Chicago 2016 Chair Patrick Ryan said that the organization has "altered the structure of its financial safety net, putting up" a $500M package of insurance policies as the "first defense against potential losses at the proposed" '16 Summer Games, according to David Heinzmann of the CHICAGO TRIBUNE. The previous plan was to "first use an expected" $450M contingency fund to pay for losses. But Chicago 2016 General Counsel Jessica Fairchild said that over the "last several months, the bid's insurance broker, Aon Corp., negotiated deals with insurance companies that would include coverage kicking in before" Chicago 2016 had to "dip into its own funds." Ryan said that the arrangement "would put more distance between taxpayers and the risk of a financial burden if the Games were a failure." Fairchild noted that Aon Corp., which was founded by Ryan, "donated its services" ( CHICAGO TRIBUNE, 8/29 ). BUSINESS INSURANCE's Mark Hofmann reported Chicago 2016 said that it has arranged for $1.48B in insurance coverage should the city be chosen to host the '16 Olympics. A document recently released to city officials indicated that the $1.48B figure consists of $500M to "cover public liability risks," $475M in "event cancellation and abandonment insurance," and $500M in "excess clash cover." Insurers reportedly "already are lined up for the public liability cover." Chicago 2016 also "plans to purchase sponsorship trade credit insurance." The organization "could bear some of the insurance costs associated with venue and Olympic Village construction," and the insurance involved "could include surety bonds, builders risk, cost overrun, construction delay and capital replacement coverage for the Olympic Village" ( BUSINESSINSURANCE.com, 8/30 ).
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