The common insurances
| Insurance | When it is asked for |
|---|---|
| Public liability | Almost every tender for services or works |
| Workers compensation | Where you employ staff; required by state law |
| Professional indemnity | Advice, design and consulting work |
| Product liability | Supplying goods |
| Motor vehicle | Where vehicles are used on the contract |
| Contract works | Construction work |
How to avoid an insurance knock out
- Find the required amount for each type and note the page.
- Check your certificates of currency and expiry dates against the closing date.
- If the tender says not applicable for a type, record that so it is not flagged later.
- If you need more cover, ask your broker before you commit to bid.
Reading the insurance clause
The amount is usually written per occurrence or in the aggregate, for example "not less than $20 million for any one occurrence". Check the wording, the type of policy, whether the buyer must be noted on the policy, and when cover must be in place: at tender, at contract award or before work starts.
Workers compensation is state based
Workers compensation schemes are run by each state and territory. If you employ staff in more than one state, check you hold the right cover for where the work is done.
Questions
What is a certificate of currency?
A document from your insurer confirming a policy is current, with its type, amount and expiry date.
Can I increase my cover if I win?
Some tenders allow cover to be in place before the contract starts. Check the wording; many require it at the time of tender.
What does per occurrence mean?
The maximum the policy pays for any one incident. Aggregate means the maximum across all claims in the policy period.
Should I attach my certificates of currency?
If the schedule asks for them, yes, and check every expiry date against the closing date.