RISK MITIGATION AND BUSINESS CONTINUITY: AN EXAMINATION OF THE ROLE OF INSURANCE COMPANIES IN SUPPORTING PETROLEUM MARKETERS IN NIGERIA

Abstract

The petroleum marketing industry in Nigeria is highly exposed to operational, financial, and environmental risks that often disrupt business continuity and sustainability. This study examined the role of insurance companies in supporting petroleum marketers in mitigating these risks and ensuring continuity of operations. A descriptive survey design was adopted, and data were collected from petroleum marketers across selected states in Nigeria. Using multiple regression techniques, the study tested the influence of insurance support on risk management and business continuity. Findings revealed that insurance companies significantly contribute to the management of operational, financial, and environmental risks, thereby strengthening the resilience of petroleum marketers. However, challenges such as low insurance penetration, inadequate awareness, and poor claims management were identified as barriers to effective risk coverage. The study concludes that insurance is a vital mechanism for sustaining petroleum marketing businesses and recommends the development of tailored products, regulatory enforcement, and technological innovations to enhance service delivery and adoption.