ACE Group has released a new white paper exploring opportunities for construction companies to expand into global markets and the importance of adhering to local regulatory requirements through a focused approach of proper loss controls and the implementation of a well-structured global insurance program. The report also provides construction companies with guidance on implementing an insurance program that provides consistent coverage service, and the flexibility needed to operate locally and globally to ensure long term successful projects.
“Global Construction: International Opportunities, Local Risk – Building a Multinational Insurance Program for Contractors,” was authored by Geoffrey Hall, the senior vice president of ACE construction, William Hazelton, an executive vice president and the ACE construction industry practice leader, and Bryan Tedford, the executive vice president of ACE foreign casualty.
“In today's global marketplace, international construction projects have presented contractors with a number of new growth opportunities,” said Mr. Hazelton. “Securing the right insurance coverage across multiple borders can play a crucial role in the overall success of these global projects. ACE's construction industry practice has developed this report to provide useful information to help contractors build a better multinational insurance program and mitigate potential exposures.”
The report emphasizes the need for construction companies to ensure continuity of insurance coverage across borders before expanding their global reach. According to Mr. Tedford, “Construction companies should consider a mix of local policies in the individual countries they are working in, combined with a global controlled master program in their home market, to ensure that insurance complies with local laws. Doing this can help assure that the overall program provides consistent coverage across all operations and addresses gaps in conditions and limits.”
The report also discusses various emerging risks in the global construction sector, such as merger and acquisitions and public-private partnerships. “With the current growth of construction projects in emerging markets there are a number of growing risk factors,” said Mr. Hall. “Regardless of where the activity takes place, construction companies need to work with their carrier to best prepare for evolving risks by assembling an insurance program that can provide consistent insurance coverage and services across borders and maintain a proactive risk management strategy.”
Learn more: www.acegroup.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].