Transferring defined risks to an insurance company.
One resilience option available to a port is to transfer selected risks to the insurance industry. Insurance companies typically assess the risks of port operations and offer a variety of covers, particularly for damage events through property and liability covers. The types of insurance coverage available to ports are best accessed through an insurance broker. The cover that is offered and the price or premium that is charged depends on how the insurance company assesses covered risks. As a risk transfer tool, insurance primarily comes into use because other risk mitigation techniques have failed. Insurers examine several port-related risk factors, including:
- Nautical services;
- Natural hazards;
- Property fire;
- Management and leadership;
- Maintenance;
- Contractor management;
- Environmental exposures and controls;
- Health and safety management;
- Contract management;
- Security;
- Ship-to-shore operations;
- Road and rail infrastructure;
- Cargo handling and business interruption.
Additional information about insurance risk transfer and insurance is available HERE.