Insurance Products

Construction Weather Risk

Insurance Products

Construction Weather Risk

Extreme weather events as well as prolonged weather patterns can delay construction projects, increasing costs and penalties. To manage this risk, Sompo Global Weather has created ConstructionLock® – a highly flexible financial product that enables the management of project profitability due to unforeseen delays caused by adverse weather.


ConstructionLock® can be structured to the requirements of both individual projects and project portfolios. Payments can be based on: 

  • Mitigating liquidated damage costs
  • Incorporating detailed cost components (labor, materials, etc.) 

Payouts can be indexed to any number of weather variables including: 

  • Rainfall 
  • Temperature 
  • Snowfall
  • Wind Speed 

Target Clients

  • Contractors 
  • Project owners 
  • Project finance companies 
  • Energy utilities 
  • Renewable energy contractors 
  • Municipalities  

We have significant experience creating value-added solutions for our clients in the global agriculture, energyreal estatehospitality, transportation, renewable energy, retail and agriculture industries.

Capacity

  • Significant transactional capacity 
  • Products can be delivered on a global basis as either derivatives, insurance or (re)insurance 
  • Contracts can range in duration up to several years and be written in a variety of world currencies