Chicago plans to take out a $500m insurance policy to avoid the need for public funds to back its bid to host the summer Olympics and Paralympics in 2016, according to reports from the Financial Times.
The organisers say the insurance policy is crucial in assuaging lingering public concerns that the project will rely entirely on private-sector funds and Games' revenues to meet an estimated budget of around $5bn.
The Chicago bid is being led by Patrick Ryan, founder and chairman of insurance broker Aon.
The Financial Times said that the last two US Olympic hosts – Atlanta and Los Angeles – both made a surplus from their games and avoided public funds.
