Loss prevention arrangements are systematically adopted on construction sites as well as operating sites. This policy, which places importance on training, forms part of the approach to quality assurance and the prevention of workplace accidents adopted by VINCI companies.
The Group’s liability claims exposure is characterised, on the basis of available statistics and without prejudging any actual liability in the specific cases involved, by a small number of incidents involving more than €1 million, a few medium-sized incidents, ranging from €100,000 to €1 million, and a high number of small incidents (several thousand) of less than €100,000 each. To a large extent, this last category is borne directly by subsidiaries as policyholder deductibles or under self-insurance cover.
In relation to professional liability or errors and omissions, the risk prevention policy focuses on the limitations of the contractual commitments accepted under new contracts, ensuring the proper match between the commitments undertaken and the mutualised resources in that regard, the early identification of any problems encountered during contract performance, and their rapid and effective resolution to the benefit of all parties concerned.
The risk committee meetings held to review business opportunities before bids are submitted include a specific item on the agenda to address insurance questions (availability of cover, identification of a special exposure and its insurance coverage, appropriateness of policyholder deductible levels, preservation of recourse, etc.).
Operating infrastructure under concession involves potential Group damage exposure to assets under its responsibility, whether accidental or not, that could result in an obligation to rebuild (including the related costs), and to financial consequences resulting from the interruption of operations and debt service requirements to financing providers. Business interruption insurance is intended to allow concession operators to restore an income stream interrupted or reduced by an accidental event affecting the normal operation of an asset, thus enabling the operator to meet any financial commitments towards lenders and cover ordinary operating overheads during the reconstruction period.
As a general rule, bridges and tunnels are insured for accidental destruction. Resulting operating losses are also guaranteed, less the deductible, which varies from one contract to another and is expressed as a fixed amount or as a number of days of interruption. Linear infrastructure (motorways and rail lines), the complete destruction of which is deemed highly unlikely, is not systematically covered for business interruption losses, since the total and prolonged shutdown of their operations is not taken into consideration. Deductibles are determined on a case-by-case basis to ensure that the concession’s earnings are not materially affected by an accidental interruption in traffic.
In July 2023, the Group became a concession holder operating high-capacity solar photovoltaic power plants (e.g. the Belmonte solar farm in Brazil with an installed capacity of 588 MW). Obtaining insurance for this type of asset most often involves business interruption cover, which is defined specifically, depending on the remuneration model set out in the concession contract. Insuring these facilities against natural events requires vigilance in relation to specific perils, such as hail, flooding, brush fires, and possibly storms and cyclones, in terms of both the quality of insurance coverage acquired and the prevention measures effectively implemented at the site. Particular attention must be devoted to redundancy measures for critical equipment (e.g. power transformers used at the substation connected to the grid). The Group is also developing smaller solar photovoltaic power plants (installed capacity lower than 50 MW) that are widely distributed geographically and thus do not involve high risk. They are covered by policies taken out by the builder and/or the project manager.
Several mid-sized power plants (capacities between 100 and 200 MW) currently under development and for which the Group will be either the operator or manager, are covered by appropriate insurance policies.
Solar photovoltaic facilities installed at buildings are also a growth area, particularly at some airports operated by the Group under concession. These facilities have relatively low installed capacities, but require specific assessments to determine the potential fire or waterproofing risks to which they may expose the buildings concerned. Specific insurance coverage is taken out for them.
Concession assets operated by VINCI subsidiaries in France or elsewhere are also covered by specific liability insurance arrangements, which are coordinated with the additional coverage taken out at Group level. These arrangements are specifically designed to meet local legal requirements and those specified in concession agreements. Concession operations in which VINCI is a minority shareholder do not generally benefit from the Group’s complementary liability insurance taken out on behalf of all entities.
Liability relating to the Group’s airport activities is covered by specific airport operator liability insurance programmes:
Subsidiaries are exposed to their liability for bodily, physical or consequential damage caused to third parties, including customers or project managers.
The liability insurance taken out by the Group comprises the primary coverage put in place at the subsidiary level, intended to cover ordinary losses, and additional coverage taken out by VINCI for the benefit of all subsidiaries.
