Whether it is upstream, midstream, or downstream, the oil and gas industry hires more and more workers to meet the energy needs of a growing population. Operating in the industry extends far beyond just the companies that produce energy. The industry is faced with risks to equipment and property, environmental risks, as well as risks to worker health and safety, but there are various coverage options that can protect you.
What is Oil and Gas Insurance?
Oil and gas insurance is an insurance policy that covers any risk to property, human life, as well as the environment. Such insurance allows oil and gas companies to bear a portion of the liability if accidents arise.
What types of coverage should you be considering?
Several insurance coverage options are available to oil and gas operators that can offer coverage in case of environmental damage, damage to equipment, or even risks to human health posed by the operations of the industry.
These are some of the coverage options available to you.
Pollution legal liability and Environmental impairment liability
These are used for site specific coverages against claims made, usually for situations that are discovered after a considerable amount of time has passed.
Storage tank liability
This includes coverage for leaking storage tanks, whether above or below the ground.
Property and Equipment insurance
A simple property insurance or automobile insurance policy will not be able to cover the expensive equipment operated by oil and gas companies. Therefore, insurance needs to be taken out for rigs and other heavy duty equipment so that a great loss is not suffered in case an accident arises.
Physical damage coverages to property include onshore as well as offshore property damage.
Worker’s Compensation insurance
The oil and gas industry is a hazardous place for workers. This type of insurance along with several return to work programs for workers will increase the safety of workers and ensure that they are operating in healthy working environments.
Umbrella Liability Insurance
If there are any claims made that are over and above the limit of an insurance policy, the excess cost can be covered through the umbrella liability insurance.
Oil lease property coverage
This type of insurance offers coverage in case the petroleum storage tanks at certain locations are damaged.
Inland and ocean marine coverage
Inland marine insurance covers all onshore activities related to running an operation while ocean marine insurance covers losses resulting from equipment being transported by sea vessel.