PHILADELPHIA--(BUSINESS WIRE)--The United States faces an expected shortfall of $1.6 trillion in needed infrastructure spending through 2020, reports the American Society of Civil Engineers1. This expectation is leading state and local governments to increasingly turn to public-private partnerships, known as P3s, to help meet critical infrastructure needs without having to raise taxes or increase debt loads. ACE Group today released an advisory that examines the exposures and complex insurance issues U.S. contractors may face as they engage in infrastructure projects financed through P3s.
“Driving Change: Public-Private Partnerships- A New Model for Infrastructure Projects Brings New Risks for Contractors” was co-authored by Stephen Buonpane, Vice President, ACE Construction; Bruce Jervis, Executive Vice President, ACE Commercial and Inland Marine; and Alex Wells, Senior Vice President and Chief Operations Officer, ACE Westchester Casualty. This advisory is the latest installment in ACE’s series of insurance and risk management perspectives for risk managers.
“The use of P3s has started to gain ground in the U.S., and many contractors are encountering these partnerships for the first time, particularly in states such as Florida, Texas and California,” observed Mr. Buonpane. “While there are significant benefits to P3s, the complexity and long-term nature of these projects creates a set of unique risk challenges from which the traditional insurance program approach may no longer be a fit. Before engaging in P3s, participants should work with their brokers and an insurer who has demonstrated experience in both the construction industry and with P3s to help mitigate this new host of expanded risks.”
Key highlights from ACE’s advisory include:
To read the full advisory, click here.
The material presented in this report is not intended to provide legal or other expert advice. It is presented for informational use only. Readers should consult legal counsel or other technical experts, as applicable, to answer any specific questions they may have. Product highlights are summaries only; please see the actual policy for terms and conditions. Product offerings may vary by ACE location.
1 ASCE’s New Report Card Bumps the Nation’s Infrastructure Grade Up to a D+, American Society of Civil Engineers, March 2013, See: http://blogs.asce.org/asces-new-report-card-bumps-the-nations-infrastructure-grade-up-to-a-d/
About ACE Group
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at www.acegroup.com, or follow ACE on Twitter,https://twitter.com/ACEGroupNA.