Tender Summary: Liability Cover

Objectives

The primary objective is to appoint a registered, suitably qualified, and reputable short-term insurance service provider to secure a Directors and Officers (D&O) indemnity insurance policy. This policy will protect past and present Board Members and Executive Officers of the Gauteng Enterprise Propeller from personal financial liability arising from decisions made during the execution of their official duties. The engagement is structured as a fixed-term contract spanning 36 months.

Scope of Work

The successful bidder will source and underwrite a comprehensive D&O liability insurance policy covering ten Board Members and six Executive Officers/Management personnel. The scope encompasses end-to-end policy procurement, ongoing account management, claims handling, risk advisory services, and transparent annual cost reporting over the three-year term. Bidders must provide a detailed project plan, methodology for stakeholder communication, clear quality criteria for claim validation, and a structured workflow for processing queries and claims. Pricing must be all-inclusive, transparent, and fully compliant with national insurance legislation.

Technical Requirements

• Valid licensing as a short-term insurance broker.
• Official approval and appointment by the Prudential Authority.
• Documentation proving the appointment of a senior manager in accordance with Section 15 of the Insurance Act.
• Submission of the relevant annual disclosures report as mandated by Section 45 of the Insurance Act.
• Completion and signing of Standard Bidding Documents (SBD 1, SBD 3/Pricing Schedule, and SBD 4).
• Minimum of three verifiable reference letters (not older than five years) demonstrating prior delivery of similar insurance brokerage services.
• Comprehensive proposal detailing project timelines, account management processes, claims handling procedures, risk management advisory, and communication protocols between the client, broker, and insured parties.
• Transparent, all-inclusive annual costing for the full 36-month duration.

Skills Requirements

• Key personnel must possess a minimum of five years’ experience and relevant qualifications in short-term insurance brokerage.
• The designated Project Manager must hold a degree in Business Administration, Finance, Risk Management, or an equivalent qualification.
• Demonstrated expertise of at least five years in claims processing, policy coverage structuring, and settlement procedures.
• Submission of detailed Curriculum Vitae/profiles for all proposed key personnel highlighting relevant experience and qualifications.

Explanation of Key Terms

• Directors and Officers (D&O) Liability Insurance: A specialized policy that shields corporate directors and executives from personal financial loss if they face lawsuits alleging wrongful acts, mismanagement, or breach of duty while governing an organization. It typically covers legal defense costs, settlements, and court-awarded damages.
• Prudential Authority: The South African regulatory body responsible for supervising financial institutions, including insurance companies and brokers, to ensure market stability, solvency, and consumer protection.
• Indemnity Insurance: Coverage designed to restore the insured to their original financial position before a loss occurred, specifically addressing legal liabilities and associated expenses in this context.
• Insurance Act Sections 15 & 45: Statutory provisions requiring insurance firms to formally appoint qualified senior managers and submit regular transparency reports to regulatory authorities, ensuring operational integrity, governance standards, and industry compliance.