Refinery Insurance

Why do I need Refinery Insurance?

• Protection for property, tool, supply and equipment losses due to fire, vandalism, theft and more
• Protection for equipment breakdowns
• Protection for liability losses due to injury or third-party property damage
• Protection for errors and omissions
• Protection for loss of income due to business interruption and more
• Protection for automobile losses due to accidents and vandalism
• Protection for cyber losses due to data loss, credit card breach and other digital threats

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Refineries face unique risks

As a Refinery the risks you face are unique and your insurance should reflect that. Refinery’s Insurance will provide coverage for anything from fires and leaks to crime or equipment breakdown.

Property Exposures:

• Property exposure is extremely high because of the flammable gases and liquids that are part of the process.
• Explosions are the primary cause of refinery fires, and may result in loss of use of the entire facility.
• Refining equipment is very expensive, and the value of finished goods continues to increase exponentially.
• While crude oil is not highly flammable, finished products such as gasoline or diesel fuel are. Crude oil may take a while to begin burning but is incredibly difficult to extinguish.
• The potential for theft and vandalism can be high due to the value of petroleum and natural gas.

Business Income Exposure

• Business income exposure is severe as the entire facility may be shut down after a loss. Rebuilding could take years, not months, and an alternative production facility is not likely to be available.

Equipment Breakdown Exposure:

• Equipment breakdown exposure is severe due to the use of boilers and heavy equipment during the refining process.

Crime Exposure:

• Crime exposure is from employee dishonesty. All ordering, billing and disbursements must be handled as separate job duties and regularly audited.

Inland Marine Exposures:

• Inland marine exposures include accounts receivable, computers, goods in transit, and valuable papers and records.
• High-valued computers may be used to run the refinery operations.
• Pipelines may extend over hundreds or thousands of kilometres of rough terrain. These are subject to weather conditions, vandalism, and natural disasters.

Occupiers’ Liability Exposures:

• Occupiers’ Liability exposure is extremely high due to the potential for a catastrophic event such as an explosion.
• While refineries are generally located away from residential and business areas, toxic chemicals could be dispersed over a wide area, damaging property and causing bodily injury.

Products Liability Exposures

• Products liability exposure could be serious if a contaminant is introduced during the refining processed and passed on to consumers. Contaminated fuel can cause an engine to fail, which could be a problem with vehicles.

Environmental Impairment Exposure

• Environmental impairment exposure is severe due to the potential for air, water and ground pollution.
• The industry’s products are regulated by Environment Canada and are subject to rigorous standards regarding the composition of finished products, such as gasoline and diesel fuels.
• Disaster planning is critical to minimize the environmental effects of a chemical leak or an explosion.

Automobile Exposures

• Automobile exposure is high if the operation does any pickup or delivery of unprocessed petroleum or finished products.
• All drivers transporting goods must have appropriate HAZ-MAT licences, and their MVRs should be reviewed on a regular basis.
• Vehicles should be regularly maintained, with documentation retained.
• An awareness of cleanup techniques should be required.
• Routes must be laid out to prevent potential overturns, which can result in high cleanup and decontamination costs.
• Private passenger vehicles may be provided to executives or sales representatives, requiring standards for personal use.

Workplace Safety Exposures

• Workers compensation exposures are extreme.
• Employees work with chemicals that can result in burns or eye, skin, or lung irritation.
• Falls from heights, cuts, burns, lung damage, and lifting injuries are possible.
• An explosion could result in a large number of workers being killed.

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