Tysers

Typical insurance covers required through the life-cycle of a project/investment can include the below, along with a combination of some or all covers needed for a Whole Project lifecycle:

Single project PI

Liability insurance is arranged around the lifecycle and needs of a specific construction project – covering architects and contractors, it is particularly useful where contractors may not buy enough professional indemnity cover in their own name. Long covers of up to 15 years are available.

M&A Insurance

Transfers potential or identified liabilities which may prevent a transaction from completing, with tailored solutions that include:

• Warranty & Indemnity (W&I) to cover a breach of warranties made by sellers in a purchase agreement.
• Tax Liability which covers tax exposures identified in due diligence, which may be challenged by a tax authority in the future.
• Contingent Liability to remove either ongoing or potential legal, regulatory or other contingent issues.

Marine Cargo and Delay in Start Up (DSU)

Insures the delivery of goods/plant to a site from the manufacturer or point of sale; Delay in Start Up covers additional costs or Loss of Profits caused by a delay in delivery and, therefore, commencement of operations. It is particularly useful where long lead time replacements are being used e.g. turbines, tunnel boring machines or equipment specifically made for the project. Political Violence covers can be included.

Political Risk Insurance

Provides cover for entities with overseas investments, ownership interests or assets (fixed or mobile) against hostile acts by a host government, such as Confiscation, Expropriation, Nationalisation and Deprivation (CEND), which could, without compensation:

• Deprive the insured of their ownership or control of their equity and/or assets
• Deny the fundamental rights of an investor to operate its investment, causing a permanent cessation or abandonment of operations
• Lead to an inability to export goods from a foreign investment, or to repatriate mobile assets

Other PRI perils include:

• Selective Discrimination
• Forced Divestiture
• Forced Abandonment
• Currency Inconvertibility and/or Non-Transfer
• Arbitration Award Default
• Licence Cancelation/Repudiation
• Import/Export Embargo

Lender’s Interest

Coverage is also available to project finance parties, covering the non-repayment of a loan as a result of the foreign government interfering with the operation of a financed asset.

Credit Risk Insurance

• Project Finance Insurance – Offers Comprehensive Non-Payment insurance for providers of project finance against failure by the project company to honour its contractual repayment obligations. Cover available up to 15 years.
• Non-Payment Insurance – Non-Payment insurance indemnifies a seller against the failure of its buyer to make payments as per its contractual obligations.
• Non-Delivery Insurance – Non-Delivery insurance indemnifies against the failure by a supplier to honour its delivery obligations under a purchase contract/off-take agreement
• Whole Turnover/Multi-Buyer – Coverage can be arranged on multiple-named buyers (Multi-Buyer) or on all buyers (Whole Turnover), as an alternative to single-buyer insurance. Multi-Buyer and Whole Turnover covers appeal to businesses having repeat short-term open-account sales to a portfolio of buyers.

Construction and Delay in Start Up (DSU)

Covers project owners (and contractors) against physical loss or damage during the construction phase – reinstatement/replacement as new is the basis of cover. Third party and bodily liability covers are included with increased limits possible.

Delay in Start Up covers a projects owner’s additional costs or loss in profits incurred or lost due to delay in operations.

Operational Physical Loss or Damage and Business Interruption

Covers the assets against physical loss or damage occurring during operations. Business Interruption covers Increased Cost of Working, Loss of Profits, Group Interdependency along with exposures to losses arising from physical loss or damage to Customers and Suppliers

Political Violence

Political Violence, Terrorism & War insurance indemnifies the insured’s assets and/or revenue stream against Material Damage and resultant Business Interruption emanating from an act of Political Violence. These perils are usually excluded from All Risks insurance policies and standardly include Strikes/Riots/Civil Commotion, Sabotage and Terrorism, War and Civil War and Looting following an Insured Peril. However, cover can be extended to include losses resulting from of non-asset damage Business Interruption/Loss of Profits, including Denial of Access and Cyber Terrorism

Management Risk

Covers the Directors, Officers and senior managers against legal costs following allegations of unlawful actions, whilst also protecting the company’s balance sheet should corporate liability cover be purchased. Also provides Key Man cover and Kidnap for Ransom.

Third Party Liability

Covers legal exposures to bodily injury or property damage caused to a third party.