To ask the Chancellor of the Exchequer which Government Departments, and under what circumstances, seek to require contractors to provide for unlimited liability insurance as part of any agreed contract of service.

It is unlikely that any Government Department will require, in any circumstances, a contractor to provide for unlimited liability insurance as part of an agreed contract of service. Under the standard conditions used in departmental contracts, a contractor may have unlimited liability for any costs arising from a default by him. But it is normally left to the contractor to determine what insurance he needs. In certain cases, however, a contractor may be required to insure for a particular level of cover.