Compensation for damage resulting from the contractor's liability in respect of the  contracting authority is capped at an amount equal to one million euros if the contract  value is less than or equal to one million euros. If the contract value is greater than one  million euros, compensation for damages resulting from the contractor's liability shall be  capped to the contract value.  However, compensation for loss or damage resulting from the contractor's liability in case  of bodily injury, including death, can in no case be capped. The same applies to  compensation for any damages of any kind resulting from fraud or gross negligence of  the contractor, its staff, its subcontractors and any person for which the contractor is  answerable.  The contractor shall, at its own expense, indemnify, protect and defend, the contracting  authority, its agents and employees, from and against all actions, claims, losses or  damage, direct or indirect, of whatever nature (hereinafter ‘claim(s)’) arising from any act  or omission by the contractor, its staff, its subcontractors and/or any person for which the  contractor is answerable, in the performance of its duties.  The contracting authority must notify any third party claim to the contractor as soon as  possible after the contracting authority becomes aware of them.  If the contracting authority chooses to challenge and defend itself against the claim(s), the  contractor shall bear the reasonable costs of defence incurred by the contracting authority,  its agents and employees.  Under these general conditions, the agents and employees of the contracting authority, as  well as the contractor's staff, its subcontractors and any person for which the contractor is  answerable are considered to be third parties.  The contractor shall treat all claims in close consultation with the contracting authority Any settlement or agreement settling a claim requires the prior express consent of the  contracting authority and the contractor.  At the latest together with the return of the countersigned contract, and for the period of  implementation of the tasks, the contractor shall ensure that itself, its staff, its  subcontractors and any person for which the contractor is answerable, are adequately  insured with insurance companies recognized on the international insurance market,  unless the contracting authority has given its express written consent on a specific  insurance company.  At the latest together with the return of the countersigned contract, the contractor shall  provide the contracting authority with all cover notes and/or certificates of insurance  showing that the contractor's obligations relating to insurance are fully respected. The  contractor shall submit without delay, whenever the contracting authority or the project  manager so requests, an updated version of the cover notes and/or certificates of  insurance.  The contractor shall obtain from the insurers that they commit to personally and directly  inform the contracting authority of any event likely to reduce, cancel or alter in any  August 2020 c4e_annexigc_en  Page 11 of 36  a) Insurance – general issues  12.2. Insurance  c) Contractor's liability in respect of third parties 