Insurance due diligence

We undertake a wide range of "due diligence" work in connection with commercial insurance arrangements required as part of a lender's security package, or in connection with large-scale technological, transport, construction and infrastructure and trade finance projects.
Our clients include both international and domestic financiers, Government agencies, and companies across the range of real estate, PFI, retail, energy, utility, transport and IT sectors, as well as insurers.

We advise on a comprehensive range of insurance and reinsurance issues including:

• the insurance covenants/representations included in project finance, sale and purchase and loan agreements
• the legal "framework" in which insurance contracts are placed – utmost good faith/duty of disclosure, consequences of breach of warranty
• interpretation of policy wordings including political risk, trade credit, and project finance insurances
• taking "security" over project or trade finance insurances including issues of co-insurance, loss payee clauses, and noting of interest
• assignment of policy proceeds – advantages and disadvantages
• the use of captive insurance companies and existing global group policies
• fronting insurance in emerging markets – assignments of reinsurance proceeds and use of cut-through provisions
• mechanics for safeguarding proceeds of insurance claims
• provisions regarding replacement of policies/notices of cancellation
• notice of claims/control of claims handling, rights and remedies
• non-vitiation and waiver of subrogation clauses
• working with brokers to assess the package of insurances required and period during which they need to be maintained
• assessing regulatory risks to project parties