Businesses in the Oil & Petroleum sector are exposed to a myriad kind of risks in business operations. All petroleum products carry an inherent risk while transportation and storage owing to its explosive nature. Also risks like oil spillage, equipment failures and product loss have the potential to derail the smooth functioning of any business. Fuel oil, petrol pump dealers, transporters, terminals, distributors, and suppliers have unique exposures that if not properly covered can financially cripple the business handling the petroleum products.
Oil and gas companies have the most complicated risk maps, with no standard risk management procedures. While insuring companies some of the basic factors that have to be considered are:
- The list of risks which may have a negative effect on the business and its subsidiaries and health of personnel, as well as shareholders’ and investors’ interests. This implies definition of risks for the property complex, risks of civil liabilities, specific risks;
- Types of insurance adequate to the risks associated with operating activities of and its subsidiaries, including types of insurance of property, liabilities, specific risks;
- Limits of required and economically feasible insurance payments for the selected types of insurance;
- Franchise amounts for the risks transferred for insurance broken down by groups of assets.
Petroleum Bazaar with its partners performs the following tasks for Oil & Gas companies:
- Analyze information on the risks which may have a negative effect on the business and its subsidiaries and health of personnel, as well as types of insurance adequate to such risks;
- Develop proposals on the amount of losses subject to self-insurance in the current year;
- Develop proposals on the limits of required and economically feasible insurance payments and franchise amounts for the risks transferred to insurance in the current year;
- Organize and hold tenders associated with insurance protection of business and its subsidiaries;
- Present a list of companies specially authorized to provide insurance protection of the business its subsidiaries in the specific time period;
- Control the acquisition of insurances by the authorized insurance companies in the course of re-insurance;
- Control the activities of corporate self-insurance structures;
- Analyze current and potential status of the world insurance markets;
- Control timely notification of losses of the business and its subsidiaries, the status of reconciliation and payment of agreed losses.
To know how to organize insurance of Petrol Pumps, LPG Storage Godown, Industries, Transport vehicles, Tankers, Petroleum Depots and Refinery assets please write to us on email@example.com or contact us at +91 99204 94214.