Variation to the University's standard insurance requirements on consultancy contracts

Preamble

The Contractor risk assessment checklist has been developed to assist departments in determining whether a case exists for the recommendation of a variation to the University's normal insurance limits.

University procedures stipulate that consultants and contractors that are incorporated bodies ( i.e. have both an ACN and an ABN) must carry a minimum of $5 million of both public liability and professional indemnity insurance.  Non-corporate consultants (i.e. with an ABN only) are required to carry a minimum of $1 million of both public liability and professional indemnity insurance.

Requiring contractors/consultants to carry that amount of Public Liability insurance provides a level of protection to the University from claims arising from injury to third parties or damage to property caused by the actions of their employees whilst undertaking work for the University. 

Requiring contractors/consultants to carry that amount of Professional Indemnity insurance provides a level of protection to the University from claims for financial loss, discrimination, defamation, breach of copyright etc. arising from the negligent action of the contractor/consultant whilst undertaking work for the University.

While the amounts shown above are considered to be minimum amounts it is recognised that from time-to-time the University may wish to engage contractors/consultants that do not carry the required amount of insurance.  In these instances an assessment will need to be made of the work to be undertaken by the contractor/consultant to determine the level of risk associated with those activities.

Attached is a checklist, which has been developed to assist departments in undertaking such assessments and to provide a format to enable Deans/Divisional Directors to evaluate proposals from departments, to vary the University's normal insurance requirements. Departments should complete this checklist and forward the completed checklist and the contract to the Dean's or Divisional Director's office for approval of the variation to the insurance requirements.

The signed contract and approved checklist is to be forwarded to Financial Resources Management prior to the first payment being made.