Contractor Insurance for working on a Nuclear Site

sellafield logoDo I need special insurance to work in Nuclear? The simple answer is “No”, although you will need to notify your insurers (via your broker) that you will be working on a nuclear site. 

Under the Nuclear Installations Act (NIA), ‘Licenced Operators’ of a ‘Nuclear Licenced Site’ are liable (currently up to a limit of £140m) for any nuclear damage (arising from the site), regardless of fault.  For Nuclear Decommissioning Authority (NDA) sites, to be the Licenced Operator of a nuclear site you would

(a)       have a direct contract (known as a Maintenance and Operations Contract) with the Nuclear Decommissioning Authority, and

(b)       be licenced to operate a nuclear site by the Nuclear Directorate of the Health and Safety Executive.

If you are not a Licenced Operator you do not have a strict liability for a nuclear incident under the NIA and therefore do not need to purchase nuclear liability insurance.

NDA arranges insurance for all of the Nuclear Licenced Sites which form part of NDA’s estate to cover the strict liability under the NIA for personal injury and damage to third party property resulting from a nuclear incident.

NDA also provides Construction All Risks insurance cover for construction projects on sites which form part of the NDA estate. This ensures that all contractors and subcontractors of any level are covered under one policy if there is damage to the Works.

The usual business insurances will be required if you are working on a nuclear site.  These include but are not limited to:

  • Employers Liability
  • Public Liability / Professional Indemnity
  • Property Damage and Business Interruption

The limits required under each of these policies will be determined by your specific contract, depending on the type of work being carried out.

It is usual for these policies to contain a ‘Nuclear Exclusion’ which means that damage resulting from a nuclear release is not covered by the insurance policy. However, damage caused by a nuclear release on site will be covered by the NDA policy (as mentioned above). You will still be liable for any non-nuclear damage  you cause to NDA’s  or any other third party property and you should ensure that your Public Liability policy will respond.

NDA has arranged assistance from an insurance broker Willis to provide insurance quotes for any SME. Willis is the current NDA broker and has Nuclear expertise. Willis will not charge to provide a quote, costs will only be incurred should a policy be placed by them