Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.
OCR for page 19
19 INTERVIEW RESULTS--COVERAGE SELECTION Insurance for Construction The eight airport operators interviewed were not asked to iden- Interviewees were asked only about the type of risk financ- tify the lines of coverage purchased but to indicate whether any ing used for construction activities, not about the actual coverage had been added or dropped recently. None had added coverages purchased. Four of the operators had OCIPs. or dropped any coverage lines. Interviewees were asked specif- One had participated in a contractor-controlled insurance ically about two types of insurance: terrorism and construction. program (CCIP), and the remaining three used the "tradi- tional" approach, allocating the risk to the contractor or Terrorism and War Risk construction manager and relying on indemnity and addi- tional insured status under the contractor's relevant liabil- Five of eight operators buy some form of terrorism or war ity policies. risk insurance for liability and seven purchase coverage for property. Responses as to why the individual operator pur- Three of the airport operators that had used OCIP indi- chases the coverage showed no clear pattern. One operator cated they would use the technique again. A fourth did said the purchase was the result of contractual requirements not answer this question. One "traditional" risk-financing in leases. Another was concerned about coverage for defense. operator said it would use the same technique again, and A third indicated that price was a motivator as the coverage another that had used the "traditional" method indicated is currently inexpensive. This same operator indicated that an interest in OCIP. The remaining interviewees did not the entity would not buy the coverage at 2002 prices. answer the question.