ABSTRACT
This chapter provides an overview of some of the fundamental principles of insurance law. It addresses the WELCAR construction all risks policy wording, given its central importance in providing cover for physical property of the facility under construction, as well as some of the liabilities that arise out of the construction project. The construction phase of most large offshore oil and gas projects is insured on a construction all risks policy, most often on a WELCAR form. The hull and machinery insurance policies generally exclude liabilities arising from war risks. The insurance contract is no exception to the ordinary rule of English law that for a contract to exist there must be offer, acceptance, and consideration. Related to the principle that the contract of insurance is a contract of indemnity, it is also a fundamental requirement of an insurance contract that the insured has an 'insurable interest'.
