Munich Re Specialty launches Lloyd’s construction rescue cover

Munich Re Specialty – Global Markets Syndicate has launched what it described as a first-of-its-kind Lloyd’s product covering rescue and crisis response costs on major tunnelling and underground infrastructure projects.

Construction Rescue Insurance is aimed at owners, developers and contractors working on rail, road and other underground developments.

The product is designed to fund costs arising during the rescue and immediate recovery phase following a catastrophic underground incident.

Cover can include response and recovery operations, specialist equipment and personnel, technical and logistical coordination and other immediate needs, subject to policy terms and limits.

The launch follows Munich Re Specialty’s Miner Rescue Insurance consortium and extends a similar approach to tunnelling and infrastructure projects.

Dan Rouse, group head of international casualty at Munich Re Specialty – Global Markets, said: “Following the launch of our Miner Rescue offer, expanding access to large infrastructure tunnelling projects that are subject to very similar exposures was an obvious next step.

“The ambition for this new offering further supports Munich Re Specialty’s experience providing Contractors’ All Risks and Erection All Risk solutions to some of the largest tunnelling and infrastructure projects in the world, to address risks that we are hearing from customers first hand.”

Stephanie Ogden, CEO of Munich Re Specialty – Global Markets, Syndicate, said the cover was intended to help insureds concentrate on safety following a major incident.

“Tunnelling is among the most technically demanding disciplines in global infrastructure, and when a collapse occurs, the priority is safety of people,” she said.

“By providing this product, our aim is to support customers with the costs that amass exceptionally quickly and give project owners and contractors the time to ensure their focus can remain on the preservation of human life and welfare.”

Munich Re Specialty said client testing ahead of launch had shown strong appetite from major infrastructure and engineering businesses.

Acciona, which has designed and built more than 600km of underground railway, road and rail tunnels, was among the companies to endorse the proposition.

Brad Green, head of insurance at Acciona Infrastructure, Australia and New Zealand, said: “Munich Re Specialty’s Construction Rescue product fills a genuine gap in the insurance market for tunnelling and construction contractors, providing not just the financial cover to manage a rescue operation, but also the immediate emergency cash flow and expert crisis management support that are critical from day one of an incident.”