XL Group Extends BuildSecure Surety Solution to Energy Projects

BALTIMORE, July 25, 2013 /PRNewswire/ -- As North America improves existing and builds new, much needed energy infrastructure, XL Group is extending its BuildSecure Surety protection to US and Canadian energy and construction firms to protect project performance. According to the American Society of Civil Engineers' (ASCE) 2013 Report Card for America's Infrastructure, construction is planned for some 17,000 miles of new high-voltage transmission lines and oil and gas pipelines, alone, over the next five years.

David Hewett, president of XL Group's Surety business, notes, "As energy and other contracting firms look to upgrade and build out much needed energy infrastructure – from pipelines to power transmission -- we're looking forward to helping businesses keep these projects moving on schedule with guaranteed performance protection.  Because of the size, expense and time-sensitivity of energy projects, the last thing that firms need is a contractor default issue that can halt progress. "

XL Group's BuildSecure provides:

• A liquid performance bond
• Capacity up to $250 million
• Project Due Diligence including assistance with contract review, lending structure, emerging issues
• A sophisticated Dispute Resolution component to mitigate costs and delays associated with project disruption

"Surety bonds typically protected the public sector from contractor performance issues," said David.  "In the US, they are required by law on public projects. But now the success of the surety market in helping protect state, municipalities and other public entities against contractor defaults has prompted private firms to look at the benefits of using new surety solutions like BuildSecure to ensure a project avoids delay or additional costs if a contractor on the job fails to perform as contracted."

"Energy projects often come with challenges – especially permitting and siting issues," noted David.  "These challenges put added pressure on the contractors and subcontractors working on them and the firms who contract their services.  To alleviate some of the risks posed by large energy infrastructures, all of the businesses involved are looking for effective risk management strategies to avoid performance failures.  BuildSecure offers a fresh, innovative approach to current risk management strategy."   

About XL Group plc's Insurance Operations

XL Group plc's insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance

About XL Group plc

XL Group plc (NYSE: XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world.   XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit xlgroup.com

XL Group is the global brand used by XL Group plc's insurance and reinsurance subsidiaries.

SOURCE XL Group

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED