Consultants - Insurances
Professional Indemnity Insurance
All building industry consultants on the PQC System are required to maintain a Professional Indemnity Insurance policy with the following provisions:
- a minimum insured amount of $1M per claim;
- personal injury coverage;
- continuity of coverage for a period appropriate to the commission types undertaken; and
- a maximum excess of $50,000 (a higher excess may be acceptable if the consultant is able to demonstrate to DPW that sufficient Net Tangible Assets exist in the consultant’s trading entity to justify the higher excess).
The amount of Professional Indemnity Insurance to be held by consultants for particular commissions is to be nominated in the invitation documents and will vary generally from $1M to $10M, depending on the commission type, service risk rating and the estimated cost of the government building project associated with the commission.
The table below provides a guide to the likely amount of insurance required for varying commissions. This has been adapted for government building projects from the Australian Procurement and Construction Council’s (APCC’s) publication Professional Indemnity Insurance Guidelines in the Building and Construction Industry accessible through the APCC website www.apcc.gov.au.
Table - Amounts of Professional Indemnity Insurance ($M) Relative to Project Cost and Commission Service
| Project Value | PQC1 | PQC2 | PQC3 | PQC4 |
| <$2M | $1M | $1M | $1M | $2M |
| $2M to <$5M | $1M | $1M | $2M | $2M |
| $5M to <$20M | $2M | $2M | $5M | $5M |
| $20M to <$50M | $5M | $10M | $10M | |
| $50M to <$100M | $10M | $10M | ||
| $100M+ | Refer Building Policy Unit | Refer Building Policy Unit |
Public Liability Insurance
All building industry consultants on the PQC System are required to maintain a Public Liability Insurance policy with the following provisions:
- a minimum insured amount of $5M per claim; and
- a maximum excess of $50,000.
As with the excess provisions for Professional Indemnity Insurance, a higher excess may be acceptable if the consultant can demonstrate that sufficient Net Tangible Assets exist in the consultant’s trading entity.
Last Updated 05/08/2009
