Oil & Gas
Oil & Gas
In the high-stakes world of oil and gas contracting, specialized insurance is not just a requirement, it’s a cornerstone of business stability. The nature of work in this sector is inherently risky, with potential hazards ranging from equipment malfunctions to environmental incidents. Our specialized insurance program for oil and gas contractors is designed to address these unique industry risks. It provides comprehensive coverage that spans from on-site accidents to liability issues, ensuring that your operations, employees, and financial assets are safeguarded. This insurance is more than a safety net; it’s a strategic tool that enhances your credibility and trust with clients, ensuring that you can focus on the critical task of energy production and exploration without the looming worry of unforeseen liabilities. In an industry where safety and reliability are paramount, our insurance program stands as a pillar of protection and confidence for your business.
Pollution Insurance
is a necessary coverage because CGL policies typically exclude pollution events. Under the terms of pollution coverage, the incident that leads to an environmental loss
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must be “sudden and accidental” and must be detected within a certain timeframe. This coverage generally does not pay for cleanup costs. Specific pollution insurance coverages often cover operators from gradual environmental incidents; coverages include:
Pollution Legal Liability (PLL)
or environmental impairment liability (EIL), which are site-specific coverages written on a claims-made basis. Incidents that are gradual in nature and take a long time to
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discover, such as a small pipeline leak, may trigger a claim. If an operator knows the exact point at which the incident occurred,it is usually not covered under a PLL/EIL policy.
Contractors Pollution Liability (CPL)
insurance, which covers oil and gas contractors against claims from third-party bodily injury, property damage, cleanup costs and/or
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environmental damage due to their work on a worksite.
Storage Tank Liability (STL)
which covers damage from leaking storage tanks, whether they are above- or below-ground.
Control of Well Insurance
(also may be known as operators extra expense (OEE)), which covers expenses incurred in regaining control of a well after cratering or blowout. Additionally,
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endorsements may be added to this policy to cover pollution, equipment malfunction (such as casing damage), evacuation costs and damage to the property as a result of the cratering or blowout.
Oil Lease Property (OLP)
coverage, which covers a loss or damage to petroleum storage tanks at scheduled locations.
Riggers Legal Liability
coverage, which insures oil contractors when handling a worksite’s equipment. For example, this coverage would cover damage to a wellhead during installation by
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a contractor. A standard CGL policy would not cover such an event.
Rig & Equipment Physical Damage
coverages, which will protect much of the equipment used on a worksite from theft, breakdown and weather events, such as
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hurricanes and tornadoes. These coverages are often written with business interruption coverage, which replaces income lost due to a loss of production. Specific types of physical damage coverage include the following:
- Onshore production property damage
- Offshore platform and pipeline damage
- Onshore and offshore construction
- Drilling rig physical damage
- Terrorism
- Marine cargo insurance and hull
- Physical damage
Workers Compensation
Workers in the oil and gas extraction industry face many more health hazards than the average worker, so it’s important that
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employers have robust workers’ compensation and return to work programs to keep workers safe and healthy. In addition to these programs, providing worker training and implementing various safety measures will minimize the number of days your employees are away from work.
Training should focus on the following oil and gas safety hazards:
- Struck-by/caught-in incidents
- Falls
- Explosions and fires
- Confined spaces
- Ergonomic issues
- Machine hazards
- Hot work
Training should also focus on the following health hazards:
- Hydrogen sulfide
- Silica
- Noise
- Diesel particulate matter
- Hazardous materials
- Fatigue
- Extreme temperatures
- Remember that you must provide the proper personal protection equipment (PPE) for the job.
- When employing contractors to work at your site, it is important to make sure both parties are fully insured. Carefully scrutinize all contracts and joint operating agreements. If a joint operating agreement requires each party to carry $1 million coverage, agree to split the amount if the claim is in excess of $1 million.
Umbrella Liability
will cover excess costs over the policy limit associated with a claim. This type of coverage has become more restrictive in the past decade.
Professional Liability
is important for the development of a drilling site, including exploration, well design, testing and decommissioning. This coverage
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will pay for bodily injury and property damage, along with pollution incidents arising from these professional services.
Inland Marine Coverage
covers onshore activities associated with running an operation, including transportation of equipment and other moveable
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parts. Similarly, ocean marine coverage will pay for damage and losses due to transportation of equipment via sea vessel.
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Don't wait before it's too late by calling our insurance agency today for business insurance. We're honored to provide our brand of outstanding service to large and small businesses throughout Texas.
Address
2219 Sawdust Road, Suite 501
Spring, TX 77380
Phone
(281) 751-6580
