Oil & Gas Insurance in Alberta
Your Energy Insurance Partner Every Step of the Way
Western Financial Group is an award-winning brokerage. We work with Canada’s leading insurance partners to get you the right coverage and
value.
Customized insurance for your Oil & Gas operation will help financially protect you from liability claims and minimize potential losses.
Our insurance expertise will benefit your business
Oil and Gas companies and contractors face specific risks like flammable gases, spills and leaks, explosions, and equipment problems.
Oil and Gas insurance is a specialized type of coverage in the energy sector in Alberta. It covers risks associted with exploration, drilling, production, refining, and distribution.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Oil & Gas company’s specific needs.
What is Oil & Gas insurance?
The oil and gas industry requires specific coverage to ensure compliance and minimize risk. Whether your business is international or services the Canadian market, it’s important to have the right insurance to protect your Oil and Gas operation.
Oilfield insurance covers property damage, injury, and damage to the environment. It provides coverage in case of an accident due to the harsh working conditions, chemicals and equipment that are part of the oil and gas industry.
What kind of risks does commercial general liability cover also called Wellhead Insurance?
- Injury to another person who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
What other insurance coverages can I get for my manufacturing business?
- Commercial Property Insurance
- Commercial Auto Insurance
- Tools & Equipment Insurance
- Mobile Property Insurance
- Pollution Liability Insurance
- Professional Liability Insurance
- Environmental Liability Insurance
- Business Interruption Insurance
- Directors & Officers Insurance
- Marine Insurance for offshore drilling rigs, supply vessels, and other maritime operations.
Key Componenets of Oil & Gas Insurance in Alberta:
Upstream Coverage: Protects against risks during exploration and production, including wellheads, well servicing operations, well blowouts, drilling accidents, and equipment failures.
Midstream Coverage: Covers transportation, storage, and processing of oil and gas, including risks associated with pipelines and storage facilities.
Downstream Coverage: Protects refining, marketing, and distribution operations, focusing on product quality, safety, and environmental concerns.
Contractor Insurance: Addresses unique risks faced by oil and gas contractors, including explosions, fires, and hazardous material exposure.
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FAQ's
What is Oil & Gas insurance in Alberta?
Oil & gas insurance helps protect companies in the exploration, production, transportation, refining, and support service segments of Alberta’s energy sector. Coverages can include property damage, liability, environmental incidents, equipment breakdowns, business interruption, pollution liability, and more.
How are premiums calculated for oil & gas insurance in Alberta?
Some of the main factors include:
- Nature of operations (drilling, production, transportation, refining, etc.)
- Value and age of equipment and infrastructure
- Claim history and past losses
- Location (remoteness, access, environmental sensitivity)
- Risk management practices (safety programs, maintenance, emergency response)
- Regulatory compliance and track record (especially with AER and environmental regulation)
- Extent of coverage, policy limits and deductibles selected.
Does insurance cover financial obligations associated with reclamation or well closure?
Insurance alone typically does not substitute for required financial assurance (bonds, performance security) under Alberta regulation. However, insurance can complement those obligations by covering liabilities arising from operations, environmental damage, or unexpected events. The government’s framework expects operators to demonstrate capacity to meet closure / reclamation obligations.
Who needs oil & gas insurance in Alberta?
This includes but is not limited to:
- Exploration firms and drilling companies
- Pipeline operators and transporters
- Oilfield service contractors (well servicing, wireline, excavation, etc.)
- Refiners and processing facilities
- Consultants and technical service providers in the oil & gas sector
Does oil & gas insurance cover subcontractors or third-party service providers?
Not automatically. Subcontractors and third-party service providers (e.g., drillers, welders, transporters) must typically carry their own insurance and provide proof of coverage, often naming the hiring oil & gas company as an additional insured.
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