In complex industrial environments, an unexpected shutdown can have a lasting impact on a company’s performance: Production disruption, pressure on cash flow, contractual exposure, and logistical disorganisation.
Effective risk management does not rely solely on the existence of an insurance policy but on the structured anticipation of critical scenarios.
A major industrial incident and its strategic management by OLEA
A cement group operating in Sub-Saharan Africa experienced the sudden failure of its main silo, a central asset within its industrial operations.
The incident resulted in a partial production shutdown, lasting more than a month, leading to significant business interruption losses and exposure to potential contractual penalties.
Prior to the incident, OLEA conducted a comprehensive review of the site’s risk exposures and identified major shutdown scenarios. This analysis enabled the structuring of an insurance program aligned with the company’s actual operational vulnerabilities.
In-depth risk analysis to design the insurance program
The revision of the insurance program went beyond a simple adjustment of cover limits. It was based on:
- Identification of critical assets and operational dependencies
- Assessment of the financial impact of a prolonged shutdown
- Analysis of the group’s contractual commitments
On this basis, OLEA strengthened the protection framework around major interruption scenarios through:
- A business interruption cover, calibrated to reflect actual financial exposure
- A Liability policy tailored to the group’s operations
- An advance payment mechanism negotiated in advance to secure cash flow in the event of a significant loss
This prior structuring proved critical at the time of the incident.
A rapid and coordinated response during the incident
When the failure occurred, the pre-established procedures were activated immediately.
OLEA’s teams coordinated:
- The mobilisation of experts, insurers and operational teams
- The technical and financial documentation of losses
- The monitoring of reinstatement operations
- The activation of the advance payment mechanism
The objective was twofold: To accelerate the claims’ handling process and to safeguard financial flows during the shutdown period.
Tangible outcomes for the company
The client obtained €1.5 million in indemnification in less than three months, supported by ongoing technical guidance and structured claims’ management through to the final settlement.
Beyond the financial compensation, the company was able to preserve its financial stability and organise the resumption of operations under controlled conditions.
This example illustrates OLEA’s approach: Implementing insurance solutions tailored to potential major disruptions and supporting companies through to the full resolution of the claim.
To learn more about our risk management solutions tailored to your business: enquiries@olea.africa