By Andrea Rumbaugh
Houston Chronicle
As the energy industry evolves, so do the risks that insurance companies cover, said Jeremy Palmer, director and senior loss adjuster for Braemar Adjusting.
Newer areas for companies to cover include shale gas, wind turbines and transporting oil by railroads, he said at the Independent Insurance Agents of Houston Energy Symposium.
Of oil by rail, he said: “Does this look better than an underground pipeline to you from a risk perspective?”
In a pipeline accident, he said, one section can be isolated and the oil flow can be reduced. Rail accidents, he said, can be much more catastrophic.
With a burst of onshore activity, including that in U.S. shale plays, insurers can expect to see claims filed for losses related to pipelines, refineries, turbines, trucking and drilling equipment.
He said one pipeline company had noted that 41 percent U.S. oil pipelines were built in the 1950’s and 1960’s. As such, insurance companies may face more pipeline claims going forward.
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