Oil and Gas Insurance

Insurance covers are very important aspects to the oil and gas business environment because it is characterized by risk and uncertainty. Insurance plays a key role in mitigation of risks.

The oil and gas industry is constantly evolving and so are the exposures which range from drilling operations to service contractors to manufacturers of related parts and products, there are unique risks at every stage of the process. With so many years serving this industry, Travelers has developed the specialized expertise, products and services that can help oil and gas companies protect their employees, their physical assets, their balance sheets and ultimately their long term viability.

The oil and gas industry is an expansive and diverse space. Whether your company is upstream, midstream, downstream, transportation, or a provider of supporting services, we can help you find solutions for your unique situation. We take the time to thoroughly understand your company’s structure, operations, risks, and any contractual relationships like a Master Service Agreement (MSA).

We comprehend the subtleties of non-operated positions, the nuances of joint-operating agreements (JOAs), the complexities of environmental impacts and exposures associated with drilling operations, production, gathering systems, transportation and retail stores. This type of knowledge is integral to providing the best coverage and service possible in a complex insurance landscape.Businesses in the oil and gas industry face situations that require specialized insurance solutions. While, like other business, they need workers compensation insurance, general liability insurance, automobile insurance and property insurance, they also need policies that are specifically tailored to the equipment used for their business, potential environmental risks, and safety risks exclusive to their industry.

We comprehend the subtleties of non-operated positions, the nuances of joint-operating agreements (JOAs), the complexities of environmental impacts and exposures associated with drilling operations, production, gathering systems, transportation and retail stores. This type of knowledge is integral to providing the best coverage and service possible in a complex insurance landscape.  
The oil and gas industry is an expansive and diverse space. Whether your company is upstream, midstream, downstream, transportation, or a provider of supporting services, we can help you find solutions for your unique situation. We take the time to thoroughly understand your company’s structure, operations, risks, and any contractual relationships like a Master Service Agreement (MSA).

Oil and Gas Insurance Risks

Businesses in the oil and gas industry face situations that require specialized insurance solutions. While, like other business, they need workers compensation insurance, general liability insurance, automobile insurance and property insurance, they also need policies that are specifically tailored to the equipment used for their business, potential environmental risks, and safety risks exclusive to their industry.

Oil and Gas Equipment

The machinery, tools, and rigs used in the field cannot be covered by a standard automobile policy or property insurance policy. Instead, rigs and equipment coverage is necessary. These pieces of equipment are not only expensive to repair or replace, but it can devastate a business when they are out of commission. Insurance can provide replacement cost or agreed value in order to help the company get back on track as quickly as possible. 

Environmental Concerns

Environmental damage caused by a malfunction or error that results in a spill can be devastating to an oil and gas company as well as the area and population affected by the spill. With cleanup costs and the potential for lawsuits, self-insurance is not always a practical option. Oil and gas equipment coverage will cover some of the cleanup costs but additional liability protection through an umbrella policy may be necessary.

Fracking Industry Insurance (Hydraulic fracturing)

New drilling and energy industry technologies have led to increases in fracking operations all over the US. Hydraulic fracturing or “fracking” for short, is a method in which large quantities of water, chemicals, and sand are injected into gas-producing shell rock beds, creating fractures in the shale formations and allowing gas to be extracted. With these growing operations comes the necessary need for proper risk management. More specifically to fracking, the concerns come down to environmental coverages to prevent the toxic water to seep into local water supplies. Having a comprehensive liability insurance management plan for your fracking operation will give you peace of mind that you and the surrounding areas will be covered in case of an accident.

Safety Risks

Employees of oil and gas companies can be exposed to far more risks than employees of other businesses. Providing employees with the peace of mind of having accidental death and dismemberment coverage as well as workers compensation coverage will not only help to maintain employee satisfaction and motivation, it will also help protect your business from potential claims you could face when an employee is injured or experiences a fatality on the job.