Swiftpipe and Willis pioneer pipeline construction insurance cover
02-March-2010
Swiftpipe and leading energy insurance brokers Willis in London pioneer pipeline construction repair risk insurance which will cover pipeline installations using Zap-Lok technology.
Swiftpipe and leading Energy Insurance brokers Willis in London are working together to pioneer construction repair insurance which will cover pipeline installations using Zap-Lok technology.
Since 2001 the repair costs of a faulty weld have been specifically excluded under Construction 'All Risks' Policies known as WELCAR. This means that if a pipeline is constructed using conventional welding techniques then the cost of repairing any faulty welds in the line during and after installation are not covered by 'All Risks' insurance. This specific exclusion leaves a significant gap in risk cover for pipeline owners and installation contractors leaving them on risk for the repair of weld defects at their own cost. The cost of repairing failed welds on pipelines can be very high particularly in remote areas and even more so for offshore installations. Zap-Lok has an excellent installation history over 20 years with over 2 million joints in service. Given this background Willis is now working with Swiftpipe to arrange insurance cover for the costs of repair of any failed pipeline joints using Zap-Lok pipeline installation technology. This is an exciting step forward for the industry to fill the current gap in insurance cover for the risks of repairing defective pipeline installations. There will be clear benefits for pipeline owners and installation contractors who use Zap-Lok. More details of the construction repair risk cover available through Willis and Swiftpipe for Zap-Lok pipeline construction technology will be announced soon.