Protecting assets and equipment in unstable territories
19 June 2015
The continuing political and civil unrest in Iraq has taken its toll on the oil and gas industry. Previously secure facilities have found themselves caught up in a warzone. Some companies closed down facilities and withdrew personnel. Others stepped up security and continued to work.
Similarly, the increase in terrorist activity in Nigeria fuelled mainly by the activities of Boko Haram on land, and increased pirate activities offshore, has left some global producers more exposed to risk than previously thought.
For some firms, this means that cover for assets like rigs or production platforms and protection for vital equipment may no longer be extensive enough.
Stuart Dix, a leading consultant at Bellwood Prestbury, explains that you need specialist cover to protect assets and equipment in high-risk areas.
“Most companies will have some form of cover for accidental damage, physical loss, fire and burglary. But in an area affected by war, terrorism and in country fighting, companies need to include political violence cover. This provides valuable protection for sabotage and terrorism, riots, strikes and civil commotion, malicious damage, insurrection, revolution, rebellion, mutiny and coup d’état, war and civil war.”
Increasing demands for bespoke high-risk policies
Bellwood Prestbury is seeing an increasing level of enquiries for this kind of all-risk political violence cover in Iraq and other parts of the Middle East and in offshore and onshore facilities in the DRC, Nigeria, Somalia and other parts of Africa.
Stuart explains: “Political violence can flare up quite quickly in places you wouldn’t necessarily expect. The Ukraine, Egypt and more recently, Burundi, are all examples of where previously stable situations have seen deterioration. If you have expensive plant, machinery and vehicles to protect, or you face costly business interruption as a result of your property being damaged or destroyed, political violence cover will provide compensation. We will also protect your people with high-risk personal accident insurance and kidnap & ransom insurance.”
To find out more, call, Bellwood Prestbury’s experienced team on 0207 305 5650.
Categories: Property, plant & machinery, Vehicles, Political violence & terrorism, Oil & Gas, Iraq insurance, Nigeria Insurance, Burundi insurance, Egypt insurance, Democratic Republic of Congo insurance, Somalia insurance, Ukraine insurance