The approach taken to insurance can have an impact on the information Non-Owner Participants have to provide. In various approaches to procurement, the Owners will seek to be provided with sufficient information to consider the:
• cost for which a proposed contracting party can provide relevant insurances;
• policy terms (including deductibles) on which a proposed contracting party can procure insurances; and
• claims history of a potential contracting party.
Owners will also rely to some extent on contracting parties having a vested interest in avoiding or minimising insurance claims, which might otherwise adversely affect the contracting party's ability to get such insurance in the future or the terms applying to future insurances. In particular, Owners may value contracting parties' focus on avoiding claims. Owners may also be concerned about inappropriate attitudes to risk evolving over time if there are no commercial effects for contracting parties that maintain a positive insurance claims history.
However, in the alliancing context, the approach to insurance will determine whether or to what extent Owner Participants may have the visibility of or benefit from such facts and considerations. Again, careful consideration of the most appropriate approach will be required, project-by-project, with input from relevant advisers.