ABSTRACT
The insurance sector has played a pivotal role in the growth of the oil industry by providing the capacity to cover the huge capital expenditure associated with offshore drilling. Insurance products designed for the offshore sector have been readily available in the London market since the 1950s. Given the fact that marine insurance is arguably the most historic form of commercial insurance, it is understandable why offshore energy insurance has been based upon standard marine insurance policies, especially in the early days. This practice continues today to a certain extent, and standard hull clauses are often employed to insure offshore drilling units and other offshore equipment and craft, such as Floating Production, Storage and Offshore (FPSO) vessels.
