Aon  |  Energy
Business Interruption

In addition to the cost of repairing or replacing damaged assets, energy companies are exposed to financial loss and business disruption following an insured loss. The financial loss could extend beyond the location with the physical damage. In an increasingly globalized world, energy firms are highly dependent on the resilience of global and highly complex supply chains. From the extraction of oil and gas, to its transportation and storage, operations face a range of exposures with the potential to disrupt operations and impact the bottom line.

Business interruption insurance can shield firms from some of this financial loss and provide cash flow to a business during the difficult rebuild time.

The complexity of the energy industry makes it challenging to estimate the extent of business disruption and financial loss from a loss event. Other locations may also suffer a loss due to dependency, or they may be able to support the affected location to reduce the loss. One location may be entirely dependent on one logistics or utility asset while another has multiple levels of redundancy. One location may be unable to operate at all following a crude unit fire while another can use a vacuum unit or bring in intermediates. It is critical for firms to fully understand and quantify their exposure to business interruption and work with qualified advisors to mitigate and manage their exposures.

Specialist BI risk engineers can work with energy companies to identify and quantify the critical assets inside and outside of the business. By using targeted explosion modelling, potential loss scenarios with the maximum disruption to business and financial impact can be identified. The benefit of critical spares, business continuity planning and mitigation from other locations can be quantified and described to stakeholders - including client decision makers and underwriters.

Risk consultants can work with energy clients to help them optimise and embed supply chain resilience throughout their operations. Business interruption financial modelling enables firms to fully understand the potential insured and uninsured financial impacts from a range of loss scenarios. With these data-driven insights, energy companies can then identify the optimal balance of risk retention and transfer, and access the insurance market to protect the business from physical losses such as a pipeline fire; or from non-damage losses linked to events including cyber incidents.


At Aon, Energy clients benefit from:

  • Global Scope

  • Market Access

  • Tailored Solutions

  • Data-driven Insights

Global Team

When operating in diverse and remote regions, clients should expect an approach to risk management that is truly global and delivers collaborative solutions across the full risk profile.

At Aon, we deliver localised expertise on a global scale. Our market share and global footprint enable our teams to monitor market trends through sophisticated data and analytics, and develop models to forecast how these trends affect our clients. Our energy hubs operate in many regions, providing direct access to our global industry specialists, risk engineers, consultants and local and international insurance markets.