Insurance is the last thing of interest to a Pioneer but the first thing of necessity.
The investment in time, money, materials, resources and intellectual property are just the basic essentials of any Pioneering Project. The loss or interruption of any one of them can bring the project to a crashing halt; and the breadth and depth of the loss is often not appreciated at first, until the effort and cost of trying to carry on is felt, in reality. For example, if unique circumstances such as human resources, windows of opportunity, collaborative partnerships, multiple supply chains or specialised materials are a factor in the Pioneering Project then the risks are even greater - but very often they are not recognised as unavoidable risk; until it is too late.
There are two ways of reducing unavoidable risk: managing it and insuring it. Having identified risk and insurance as a necessity, the difficult part begins. First, you have to identify all of the risks. Next, you have to assess the potential for managing it and the availability, terms and cost of insuring it.
Risk management and restitution following losses can be notoriously costly and relies on the correct identification of the risks and effective management. Insurance is also a costly commodity and you may never see a return on that investment.
Identification and management of risk is made much easier if you have worked in the risk industry. Like everything else in life, knowledge, skill and experience make the seemingly impossible at least feasible. The first step is knowing who to ask...
Lignum Risk Partners have the knowledge, skill and experience, together with the practical expertise to ‘see behind the curtains’ and identify risks that should be addressed and know how and why to address them.
What is ‘behind the curtains’?
Your Pioneering Project, by definition, will present risks and management problems for which there is no precedent. Very often the insurance industry will not accept risks for which they do not have adequate statistical data. That makes pioneering project risk uninsurable in the ordinary way.
However, it does not necessarily make the risk uninsurable or ‘un-risk manageable’ to specialist risk-transfer experts who trade beyond the traditional insurance markets.
We operate in the Alternative Risk Transfer sector (also known as ‘ART’) and our job is to bring our knowledge, skill, experience and expertise to bear in helping our client to identify and assess the risks and devise ways of managing them and transferring them to an ART insurer.
Our protocol for the assessment and potential transfer of risk is as follows:
1. Appointment as specialist adviser;
2. Collation of information, facts and data that describe the Project/ Circumstances and your demands and needs;
3. Assessment and interrogation of facts and data that describe the Project/ Circumstances;
4. Preliminary report and recommendations including prospects of success in: managing risk; reducing risk; transferring risk; and quantifying profile of risk/s;
5. Consultation based upon report and recommendations.
Our fees are based upon professional advisory standards and typically fixed or capped fees for preliminary and clearly identifiable project deliveries.
Talk to us about how we can help you to be a Pioneer.
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