Project insurance has evolved and continues to change based on market needs, conditions and insurance carrier underwriting appetitive and standards. Project insurance was initially established to provide higher, dedicated limits to designers, particularly for larger, and more complex projects. Other driving forces were to provide project owners with the security of having project specific limits for the project team during and after the project was complete.
More recently, a more collaborative project delivery method has been introduced that is beingcalled an integrated delivery (ID) or integrated project delivery (IPD) process. The term IPD will be used in this article for describing the process and insurance options. In IPD, greater contributions are provided by other entities including the general contractor and the major trade subcontractorsin the aspects of design. The design professionals are no longer the sole authors of the project design. With the use of IPD, providing a specific project insurance policy is another option that is being made available by a few select insurance carriers today.
This article describes project specific insurance alternatives in the industry identifying benefits and cautionary points. At times, it has and continues to be challenging in obtaining project insurance
The key to selecting the correct coverage is simple -match the benefits of insurance with the entity or entities requiring the protection. Will one option meet that goal? Very good question -you may need a combination of alternatives to accomplish your insurance and risk management objectives.
a) PROJECT ERECTION INSURANCE
b) ALL POWER PROJECT INSURANCEINCLUDING SOLAR PROJECTS
c) BRIDGES
d) OIL RIGS