A disaster, such as a tornado, fire, explosion or mechanical failure can put a halt to day-to-day operations of a business, cost them lost profits and negatively impact growth, market share and reputation. To limit loss of earnings, most companies purchase insurance coverage to compensate for the revenue that would have been earned had the business interruption not occurred and to restore any damage to their business property. Business Interruption (BI) insurance coverage is a portion of the larger business insurance policy which covers the loss of income a business experiences as the result of a covered event resulting in a loss. Similarly, property damage insurance covers any damage to the physical assets of the business from a covered event and typically provides for restoration of the property to its original condition.
Opportune’s expertise across the energy spectrum helps us prepare complex claims for non-energy insurance professionals in a clear, concise and easily processed manner, reducing the cost to prepare and the time to final payment.
For example, Loss of Production Income (LOPI) coverage is one way to calculate a loss, which is common for exploration and production companies. An LOPI claim is calculated based on pre-determined daily production values in various production regions. In the midstream and downstream sectors, BI claims often involve pipelines, refineries and processing plants. Opportune also has experience with these complex claims using Linear Programming (LP) models to analyze different operations designed to mitigate the outage. We have the capability to evaluate changes in market pricing as a result of the outage, which is key to evaluating claims in many processing units.
Opportune can assist companies through an insurance loss by preparing the calculation of loss for the company and working with the insurance company, as well as the insurance broker, to negotiate a final claim settlement. In the event that the claim cannot be settled outside of court, our services would extend through litigation.