PHILADELPHIA--(BUSINESS WIRE)--
The United States faces an expected shortfall of $1.6 trillion in needed
infrastructure spending through 2020, reports the American Society of
Civil Engineers1. This expectation is leading state and local
governments to increasingly turn to public-private partnerships, known
as P3s, to help meet critical infrastructure needs without having to
raise taxes or increase debt loads. ACE Group today released an advisory
that examines the exposures and complex insurance issues U.S.
contractors may face as they engage in infrastructure projects financed
through P3s.
“Driving
Change: Public-Private Partnerships- A New Model for Infrastructure
Projects Brings New Risks for Contractors” was co-authored by
Stephen Buonpane, Vice President, ACE Construction; Bruce Jervis,
Executive Vice President, ACE Commercial and Inland Marine; and Alex
Wells, Senior Vice President and Chief Operations Officer, ACE
Westchester Casualty. This advisory is the latest installment in ACE’s
series of insurance and risk management perspectives for risk managers.
“The use of P3s has started to gain ground in the U.S., and many
contractors are encountering these partnerships for the first time,
particularly in states such as Florida, Texas and California,” observed
Mr. Buonpane. “While there are significant benefits to P3s, the
complexity and long-term nature of these projects creates a set of
unique risk challenges from which the traditional insurance program
approach may no longer be a fit. Before engaging in P3s, participants
should work with their brokers and an insurer who has demonstrated
experience in both the construction industry and with P3s to help
mitigate this new host of expanded risks.”
Key highlights from ACE’s advisory include:
-
Growth and traction of P3 construction projects in the United States
-
Opportunities and risks related to P3 projects
-
Risk management and insurance considerations for contractors
addressing P3 projects
To read the full advisory, click
here.
The material presented in this report is not intended to provide legal
or other expert advice. It is presented for informational use only.
Readers should consult legal counsel or other technical experts, as
applicable, to answer any specific questions they may have. Product
highlights are summaries only; please see the actual policy for terms
and conditions. Product offerings may vary by ACE location.
1 ASCE’s New Report Card Bumps the Nation’s Infrastructure
Grade Up to a D+, American Society of Civil Engineers, March 2013, See: http://blogs.asce.org/asces-new-report-card-bumps-the-nations-infrastructure-grade-up-to-a-d/
About ACE Group
ACE Group is one of the world’s largest multiline property and casualty
insurers. With operations in 54 countries, ACE provides commercial and
personal property and casualty insurance, personal accident and
supplemental health insurance, reinsurance and life insurance to a
diverse group of clients. ACE Limited, the parent company of ACE Group,
is listed on the New York Stock Exchange (NYSE: ACE) and is a component
of the S&P 500 index. Additional information can be found at www.acegroup.com,
or follow ACE on Twitter, https://twitter.com/ACEGroupNA.
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Source: ACE Group