Insurance is not a cost; it is protection for the balance sheet
As infrastructure projects grow larger and more complex, their risk profiles are evolving beyond physical damage. Underinsurance, business interruption, supply-chain disruptions, climate volatility, surety and transactional exposures can all have significant financial consequences. Mohan Agrawal, Director and Business Lead - Construction, Infra & Warehousing, EDME Insurance Brokers, discusses these emerging risks and the gaps in conventional insurance practices in a conversation with KAVITA PARAB, CW. He explains why infrastructure players need to view insurance not merely as a cost, but as a strategic tool for protecting balance sheets and ensuring business continuity.
It is often said that risk is unavoidable in infrastructure. In your experience, what is the single biggest indicator that a project developer is not financially prepared for a major setback?
The biggest indicator is inadequate insurance coverage, particularly gaps in the scope of the policy or insufficient coverage for a major loss. An insurance programme should be designed to protect against a major loss, not just routine losses...