabilities.

Both need to be considered separately.

Webber Insurance can assist with the insurance provisions. Legal or contractual advice should be obtained where interpretation or negotiation of the broader contract is required.