Building a multinational construction insurance program important: ACE

ACE’s Construction Industry Practice has issued a white paper to help construction contractors build a better multinational insurance program and mitigate potential exposures, emphasizing the need to ensure continuity of insurance coverage across borders before expanding their global reach.

“Securing the right insurance coverage across multiple borders can play a crucial role in the overall success of these global projects,” says William Hazelton, executive vice president, ACE Construction Industry Practice Leader, and co-author of Global Construction: International Opportunities, Local Risk – Building a Multinational Insurance Program for Contractors.

International construction projects present contractors with a number of new growth opportunities, Hazelton notes in a statement issued this week by ACE Group. But construction companies must ensure continuity of insurance coverage across borders.

“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,” advises Bryan Tedford, executive vice president, ACE Foreign Casualty, and a co-author of the report.

“Doing this can help assure that the overall program provides consistent coverage across all operations and addresses gaps in conditions and limits,” Tedford explains.

Report co-author Geoffrey Hall, senior vice president of ACE Construction, points out that with the current growth of construction projects in emerging markets, there are a number of growing risk factors. “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,” Hall recommends.

Developed by ACE’s Construction Industry Practice – which consists of business units that offer a broad suite of products and services, including workers’ compensation, environmental and professional liability – the white paper explores opportunities for construction companies to expand into global markets.

The report outlines 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, as well as provides guidance on how construction companies can implement a program that offers consistent coverage service and the flexibility needed to operate locally and globally.