Insurance and risk
Suppliers are required to have insurance at a value appropriate to the likely maximum damage that they could potentially cause ANSTO.
Standard classes of insurance include public liability, property damage, product liability and professional indemnity. As a guide, the contractor should ensure that throughout the term of the contract it is insured with, or is the beneficiary under an appropriate insurance policy such as:
- A broad form public liability insurance to the value of at least $20 million per occurrence
- Where the contractor supplies services, professional indemnity insurance to the value of at least $10 million in respect of each claim arising from or in relation to the contractor’s performance of the contract
- Where the contractor supplies products, product liability insurance to the value of at least $10 million in respect of each claim arising from or in relation to the contractor’s performance of the contract
- The contractor must have workers compensation insurance in place in accordance with prevailing New South Wales law
It should be noted that the values specified above are ANSTO’s minimum requirement and that a higher level of coverage may be required for some projects. Where a higher level of coverage is required the details will be identified in the invitation documents and confirmed with the contractor prior to the issue of a contract.
Contractors will be required to produce evidence of insurances to ANSTO in the form of a Certificate of Insurance. In some circumstances ANSTO may require that it be named as an additional insured.
ANSTO will generally not agree to clauses that ‘waiver rights of subrogation’, ‘hold harmless’, or requests an indemnification regardless of fault. ANSTO’s insurers will not allow third parties to be named on its policies. Any requests or variations to insurance clauses need approval by ANSTO Legal.
An appropriate risk assessment of the proposed solution and selected respondent is undertaken to ensure that ANSTO is not exposed to unacceptable risks from the proposed contract.
Contractors insurance and safety management systems
- ANSTO has engaged Barrington Group Australia Pty Ltd (‘Barrington’) to check the contractor’s insurance and safety management systems and to check these are kept current and up to date. Barrington’s responsibility includes:
a) Recording and checking the contractor’s safety management systems
b) Recording and checking of the contractor’s insurance (including workers compensation and public liability) based on the level of risk associated with the contractor.
- There is no fee payable by the contractor to Barrington. The contractor must provide to Barrington’s, details of Insurances, Licenses and Work Health and Safety information as requested by them from time to time, for the purposes of the contract, and the contractor must keep such information always current and up to date.