Failing to manage insurance issues related to debt finance for projects is a common mistake that can obstruct the reaching of a financial close for a project.

Alesco works closely with lenders involved with project finance – giving us an insight into their requirements. Lenders will specifically look for certain coverage enhancements (often known as Lenders Clauses) including Loss Payee Provisions, Non-Vitiation clauses, Security of (Re) Insurance provisions and possible assignment of insurance and reinsurance policies and loss proceeds, Notices of Assignment, Acknowledgement of Assignment and Brokers Letter of Undertaking.

At Alesco we are fully conversant with both the standard and the latest versions of these clauses and what is generally accepted by each insurer and lender. Furthermore, we have extensive experience of the lenders documents as well as requirements of owners and lenders in relation to the Insurance elements of project financing and have the ability to deliver on the advice, negotiation and execution in a commercially advantageous way for our clients.

Our approach encompasses early involvement in the drafting of the various documents and clauses, offering advice to our clients and aiding them in discussions with lenders and their other advisors. Our simple aim is to ensure that the insurance element of the financing of a project is as smooth as possible, supporting the lenders involvement in the project and ensuring the timely completion of documentation prior to financial close.

Our expert construction team has extensive experience of debt financed major projects creating robust, workable insurance and reinsurance placements that are acceptable to all parties. This experience has been gained through placing hundreds of project financed deals and designing specific programmes, contract and insurance policy wordings to cater for such transactions on both the owner’s side and the lender’s side.

Project Finance Key Contacts