In Alberta, the oil and gas industry works in particularly difficult conditions and with potentially dangerous equipment. Most other industries don’t face the same challenges on a day-to-day basis. These conditions lead to an increased risk of harm to expensive equipment, to the environment, and to the people working on a job site. This means oil and gas business owners need an insurance policy that covers more than just the basics.
Oil and gas contractors need insurance policies that cover them for their unique risks. Fortunately, oil and gas insurance covers your company in case of any property damage, environmental harm, or risk of bodily injury. Insurance companies understand the oil industry is growing and changing. With this growth, there’s a need for greater risk management. Insurance brokers are able to create more comprehensive insurance solutions that work for your company’s unique needs.
General Liability Insurance
General liability is necessary for any company. Oil and gas contractors’ insurance policies are sure to include general liability protection. Your liability coverage protects you, your employees, your equipment, and your business from any damage to personal property or any bodily harm. Make sure your business has commercial general liability insurance; it will protect you in the long run.
Environmental Insurance Coverage
One of the biggest risks oil and gas companies face is in environmental challenges. Many oil and gas contractors insure themselves against the threat of environmental damage. We often hear about oil spills in the news and it’s important for your company to be covered. An insurance policy that covers environmental accidents will protect you in case your work causes any environmental damage.
Oil fields have a lot of moving parts... and a lot of moving vehicles. You need a comprehensive auto insurance policy that covers both your vehicles and your drivers. Similar to any company working with a fleet of vehicles and a range of different drivers, you’ll need a commercial auto insurance policy that covers your vehicles and workers during transportation and in case of an accident.
If you’re in oil and gas, you probably have a lot of high value equipment involved in your business. Consider how costly it would be if one of your rigs was damaged or stolen and you had to fix or replace the equipment to remain operational. Instead of paying out of pocket, make sure you have an insurance policy that covers it. A solid property insurance plan will help protect your equipment, buildings, and other assets.
Oil and gas also require some unique coverage options, depending on what exactly gets done in the business. Some other common insurance coverage gas and oil field companies may require are:
- Well Control
- Pollution (may be included with environmental coverage)
- Inland Marine
- Directors and Officers Liability
- Cyber Liability
- Excess Liability (above and beyond general liability)
In Alberta, contractor insurance is common, but not all of these policies may be necessary for your business. Or, you may require coverage above and beyond what’s listed here. At a brokerage like Cornerstone Insurance, your broker should ask you some questions to determine which of these policies you need.
Oil field service contractors have to ensure they’re protected in case any issues arise. Sit down for an in-depth analysis of your needs and risks with an oil and gas insurance expert at Cornerstone Insurance. We can create a business insurance solution that works harder for you.
Posted on Fri, December 28, 2018
by Karim Mouait