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Project liability insurance and the link between the insurance cover and the parties' agreement

Project liability insurance and the link between the insurance cover and the parties' agreement

A recent arbitration award addresses the question of whether the client or general contractor who has taken out project liability insurance with a consultant as co-insured can claim more compensation from the insurance than the maximum compensation agreed between the parties in the consultancy agreement. The question arises when the sum insured exceeds the limit of liability set out in the consultancy agreement.

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