Quote:
Originally Posted by Weitz
Cost over-run insurance is quite common. But its not easy to get. And its certainly not cheap.
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It's weird because I have seen quite a few insurance professionals say they haven't heard of this type of policy (maybe regarding this kind of project?). I realize that you can buy basically any type of insurance, but the premium is commensurate with the risk...so in this case we basically know they're going to run over and it had to be priced accordingly. Maybe the $158m is a little facetious, but I can't see $20m being any more reasonable?