Transcript Risk and Insurance policies

Risk Management in Civil Engineering – LNEC
19.11.2008
Risks and Insurance policies
José Luis Montull
Risk and Insurance
 Risk: it is not only the contingency or proximity of a damage
(hazard), but also each and every contingency that can be subject of
an insurance contract (Risk )
¿quantifiable ?
the mathematical product of the probability of a damage
taking place, multiplied by the consequences of such
damage:
R=PxC
where: P = Probability of an event
C = Consequences of that event
Risks and Insurance policies
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Risk and Insurance
 The Insurance is nothing else than a financial transaction by which a
party, the policyholder (Insured), through a remuneration (the
premium), promises to himself or to a third party a payment or a
reparation in case of risk producing damages. The other party (the
Insurer) who makes this payment, takes a set of risks, and is able to
compensate them according to the statistical laws.
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Risks-Matrix
The Risks-Matrix: Major Risks. (Example)
Probability
Intensity
Risk Control
Absenteeism
and productivity
decrease Almost sure
Moderate
Not adequate
Extreme
investment's shortage
in I+D, TI, RRHH
Possible
Severe
Not adequate
Extreme
Political inestability
Rare
Catastrophic
Not adequate
High
Theft of goods
or money
Almost sure
Moderate
Not adequate
Extreme
Yes
No
Manpower costs
explosion
Probable
Moderate
Not adequate
Extreme
No
No
Specific sectorial
risks: manipulation of
materials, stress,..
Almost sure
Moderate
Adequate
Key Executives
travelling together
Unlikely
Catastrophic
Risk
Risks and Insurance policies
Not adequate
Clasification
No
Extreme
High
Insurable
Insurance
Policy
No
No
No
Yes
No
No
Yes
Yes
Yes
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Risks-Matrix
Risks Matrix: Major risks.
INTENSITY
PROBABILITY
negligible
Light
Moderate
Severe
Catastrophic
Almost sure
M
H
E
E
E
Probable
M
M
H
E
E
Possible
L
M
H
H
E
Unlikely
L
L
M
H
E
Rare
L
L
M
H
H
L Low Risk
Controlled by
skilled workers
and surveyors.
Risks and Insurance policies
M Moderate Risk
Managed by middle
staff.
H High Risk
General Managers
attention is required
E Extreme Risk
The Board must be
informed, and a
permanent follow up is
required.
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INTENSITY
Risks hierarchy
EXTREME RISK
HIGH RISK
MODERATE RISK
LOW RISK
FREQUENCY
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¿how do we face the Risk?
 Retention: establishing enough reserves to
overcome the possible losses
Risk
 Transfer: negotiating a specific insurance in
order to give external coverage to the possible
occurrence of a loss.
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Retention or Risk Transfer
¿Retention?
 Risks with high probability and low consequences. (Risks have
to be taken or "self-insured" if they don't affect the financial stability of
the company).
¿Risk Transfer?
 Risk with low probability and severe consequences (it is
necessary to establish the limits of “significancy of a risk” for the
company, individually and combined).
Risks and Insurance policies
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The Cost of the Risk
Expected
Loss Ratio
Costs of the
Risk Control
Costs of the
Financing of Risk
Costs of
Risk Reduction
Unexpected Costs
 % on Incomes
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What happens actually?
Feb 2005
“A high number of companies never
overcome a major loss, because of not
beeing forewarned”
“The important thing is not to find out
who will pay (usually an insurance
company), but to ensure that your
business will not be forced to stop, that
you will not loose either clients or
suppliers and, even, that your
competitors will not take advantage of
the circumstance to finish off your
business.”
Risks and Insurance policies
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Risks clasification
 Identified and Known
 assessable.
 Identified and Unknown
 because it's difficult to
evaluate its
consequences.
 Unidentified and Unknown
 surely we will be surprised
(development risks).
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Particularities of Civil Engineering
 Risks are often 'Unknown' (identified or not), due to:
 Each project is different from the previous, always showing different
elements (ground conditions, climate, workmanship…)
 Technological development and innovation are steady, both in
machinery and in materials
 Frequently there is non-skilled labour in the lowest levels of the chain
 Use and maintenance are sometimes not as careful as they should.
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The Risk in Civil Engineering
RISK FACTORS (material damages):
what do they depend on?
a) of Internal origin:
SOURCE
Project
b) of External origin:
CONSEQUENCES
Works
performance
Natural hazards
(Acts of God)
Acts of third
parties
(incl. materiales)
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The Risk in Civil Engineering
RISK FACTORS (material damages):
what do they depend on?
a) of Internal origin:
on the quality of the project itself (its conception and design), not
only regarding the future service's stresses, but also concerning
the stresses during the construction phase, as well as the
construction method chosen
on the approach to the construction works: quality and adequacy
of the resources (personnel, machinery, measurement
instruments, etc), and on the planning, choice and supply
materials and their control, etc.
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The Risk in Civil Engineering
RISK FACTORS (material damages):
what do they depend on?
b) of External origin:
They DO NOT depend, in their origin, on the project and
construction works (although in some cases they DO depend
with regard to their probability of occurrence -example: acts of
third parties-) and, in all cases, they also DO depend regarding
the severity of their consequencies –example: flood, earthquake,
etc.-)
Risks and Insurance policies
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Construction All Risk
Example: Risks distribution
Negligence
Malicious acts
(from Insured)
Natural
Hazards
Political Risk
Nuclear Risk
Financial losses/
penalties
electrical or
mechanical failure
Fire
Theft,
robbery
Risks and Insurance policies
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Construction All Risk
Example: Risks distribution
'insurable' Risks
'not insurable' Risks
Negligence
Natural
Hazards
Malicious acts
(Insured)
Political risks
Nuclear risks
Financial losses/
fines
Fire
Mechanical
or electrical failure
Robbery,
Theft
Risks and Insurance policies
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Risk's analysis
Deterministic analysis
Based on scientific theories or empiric formulations: identical result if
you take the same assumptions for the process (ex.: rust)
Probabilistic analysis
Based on occurrence probability of different risk's scenarios, estimating
their consequences (ex.: flood)
Statistical analysis
Based on previous experience on existing statistics of losses
(ex.: personal accidents at work)
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Pilars of insurance activity
 Sufficient statistical base
 Financial stability
 Risks heterogeneity
 Geographical compensation
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Statistical base for the analisys
Study of historical losses
Very difficult to
apply to Civil
Engineering, due to
the analyzed
particularities:
- projects are all
different ,
- climate conditions
influence in each
and every case,
- heterogeneous
coverages
- etc.
Risks and Insurance policies







Number of losses.
Date of occurrence and close date.
Insured.
Location.
Description.
Branch, guarantee, policy number and insurer.
Split of losses's amount:
- total losses,
- insured losses,
- not covered losses.
- deductibles.
- pay back from other insurers,
- pay back from third parties,
- fees.
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Exemple: Construction All Risk
Risks distribution
Losses >180.000€
(period 1990 – 2001)
SOURCE: Münchener Rück
11%
6%
31%
19%
33%
Fire/Explosion
Workmanship
Others
Risks and Insurance policies
Natural hazards
Design
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Engineering Insurance Policies
1. Annual policies
 (MB)
– Machinery Breakdown
 (BI-MB)
– Business Interruption, resulting from a loss
covered under the MB policy
 (DOS)
– Deterioration of Goods
 (EEI)
– Electronic Equipment
 (CPM)
– Contractors Plants & Machinery
 (CECR)
– Civil Engineering Completed Risks
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Engineering Insurance Policies
2. Temporary policies
 (CAR)
– Construction All Risk
 (EAR)
– Erection All Risks
 (CAR-ALoP) – Advanced Loss of Profit in CAR
 (EAR-ALoP) – Advanced Loss of Profit in EAR
 Comprehensive policies (BOT, BOO,..)
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Engineering Insurance Policies
3. Multi-annual policies
 Decennial (10 years cover)
 Inherent Defects (2, 3 or more years cover)
 ....
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Engineering Insurance Policies
4. Special policies
 Off-shore Risks (Oil-Platforms, Undersea-Pipelines,...)
 Technological Risks (Manufacturer's Guarantee,...)
 Space Risks (Moon Shots, Space Stations, ...)
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
Target policyholder?
 each and every company taking part in the
construction process (having interests on the
construction itself)

Owner / Promoter

Main Contractor

Subcontractors
 Policyholders
[actually, the 'insured' is the Construction itself]
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
what types of works can be insured?
 All kinds of works and facilities
 Housing and buildings:
residential, offices, hospitals, schools,
industrial buildings, car parks,
shopping centers, stadiums, power stations,
etc.
 Civil works, infrastructures:
tracks (motorways, railways, pipelines,
tunnels,...), bridges, hydraulic works
(dams, water treatment plants,...), weet risks
(breakwater, harbours,...), etc.
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
what is/can be included under the coverage?
 All works, goods and tools which take part in the
construction process or which are adjacent to the
construction site:
 CONST.WORKS:
stored goods & materials, works brought on-site as part of the
contract (earthworks, foundations, structures and finishing,..)
temporary works erected or constructed on-site,...
 MACHINNERY:
cranes, bull-dozers, dumpers,
pave-machinery...
 EQUIPMENT:
hand and machine tools, scaffolding, frames, pumps, ...
 EXISTING
PROPERTY:
Risks and Insurance policies
in property or in custody of the insured (susceptible to
suffer damages arising from the insured works)
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SUMS INSURED:
 The construction work itself (main coverage):
 total contract value
 at the completion date  to regularize
 a margin should be foreseen (long time
works)
 Machinery (optional guarantee):
 List with following data:
 individual values (“new replacement”)
 identification, technical features
 manufacture year
Risks and Insurance policies
internal elechtrical
and/ormmechanical
damage are excluded
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SUMS INSURED
 Construction Equipment (optional guarantee):


total value of set (“new replacement value”) (a list should
be attached)
no heavy machinery
 Existing Property (optional guarantee):
 "first risk value" (it should be sufficient for the
reconstruction or replacement of the damaged goods)
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SCOPE OF COVER
 It is an "all-less" policy (all damages are included,
but the damages which are specifically excluded)
Condition:
Risks and Insurance policies
Sudden and unforeseen physical loss or
damage to the property insured, occurred
during the period of insurance, in the
construction site, due to any accidental
cause not specifically excluded
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SCOPE OF COVER
 ¿which Risks are actually covered?
Natural hazars
("Acts of God",
based on a defined
threshold)
CONTRACT
WORKS (basic
cover)
Risks arising in
connection with the
execution of the project
(unless that ones
excluded)
CONSTRUCTION
MACHINERY
(optional cover)
CONSTRUCTION
PLANT&EQUIP.
(optional cover)
Risks arising from
acts of third parties
(unless that ones
excluded)
EXISTING
PROPERTY
(opcional cover)
THIRD PARTY
LIABILITY
(optional cover)
G O O D S to be C O V E R E D against D A M A G E S
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
PERIOD OF COVER
Main (basic) Cover
Before
Maintenance
cover (optional)
During construction works
After const.w.
construction works
guarantees
previous
storage
completion of works
inception of works
Dowloading material on-site
Risks and Insurance policies
order of
commitments
with the works
(for the main Contractor)
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
PERIOD OF COVER
Main (basic) Cover
Before
During construction works
Natural hazars
("Acts of God",
based on a defined
threshold)
Risks and Insurance policies
Risks arising in
connection with the
execution of the project
(unless that ones
excluded)
Maintenance
cover (optional)
After const.w.
Risks arising from
acts of third parties
(unless that ones
excluded)
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
PERIOD OF COVER
Special cases (information required) :
 advanced works
 extensions / delay
(status of works: progress, ...)
(reasons, occurred losses)
 interruptions, suspensions (reasons, status of works,
security measures,...)
 early termination
 phased handover
Risks and Insurance policies
(status of works, occurred losses)
(situation, delimitations)
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
MAIN EXCLUSIONS (1)
 Conventional exclusions
 war, armed conflicts
 nuclear risks
 expropiation, confiscation
 penalties (contractual or not)
 willful misconduct of the insureds or of the technical which
are responsibles for the construction works
 consecuencial losses (indirect losses)
 documents, cash values
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
MAIN EXCLUSIONS (2)
 Specific exclusions
Gradual deteriorations
 wear and tear
 'normal' effects of climate
 rust or oxidation
Defective design and workmanship (rectification)
 regarding materials
 regarding designs , calculations and drawings
Deductibles (always have to be borne by the insured)
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
MAIN 'PROBLEMS'
 Exemple 1
'Normal' effects of climat
excluded
but...
¿what is 'normal'?
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
MAIN 'PROBLEMS'
 Exemple 2
Rectification of defective
design or workmanship
excluded
but...
¿what is the 'defective part'?
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
RISK ASSESMENT:
An individual analysis is required for each construction work:

configuration and exposition of the construction site
(natural hazards, acts of third parties,..)

type of works and materials

construction method

safety measures in the planning

costs assesment regarding several scenarios of losses
Questionnaire and Application for Insurance
Risks and Insurance policies
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SPECIAL ENDORSEMENT (1)
 To include some additional or extended cover (optional)

001 :
SRCC (strike, riot and civil commotion)

002 :
cross TPL

003 :
maintenance visits

006 :
extra costs of acceleration (overtime, night work,..)

007 :
airfreight

113 :
national transport

116 :
contract works taken over or put into service

119 :
existing property
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SPECIAL ENDORSEMENT (2)
 To delimitate some covers and/or exclusions (some examples)

008 :
structures in seismic zones

101 :
tunnels, galeries, subsurface structures

104 :
dams and water reservoirs

106 :
sections

107 :
camps and stores

109 :
construction material

110 :
safety measures (with respect

112 :
fire-fighting facilities and fire safety on site

121 :
piling foundations and retaining wall works
Risks and Insurance policies
to rain, flood and inundation)
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Civil Engineering Insurance Policies
Construction All Risk (CAR)
SPECIAL ENDORSEMENT (3)
 To exclude directly some usual coverages

009 :
damages arising from earthquake
 010 :
damages arising from flood and inundation
 103 :
damages in crops, forest and cultures
Risks and Insurance policies
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Civil Engineering Insurance Policies
Civil Engineering Completed Risks (CECR)
Target policyholder?
 the owner or the operating company
What types of works can be insured?
 civil works, infrastructures, with a low fire risk
Risks and Insurance policies
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Civil Engineering Insurance Policies
Civil Engineering Completed Risks (CECR)
SCOPE OF COVER
 It is a policy that covers "nominated risks" (a risk
is covered only if it is referred specifically in the policy):

Unforeseen and sudden physical loss or damage caused during
the period of insurance by:
a.
Fire, lightning, explosion, impact of landborne or waterborne vehicles
b.
Impact of aircraft and other aerial devices or articles dropped therefrom
c.
Earthquake, volcanism, tsunami
d.
Storm (air movements stronger than grade 8 on the Beaufort Scale)
e.
Flood or inundation, wave action or water
f.
Subsidence, landslide, rockslide or any other earth movement
g.
Frost, avalanche, ice
h.
Vandalism of single persons.
Risks and Insurance policies
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Civil Engineering Insurance Policies
Civil Engineering Completed Risks (CECR)
BASIS OF LOSS SETTLEMENT
a) in case of damage wich can be repaired:
“the cost of repairs necessary to restore the items to their condition
immediately before the occurrence of the damage”(less savage and r.o.d.)
b) in case of a total loss:
a) If the loss occurs within the period stated in the schedule
the replacement costs
b)
If the loss occurs after the period stated in the schedule
the actual value of the insured items immediately before
the occurrence of the loss (less savage) -> [deducting a proper
depreciation from a)]
Risks and Insurance policies
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Civil Engineering Insurance Policies
Privately Financed Infrastructure Projects
and Their Insurance
PFI
Privately financed investments
Most important models:
BOT
Build - operate - transfer
BOO
Build - own – operate
Examples of other models:
BLT
Build - lease - transfer
ROT
Rehabilitate - operate - transfer
ROO
Rehabilitate- own - operate
DBFO
Design - build - finance - operate
Risks and Insurance policies
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Civil Engineering Insurance Policies
Privately Financed Infrastructure Projects
and Their Insurance
BOT and BOO
In both models, a project company builds, owns and operates a plant.
BOT: the plant is transferred to a public operator after a period of
e.g. 15 years at a low price.
BOO: a transfer is not intended.
Risks and Insurance policies
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Civil Engineering Insurance Policies
Privately Financed Infrastructure Projects
and Their Insurance
Typical for private financing of infrastructure projects:
 Sponsors invest only small fraction of the required capital
 Major funds borrowed from banks
 Liability of the sponsors in case of increased cost or delay in
completion is limited
 Construction phase particularly critical: Major funds are spent
without the project generating cash.
Risks and Insurance policies
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Civil Engineering Insurance Policies
PFI: Finance and Contract Structure
Host Government (Principal)
Banks/
Lenders
loan agreement
project
agreement
Project Company
shareholders'
agreement
Sponsors
Risks and Insurance policies
insurance
policy
Contractor
construction
contract
supply
contract
Suppliers
O&M contract
Operator
Insurers
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Civil Engineering Insurance Policies
PFI: Finance and Contract Structure
 A Project Company is formed to erect and operate the plant or
the infrastruture by means of a network of contract agreements.
It often is a stock company.
 Banks will provide the funds necessary beyond the Sponsors'
investments.
 The Principal, i.e. the initiator of the project, may be the host
government, a licencing governmental agency or a public utility.
The Principal agrees the project terms with the Project
Company.
 The Contractor and Operator are normally shareholders in the
Project Company.
 The Insurers are vital in view of the limited-recourse financing
scheme.
Risks and Insurance policies
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Civil Engineering Insurance Policies
PFI: Flow of Payments (Operating Phase):
Banks
Sponsors
Interest
payments
Interest and principal
payments
Project Co.
Payment for fuel,
materials and services
Suppliers
Risks and Insurance policies
Price for
electricity
Principal
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Civil Engineering Insurance Policies
Typical examples of PFI Projects

large and communal:
Commercially used buildings or civil works:
- Large public buildings, hospitals
- Air ports
- Bridges, highways, tunnels
Power stations (IPPs) and power distribution
Water distribution and water treatment plants
Risks and Insurance policies
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Civil Engineering Insurance Policies
PFI Insurance Requirements:
Privately financed projects have a higher
need for security. The project partners require a
comprehensive insurance cover.
The insured for construction and operation
is always the project company.
Risks and Insurance policies
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Civil Engineering Insurance Policies
Insurance covers of industrial projects
Marine
Insurance
Erection/Contractor`s All Risk Ins.
incl. Liability Cover
Marine
Loss of
Profit
Contractor`s Plant and Machinery Insurance
Transport
Maintenance
Cover
Advance Loss of Profit
Storage
Construction/Erection Works
Testing
Guarantee
Insurance
Maintenance
Operation
Fire Ins. and Fire Loss of Profit
Machinery Ins. and MLOP
Electronic Equipment Ins.
Workmen's Compensation Insurance
Risks and Insurance policies
Public and Prod. Liability Ins.
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Civil Engineering Insurance Policies
Staged Erection and Insurance
Conventional Approach:
1st gas turbine
+ 200 MW
Erection
2nd gas turbine
+ 200 MW
Steam turbine
+ 200 MW /
combined-cycle unit
600 MW total
Risks and Insurance policies
(Example of a combined cycle power plant)
Commercial operation
Tests
Erection covers
Operational covers
Erection
Tests
Erection covers
Erection
Erection (All Risks)
covers
Commercial operation
Operational covers
Tests
Com. op.
Op. cov.
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Civil Engineering Insurance Policies
Staged Erection and Insurance
Typical PFI Approach:
1st gas turbine
+ 200 MW
2nd gas turbine
+ 200 MW
Steam turbine
+ 200 MW /
combined-cycle unit
600 MW total
Erection
(Example of a combined cycle power plant)
Commercial operation
Test
Erection
Test
Erection
Erection All-Risks cover
Risks and Insurance policies
Com. oper.
Tests
Com. op.
Annual
operational
covers
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Civil Engineering Insurance Policies
LoP insurance for a PFI
 LoP is an essential cover due to the scarce financial resources
of the Project Company
ALoP difficult to monitor:
 Delays in early project stages may have
- full impact
- partial impact
- no impact
on the commencement of operation



Requires detailed and updated project schedules
Constant follow-up with insured and non-insured delays
Suppliers Extension intensifies the problem: The EAR/CAR
insurer is normally not the manufacturer's local property insurer
Risks and Insurance policies
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Civil Engineering Insurance Policies
LoP insurance for a PFI
Time excess:
 ALoP: 60 days not uncommon, related to the
total erection phase
 Operational LoP cover: 7 - 30 days, related to each
loss event individually.
Risks and Insurance policies
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Civil Engineering Insurance Policies
What do the Banks ask for in a PFI ?
a) the Project Company shall obtain the widest
possible insurance cover from the market,
b) the banks' or lenders' interests shall be included,
c) payment of indemnity shall be made to the banks or their trustees,
d) all rights of recourse against the banks shall be waved,
e) disregarding any right to refuse indemnity to the Project Company for any
breach of conditions, the indemnity shall be paid to the banks including any loss
of profits.
Risks and Insurance policies
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Civil Engineering Insurance Policies
In PFI, beware of terms which aim at:
! an invalidation of policy conditions which would release the
insured project contractor from the usual obligations,
! a direct claim or direct influence of a party outside the insured
project contractors or principal executing the works,
! the imposing of obligations on the insurers towards the banks.
Risks and Insurance policies
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Civil Engineering Insurance Policies
PFI: Breach of Contract / Vitating Act
in case of a Multiple Insureds Policy
 No indemnification of the violating party
 Other insureds to be indemnified for their direct loss
 Recourse against violating party not to be waived
However,
 No indemnification of the banks
Risks and Insurance policies
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Civil Engineering Insurance Policies
PFI: Multiple Insureds Clause
(London Engineering Group)
"In the event of any vitiating act committed by any one or more insured
parties, the lenders shall not be entitled to any indemnity under this policy
for or arising from loss or damage in respect of which insurers are
otherwise no longer liable to indemnify..."
Risks and Insurance policies
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Civil Engineering Insurance Policies
PFI: Who has an Interest in Insurance?
The Principal
Host Government
Indirectly
The Banks
Indirectly
The Project Company
(manufacturers, site contractors,
operators included)
Project Insurances
Risks and Insurance policies
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Civil Engineering Insurance Policies
Insurance from a single source
 Desirable for the Project Company
 No interfacing problems from one risk phase to the next
 Comprehensive insurance scheme requested by the banks from the beginning
However,
!
Covers traditionally underwritten by different markets and branches
!
Manufacturers, suppliers, hauliers, operators may engage their own insurers or
brokers
!
Local insurers normally more engaged in operational than erection covers
Risks and Insurance policies
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Civil Engineering Insurance Policies
Insurance / Reinsurance Arrangement:
Project Company
Intermediary
Project insurance
Package Policy
P.
Mar.
Bond M-BI
Credit
Risks and Insurance policies
Marine
Direct Insurer
CAR/EAR+BI
MB/CECR+BI
F
F-BI
Engineering
Fire
op.
TPL
Reinsurer
Liability
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Civil Engineering Insurance Policies
Mortgage default
Legal protection covers
Homeowners Liability (TPL)
CAR/EAR
A&E Liability
Inherent
defects
Loss of Rent
“One-stop shop”
NatCat
Real estate
wrap-up protection
Fire
Contractor
insolvency
Residual value
insurance
Risks and Insurance policies
Vandalism
Accident covers
Bonds
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Civil Engineering Insurance Policies
Different treatement of damages by inherent defects in
buildings in european area
Is it necessary an insurance ?
‘Property‘ or ‘Liability‘ insurance ?
voluntary or mandatory insurance ?
Risks and Insurance policies
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Civil Engineering Insurance Policies
Decennial insurance in Europe
Mandatory Insurance
Sweden and Finland ?
Voluntary Insurance
In developpment
U.K.
Holland
Benelux
France
Italy
Spain
Portugal
Risks and Insurance policies
Greece
Turkey
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Civil Engineering Insurance Policies
Example 1: France => mandatory ‘dual’ insurance system
indemnification
Prom./User
‘DO’ Cía. A
Perito Experto
Recurso
‘DO’
DL
DL
Cía.Aseg. X
DL
DL
Cía.Aseg.Y
Contractor X
Liability share on damages between X and Y (CRAC)
Contractor Y
Risks and Insurance policies
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Many thanks for your attention!
José Luis Montull
Münchener Rück