Liability Risk Assessment at Skarvik Port

Paper in proceeding, 2012

The study focuses on a case of company X which owns an oil terminal and a depot in one of the Northern European countries. Company X's facilities are surrounded by the facilities of other oil companies. In case of an accident caused by company X there would be potential liability claims for property damage and business interruption. 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 was chosen. A new methodology was developed to determine liability insurance values in cases like that, including the total limit - maximum insurance value that can be claimed.