This guidance note provides an overview of some of the key insurance related issues for alliancing Participants and comments on some related issues.
As in the many other alternative contracting methodologies for project delivery, alliancing typically involves using insurance to protect parties against various risks.
However, alliancing gives rise to specific issues regarding insurance, primarily as a result of:
• 'no fault - no blame', 'no dispute' alliance concepts and clauses-which make risk allocation to third parties, such as insurers, particularly important
• the allocation of various risks to 'the alliance', rather than to individual Participants.
Given the increased promotion of alliancing in recent years, Participants need to be aware of insurance issues, such as whether insurances will be adequate or effective in meeting the alliance project's needs or for the purposes of risk allocation between the Participants.