As a condition to work with the Public Transport Authority (PTA), Suppliers are required to maintain insurances during the period of the Contract commencing on the date of the Contract award.
Insurance requirements are based upon specific contractual terms outlined in the contract or listed on the general conditions of contract.
Class of Insurances
Statutory workers’ compensation insurance
Workers’ compensation insurance is required by law to be held by employers to cover their statutory obligations to employees who suffer work-related injuries or disease. Workers’ compensation insurance is usually held by all parties as part of their ordinary business practices.
Public liability insurance
Public liability insurance covers legal liability to pay compensation for loss of or damage to property and personal injury, death or illness to any person (other than liability required under workers compensation law) as a result of an occurrence arising out of or in connection with the goods or services provided.
Product liability insurance
Product liability insurance provides cover in relation to liability arising out of any claim by any person in respect of personal injury, death, disease or illness (including mental illness); and loss of, or damage to, or loss of use of, property, arising out of or in relation to the use, manufacture, supply or installation of any item or thing by the Supplier in the course of performing its obligations under the Contract.
Professional indemnity insurance
Professional indemnity insurance covers breach of duty owed in a professional capacity by professionals and other skilled suppliers for legal liability arising out of the provision of professional activities and services.
This relates to claims for negligence, breaches of professional duty and reasonable care connected with the standard or quality of the professional activities or services in relation to a Contract.
may also cover pure financial loss, death, illness, personal injury or property loss or damage arising from or directly from a breach of professional duty, fraud, infringement of intellectual property rights, breach of confidentiality, defamation or loss of documents.
Motor vehicle insurance
Motor vehicle insurance provides cover in respect of liability to third parties for personal injury, death, disease or illness (including mental illness) or liability to third parties for loss of or damage to property.
Technology (cyber) liability
Technology (cyber) liability insurance policy covers liability in respect of the legal liability of the Supplier for claims arising from any actual or alleged.
- Breach of public disclosure of personal or corporate information;
- Liability, loss of or damage to property including data whilst in the care, custody or control of the Supplier;
- Breach of confidence or privacy by the Supplier or by any person or entity engaged by the Supplier; and
- Act or omission by an unauthorised person or entity resulting in loss of or damage to the Public Transport Authority’s property (including hardware, software and data).
Limit of Liability
The limit of liability in insurance refers to the maximum amount an insurer will pay for covered losses under an insurance policy.
There are typically two types of limits:
- Occurrence limit: This is the maximum amount the insurer will pay for a single claim or incident.
- Aggregate limit: This is the total amount the insurer will pay for all claims during the policy period, usually one year.
Contracts may be subjected to different limit of liability based upon specific contractual terms.