Western Offers Specialized Insurance for the Oil and Gas Industry
Justin Finlay is an account executive, Business Insurance, at Western Financial Group. He’s based in Cochrane, Alberta, and he’s an expert in insurance for the oil and gas industry.
Justin answers our questions about insurance for oil and gas businesses and workers and tells us how Western is able to find the best coverage options for our clients in the oilfield industry.
What is oilfield insurance?
Oilfield insurance is a specialized coverage designed to protect businesses and workers in the oil and gas industry. With the high risks associated with drilling, explorations and transportation, oil and gas insurance helps protect against financial losses from accidents, environmental damage, and liability claims.
What’s the Western advantage for oilfield insurance?
As one of Canada’s largest insurance brokerages, Western Financial Group has access to numerous insurance carriers, enabling us to find the best coverage options for our clients in the oilfield industry. Western also has resources that allow for outreach between colleagues to share knowledge of products and other valuable information.
What’s in an oilfield insurance package? Are there any unique coverages provided?
An oilfield insurance package is designed to address risks specific to the oil and gas industry. Packages are created by insurance carriers based on common coverages normally requested in the industry. Common coverages include General Liability Insurance, Pollution Liability Insurance, Equipment and Property Insurance, and Errors and Omissions Liability Insurance. Specific limits for liability insurance and other coverages will vary based on the specific oil and gas company or worker.
How important are the liability coverages in oil and gas insurance?
Liability coverages are necessary in the oil and gas industry, with many different factors in play such as regulatory compliance, environmental risks, operational risks, contractional obligations, and financial protection for you and your business. As a business owner in the oil and gas industry, it is necessary that you protect you and your business from these exposures.
What types of workers and businesses need oil and gas insurance?
Each segment of the oil and gas industry brings unique risks that make it necessary for insurance coverages to protect workers, businesses, and assets. These types include but are not limited to rig workers, technicians and engineers, transportation businesses in the oil and gas industry, field workers, exploration and production companies, drilling contractors, oilfield service companies, refineries and processing plants, and pipeline operators.
Whether you are an employee or a business owner in the oil and gas industry, you need to make sure that you have the proper insurance to protect you financially.
What is meant by wellhead insurance? What is a wellhead?
Wellhead insurance refers to liability coverage for oil and gas operations. It is a term used by many contractors in the oil and gas industry when they are inquiring about liability insurance for their operations. It is important to get a broader description of operations from clients requesting “wellhead insurance” to make sure any gaps in coverage are eliminated.
A wellhead is a critical component of an oil or gas well, serving as the structural foundation and termination point of the well. A wellhead is located at the surface and encompasses various equipment that controls the flow of oil or gas from the reservoir.
What factors affect oilfield insurance costs?
Several factors influence insurance premium costs for oilfield insurance, including location of the oilfield, type of operations being performed (drilling, exploration, production), size of the operations, safety and risk management practices, claims history, type of insurance coverages being requested, industry regulations, market conditions, environmental risks, and contractual obligations.
Do oil and gas businesses need business interruption insurance?
Yes, all eligible oil and gas businesses should have business interruption insurance coverage. Business interruption insurance is a valuable component of a comprehensive risk management strategy for oil and gas companies, helping to safeguard against financial loss during operational disruptions. Business interruption provides protection against revenue loss, allowing operational continuity for your business operations during disruptions and ensuring that they can continue to pay employees, cover other expenses and meet contractual obligations.
