Engineering contracts can contain insurance requirements that go beyond the cover you would normally arrange for your business.

Before signing a contract, it is important to check the insurance clauses and compare them with your existing policies.

Common requirements to review include:

• The types of insurance you must hold, such as Professional Indemnity Insurance or Public Liability Insurance
• The minimum limits of indemnity required
• Any required excess limits
• How long Professional Indemnity Insurance must be maintained after the project is completed
• Requirements relating to retroactive cover
• Territorial or jurisdictional requirements
• Whether another party must be noted, named or included on a policy
• Waivers of subrogation or other special insurance conditions

You should also look beyond the insurance section of the contract. Other clauses can increase your liability, including indemnities, warranties, guarantees or obligations that would not otherwise apply at law.

This is often referred to as contractual liability. You can read more on our Contractual Liability Essentials page.

A contract requiring a particular level of insurance does not necessarily mean that your insurer will automatically cover every liability you agree to accept.

Where possible, contracts should be reviewed before they are signed.

If you would like us to check whether your current insurance appears to meet the insurance requirements in a contract, contact our team. Depending on the circumstances, we may also recommend that particular contractual clauses are reviewed by your legal adviser.