WATER

COLLECTIONTREATMENTSUPPLYDISTRIBUTION

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A CONSTANT NEED

A GROWING RISK

A GUIDING HAND:THE WILLISWATER UTILITY EXPERTS

Water is life. It’s also big business. Ensuring a safe and steadywater supply to the population of North America is the business ofwater treatment and distribution companies continent-wide.Whether the water originates from surface water sources, aquifersor desalination projects, water treatment companies areresponsible for protecting and maintaining the collection anddistribution systems that ensure high quality drinking water isavailable to the population, potable service is available toagriculture and industry, and the environmental impact of thetreatment process is minimal.

Distribution systems – pipes, pumps, valves, storage tanks, reservoirs, meters, fittings andother hydraulic appurtenances – carry water from centralized treatment plants or wells toconsumers. Spanning more than one million miles in North America, distribution systemsconstitute a primary management challenge from both an operational and public healthstandpoint. Due to deteriorating infrastructure that is hurting system efficiency andintegrity, sound risk identification and management practices are more vital than ever.

Companies in the water business have developed a variety of strategies to reduce the risksposed to utility infrastructure as well as water quality. Particular attention is paid to thepotential for contamination of the distribution system during construction and repairactivities, maintenance of storage facilities, and the role of premise plumbing. The industryhas made significant advances in risk detection, monitoring, analysis and modeling.

Risks of course remain – a highly complex and specialized set of risks. To meet the uniquerisk management needs of water companies, Willis has established a dedicated WaterUtility Team comprised of experts from across our global company. The new team builds ona long-standing position of leadership in the water sector. We have a wealth of experiencewith public and private water companies, ranging from companies treating and supplyingdrinking water, to waste water treatment plant operators and desalination operations. Ourwater utility experts are steeped in all technologies utilized in the field. We have providedinsurance solutions for every stage of the water collection, treatment and delivery process.

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CONSTRUCTIONAND INSTALLATIONLarge water treatment or desalination projects are challenging in part because of theirsheer size, technological requirements, proximity to large population centers andnatural hazards, and the involvement of multiple contracting parties. Willis works withthe project principals to ensure a broad insurance program provides effective andefficient protection to all parties involved. An owner-controlled insurance program(OCIP) tailored to meet the project’s specific needs is often the lowest cost option. Asthe world’s leading construction broker, Willis is arguably the leader in establishingOCIPs and CCIPs (contractor-controlled insurance programs) and shaping them tosuit the contractual arrangements between the principal parties.

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THE TEAMSBEHIND THE TEAMA resource to the Water Utility Team, the Willis ConstructionTeam includes professionals ranging from engineering expertsto brokers in North America, London, Bermuda, Europe andAsia. The construction team offers services from initial riskidentification through the construction phase, including thehandover to operation as the plants complete testing andcommissioning. Each part of the process has distinct riskmanagement and brokerage requirements.

Offering truly comprehensive risk management servicesrequires resources beyond the construction and utility teams.Supporting the group are experts in the traditional insuranceproduct lines one would associate with a water constructionproject: Property, Casualty, Construction, Political Risks,Professional and Environmental. Your Willis team may furtherexpand to include specialists in structured risk and reinsuranceas needed.

Together, your Willis team delivers:� Knowledge and expertise on water technology� Expert support in the analysis of your business and risk

profile� Contract review services� Assistance in developing tailored insurance contracts,

including policy contract wordings analysis anddevelopment of endorsement wording

� Alternative risk solutions� Knowledge of market capacity and underwriting

philosophy� Regular interaction with underwriters to determine trends

and rate movements� Experience and assistance in large and complex claim

settlements

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� Your Willis Client Advocate® offers you a central point ofcontact for all your insurance and risk management needs. AClient Advocate’s job is to understand your business with thegoal of protecting both the physical assets of your balancesheet and the liabilities you assume in your day-to-daybusiness. Whatever your question, your Client Advocate isthe place to start.

� Through our Glocal service – global resources, deliveredlocally – we bring resources from wherever they are locatedin Willis right to your doorstep.

� Our One Flag culture integrates Willis knowledge andpersonnel into a true team rather than simply a collection ofresources.

� We have unmatched credibility in the global constructionmarketplace, a reputation built on experience, knowledge,flexibility and performance. Likewise, we have a worldwidereputation in the operational marketplace. We forge strongrelationships and are instrumental in developing new andexclusive products.

� We understand current international insurance andreinsurance markets, and are able to negotiate with insurersand reinsurers at the highest levels from a position ofstrength to achieve the most competitive premiums and thebroadest covers.

� We offer established expertise in all aspects of project-specific placements (OCIP & CCIP) and ongoing operationalprograms.

� Willis Market Security scrutinizes and rates the insuranceand reinsurance markets on a consistent basis, furtherimproving our marketing efforts and keeping you abreast ofthe latest developments relative to carrier financial strengthratings – a key component in measuring a carrier’s ability topay claims.

� We provide risk engineering and loss control services to helpidentify and reduce exposure to loss.

� We offer a committed claim handling service that helps deliverresults from the global insurance and reinsurance markets.

A PLATFORMFOR SUCCESS

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OUR PRODUCTSOur principle products include:� Construction/Engineering All-Risks� Advance Loss of Profits/Delay in Start-Up� Casualty Wrap-Up programs� Surety� Property insurance� Business Interruption� Liability insurance� Contractor’s Annual programs� Professional Liability and Indemnity� Pollution and Environmental� Bonds and Surety� Marine Transit� Marine Delay in Start-Up� Political Risks

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TAILORED SERVICES FOROWNERS AND CONTRACTORSA comprehensive risk management solution requires service at every step of the way, from risk identification toclaim support.

RISK IDENTIFICATION AND ANALYSIS

We identify risks that could prevent completion of a project on time, on budget and to specification. We identify theinsurability of those risks, advise on risk retention and prepare an outline of insurance solutions to the partiesinvolved to optimize the final degree of risk retention, mitigation and transfer.

CONTRACT REVIEW ANDDRAFTING OF RISK PROVISIONS

We advise on appropriate revisions to insurance-related indemnity provisions contained in commercial contracts.Insurance summaries or draft wordings are available to assist you with commercial contract negotiations. Duringthe development phase of a project, review of the contractual obligations contained under engineering,procurement and construction (EPC) contracts, suppliers’ contracts, manufacturers’ warranty contracts, etc. iscritical. Once the project is operational we provide ongoing contract review as needed.

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PRODUCTION OF UNDERWRITING PRESENTATIONS

Our underwriting presentations are thorough, accurate and professionally conducted. We spend time with you and,if appropriate, members of the project team in order to understand all of the risk management and control featuresimplemented. This ensures that each risk attracts the attention it deserves in the marketplace.

LIAISON WITH LENDERS

We are experts in providing structured finance services where lending is on a non-recourse or limited-recoursebasis. We offer advice on both the value of coverage requirements being set by lenders and the impact of loancovenants imposed by lenders.

TAILORED POLICY WORDINGS

We design policies around your needs, including protection of your key assets, liabilities and financial exposures.

MARKETING

Our preeminent position in the worldwide construction insurance market allows us to keep you fully up to speed onmarket developments. It also allows us to comment widely on the scope and availability of coverage from insurancemarkets globally and to optimally negotiate exclusive capacity.

Several public and commercial insurance markets offer coverage for water industry construction and operationalprojects. These include mutual insurers involved in a broad range of water-based exposures, and conventionalinvestor-owned insurers with an appetite for water industry programs.

The key to selecting the right insurers is to identify those companies that have three qualifications:� An appetite for the class of business� The expertise to fully analyze the risk� The financial security to handle a risk exposure that will stretch over a multiyear period

We work with you to decide which insurers to partner with to secure the most comprehensive and cost-effectiveinsurance program.

CLAIMS

You buy insurance to protect against the unexpected losses that can have a severe impact on your balance sheet andthe lenders or taxpayers financing the project. Our vast experience makes us intimately familiar with both thetypical and complex loss experience of water industry insureds. Our Willis Claim Advocates are an integral part ofour client servicing team, playing an active role in designing claim procedures, establishing policy liability andeffectively negotiating with insurers in obtaining claim settlements.

This coordinated approach ensures that when a loss does occur all parties are fully aware of policy issues and theexpected application of policy terms to the loss. Early involvement of the claim team facilitates efficient lossnotification and adjustment, leading to prompt and fair settlement of claims. This helps minimize any delays inproject completion and the adverse financial consequences these may bring.

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CONTACTPlease contact your local Willisrepresentative for further information or:

NORTH AMERICA

David ScottWillis North AmericaUtilities Practice Leader+1 610 254 7451david.scott@willis.com

Paul BeckerWillis Construction Practice Leader+1 615 872 3464paul.becker@willis.com

Ayesha NavarroWillis Canada+1 416 646 8353ayesha.navarro@willis.com