The types of insurance policies and the terms, conditions and levels of coverage applying to those insurance policies cannot always be adequately and accurately identified at the start of an alliance project. Therefore, it is particularly important to consider mechanisms for the systematic and periodic review of cover. This should be provided for in the relevant alliancing documents.
During an alliance project, there may well be points at which it becomes clear or was predicted that insurances should be reviewed to consider changes, including changes to the level of coverage as well as the scope of the cover.
Insurance policies effected and maintained by the Participants are a major risk-mitigating device for the project and regular review and refining may well be essential. Participants should therefore consider implementing an insurance risk management plan setting out, as a minimum, the policies, procedures and guidelines the Participants need to adopt to comply with the insurance requirements specified in an alliance agreement and the individual insurance policies.