Can the tenant consultant "force" the contractor to purchase product liability and professional liability insurance?

Purchasing professional liability and product liability insurance naturally involves significant expenses, but it is likely that the advisor's dismissal will not change the final result. This is because any insurance advisor on behalf of the tenants will require the issuance of these insurance policies, which have long been a "basic standard" in insurance requirements. 

 In other words, if a contracting company chooses to part ways with the consultant, it will likely pay for the insurance and also bear the previous consultant's fees (along with the fees of the replacement consultant). In short, not the most profitable deal. 

 With regard to product liability, for example, the insurance exposure is related to bodily injury or property damage to a third party as a result of a construction defect. The minimum exposure period is derived from the warranty period. For example, 20 years for the frame according to the building regulations and up to about 10 years for the rest of the building (as specified in the Sales Law). 

 In contrast, claims under the Torts Ordinance are not limited by these periods . For example, if a tile from a building fell off 20 years after the key was handed over, but it turns out that the cause was faulty installation in the first place, the claim can still be filed against the contractor performing the work. Yes, that's right. 

 Because professional liability and product liability insurance are "Claims Made" insurance, the policy must be in effect both at the time of the claim and at the time the damage occurs or the negligence is discovered . The statute of limitations begins from the date of the event or the date the negligence is discovered, and as mentioned, can in principle also entail exposure for decades after the key is handed over. In view of the long time frames, these policies should be held for decades. Including even a RUN OFF policy after retirement (!).

 When the policy is purchased for a specific project, it must be renewed annually for that project, and the cumulative costs are not low (not to mention very high). Therefore, it will often be appropriate to purchase the policy for the developer/contractor's annual performance cycle and not specifically for a particular project. 

 This way, it will be possible to renew the policy for each year's ongoing performance cycle, and over the years, cover all projects included in the ongoing cycles reported over the years. That is, each year you only pay for that year's ongoing cycle.