Erection All Risks
A rapidly developing sector with very niche insurers and a different risk profile to other power generation as multiple units are rolled out to capture natural energy from our Earth. Insurers main concerns revolve around weather conditions or defects affecting multiple units.
Other Power Generation
From nuclear to CCGT to hydroelectric to geothermal, the risks vary hugely by sub-sector with some being very much within most insurers’ appetites and others quite the opposite. Lenders’ requirements and those of any concession agreement need to carefully navigated to ensure that the coverage being purchased is optimal for the project and cost-effective.
As a highly flammable gas, insurers will focus on safety measures, including leak detection systems, proper ventilation, and appropriate handling procedures. As a relatively new energy form, the sector continues to straddle the balance between innovation and insurable risk.
Oil and Gas
Despite the energy transition, oil and gas projects are still a major part of the projects handled within the Gallagher Engineering team. Insurers are well-versed in assessing and insuring these types of project and their main focus and premium allocation will be from the point at which hydrocarbons are introduced.
Heavy equipment, remote locations and environmental concerns dominate this sector although certain mine types add significant civil engineering challenges to the risk mix.
Many of the projects in this sector involve significant offsite fabrication and the supply of major critical project components. The risks involved in transporting these components to site and the delay caused by damage at any point in the project process are significant. Our team will work closely with our Marine Cargo specialists to design a programme which adequately insures these risks efficiently and seamlessly. These projects also often require extensive supporting infrastructure. The transportation, storage, and distribution of key feedstock or output often requires pipelines, storage tanks, compressed gas facilities or similar, all of which have their own challenges.
ESG perception is also adding to insurers’ assessment of our clients’ projects and we can assist with presenting these additional project features to underwriters.
Given the nature of all of these projects, consideration always needs to be given to additional factors such as the insurance of the design risk, environmental/pollution factors, exposure to the public and the likely weather and natural catastrophe conditions. Delay In Start Up insurance and lenders’ conditions often change the dynamics of our project placements.
We have tried and tested approaches to assist our clients in understanding their risk exposures and their risk-transfer options and tailoring insurance solutions to them to extract maximum value from the (re)insurance market.
Arthur J. Gallagher (UK) Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 119013.