Project Insurance
Increasingly, companies developing or having new buildings constructed, existing buildings refurbished or rebuilt, or new facilities erected are obtaining the principal project insurances themselves rather than requiring the contractor to do so. Whatever the company's business (manufacturing, retail, distribution, property development or the provision of professional services) there are a number of compelling reasons for them to do this.
Rationale and objectives
The rationale and principal objectives of this approach are to:
- Control the scope and quality of cover and the security of the insurers
- Avoid contractors' claims experience having an adverse effect on the premium quoted for the project
- Ensure compliance with the insurance requirements of the construction contract, loan facility agreement, leases and other project agreements and minimise contractor compliance issues
- Make it easier to obtain Delay in Completion and Business Interruption insurance
- Improve the interface between construction and operational insurance
HSBC Insurance Brokers' services
Risk analysis
We examine the risks to which the project is exposed including physical, contractual and delay risks and advise on insurance or contractual solutions.
Documentation
We analyse and provide insurance advice in respect of the project documentation including development agreements, construction contracts, lease agreements and loan documentation and where required, assist in writing appropriate insurance language.
Insurance programme
We prepare and place an insurance programme for the construction and operation of the project, providing protection to the project company and contractors including the following insurances and others, as appropriate.
- Construction All Risks
- Delay in Completion
- Third Party Liability
- Property All Risks
- Business Interruption
- Latent Defects
- Marine Cargo
- Environmental
Negotiation with insurers
We negotiate competitively priced insurances with wide cover that works efficiently and places as little administrative burden on the insured parties as possible.
Policy wording
We write project-specific policy wordings that give the widest cover and comply with the requirements of the development contract, other project agreements and the loan agreement.
Contractor dialogue
We confirm the contractor's compliance with the insurance requirements of the construction contract, establishing a dialogue with the contractor in relation to all insurance issues and facilitating efficient use of the insurance programme and the claims management procedure.
Claims management
We establish claims management procedures and advise on the appointment of a loss adjuster. We also provide claims information and statistics in any form that best meets the project company's requirements using our Internet Claims Management System.
