VINCI - 2008 annual report

Report of the Board of Directors
In addition to this basic cover, specifi c insurance is taken out as a result of legal or contractual requirements or management decisions in the
following areas:
– ten-year warranty (in France);
– motor vehicle third-party cover;
– transport.
5.3.2 Damage insurance
Offi ce buildings and fi xed production facilities are covered for a contractual rebuilding value, either value as new or an estimate of the maximum
insurable loss. Site equipment is covered on a case-by-case basis and selectively, if fi nancially worthwhile, depending on value, type and age.
Road vehicles, which are mostly pooled within fl eets by country, are only exceptionally covered on a comprehensive basis.
All risks insurance is taken out in respect of major construction sites. In particular, this covers physical damage arising from accidents or natural
events up to the value of the project.
5.4. Insurance in concessions and services business lines
5.4.1 Damage insurance
Concession operation involves a potential exposure of the Group to damage to assets under concession, whether accidental or not, that could
result in an obligation to rebuild (bearing the related costs), in fi nancial consequences due to the interruption of operations, and in obligations to
providers of fi nance relating to debt servicing. As a general rule, bridges, tunnels and car parks presenting a concentration of risk are insured from
their entry into service for their cost of reconstruction in the event of accidental destruction. This is not, however, the case for constructions of a
“linear” nature, such as motorways, where complete destruction is not envisaged.
5.4.2 Civil liability
Assets operated under concessions by VINCI subsidiaries in France and other countries are also covered by specifi c civil liability insurance
arrangements, which are co-ordinated with complementary cover at Group level. To date, no claim has been settled under these further lines of
insurance in the concessions and services business lines. These arrangements are specifi cally designed to meet local legal requirements and
those laid down in concession agreements. Concession operations in which VINCI is a minority shareholder do not generally benefi t from the
Group’s complementary civil liability cover taken out on behalf of all entities.
5.4.3 Business interruption insurance
Business interruption insurance is intended to allow concession operators to restore an income stream interrupted by an accidental event
aff ecting the normal operation of an asset, thus enabling the operator to meet any fi nancial commitments towards lenders and cover ordinary
operating overheads during the reconstruction period.
Operating losses are covered subject to various levels of uninsured loss. Losses may be expressed as an amount or as a number of days of
interruption. Operations that have a low exposure to this risk, in particular motorways, are not systematically insured against such losses, as an
extended or complete halting of operations is not taken into consideration. Aforementioned uninsured losses are determined on a case-by-case
basis to ensure that the concession’s earnings are not materially aff ected by an accidental interruption in traffi c. To date, no claims have been
made under such policies.
108 VINCI __ 2008 ANNUAL REPORT