E&A Contractor Ad - Biodustry

Transcription

1 BIOFUELS

2 THE LATEST TECHNOLOGY AN EMERGING RISK PROFILE RISK MANAGEMENT EXCELLENCE THE WILLIS BIOFUEL AND ALTERNATIVE ENERGY TEAM 2 Willis 05/12

3 THE MOVE IS ON FOR ALTERNATIVE ENERGY SOURCES A viable, sustaiable domestic biomass idustry that produces reewable biofuels, bioproducts ad biopower ehaces U.S. eergy security, reduces our depedece o oil, provides evirometal beefits (icludig reduced greehouse gas emissios) ad creates ecoomic opportuities across the atio. This is the aim of the Departmet of Eergy, ad a lot of capital will be ivested to brig this goal to fruitio. Satisfyig a ever-growig demad for eergy ad protectig air quality to miimize global warmig are dual imperatives that are ot always compatible. Alterative eergy sources are a obvious aswer. With advaces i biofuel productio ad the potetial for sigificat costs for oil ad its refied products, biofuels have become the alterative eergy source that ca be produced domestically to offset reliace o imported oil. Risks, of course, remai a highly complex ad specialized set of risks. To meet the risk maagemet eeds of the orgaizatios leadig the biofuel charge, Willis has established a dedicated Alterative Eergy Team comprised of experts from across our global compay. The ew team builds o a log-stadig positio of leadership i the eergy sector. We have a wealth of experiece with biofuel providers, ragig from compaies buildig ad operatig ethaol plats ad biodiesel plats to ew projects lookig at usig algae to maufacture aviatio fuel. Our team is also workig o some of the developmet techology, such as cellulosic biomass. We have provided isurace solutios for every stage of the biofuel geeratio cycle, from costructio to plat operatio. BIOFUEL CONSTRUCTION AND INSTALLATION Biofuel projects are challegig i part because of their size, usually remote locatios ad because they frequetly ecompass multiple cotractig parties. Willis works with the project pricipals to esure that a broad isurace program provides effective ad efficiet protectio to all parties ivolved. This is usually accomplished through a ower-cotrolled isurace program (OCIP) tailored to meet the project s specific eeds at the lowest reasoable cost. As the world s leadig costructio broker, Willis is arguably the leader i establishig OCIPs ad CCIPs (cotract-cotrolled isurace programs) ad shapig them to suit the cotractual arragemets amog the pricipal parties. 3 Willis 05/12

4 THE WILLIS BIOFUEL CONSTRUCTION TEAM A subset of the Alterative Eergy Team, the Willis Biofuel Team is comprised of may professioals, ragig from egieerig experts to brokers. Our team is global, gatherig resources i North America, Lodo, Bermuda, Europe ad Asia. The team offers services from iitial risk idetificatio through the costructio phase, icludig the hadover to operatio as the plats complete testig ad commissioig. Each part of the process has distict risk maagemet ad brokerage requiremets. Offerig truly comprehesive risk maagemet services requires resources beyod the costructio team. Supportig the team are experts from our Reewable Eergy practice, as well as resources i the traditioal isurace product lies oe would associate with a biofuel costructio project: property, casualty, costructio, political risks ad evirometal. Your Willis team may further expad to iclude specialists i structured risk ad reisurace as eeded. Together, your Willis team: Provides kowledge ad expertise o biofuel techology Provides expert support i the uderstadig of your busiess ad risk profile Provides cotract review services Assists i developig tailored isurace cotracts, icludig policy cotract wordigs aalysis ad developmet of edorsemet wordig Assists i developig alterative risk solutios Offers kowledge of market capacity ad uderwritig philosophy Maitais regular iteractio with uderwriters to determie treds ad rate movemets Offers experiece i large claim settlemets 4 Willis 05/12

5 OPERATIONAL RISK Oce the project has completed costructio ad is operatioal, it faces a ew set of risks, which eed to be fully uderstood to determie whether the risks ca be accepted, mitigated or trasferred via isurace. The biofuel idustry is respodig to today s ofte risky busiess eviromet by adoptig strategies that embrace flexibility ad limit capital exposure. Isurace programs play a icreasigly importat role i esurig assets ad liabilities are properly protected. Drive by these factors ad by chages i owership ad maagemet, biofuel compaies have become sophisticated buyers of isurace, highlightig the eed for a broker with the capability of addressig both traditioal ad o-traditioal risks. The Willis Biofuel Practice fuctios i two ways: as a source of idustry-specific kowledge ad expertise, ad as a coduit for our cliets to access the full array of Willis risk maagemet ad product offerigs. This combiatio offers cliets the beefit of Willis expertise i traditioal areas, such as property, casualty, executive risks, costructio ad employee beefits, as well as may other areas that are material to meetig the eeds of moder utility cliets, icludig: Actuarial service Captive maagemet Egieerig ad loss cotrol Risk maagemet cosultig Cotract review ad aalysis Mergers ad acquisitios Project fiace Structured risk fiacig We develop ew products for the biofuel sector as its risk fiacig eeds evolve. Past iovatios iclude: Evirometal cost cap ad liability products Multiyear weather isurace deals Alteratives to fiacial ad performace bod isurace The reaso you buy isurace is to protect assets ad liabilities, ad whe the uexpected loss evet occurs, you wat to make a quick ad effective recovery. We have a thorough uderstadig ad detailed kowledge of adjustig complex claims ad workig with isurace carriers toward a optimal resolutio of the claim. Our claim experiece icludes costructio ad operatioal losses due to major mechaical breakdows, catastrophic fires, builders risk collapses, busiess iterruptio, delay i start-up, cotiget busiess icome loss, workers compesatio claims, third-party property damage ad ijury, directors ad officers suits, fiduciary suits, explosios, flood, professioal liability, political risk, marie trasit, ad tax credit recapture losses. 5 Willis 05/12

6 Satisfyig a ever-growig demad for eergy ad protectig air quality to miimize global warmig are dual imperatives that are ot always compatible. Alterative eergy sources are a obvious aswer. With advaces i biofuel productio ad the potetial for sigificat costs for oil ad its refied products, biofuels have become the alterative eergy source that ca be produced domestically to offset reliace o imported oil. 6 Willis 05/12

7 A PLATFORM FOR SUCCESS The broad kowledge base ad skill sets provided by our practice groups, combied with the Willis busiess model, result i a sharp differetiatio betwee our service offerigs ad others available i the marketplace. Your Willis Cliet Advocate offers you a cetral poit of cotact for all your isurace ad risk maagemet eeds. A Cliet Advocate s job is to uderstad your busiess with the goal of protectig both the physical assets of your balace sheet ad the liabilities you assume i your day-to-day busiess. Whatever your questio, your Cliet Advocate is the place to start. Through our Glocal service, ot oly are we earby, but we brig resources from wherever they are located i Willis right to your doorstep. Our Oe Flag culture itegrates Willis kowledge ad persoel ito a true team rather tha simply a collectio of resources. We have umatched credibility i the global costructio marketplace, a reputatio built o experiece, kowledge, flexibility ad performace. Likewise, we have a worldwide reputatio i the operatioal marketplace. We forge strog relatioships ad are istrumetal i developig ew ad exclusive products. We uderstad curret iteratioal isurace ad reisurace markets ad are able to egotiate with isurers ad reisurers at the highest levels from a positio of stregth to achieve the most competitive premiums ad the broadest covers. We offer established expertise i all aspects of OCIP ad ogoig operatioal programs. We egage a dedicated security ratig resource to scrutiize the isurace ad reisurace markets o a cosistet basis, further improvig our marketig efforts. We provide egieerig services to help idetify ad reduce exposure to loss. We offer a committed claim hadlig service that helps deliver results from the global isurace ad reisurace markets. 7 Willis 05/12

8 OUR PRODUCTS Our priciple products iclude: Costructio/Egieerig All Risks Advace Loss of Profits/Delay i Start-Up Casualty Wrap-Up Programs Surety Property Isurace Busiess Iterruptio Liability Isurace Cotractors Aual Programs Performace Guaratee Efficacy Professioal Idemity Pollutio & Evirometal Bods ad Surety Marie Trasit Marie Delay i Start-Up Weather Isurace 8 Willis 05/12

9 TAILORED SERVICES FOR OWNERS AND CONTRACTORS A comprehesive risk maagemet solutio requires service at every step of the way, from risk idetificatio to claim support. RISK IDENTIFICATION AND ANALYSIS We idetify risks which could adversely affect completio of a project o time, o budget or to specificatio. We idemify the isurability of those risks, advise o risk retetio ad prepare a outlie of isurace solutios to the parties ivolved to optimize the fial degree of risk retetio, mitigatio ad trasfer. CONTRACT REVIEW AND DRAFTING OF RISK PROVISIONS We advise o appropriate revisios to isurace-related idemity provisios cotaied i commercial cotracts. Isurace summaries or draft wordigs are available to assist you with commercial cotract egotiatios. Durig the developmet phase of a project, review of the cotractual obligatios cotaied uder egieerig, procuremet ad costructio (EPC) cotracts, suppliers cotracts, maufacturers warraty cotracts, etc. is critical. Likewise, oce the project is operatioal we provide ogoig cotract review as eeded. PRODUCTION OF UNDERWRITING PRESENTATIONS Our uderwritig presetatios are thorough, accurate ad professioally coducted. We sped time with the cliet ad, if appropriate, members of the project team, i order to uderstad all of the risk maagemet ad cotrol features implemeted. This esures that each risk attracts the attetio it deserves i the isurace market. LIAISON WITH LENDERS We are experts i providig services for projects where structured fiace is employed ad where ledig is o a o-recourse or limited-recourse basis. We offer expert advice o both the value of coverage requiremets beig set by leders ad the impact of loa coveats imposed by leders. DESIGN OF TAILORED POLICY WORDINGS We desig policies aroud your eeds, icludig protectio of your key assets, liabilities ad fiacial exposures. 9 Willis 05/12

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11 MARKETING OF RISKS Our preemiet positio i the worldwide costructio isurace market allows us to keep you fully up to speed o market developmets. It also allows us to commet widely o the scope ad availability of coverage from isurace markets globally ad to optimally egotiate exclusive capacity. MARKETS Several markets offer isurace for reewable eergy power plat costructio ad operatioal projects. These isurers iclude mutual isurers ivolved i a broad rage of eergy-based exposures, ad covetioal ivestor-owed isurers with a appetite for reewable eergy costructio programs. The key to selectig the right isurers is to idetify those compaies that have three qualificatios: A appetite for the class of busiess The expertise to fully aalyze the risk The fiacial security to hadle a risk exposure that will stretch over a multiyear period We assist our cliets i decidig which isurers to parter with ad secure the most advatageous costructio isurace program. CLAIMS You buy isurace to protect agaist the uexpected losses that ca have a severe impact o your balace sheet or o the leders fiacig the project. Our vast experiece eables us to be itimately familiar with the typical loss experiece at all power geeratio costructio projects, icludig reewable source projects. Our claim maagemet experts are a itegral part of our cliet servicig team, playig a active role i desigig claim procedures, establishig policy liability, ad egotiatig quatum with isurers leadig to claim settlemets. This coordiated approach esures that whe a loss does occur all parties are fully aware of policy issues. Early ivolvemet of the claim team facilitates efficiet loss otificatio ad adjustmet, leadig to prompt ad fair settlemet of claims. This helps miimize ay delays i project completio ad the adverse fiacial cosequeces these may brig. CONTACT Please cotact your local Willis represetative for further iformatio or: David Scott Utilities Practice Leader Willis North America david.scott@willis.com 11 Willis 05/12