Monday, April 15

CCS holding company on G-Cloud 14 insurance coverage requirements for potential Lot 4 providers

The federal government’s procurement arm is apparently declining to succumb to provider contacts us to extend its choice to modify down the insurance coverage requirements for G-Cloud 14 to the structure’s 4th Lot


  • Caroline Donnelly, Senior Editor, UK

Released: 21 Mar 2024 9:16

The Crown Commercial Service (CCS) is declining to extend its choice to modify down the quantity of insurance coverage cover needed by potential G-Cloud 14 providers to all 4 of the structure’s Lots, regardless of pleas from providers to do so.

The federal government’s procurement arm is coming under growing pressure from potential G-Cloud 14 Lot 4 providers to reassess its choice to keep the quantity of insurance coverage they require to take part in the structure arrangement at ₤ 25m, Computer Weekly has actually found out.

This remains in the wake of CCS back-tracking on its strategies to “disproportionately trek” the quantity of insurance coverage cover providers would require to take part in G-Cloud 14’s very first 3 Lots by ₤ 20m.

Previous models of the structure needed providers to hold ₤ 5m in companies’ liability insurance coverage, however for G-Cloud 14, CCS at first mentioned they would likewise require to have different public liability and expert indemnity cover of a minimum of ₤ 10m.

CCS validated on 7 March 2024 that it had actually reassessed its position on the levels of liability insurance coverage mandated for potential providers. Individuals in Lots 1 to 3 of the structure would now just require ₤ 1m of cover for public liability and expert indemnity, as well as the ₤ 5m in companies’ liability.

Providers seeking to protect a put on the 4th and last Lot of G-Cloud 14 would, nevertheless, still require an overall of ₤ 25m insurance coverage cover.

The choice to keep these raised insurance coverage levels for Lot 4 has actually not landed well with potential providers, which have actually consistently contacted CCS to alter its mind, according to a copy of the certifying concerns for Lot 4 seen by Computer Weekly.

“I can see the level of insurance coverage required has actually been queried on Lots 1 to 3 and it has actually been altered to a lower level,” composed one potential provider. “Will the insurance coverage level needed for Lot 4 expert indemnity likewise be decreased to listed below ₤ 2.5 m?”

Because of the expert indemnity insurance coverage for a few of the other Lots having actually been lowered, another potential provider stated: “We would ask CCS to reassess [its] position on the expert indemnity insurance coverage for Lot 4 and ask that this is minimized from ₤ 10m to ₤ 5m.”

In action to a number of these concerns, an agent for CCS specified: “The insurance coverage levels will stay as prepared.”

Computer system Weekly even more comprehends that CCS has actually validated its actions by informing providers that “insurance coverage levels are examined on a private basis”, and since G-Cloud 14 Lot 4 is run as a standalone structure to the other 3 G-Cloud 14 Lots,

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