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Deductible Buy-Back
Deductible Buy-Back Facility:
Specially for Submarine Cable Installation
Whilst most of the major contractors have All Risks of Physical Loss or Damage insurance coverage in respect of submarine cable, the deductible applied by their underwriters can often be substantial and a heavy burden for the support service contractors who have to secure insurance or self-insure the excess, which can be up to £500,000 per occurrence.
In relation to the fibre-optic cable industry, clients are mainly involved in disciplines such as:
- Pre-lay route surveys
- Shore end landings
- Post-lay cable inspection
- Pre-lay and post-lay burial systems
- Cable armouring.
We have secured underwriters' agreement to cover for up to 80% of the limit required under contract and, in some instances, an annual facility with a basic pre-set rate on turnover.
The information we would require prior to obtaining terms from underwriters is as follows:
- Broad picture of scope of work expressed as a percentage in respect of the
following disciplines:
- Ploughing/trenching laying
- Post-lay inspection and burial
- Shore end landings
- Cable armouring and stabilising
- Details of main principals with contract requirements
- Work plan / bar chart showing potential contracts for the forthcoming year detailing:
- The principal
- Work scope
- Period
- Location
- Approximate contract value
- Contractual detail.
Call a member of the specialist Liability team:
Cliff Butters +44 (0)20 7870 4225 or
David Bushell +44 (0)20 7870 4248
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