Description
Oil & Energy insurance can be defined as the insurance of all operations and assets relating to the exploration, exploitation, drilling, refining, storage, and transportation of oil, gas, or other energy resources. It also includes the insurance of Petrochemical risks such as insurance of assets, operations, and liabilities arising out of the production and consumption of intermediate and final products of chemicals derived from Gas and Crude petroleum.
The purpose of oil insurance is to protect all parties against the financial consequences of the accident, which may lead to injury to workmen and third parties in addition to loss or damage to properties.
The main risk exposures associated with the oil business are property risks, pecuniary risks, liability risks, and contingent risks. Oil insurance can be classified into Marine and Non-Marine. The Marine class includes Offshore Construction Insurance, Offshore Physical Damage Insurance, Operator’s Expenses Insurance, and Oil Tankers Insurance. The Non-Marine class includes physical damage or property insurance and accident-related insurance such as Physical Damage to Onshore Assets, Onshore Construction, Business Interruption, and General Liability.
