Any company in the oil and gas industry deals with a high-value, high-liability commodity. In the event of any interruption in the process—cyberattack, property damage, theft, injuries or more disastrous occurrences—the business has a risk of experiencing major financial setbacks. As a result, it’s imperative to have robust, far-reaching and customized commercial insurance benefits.
One critical element of coverage your enterprise needs is liability coverage, which is designed to cover the business if its mistakes or negligence harm others. Still, to get the full range of liability benefits that are right for you, you may need several different benefits.
Consider the essential liability benefits you should add to your oil and gas business’s commercial insurance portfolio.
General Liability Insurance
A general liability policy is designed to cover you against claims of property damage or injuries caused to third parties. This coverage can be customized to the needs of oil and gas businesses, which face specified risks associated with their operations.
For example, if an explosion on your drill site damages a property nearby, the property owner might sue you for damages. Or, if a visitor to your site slips and falls, then they might sue you to cover their medical bills. Under these and other circumstances, your general liability insurance can help you pay the necessary settlement costs and defend your company throughout the legal proceedings.
Pollution and Environmental Damage Liability Insurance
Oil and gas businesses are well aware of the environmental risks posed by their operations, and most must follow strict protocols to keep spill and emission risks low. However, should accidents occur—which they can at any time—then the business might be responsible for the resulting costs. These might include costs of cleanup, regulator fines and settlements owed to others whose property was affected by the issue.
Commercial Umbrella Liability Insurance
Your general liability insurance and other policies like your professional liability, pollution liability, and commercial auto liability insurance will have limits attached. However, if a claim were to exceed these limits, you shouldn’t have to face the prospect of paying the remaining settlement costs out of pocket. In this case, commercial umbrella insurance can provide the additional coverage necessary to settle the claim. An umbrella plan can extend to multiple existing liability policies simultaneously, which is often very cost-effective.
When putting together your company’s liability insurance portfolio, you can rely on us to provide you with the perfect balance of benefits and value. Given the unique liabilities associated with the oil and gas industry, we know how to make the adjustments necessary to create your comprehensive benefits.