3 RISK FACTORS, INTERNAL CONTROL AND INSURANCE - Insurance
3.3 Insurance In order to offset the financial consequences of a risk, the Group has taken out several insurance policies. The main policies cover both property damage and operating losses, and civil liability. Specific policies have also been put in place for the Group’s newly-developed businesses.
Lastly, the Group has also taken out a policy covering its Senior Managers’ civil liability, as well as Pecuniary Losses. Insurance programs are taken out with leading international insurers and reinsurers. The Group believe s t hat t he se are appropriate to the potential risks related
to its businesses. Nevertheless, the Group cannot guarantee, in the event of a claim, in particular of an environmental nature, that all of the financial consequences would be covered by the insurers. Nor can the Group also guarantee that it will not suffer any losses that are uninsured.
3.3.1 RUBIS ÉNERGIE
(DISTRIBUTION/SUPPORT AND SERVICES)
126.96.36.199 CIVIL LIABILITY The Rubis Énergie master program covers Operations civil liability and Post-delivery civil liability. The guarantee is €150 million per claim, all damages combined. It was renewed with the same insurers. Due to local law, subsidiaries operating outside the European Union have taken out frontline civil liability insurance with a local insurer. The master program is used to fill any gaps under local policies. The Rubis Énergie master Environmental Damage civil liability policy was renewed for 2 years in January 2018. Compensation is capped at €20 million per claim, covering env ironment al liabili t y, damage to biodiversity and clean-up costs. SARA, due to its refining operations, is the subject of specific cover outside the master program, in a total amount of €20 million. A second Excess line was therefore taken out to complement the Master Group policy and that of SARA, in an amount of €20 million. Global Aviation civil liability cover taken out by Rubis Énergie for its subsidiaries distributing aviation fuel has been renewed under the same conditions in the amount of
The main global programs have been renewed with leading insurers.
$1 billion for risks related to damage caused to third parties during refueling.
188.8.131.52 SHIPPING Charterer civil liability insurance has been taken out with a P&I Club belonging to the International Group, with guarantees of $500 million and $1 billion for pollution for all Rubis Énergie subsidiaries. The five ship- owning companies are covered by the same P&I Club belonging to the International Group, for their civil liability. Group Master Cargo insurance has been renewed to cover damage to goods, capped at $60 million for all of Rubis Énergie’s subsidiaries. Since January 1, 2019, hull insurance has been in place with a French insurer to cover the value of the vessels. 184.108.40.206 OTHER RISKS On January 1, 2019, Political Risk cover (excluding the mandator y pool) was subscribed in the amount of €80 million. In 2019, a Cyber policy was set up for European countries subject to the GDPR, including Switzerland.
DAMAGE AND BUSINESS INTERRUPTION
The “All Risks Except” policy, renegotiated for implementation on January 1, 2018 with the inclusion of all sites, was subscribed for a period of 2 years. The Damages guarantee in the event of fire and similar events provides compensation in the amounts of €200 million per claim for terminals and €15 million per claim for gas stations. The ceiling was calculated on the basis of the maximum amount of possible loss. Our exposure to natural events, particularly in the Caribbean, is covered in the amount of €100 million per claim and per event. Due to local law, subsidiaries operating outside the European Union have taken out front-line property damage insurance with local firms, with Rubis Énergie’s master policy filling any gaps.