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Energy is one of the key sectors that keep the country going. It has many aspects and involves many industrial facilities, functional units and processes. All power plants and substations (generation, distribution and transformer substations) incorporate a large number of industrial facilities, functional units and processes. It is an industry where standard terms and conditions of coverage are simply inappropriate. Insurance policies must, on the contrary, be unique and tailored to each specific facility. Insurance professionals working in this area must adhere to particularly high standards. This is true for underwriters, who develop policies, and for loss settlement specialists, who must quickly and efficiently fulfill the obligations of the insurance company to the customer 

Almost all energy facilities are subject to a large number of technological risks. The presence of large amounts of flammable substances such as fuels or lubricants, on the one hand, and heat sources on the other hand, cause an increased risk of fire. Equipment with moving parts, some of which rotate at high speed, are subject to failure and have the potential to damage surrounding property, etc. All of this may apply more or less to various energy facilities, but risk factors are often not obvious or are not assessed properly, though the consequences may be catastrophic. It is enough to recall the recent infamous accident at one of Russia’s one-of-a-kind hydropower facilities. Insurance cannot replace a comprehensive risk-management system designed to reduce all risks to a minimum, but it is certainly one of the very few ways to obtain compensation for material losses when accidents do occur. 

Thus, AIG’ comprehensive approach to energy facility insurance includes the following basic insurance programs against power industry risks:

  • Insurance of property against named risks, when only events listed in the contract are insured, or All Risk, when all risks not expressly excluded by the insurance contract are covered. This part of the policy is designed to protect against such risks as fire, explosion, action of water, natural disasters, etc.
  • Insurance of machinery and equipment from damage. This includes errors in equipment design or installation, overheating, power supply disruptions, human error, etc.
  • Insurance against business interruption. This means financial loss caused by partial or full stoppage of the enterprise as a result of events insured under the previous two sections

In addition to the standard coverage, the power facility insurance program can include a variety of additions and extensions, such as, for example, compensation for the costs of providing access to damaged property, clearing debris and rubble, automatic protection of small repair or construction/erection projects, etc. 

We believe that liability insurance should be of particular interest to power companies because of the significant harm to third parties and the surrounding area that can result from an accident at a power facility. You can also obtain coverage of damage to third parties (recipients of electric power for production purposes) as a result of accidents (fire, explosion, etc.) at the insured facility. 

In January 2012, all companies within the industry became subject to Federal Law No. 225 governing Compulsory Liability Insurance of Owners of Hazardous Facilities. AIG has a license for this type of insurance and our experts are ready to provide any advice on this matter.

All Risk Property Insurance

All-risk corporate property insurance is the best way to protect property against a multitude of adverse events. The client is insured against any type of events, except for exclusions specified in the policy. The list of exclusions is governed by the insurance rules and the policy.

Cargo Insurance

The steadily growing international trade volumes and the increasing number of companies tapping into the global market require the cargo owners’ scrupulous attention not only to the scope of coverage, but also to the quality of services rendered by an insurance company. In cargo insurance, the quality of claims settlement is the key indicator of the insurer’s performance.

Crime Insurance

It can be hard to accept that your own staff might be stealing from you. Unfortunately, the truth is that it may be the most trusted and senior staff who have the knowledge to skirt round security and set up insidious, well-concealed fraud systems.

Damage to Machinery

The insurance covers internal damage of production and electronic machinery. Extra Expense coverage (clean-up and removal of debris after the insured event, the payment service provider of professional experts, limiting In/Out, etc.).

Directors Liability Insurance SME

Directors and Officers (D&O) insurance provides coverage to small and medium business leaders against claims made against its directors and officers as well as against the company in connection with financial losses alleged by: •Companies •Shareholders, employees •Other third parties (including competitors’ clients, etc.)

Fire & Named Perils Insurance

Insurance of property owned by legal entities is a basic type of insurance. Nevertheless, long-time experience of AIG in property insurance makes us confident in our services and programs offered to clients with consideration for all details of their business and specifics of their assets.

Liability Insurance of Owners of Hazardous Facilities

Liability Insurance of Owners of Hazardous Facilities. AIG, JSC is a member of the National Union of Liability Insurers. AIG, JSC was granted a license for the provision of compulsory liability insurance to owners of hazardous facilities. Our underwriters are ready to consult on and assist in concluding compulsory liability insurance contracts

Loss Control Services

Fire, explosion and other perils such as water damage, windstorm and earthquake can cause serious property damage. These events pose a threat to structures, equipment, business continuity, and, most importantly, the lives of employees and the general public. Property site inspections by insurers are routinely conducted as part of insurance programs.

Professional Indemnity Insurance

Professional indemnity insurance is especially important for the companies providing contracting and consulting services in different areas, as it offers protection against financial losses that may result from lawful liability to a third party

Business Interruption Insurance

Business interruption insurance is not sold as a standalone policy. It can be added to a property insurance policy. The main objective of coverage is to protect the financial stability of the client during the suspension of business operations resulting from any unforeseeable property damage.

Construction Risks

Construction & Erection All Risk Insurance offers a comprehensive and flexible solution in protection of financial interests of all those who are involved in the project. This type of insurance embraces different facets of construction and associated risks, offering standard programs that provide coverage for any tangible damage caused to completed work as well as programs addressing more specific requirements such as Advance Loss of Profit insurance available to investors.

CyberEdge Insurance

Cyber threats can have serious consequences. Risks range from loss of information on a single laptop to threats posed by cloud computing. Businesses may also face issues regarding denial of service or defacement and disruption to their web presence.

Directors and Officers Liability Insurance

AIG is the D&O market leader in Russia, having unrivalled experience in this field/ •Any breach of duties, mismanagement, negligence, omission, error, misstatement or misleading statement by the director or any officer. Coverage against: •Any actions performed by the director as part of his or her regularly assigned duties •Any duties performed by the director or any other officer while serving at an outside entity

Employer's Liability Insurance

Employers liability insurance against damage suffered by employees. Employer’s liability insurance protects the property interests of the employer against claims of bodily injury, fatal illness or illness of employees as well as property damage to employees in the course of performing their duties under an employment

General Liability Insurance

This type of insurance protects the insured’s property interests connected with its obligations arising due to infliction of harm to third parties

Liability Insurance for Producers and Contractors and Service Providers

Insurance of general civil liability for the goods produced, work performed, services rendered. Liability Insurance for Producers, Contractors and Service Providers

Professional Indemnity Insurance

Professional indemnity insurance is especially important for the companies providing contracting and consulting services in different areas, as it offers protection against financial losses that may result from lawful liability to a third party

Terrorism Insurance

AIG offers insurance of property against the risk of Terrorism. Our capacities allow underwriting insurance against the largest risks with the benefit of reinsurance on the international market. Besides traditional types of insurance, AIG offers special types of insurance in Russia such as against crisis situations. AIG CJSC offers terrorism insurance under a separate classification. AIG insures property against terrorism.