Step 5 is a key step in the insurance procurement process. It progresses the risk analysis and allocation and identifies the risks to be considered for insurance.
The allocation of risk that will be taken to the insurance market (i.e., the insurable risks) should take account of insurance options, specifically the insurance products available for the project risks to be insured. Given the specialist knowledge required for this step, an insurance advisor is likely to provide significant support and advice. Their role in this step is to consider the risks that the alliance would like to insure, and then consider the:
• most suitable insurance product for the risk;
• likely availability of the product; and
• likely cost of the insurance product.