Commercial

• The owner can tailor the policy to cover all appropriate parties, as opposed to several potentially disjointed arrangements
• Adaptable to changes in the project, such as increased values and extensions of the period
• Non-cancellable policy for the duration of the project
• Helps to eliminate unknown exposures arising from inadequate insurance provided by contractors
• No uninsured contracts or coverage loopholes
• Can protect owner’s liabilities where contractors’ are limited
• Streamlined interface between construction and handed-over works
• The owner retains control of insurance market security
• Facilitates purchase of cover for existing structures and delay in completion coverage
• Facilitates a uniform and disciplined approach to risk management
• Allows efficient management of phased handovers

Financial

• The owner retains control of insurer selection; important for long-term projects
• Streamlines project administration; no need to check and re-check contractors’ insurances
• Known and fixed insurance cost at the outset
• The owner achieves benefit of bulk purchase of insurance in terms of premium costs, coverage, and reduced administration costs
• The owner can ensure that lenders’ requirements are satisfied as PCIP is a lender’s preferred approach
• Certainty that premium is paid and that insurances are current
• Avoids duplication of insurances and can save premium for the project
• Eliminates overhead and profit loadings by a contractor
• Not affected by insolvency of a project partner or removal of a contractor from the project

Claims

• All parties enjoy joint insured status; no subrogation issues
• Helps to eliminate claims between contracting parties; promotes a “no blame” culture
• The owner has direct access to insurers for claims matters
• Helps to eliminate legal and contractual disputes between parties
• Claims monies are paid direct to the owner