Assessment of the liability risk in the Nordic port
This study was conducted for insurance purposes at the oil refinery of Company X in one of the Nordic countries whose facilities such as depot and terminal lie in the port. The facilities of Company X in the port are surrounded by the facilities of other companies. In case of an accident caused by Company X, the oil tanks and buildings of other companies would be damaged and there would be potential liability claims from their side. Insurance risk assessment is a well-developed approach for insurance of a company’s own property. It is not normally used for liability risks. This study suggests methodology for determination of liability insurance values. Based on the obtained results and calculations of replacement values, the worst case scenario for Company X in the port was chosen and recommendations were made regarding the liability risk.
Keywords: liability, insurance, risk assessment