Item 13 (i), refers to “meeting the requirements of the law”. The Contractor employer’s liability insurance is required by law and it might therefore be agrued that it should be included in the people costs and reimbursed as Defined Cost. Section 7 of the SOCC says that the costs of events for which this contract requires the contarctror to insure are deducted from cost. EL insurance is listed under 84.2. so should the insurance premiums still be included as defined cost in our bid or included within the Fee?
Generally insurance premiums are not recovered as part of the Schedule of Cost Components and would therefore be in the fee. However, Employer’s liability insurance, as you say, is a requirement of the law and attaches directly to people and therefore is properly a people cost. The Guidance Notes pick this form of insurance specifically as falling into the People Costs.