International insurance and reinsurance brokers specialising in Contractors All Risks, Erection All Risks, Operational All Risks & Machinery Breakdown insurance world-wide. Other classes handled include Professional Indemnity, Marine cargo, Political Risks, Public/Products Liability and Loss of Profits.
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R.J. Langman Insurance Brokers Ltd was established in 1976 by the present Chairman, Roy Langman. The Company was set up as an independent specialist insurance and reinsurance broker to the construction and engineering industries.
Business is received directly from Construction & Engineering clients as well as from a number of correspondents, brokers and insurance companies. The account is truly global, ranging from UK domestic house builders to international oil and energy construction risks.
The specialist employees of R.J. Langman Insurance Brokers Ltd have all been chosen for their wealth of experience in their specialist fields. The Directors alone have over 90 years collective experience with the Company.
Projects in which the Company has been involved during the last 20 years as direct or reinsurance brokers include the following:-
Bechtel Power Corporation - Gas Fired Power Station, USA
Pfizer Corpn - Pharmaceutical Plant, Eire
Keadby Power Ltd - Gas Fired Power Station, UK
Meadway Power Ltd - Gas Fired Power Station, UK
Thames Power Ltd - Gas Fired Power Station, UK
Tenaga National Berhad - Transmission Lines, Malaysia
Rolls Royce Plc - Power Station, Dubai
Numerous Commercial &
Residential Projects - Israel
Road Contracts - Lebanon
Fort Sterling Ltd - Paper Mills, England
When an individual or company wishes to buy insurance, they appoint a professional insurance broker. Brokers operate at all times in the interest of the customer and are paid commission by the insurers with whom they place business.
The broker goes to an underwriter who specialises in whichever class of business he wishes to place, usually a recognised leader in that field. He describes the risk and explains the client's insurance requirements: if the underwriter is not satisfied that the risk represents good business he will turn it down.
If an underwriter is satisfied that the risk is viable, he will quote a 'rate' to the broker, usually expressed as a percentage of the risk's total value. The broker will invariably haggle with him trying, in his client's interests, to obtain the best possible price. When they have agreed a premium, the underwriter signs a 'line' which comprises his signature, and the proportion of the risk he is prepared to accept. The underwriter will receive a corresponding part of the premium.
The broker must then negotiate with other underwriters, persuading them to accept parts of the risk at the same rate set by the leader, until the whole value is covered.
Insurance and reinsurance placements arranged by R J Langman Insurance Brokers Ltd principally involve policies to cover the following risks:
CAR/EAR
Material damage insurance for building or machinery erection projects is normally arranged as a "Contractors All Risks" or "Erection All Risks" policy protecting the interests of the Principals, Contractors, Sub-Contractors and all other parties working on site. Such cover includes physical loss or damage to the Contract Works & Temporary Works and may also encompass other items such as contractors plant, equipment, temporary buildings, free issue materials etc. In addition, cover can be arranged to include such items as Third Party Liability, damage to surrounding property of the Principals arising from the construction works, marine and inland transit, offsite storage etc.
ALOP/DSU
For commercial projects special consideration must also be given to protecting the Principals and/or Financiers against future loss of profit or standing charges arising from a delay in completion of the project as a result of material damage under the Contractors All Risks Policy. Such policies are known as "Advanced Loss of Profits" or "Delay Start Up" policies and are normally placed in conjunction with the CAR/EAR policy.
POLITICAL RISKS COVER
Contractors working overseas can incur heavy financial losses resulting from political and other risks.
Many of these risks may be insurable by government export credit agencies. There are however several alternative sources of insurance against this type of risk in the commercial market, including Lloyd's of London and international insurance companies. These can be used to insure contracts or risks for which cover from a national scheme is restrictive, too expensive, not appropriate or not available.
Such covers include Contract Frustration due to non payment, exchange transfer embargo, contract repudiation, export or import embargo and licence cancellation as well as confiscation of fixed and permanent investments, loan securities and contractors plant.
NON VITIATION COVER
A further form of cover also available to Financiers of new projects is known as Non Vitiation Insurance and is designed to protect Principals and Financiers in the event that a claim is repudiated under the CAR policy as a result of gross negligence or failure to comply with policy conditions by the Contractors carrying out the work.
BONDING
Many building contracts impose the need to arrange Performance and other Bonds to guarantee the Contractors financial strength and ability to complete the contract. Most contractors will initially approach their Bank for such Bonds, but there is an alternative insurance market for such risks. Such Insurers require very detailed financial information and may require counter indemnities. However, an insurance backed bond may help the Contractor to improve his credit facilities with his Bankers, as a Bond issued by the Bank is considered as an overdraft and restricts further borrowings.
COMPLETED OPERATIONS COVER
Following the successful completion of a project, Langmans are always eager to quote for the completed operational cover of a project.
Having been involved with the project over a number of years there will be a massive amount of information available to Langmans with which they can approach property insurers. Cover is normally placed on a "Property All Risks" basis including or excluding "Machinery Breakdown" cover as required. This form of cover is more comprehensive than traditional "Fire & Perils" insurance. Many Insurers participating in the CAR/EAR cover will be very keen to quote for the operational cover and will usually quote very competitive terms.
On a major project many Insurers wish to enhance their service to the client by arranging one or more site visits by their specialist surveyors. Such a service is not meant to interfere with the contractors normal engineering procedures, but is meant to enhance the general safety of the works being undertaken which can only be to everyone's advantage. No additional premium is charged for such a service.
The risk assessment activities would be directed towards:-
• construction features of storage facilities
• controls of combustible/explosive materials and flammable liquids
• passive fire protection measures
• active fire protection measures
• protection against environmental conditions, including wet and dry perils
• safe working systems, including "hot" work
• contractors methods of work
• business interruption risks
In many parts of the world local legislation demands cover must be arranged locally notwithstanding the limited capacity of the local market.
In such cases local insurers normally retain a share and reinsure the balance with international reinsurers via brokers such as Langmans.
It is therefore essential to remember that close liaison must occur between specialist construction brokers such as Langmans and the local insurers at an early stage to ensure total co-operation between the various parties.
Many years experience has taught Langmans that first class security must always be a number one priority. There are many 'B' class insurers around the world whose true strength can only be gauged when the claims arrive. A "cheap" policy is of no use to the Contractor or Principle if claims are not met. Bankruptcy or long delays are too high a price to pay for nominal premium savings.
In order to facilitate the placement of the various risks outlined above it is vital for a broker to adopt a worldwide marketing strategy. No one market place is large enough or experienced enough to provide competitive quotations on all the classes mentioned.
Naturally, the London Market place is an excellent location for a specialist broker to be domiciled. However, numerous other markets exist in Europe, the Middle East, Asia and the USA, all of which may be utilised on a major placement.
If you have an enquiry or would like further information email us:
Tel: (+44) 171 538 0959
Fax: (+44) 171 515 5170
