International liability insurance for UN contracts
15 September 2011
If you’re working on reconstruction projects for the UN, what kind of international liability insurance do you need? Do you require a separate policy for each project?
These were questions posed by one of our clients, a major international company engaged in infrastructure and reconstruction projects for the UN throughout the Middle East and Africa. Insurance is an important part of meeting their contractual obligations and looking after their expatriate and local employees. Managing the whole process was becoming more and more complex.
The team at Bellwood Prestbury created a bespoke solution providing international liability insurance to cover key areas that are common to all UN contracts. We had to ensure that the policy would be equally valid for projects like construction in war-torn Mogadishu and toxic waste removal in Afghanistan. It also needed to include the necessary insurance required when the firm was working with US military bases abroad.
The scope of the cover they required to work with the UN was quite extensive. We created a basket of cover to include:
• commercial general liability insurance
• workers compensation insurance
• international employers’ liability insurance
• international vehicle insurance
• Defense Base Act insurance
The benefit of a combined international liability insurance policy
Given the broad range of activities the client is engaged in and the geographic spread across the Middle East and Africa, insurance in a single wrapper was never going to be easy to create, but our team knew that it was worth the effort.
By combining the client’s international liability insurance requirements, we not only made the entire scheme much easier to manage, we also pooled the client’s risk and their premium. This gave us the power to negotiate more competitive rates, which could have significant implications in keeping premiums lower as the firm moves forward.
Bellwood Prestbury now supports the scheme with professional administration and reporting. We help to make adjustments for changing personnel, check each new contract requirement against the scope of the policy to ensure nothing is outside of our cover, and ensure that any claims are implemented quickly and efficiently.