ABSTRACT
From the mid 1990s, the series of high profile accidents on underground works projects produced disastrous results for construction insurers. This caused many insurers to withdraw from underwriting this class. The real possibility existed that tunnelling for future urban transportation projects would be uninsurable,leaving sponsors to carry the full impact of risks traditionally transferred to insurers. The fact that this spectre was averted,has largely been due to Employers,Designers and Contractors adopting the principles outlined in the International Tunnelling Code of Practice (ITCoP), jointly developed between insurers and the construction industry.
ITCoP has also had a profound influence on the way construction insurance is handled for transportation system projects involving underground works. The specialist insurers viewing proposals for such projects need to be convinced from the outset, that processes are in place to identify, control and manage project risks. Consequently, if Insurance Brokers acting for Employers or Contractors, are to achieve the best terms and quality of cover for their clients, they now need to demonstrate an interaction of technical understanding of construction methods and risk management.
