Why you need it
Offshore construction activities (oil, gas, alternative energy) need to be insured against loss by the construction owners.
Insurance is usually called Construction All Risk Insurance (CAR) and is in place during the temporary phases of the construction activities. Brokers place the insurance with global insurance underwriters. It normally only covers marine activities but can occasionally be extended. Underwriters require that the insurance risk is assessed and warranted by a third party, i.e. a marine warranty surveying company.
The insurance policy will require that the marine warranty surveyor reviews and approves:
- All design criteria
- All engineering analysis and calculations
- All procedural documents
- All proposed equipment