Tunnelling
Our dedicated Infrastructure team focusses on major global risks in the civil engineering sector and includes specialists focussed on range of sub-sectors including tunnelling works. The challenges of insuring these works are so specialist that we will always include our key experts in our client service team regardless of whether the project is a metro, road, hydroelectric power, or any other kind of project involving significant tunnelling.
Insurers have always been concerned regarding the risk exposure created by tunnelling works; primarily the potential for tunnel collapse and:
- for significant damage and loss of life to occur;
- for reinstatement costs to be far in excess of the original construction costs and;
- for third party properties and businesses to be significantly affected by the works.
A history of high-profile tunnelling losses towards the end of the last century resulted in a focussed approached by international insurers and the Joint Code of Practice For Tunnelling Works if often used by insurers as a reference point for good risk management.
Only select insurance companies will underwrite tunnelling risks and those that do will have strict criteria regarding the cover they can offer in each case. Careful attention will be paid to:
- The ground conditions expected to be encountered and extent of geotechnical investigations carried out;
- The competence and experience of the contractor(s);
- The assessment process determining the construction methodology to be used;
- The type and extent of tunnel lining to be installed and;
- The exposure to natural hazards and the extent to which the works are exposed.
Insurance of construction equipment comes with its own nuances as well, with tunnel boring machines in particular requiring tailored insurance coverage.
Our team work closely with specialist tunnelling underwriters located around the globe to make sure that our clients can transfer risk to the insurance market in a considered and efficient manner at the lowest possible cost.
We work closely with our clients on a technical level to obtain the key project information and present the risks to insurers in the best possible light, utilising tunnelling risk consultants where beneficial.
Our clients are also able to benefit from our Gallagher wording which is tailored to maximise the coverage available for tunnelling works.
Our clients are also able to benefit from our Gallagher wording which is tailored to maximise the coverage available for tunnelling works.
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.