Insurance

Question 1

Construction phase (7)

Answer 1

• construction and erection of all risk (CLEAR)
• environmental
• contractor pollution liability
• employer liability
• marine cargo policy: lost or damage of equipment or material in transportation or storage
• delay in start up (DSU)/marine DSU: loss of profit or additional cost in delay public liability
• liquidated damage: delay or poor performance

Question 2

Insurance coverage during OM phase (3)

Answer 2

• business interruption: loss of profit
• all risky property
• monetary consequences, legal expenses, damage to third party in event of error

Question 3

Insurance consideration (4)

Answer 3

• default if insurance is not renewed or maintained
• rating requirement
• cannot be change without lender support
• sponsor use cheaper corporate policies than specific: create challenges, solution to use captive insurance require higher rating