CCS Reverses G-Cloud 14 Insurance Requirements Following Supplier Backlash

The Crown Commercial Service (CCS) has reversed its decision to increase the insurance cover required for suppliers in its G-Cloud 14 framework by £20m. Following feedback from suppliers, the CCS stated that a review of the mandated levels of liability insurance was necessary. Originally, the CCS had required participating suppliers to have separate professional indemnity and public liability insurance of at least £10m each, in addition to £5m in employers’ liability insurance. However, smaller suppliers complained that these requirements were too expensive. Consequently, the CCS has amended the insurance requirements to £1m of cover for both public liability and professional indemnity insurance, and £5m for employers’ liability. Nevertheless, the changes only apply to three out of the four Lots on the framework. Lot 4, which encompasses the support, security, and migration services required for larger cloud projects, still requires £25m of insurance cover.

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