Oil and Gas Insurance

Wednesday, November 28, 2012

Oil and gas is a very extensive area in terms of insurance. There are no two oil and gas companies that are exactly the same when it comes to the calculation and determination of its operational risks. In this way therefore, oil and gas insurance policies need to factor in risk management and coverage issues, and should be written out clearly by the company requiring the coverage. The oil and gas industry comprises many different business units that work closely to deliver results in a variety of ways. These units may include pipelines, pumping bases, tank systems, well management processes, processing plants and many more.

It is therefore imperative that policies reflect the risk associated to the task and unit.  Insurance companies must consider this risk and insure companies as comprehensively as possible. This critical analysis is crucial in making sure the company is insured to its’ maximum risk potential.

Oil and gas sectors can benefit from several insurance liabilities coverage areas. These ones may include covering against bodily injury, protection against property damage, medical expenses, personal injuries and many other protection plans. Most insurance companies seeking to insure oil and gas companies also include the protection against pollution claims as well as third-party claims from other individuals or companies.

Oil and gas insurance is therefore complex and relies on very many factors. It is also very difficult to make sure all risks have been taken into account and insurance policies cover the full spectrum of what is needed.  

Oil and gas companies need to look for insurance providers that will design a comprehensive policy that will protect various aspects of business operations – from property insurance, liability insurance to business interruption insurance.