Course of Construction and Wrap-Up Insurance for Energy Projects

SPECIALIZED PROJECT INSURANCE THROUGH ENERGYconstruct

Energy construction projects can involve significant property values, multiple contractors, complex contracts and risks that change throughout the construction period.

SWS supports retail insurance brokers through ENERGYconstruct, a specialized course of construction and wrap-up liability program developed for qualifying Canadian energy projects.

The program is intended to help brokers pursue coordinated protection for projects involving oil and gas facilities and infrastructure supporting the energy sector.

Target Energy Construction Projects

Potential project classes may include:

  • Oil and gas facility construction

  • Facility expansions and upgrades

  • Warehouses, shops and supporting infrastructure

  • Lease-site and production-related construction

  • Other qualifying onshore Canadian energy projects

Program eligibility, available coverage and terms are determined according to project type, location, construction values, contracts and underwriting requirements.

Course of Construction Coverage

Course of construction insurance can help protect the project while work is underway. Depending on the project and approved terms, coverage considerations may include:

  • Construction materials and completed work

  • Equipment forming part of the project

  • Temporary works

  • Inland transit

  • Off-site storage

  • Testing and commissioning exposures

  • Optional project-specific extensions

Wrap-Up Liability

Wrap-up liability can provide a coordinated liability solution for designated project participants. This can help reduce gaps or inconsistencies that may arise when contractors rely solely on their individual liability policies.

The appropriate structure will depend on the construction contracts, responsibilities of the parties and insurance requirements established for the project.

Preparing the Submission

A detailed submission helps markets understand the project and evaluate its exposures. Information may include:

  • Project description and design basis

  • Construction schedule or Gantt chart

  • Detailed project budget

  • Plot plan and site information

  • Geotechnical information when applicable

  • Contractor experience

  • Contract structure and transfer of liability

  • Requested coverage and project dates

SWS works with the retail broker to review the available information and identify additional details needed for underwriting.