Energy Insurance

Energy insurance is a generic term for insurance coverage afforded to companies involved in the energy sector. It encompasses traditional energy sources such as the exploration, development, transportation and refining of oil and gas, petrochemical production and thermal power production. It also includes power production from renewable or sustainable resources such as solar, wind or battery storage technology.

Carriers will offer a range of insurance products offering their clients protection against:

• Legal and contractual liabilities to third parties
• Loss or damage to their physical assets and subsequent interruption of revenue or fixed costs
• Specialist coverage such as operators’ extra expense. This would cover the cost of regaining control of oil and gas wells that suffer ‘blowout’.

Canopius will typically offer coverage throughout the lifecycle of an energy project through the construction, testing, and commissioning phase and thereafter during the operational phase, normally on an annual basis.

The Upstream Energy insurance market provides insurance solutions to companies primarily involved in the exploration and development of the oil and gas industry. For example, oil lease operators and drilling contractors.

The market protects clients from risks in drilling operations during the exploration and development of oil and gas reservoirs. It also safeguards against risks in the extraction and transportation of hydrocarbons to market.

This insurance can include:

• Business interruption
• Coverage for damage to assets and equipment
• Legal and contractual liability to third parties and cost of well control
• Removal of debris

The Downstream Energy insurance market provides insurance solutions to companies involved in refining crude oil, gas processing, LNG, and petrochemical manufacture. The market offers coverage for physical damage to business interruption arising insured assets. This includes the storage of and transportation of the products to the point of sale.

This insurance provides indemnity for loss incurred by clients from incidents like pipeline leaks, storage tank failures, and fire and explosion at refining and processing facilities.

Renewable Energy insurance concerns the provision of specialist coverage tailored to the needs of developers, finance parties and contractors developing and operating renewable energy projects. This may include facilities such as wind farms, solar installations, and battery storage plants.

It provides protection against the unique risks associated with these projects, including damage to equipment, business interruption, and liability related to renewable energy projects while under construction and when operating.