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Refinery Insurance

Insurance is essential for protecting against the unique risks a refinery faces.

Proper insurance coverage is vital for Refineries

The ever-evolving nature of the oil and gas industry, combined with the dangerous work, leaves many companies exposed to significant risks and liabilities. To address these risks, it is vital that oil and gas companies carry comprehensive and customized insurance plans.

At CMB Insurance Brokers, we understand the challenges associated with insuring an oil and gas business. Our agents have the knowledge and experience needed to address the unique insurance needs of a wide range of oil and gas businesses. Choose us for all your insurance & risk management needs and rest assured that no matter what risks you face, the incredible team here at CMB insurance will be behind you every step of the way.

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

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.

What types of Business Insurance do I need?

There are many types of insurance policies that our experts can advise you on and package to meet your specific needs, such as:

  • Accounts Receivable Insurance
  • Automobile Liability and Physical Damage
  • Building Insurance
  • Business Auto Liability and Physical Damage
  • Business Income Insurance
  • Business Personal Property Insurance
  • Contractors’ Tool and Equipment Floaters
  • Computer Fraud Insurance
  • Computers Insurance
  • Directors and Officers Insurance
  • Dishonesty Insurance
  • Disappearance and Destruction Insurance
  • Employee Benefits
  • Employee Dishonesty Insurance
  • Employment Practices Liability Insurance
  • Environmental Impairment Insurance
  • Garage Keepers Insurance
  • General Liability Insurance
  • Goods in Transit Insurance
  • Hired and Non-owned Auto Insurance
  • Installation Floater Insurance
  • Leasehold Interest Insurance
  • Money and Securities Insurance
  • Real Property Insurance
  • Signs Insurance
  • Valuable Papers and Records Insurance
  • Workers Compensation Insurance
  • Underground Storage Tank Insurance
  • Umbrella Liability Insurance