Risk is ever present in the construction sector, creating uncertainties that can increase costs, erode stakeholder confidence, and negatively impact the accomplishment of project goals. A professional risk management strategy can reduce uncertainty and promote increased reward.
Our team helps you assess risks and opportunities, and identify ways to use working capital more efficiently. We measure your firm’s appetite for risk, recommend solutions designed to meet your needs, and take your insurance program to market to identify insurers suitable for your structure and pricing needs.
Our strengths include:
- The depth of our resources, experience, and expertise.
- A network of offices working closely with regional specialists.
- Negotiating bespoke policy wording and program design.
- The ability to manage contractual risk allocation.
- A targeted placement strategy that benefits from Marsh’s global approach, and, for international projects, considers competitive underwriters, irrespective of their geographical location.
The result: With an international team operating across geographical boundaries, Marsh’s Global Construction Practice offers you opportunities and solutions to meet your needs.
Power and Utilities
The International Energy Agency predicted that a total of 5,890 GW of additional power capacity would be required between 2012 and 2035. This need for ever-increasing sources of power on a global scale continues to create ongoing opportunities for the construction of new plants and facilities. At the same time, competition is driving manufacturers to constantly develop new technology, presenting unknown challenges to contractors, risk managers, investors, and insurers. Construction of proto-typical and/or new technology can generate the need for bespoke insurance policies during the construction phase. The Marsh Construction Practice in cooperation with Marsh’s Power specialists, maintain an up-to-date knowledge of such developments through regular contact with manufacturers and sector insurers.
Oil, Gas and Petrochemicals
With the fluctuating environment of the oil, gas, and petrochemical industry comes the need to develop new and cutting-edge risk solutions to meet the industry’s needs and requirements. Every project demands a bespoke suite of cost-efficient insurance services.
Marsh’s energy risk engineering team is well qualified to advise risk managers on the essential information needed to take the risk to insurers and negotiate the required limits, scope of cover, and price. Our in-depth knowledge and understanding of the sector provides you with comprehensive contract reviews and advice at the early stage of any project. Marsh’s benchmarking capabilities enable us to compare new projects with many we have already placed. This benefits you, as we bring that experience to bear when we present your projects to the market.
Losses encountered during the construction phase of a project can be hugely costly, both in terms of physical damage, and lost time. Marsh’s energy claims team deals with some of the industry’s largest and most complex losses. Our professional approach to claims management has resulted in significant success for our clients; not only financially, but also facilitating a much sought-after, shorter claim life-cycle.
Infrastructure and Civil Engineering
Experience has shown that the negative time and cost impact of major risks, such as varying geological conditions and exposure to natural hazards, can be particularly severe in the infrastructure sector.
These risks create a wide range of exposures related to areas of design, construction, interfacing, and sequencing, which must be continually evaluated and managed by the project team. A risk management strategy must be tailored to minimise the impact of specific risks on the project works, existing infrastructure, construction equipment, and third parties, in particular.
Marsh experts work with owners, contractors, engineering consultants, and project partners to implement innovative risk management and transfer solutions for many of the world’s most technically challenging construction projects. Our dedicated risk engineering services and broking capabilities are proven to support project delivery and help bring projects on time and on budget.
Some construction companies procure contract-works insurance policies on a case-by-case, ad-hoc basis when required to do so as a contractual obligation.
While this may be an appropriate and necessary approach for very large projects, for heavy civil works (such as tunnelling and wet works) and projects in natural catastrophe zones, there is an effective and advantageous alternative to insure a contractor’s portfolio.
Marsh works with many national and multinational contractors to design and arrange annual or multi-year insurance facilities that automatically include all projects within pre-agreed parameters and limits, eliminating the need to arrange single project policies case-by-case.
There can be many advantages for a contractor adopting an insurance facility approach, including:
- Simplified tenders.
- Reduced administration.
- Certainty of cover.
- Insurer relationships.
- Cost savings.
- Claims response.
This page contains general information, does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Pty Ltd on request. Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arranges the insurance and is not the insurer.