Case Study

Biotech / Green Energy

Client Sector & Size

Client Industry: Generation of Environmentally Friendly Biofuel

Annual Turnover: £4-5m

Output Achieved by UK & Global

  • Achieved a 55% reduction in the Commercial Combined Insurance premium, during the R&D phase, through a detailed evaluation by UK & Global of the client’s Risk, including a technical survey of the processes involved.

The key to this was illustrating to Insurers that ‘the process involved is not as Risky as it first appeared to be’.

Client Requirement

  • The Client had created an Enzyme which would ultimately lead to the creation of a new type of Biofuel
  • As with every new “Green” product, there is an element of uncertainty over its development and use as the effects of the Biofuel may change over time which would only be established through trial and error
  • The Client’s Property & Business Interruption Insurer rated the Insurance for the Client’s Pilot Plant on a “Heavy Industry” basis due to the uncertainty / emerging nature of the product

UK & Global Solution

  • We arranged for regular meetings to take place with the Underwriter, the Client’s Directors and UK & Global attending to ensure that all parties were fully informed of the product development stages
  • UK & Global undertook its own Property Survey to ensure that full technical details of the product and processes were disclosed to the Underwriter in a full format
  • UK & Global asked the Client to provide full details of the product, including the complex chemical elements, which were provided to the Underwriter via a Non Disclosure Agreement to protect the Client’s Intellectual Property

Outcome & Benefit to the Client

  • The premium in respect of the Property & Business Interruption Insurance was reduced by 55% as the Underwriter was happy to re-rate the premium based on the detailed information provided by both the Client and UK & Global