HC Deb 09 July 2002 vol 388 cc861-2W
Mr. Gray

To ask the Secretary of State for Work and Pensions how many contracts the Department of Work and Pensions has with consultants; what level of professional indemnity insurance is standard in contracts with small consultants; whether he can make exceptions to the level of professional indemnity insurance; and what recent discussions he has had with other Government Departments about the level of professional indemnity insurance. [50834]

Mr. Nicholas Brown

The Department currently has 177 consultancy contracts in place let via framework agreements, including the Office of Government Commerce's Service Categories IT and Business Services Catalogue. Each agreement has its own standard set of Terms and Conditions—including levels of professional indemnity insurance.

Standard terms set Limitation of Liability for damage to property at a maximum of £1,000,000 and other defaults at a maximum of £50,000 or 150 per cent. of the value of the contract. Professional indemnity insurance is generally set at a level appropriate to the size of the contract and the level of risk involved.

In addition to framework standard Terms and Conditions, special terms specific to the requirement in hand can be agreed to adjust the limitation of liability.

On discussions with other Government Departments I refer the hon. Member to the written answer given by my right hon. Friend the Prime Minister on 6 February 2002, Official Report, column 689W.