SIBUR has signed contracts to insure its business assets in a joint insurance scheme with the leading Russian companies Sogaz JSC and AlfaStrakhovanie Plc. The integrated property damage and business interruption insurance provides cover for the property owned by the companies in the SIBUR group in the event of physical damages or loss of profit caused by human error in production. The policy covers the property assets of SIBUR’s gas processing plants and of Tobolsk-Neftekhim LLC, and also the expected profit of SIBUR Holding CJSC. The policy allows up to $1.3 billion to be paid in compensation for each insurance case.
The integrated insurance policy is based in the Western market and is reinsured by companies with a credit rating of at least A-, according to Standard & Poor. This rating threshold guarantees extremely reliable insurance cover.
The policy is one of the largest taken out by Russian oil and gas and petrochemical companies, both in terms of its geographical scale and the size of the cover acquired. It will allow the company’s cash flow to be stabilised, and will reduce the negative impact of potential technological risks to SIBUR’s financial and economic operations.