Boston’s Revised 2024 Olympics Bid Promises ‘Most Insured Games in History’

Boston 2024, the group trying to bring the 2024 Olympics to Boston, released the most detailed look yet at its bid for the Summer Games on Monday, unveiling a $4.6 billion plan it says would create thousands of jobs and housing units, expand the city’s tax base and leave behind a vastly-improved regional transit system — all with a $210 million surplus.

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The organizers also say the Boston Olympics would be “the most insured” Olympics in history.

“Boston 2024 would be the most insured Games in history, with broader and more innovative coverage with more layers and higher limits than any previous bid,” the Boston 2024 organizers said in their “Bid 2.0″ report Monday, which represents an updated and revised version of the plan first offered in January. According to the report, some $128 million in premiums would be paid to obtain a comprehensive insurance package.

“In its bid for the 2016 Games, Chicago was a leader in exploring insurance options to mitigate the risks of cost overruns and reduced revenues. Boston 2024 will elevate protections to an unprecedented level in order to remove financial risk from the public,” the Boston 2024 organizers said.

The Boston 2024 organizers said they would build a comprehensive insurance framework that protects City of Boston and taxpayers. “We have examined the Chicago 2016 bid insurance package, evaluating where it provided sufficient coverage and where further coverage was needed,” the officials stated. “If selected as the host city, we will purchase broader and more innovative coverage with higher limits than Chicago 2016.”

According to the “Bid 2.0″ report, Chicago’s bid for 2016 Summer Olympics had included: $475 million event cancellation coverage; $500 million coverage for public liability and indemnity; $500 million all-risk excess coverage; $50-$100 million coverage for trade credit insurance; and $2 billion surety bonds and performance bonds guaranteeing cost as well as timely performance for venue construction.

The Boston 2024 organizers said they have engaged international insurance brokerage and legal experts with experience in past Games, including London 2012. And these experts have provided initial guidance on coverages and premiums based on review of the operating budget and venue plans.

Based on this guidance, the organizers said they would carry $128 million for premiums in the operating budget. This would be in addition to the insurance premiums built into the budgets for each construction project and the capital replacement insurance in the budget for two key developments.

As a next step, the organizers said they will formally procure and retain a broker of record to seek actionable proposals, review alternatives and begin negotiations.