Working with a specialist US broker, Miller’s energy and cargo teams recently placed energy all risks, business interruption and cargo stock throughput (STP) cover for the new owners of a plastic pellets manufacturing plant.
The new owners needed to continue the energy all-risks and business interruption policy that the previous owner placed through Miller, this was made particularly challenging because of their sensitivity to price and valuation, which was driven by their cut-price acquisition of the plant which had been mothballed as the previous owner was under chapter 11.
The reopening of the plant after a period of closure also presented challenges with markets because of the added risk associated with the plant’s operation following its reactivation.
Miller's Energy, power & natural resources
Having re-approached the insuring parties and successfully negotiated competitive terms, a further challenge arose. Close to inception a key insurer’s underwriting guidelines changed and we were forced to secure additional capacity at very short notice; a challenge we were able to meet.
An opportunity for Miller to cover the plant’s cargo stock throughput was also established during negotiations. Miller won this business as a result of competitive deductibles on inventory, and by combining stock and transit to sit in a single policy.
The placement also underlines Miller’s strong ‘one team’ culture and ability to provide a first-class service across multiple lines.