Types of Insurance for the Oil and Gas Industry
Risk is inherent to the oil and gas industry, so managing risk should be your priority. With the right insurance in place, you could prevent issues from causing excessive downtime. Trust in the professionals at InSource to help you.
An Introduction to Oil and Gas Insurance
The oil service industry is extremely diverse and is comprised of a variety of businesses, including onshore and offshore, up-stream and down-stream, operators, drilling contractors, well servicing, pipeline, and trucking and manufacturing to name a few. Although all of these operations are part of the same industry, each specific business has its own set of risks and potential losses that need to be identified and addressed. Our vast experience in working with energy related companies has helped us to become experts in insuring the industry specific risks. You can trust our team to provide reliable products and professional service that your oil field business can depend on.
In oil field businesses, there are many serious risks to both businesses and employees. It is our goal to protect your company from the injuries, fines, and expenses that are prevalent in this line of business. Our team members will begin the process by examining your company’s current policies and practices. This allows us to pinpoint every opportunity for improvement. We will work alongside your team to ensure you have a proper risk management plan then begin customizing insurance policies to protect you from these risks.
Essential Types of Insurance for the Oil and Gas Industry
Insurance can help businesses in the oil and gas industry with unexpected expenses caused by various things, such as accidents or professional mistakes. These companies include national oil companies, refining companies, chemical companies, and mining companies. There are different types of insurance available, and you pay them every month or every year, depending on your contract with the provider. The coverage will be a huge convenience because the expenses incurred by situations that are covered by the policy will not be coming out of your pocket or the company’s budget. Insurance for a business will give peace of mind, and protection from unforeseen expenses. Here are the essential types of insurance that you should get for your small business.
1. General Liability Insurance
It covers expenses due to accidents in the workplace that may cause injury to others or could cause damage to their properties. For example, someone falls because of a slippery floor that causes injury to the person. This insurance will cover the medical expenses that you may need to personally pay for if you are not covered. It also includes slander and libel claims. For instance, if your press release or advertisement caused damage to another business, they could take legal action for that, and this insurance would protect you from the costs.
2. Professional Liability Insurance
This type of insurance is also called errors and omissions insurance. It covers damages that could be a result of your mistake or that of your employees. For example, your company read a land survey for investors with regards to its drilling feasibility. If you made a mistake in reading the said land survey and advised that it is feasible for drilling, although it is not, it could turn ugly in the end. The investors could spend millions on drilling and not get anything from it. They could sue you for your mistake, but professional liability insurance can cover you for that.
3. Commercial Property Insurance
It will cover the physical property of your business from loss caused by those events under the policy like theft and fire. You will get help with the repair or replacement of your company’s building, furniture, inventory, tools, and equipment.
4. Worker’s Compensation Insurance
Accidents can happen anytime. They could cause injury or worse, even death of employees. It’s compulsory for many states, although some don’t regulate it. Even if it’s not required, it’s still something that you should not miss because it will compensate your employees, and it will also save your company from shouldering the expenses. It could pay for the medical expenses of the victim, coverage for lost wages, disability benefits, and funeral costs.
5. Pollution & Environmental Liability Insurance
Companies in the oil and gas industry must get this type of insurance because they are at risk of spills that could cause pollution or damage to the environment. General liability does not cover this, which is why you should not miss it. Some of the things that it covers are clean-up and legal costs in case of exposure.
You can do something to prevent accidents and mistakes that could cause damage, injuries, and unwanted expenses. However, there is still a chance that they could happen, so better protect your company by getting the essential types of oil and gas business insurance listed above.
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