Deductible Buy Down

Often in the case of CAR insurances, also known as Owner Controlled Insurance Policies (OCIP), it is common for co-insured status to be granted to various transportation and installation (T&I) contractors, whether those contracts are on solely a T&I basis or an Engineering, Procurement, Construction and Installation (EPCI) basis.

It is common in these situations for the main CAR insured to ask the contractor co-insured to assume liability for the CAR insurance OCIP deductible, should it be the contractor who is responsible for the claim being made. In such a situation, there can arise a mis-match between the size and risk appetite of the main CAR insured’s deductible, and the exposure the contractor being passed the deductible exposure by contract is prepared to handle. These are the situations which the Deductible Buy Down (DBD) insurance is designed to help mitigate.

The product is applicable for specific contactor work packages in respect of offshore wind construction from contractor mobilization to demobilization, and is subject to the contractually valid passage of the CAR deductible responsibility from the main CAR insured to the contactor co-insured, as triggered by a damage to the contract works arising from the contractor’s normal performance of its obligations.