Insurance Related Services
Purvin & Gertz works with adjusting firms and insureds to help prepare claims for submission and assist with the claims resolution process in the Oil, Gas, Power, Petrochemicals and Pipeline sectors. We provide litigation support for our clients, including the presentation of expert testimony.
Property Asset Valuation
Purvin & Gertz has a substantial background and experience in analyzing the performance of energy-related businesses. In addition to future earnings-based asset valuations, Purvin & Gertz provides asset valuations using cost-based methodologies for a variety of purposes including ad valorem tax and insurance purposes. Replacement costs of facilities are estimated using a mix of methodologies. For refinery and certain petrochemical process units, Purvin & Gertz has developed and maintains a replacement cost estimating model to estimate replacement costs for individual process units and process complexes. For portions of process facilities, more specialized or unique assets or process support equipment, replacement costs are estimated using detailed cost estimation techniques. In these situations, Purvin & Gertz utilizes ICARUS(TM) software to provide a detailed equipment-specific estimate.
Purvin & Gertz performs cost-based asset valuations using a proprietary methodology called the depreciated replacement value (DRV), which provides the asset replacement cost modified to reflect ongoing capital spending requirements to keep a facility in proper operating condition. While these studies normally relate to insurance applications, they have also been performed for ad valorem tax purposes, as well as establishing book value allocation after mergers or acquisitions.
Business Interruption Valuation
Purvin & Gertz provides accurate and defensible pricing information critical for support of business interruption valuations. Our staff has both real world experience and detailed knowledge of the energy markets throughout the world. As the industry leader in energy market analysis, with extensive experience in analyzing the technical, commercial and economic aspects of the downstream oil, gas and natural gas liquids industry, we can develop or assess the impacted cash flow for business interruption loss evaluation.
The firm publishes a variety of recurring analysis reports, including the Global Petroleum Market Outlook and short-term market reports for crude oil, petroleum products, LPG and natural gas. This knowledge base combined with our proprietary and PIMS(TM) refinery linear programming capabilities puts us in a unique position to assist clients in assessing contingent and business interruption losses.
Loss Root Cause Analysis
Purvin & Gertz staff has many years of operations experience and a thorough understanding of engineering best practices and process safety management. As a result, we can make an independent assessment of the proximate cause of a loss. We use standard techniques and analysis to conduct root cause analysis of losses.
Recent Insurance Related Experience
- Assisted an insurance adjuster in assessing the claims for a major U.S. Gulf Coast refinery damaged by hurricane Katrina.
- Provide annual updates of the insurance replacement costs for four U.S. refineries for a major U.S. refining and marketing company.
- Developed DRV and full cost replacement value for major Canadian oil company's network of refineries and gas processing plants.
- Provided DRV for gas plant loss for an insurance adjuster.
- Developed Maximum Foreseeable Loss for a large California refinery.
- Determined root cause of loss for a California gas plant.
- Provided litigation support and expert testimony in business interruption and property value of delayed coker destroyed by fire.
- Provided expert assistance for underwriter on large Natural Gas Liquids loss.
- Assessed property damage and business interruption loss resulting from a refinery power failure.
- Reviewed business interruption claim made by a petroleum refinery for losses resulting from natural gas supply interruption.
- Provided replacement cost estimate of a coke-fired cogeneration plant for a major utility.
- Analyzed physical damage and business interruption claims related to a large explosion at an oil terminal.
- Determined the replacement cost of refining, petrochemical and lube assets owned by a Middle Eastern government to assist in establishing appropriate insurable values of the assets.