The insurance advisor needs to lead a discussion of which risks should be insured. Insurable and other risks can be categorised as:
• those to be covered by insurance required by legislation, such as workers compensation insurance, that is to be taken out by the public sector Owner and Participants to cover their employees;
• risks that are fundamental to the alliance project, which should be considered on a 'no blame' basis;
• professional indemnity risks (these require special consideration, as the 'no blame' provisions of an alliance agreement preclude liability arising between the alliance Participants-except in cases of wilful default-and so must be covered by project specific 'first-party' professional indemnity insurance);
• risks that should be fully retained by the government;
• risks that are transferred or allocated directly to Participants under the contract, which the Participants may in turn insure against-where insurance is available and they are insurable, considering market conditions;
• those risks where the level and/or nature of the risk is such that the government accepts the risk, which may or may not be covered by insurance and/or be insurable, considering market conditions; and
• those risks where it is prudent for the government to arrange insurance on behalf of the government and/or Participants or to 'top up' the Participants' insurance.
In deciding whether the alliance should be required to insure against the risk, and the extent of insurance, it is recommended that Owner, as well as alliance Participants once appointed, consider the:
• commercial availability of the insurance, including limitations on policy wording regarding exclusions and limits; and