APC 2013 Annual Report Download - page 48

1OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
RISK FACTORS
Shipping and transport insurance Self-insurance
An invitation to tender was put out at the end of 2012 for the To optimize costs, Schneider Electric self-insures certain
transport insurance program that covers all shipments of goods, frequent, low-amplitude risks through two insurance captive
including intragroup shipments. At the close of the invitation, companies:
insurance was renewed with the same insurer on January1, outside North America, a captive reinsurance company based
l
2013. in Luxembourg offers damage and civil liability coverage
Erection all risk insurance
capped at EUR19million per year;
in North America, a captive insurance company based in the
l
US (Vermont) is used to standardize deductibles for civil
An erection all risk insurance program was set up on April1, liability, workers compensation and automobile liability policies.
2011 in order to cover the development of our services and These retentions range from USD1million to USD5million per
solutions. This program, which aims to provide cover for claim, depending on the risk. An actuary validates the
damages to work and equipment for projects taking place at our provisions recorded by the captive company each year.
clients’ premises, was renewed on April1, 2013. The cost of self-insured claims is not material at the Group level.
Other risks Cost of insurance programs
In addition, Schneider Electric has taken out specific cover in The cost (including tax) of the Group’s main insurance plans,
response to certain local conditions, regulations or the excluding premium paid to captives, totaled around
requirements of certain risks, projects and businesses. EUR23million in2013.
46 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC