What is Integrated Project Insurance?

What is Integrated Project Insurance?

IPI is an innovative form of insurance that insures project risks rather than liabilities. It operates on a blame-free basis and insures outcomes rather than causes; all members of the project are covered – including the client – and all rights of subrogation are waived. IPI supports collaborative working and the use of truly integrated teams, helping to drive out waste, deliver innovation and provide better, more cost effective solutions to meet the needs of clients. It is the only insurance product capable of supporting BIM Level 3, according to Griffiths & Armour chief executive Stephen Bamforth.

Government is convinced of its value and has committed to trialling IPI as part of its Construction Procurement Strategy by supporting demonstration projects to show that hoped-for savings in capital costs and procurement times can be achieved in practice and to encourage the insurance market to create a commercially viable product that can be made available to both the public and private sectors.

IPI insures the integrated project team’s performance against specification, time and cost. Liabilities to third parties arising during the construction process are covered. There are no internal liabilities to consider and the project team operates on a completely blame-free basis.

Managing it all would be a project board which includes the client. There would be a light touch audit of designs by an independent party. Fees earned on IPI projects would not need to be declared under consultants’ annual PI covers. There will be no duplication of insurance costs.

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