Insurance requirements in care tenders
Care tenders set minimum insurance levels you must hold or commit to hold before contract award, typically covering public liability, employer's liability and sometimes professional indemnity. Common levels are several million pounds for public and employer's liability, with professional indemnity often required for advisory or clinical elements. It is a pass-fail item, so you must meet or agree to obtain the stated cover. Employer's liability is also a legal requirement of at least five million pounds.
The cover commissioners ask for
Most care tenders require public liability and employer's liability insurance, and often professional indemnity. Employer's liability is legally required at a minimum of five million pounds for businesses with staff, so this one is a baseline obligation regardless of any tender. Public liability is frequently set at five or ten million pounds in care contracts. Professional indemnity is stated where there is a clinical, advisory or care-planning element. The tender lists each required type and level, and you are assessed on whether you meet or will meet them.
Why each type of cover matters
Public liability covers harm or damage to third parties, including service users and the public, which is central to a care setting. Employer's liability covers claims from your own staff and is a legal duty. Professional indemnity covers claims arising from professional advice, assessment or care planning where things are alleged to have gone wrong. Some care tenders also reference medical malpractice or treatment liability for clinical services. Understanding what each policy protects helps you check that your certificates genuinely match the activities the contract involves, not just the headline figures.
Hold it or commit to hold it
You usually do not need the full cover in place at bid stage. Buyers commonly accept a signed commitment to obtain the required levels before the contract starts, supported by evidence at award. Read whether the tender wants cover in place now or on award, and answer accordingly. If you commit to obtain it, make sure the uplift is genuinely achievable and budgeted, because failing to produce the certificates at award can cost you the contract after you have already won it.
Get the levels right
Quoting cover below the stated level is a straightforward pass-fail failure, and it is entirely avoidable. Check your current certificates against each required figure and each required type before you answer, not after. Watch for mismatches between aggregate and per-claim limits, and for exclusions that might affect the activities in scope. Budget for any uplift you need at award and confirm your broker can provide it in time. Our free eligibility check flags insurance shortfalls before you spend time bidding on a tender you cannot satisfy.
Keeping cover valid through the contract
Insurance is not just a bid-stage tick. The contract usually requires you to maintain the stated cover for its whole term and to provide evidence on renewal. Letting a policy lapse or drop below the required level during delivery is a breach that can trigger contract action. Diarise renewals, keep certificates current and accessible, and tell the commissioner promptly of any material change. Treating cover as an ongoing contractual obligation, not a one-off, protects both the contract and the people you support.
Typical care tender insurance requirements
Indicative levels only. Always use the exact types and figures stated in the tender.
| Cover type | Common level | When required |
|---|---|---|
| Employer's liability | At least 5 million pounds | Always, if you employ staff (legal duty) |
| Public liability | 5 to 10 million pounds | Almost always in care contracts |
| Professional indemnity | Often 1 to 5 million pounds | Where there is clinical or advisory work |
| Medical malpractice | As stated | For some clinical or treatment services |
Not sure if you qualify for a tender? We check it for free, before you pay anything, and we only take bids we believe you can win. Text TENDER to get started.
Common questions
What insurance do I need for a care tender?
Typically public liability, employer's liability and often professional indemnity. Employer's liability is legally required at a minimum of five million pounds. Public liability is commonly set at five or ten million pounds in care tenders, with the exact types and figures stated in each one.
Do I need the full cover before I bid?
Often not. Many buyers accept a commitment to obtain the required cover before the contract starts, with evidence at award. Check whether the tender wants the cover in place now or on award, and make sure any uplift is achievable in time.
Is professional indemnity always required?
No. It is usually required where there is a clinical, advisory or care-planning element. The tender states whether it applies and at what level, so check each one rather than assuming it is or is not needed.
What is the difference between public and employer's liability?
Public liability covers claims from third parties such as service users and the public; employer's liability covers claims from your own staff and is a legal requirement of at least five million pounds. Care tenders almost always require both.
Do I have to keep the insurance for the whole contract?
Yes. The contract typically requires you to maintain the stated cover for its full term and to evidence it on renewal. Letting cover lapse or fall below the required level during delivery is a breach that can trigger contract action.
What happens if I cannot get the required cover at award?
You usually lose the contract, even after winning, because the cover is a condition of award. That is why you should confirm with your broker that the levels are obtainable before committing, rather than discovering a problem once the bid has succeeded.
Keep reading
Browse all care tender guides, or see care tender writing by service.
Got a tender to check?
Text TENDER to +44 7822 030677and we'll tell you free whether you'd qualify, before you spend a penny.