This offers insurance covers for oil & energy related risks during construction as well as for operational risks. The risks associated with Energy Insurance include:
- Prospecting and exploration for oil
- Transportation of crude oil to the markets
It also includes risks linked to downstream activities such as:
- Marketing of refined petroleum products and associated gas derivatives.
The majority of risks associated with energy related activities especially those arising from prospecting, production, refining and marketing are insurable; however failure to find oil or a fall in oil prices are not included and are not insurable.
All Risks Insurance offers coverage for physical damage or loss to contract works and third party liabilities under the following two sections.
Section – I covers all risks of physical loss or damage to contract works, including temporary works. The cover would include:
- Builder's risks and cargo coverage,
- Sue and labor
- Removal of wreck for a separate limit,
- Removal of wreck and debris separate limit,
- Existing property
- Expediting expenses
Section– II covers third party liabilities arising from operations for an agreed limit.
Rates, terms and conditions are influenced by trends in international market and based on the following underwriting information:
- Scope of work of the contract, including bar charts showing project time scale, design of the facility & method of transit/ installation at site.
- Contract value broken down over major component parts, including pipelines if any.
- Details of construction yard(s), contractors and suppliers of major component parts to be covered while in transit to main yard
- Details of owner, including management experience, other operations, maintenance and safety procedures
- Previous loss record of yard and/or construction contractors
Onshore Construction Risks Insurance offers coverage for infrastructure projects such as oil, gas, power, petrochemicals etc. against physical loss or damage on “All Risks” basis including.
- Temporary and Permanent Works
- Faulty Design
- Guarantee Maintenance (on a selective basis)
The cover commences with transportation and mobilization of equipment and is void once the final certificate of handover is issued - any maintenance periods thereafter can be covered.
Operational risks associated with gas plants, oil refineries, petrochemical facilities, fertilizer plants, and utilities require adequate insurance protection as the consequences in terms of physical damage and interruption losses in the event of unfortunate accidents usually run into high figures.
The coverage provided here is for all forms of property damage including machinery breakdown with the resultant business interruption as well as ensuing liability coverage that may be required.
In view of the complex nature of the risk and the hazards associated with the operation of downstream plants, the information required from the insureds persons will be an extensive one such as schedule of values, locations, details of operations, concentration of values at risk, past claims history etc.