Munich Re leads coverage on Kleen Energy explosion
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MIDDLETOWN, Conn.—Munich Reinsurance Co. leads the coverage in the fatal explosion at a Connecticut power plant under construction by Kleen Energy Systems L.L.C.
The Feb. 7 accident in Middletown, Conn., killed five people and injured more than two dozen others. State police and fire officials have launched an investigation.
Munich Re last week confirmed it is the lead on coverage for the plant, but would not provide details.
A market source said Kleen Energy has $664 million in insurance to cover the estimated value of the project and $212 million in limits to pay claims related to a startu-p delay.
Early estimates put the loss at about $50 million in property damage and about $100 million in business interruption, the source said.
Paris-based SCOR S.E. confirmed it has 5% of the risk, and Chartis Inc. confirmed it is one of the insurers on the coverage. Officials for both companies declined to elaborate.
AEGIS London, the U.K.-based subsidiary of Associated Electric & Gas Insurance Services Ltd., insured 5% of the plant's all-risk coverage, Chief Underwriter David Croom-Johnson confirmed.
The market source also said Hartford, Conn.-based Travelers Cos. Inc. has a 5% share of the loss. A Travelers spokeswoman declined to comment, citing company policy.
Starr Technical Risks Agency Inc., a unit of C.V. Starr & Co. Inc.; ACE Group, a unit of ACE Ltd.; Lloyd's of London; National Union Insurance Group; and Arch Insurance Group Inc. also participate on the policy, according to a report.
