Category: Business Insurance

Oil and gas businesses occupy a lot of unique properties, from rigs to refineries. However, most also occupy standard office space in some capacity. This space, like all the rest, will pose liability risks to your customers. Though you might focus on insuring the liabilities of high-risk areas, you must also do so for spaces like your office. You can often start obtaining coverage through a general liability insurance policy. What’s this coverage? Why is it so important to carry this coverage?

Your goal is to protect your business from the inside out, and the outside in. Give your office the same liability treatment as you would any other type of property in your care.

Liability Risks Within Oil and Gas Offices

You might not think that your corporate offices are high risk areas. Compared to a drill site, or a storage facility, they might not be. However, these properties pose risks in and of themselves. There’s always a chance someone could sustain harm just by visiting your offices.

For example, a buyer might simply visit the office to sign papers and go over finances. However, they might fall in the lobby because of a wrinkled carpet. Their injuries could prove serious. They could lead to costly medical bills, time off work and lost income. Given the costs to the victim, the company might have an obligation to compensate them. That’s where a liability policy might come in handy.

General liability insurance can help customers harmed through their interactions with your business. In the above situation, your policy might help the harmed party pay for their injury costs. Since the fall happened within your offices, the blame might fall on you.

Getting the Right General Liability Coverage

Liability coverage will vary based on the property you plan to insure. If you only want to insure an office building, you’ll likely need to start with:

• Property damage liability coverage to insure harm you cause to other parties’ belongings.
• Bodily injury coverage for physical harm clients sustain in and around the property.

Often, you can get office coverage within a Business Owners Policy. This is a policy package that contains many standard elements of commercial insurance. However, given that your oil and gas business is often multi-faceted (and has multiple locations), you’ll often need more than just a standard BOP. Your insurance agent can guide you in selecting more appropriate liability coverage.

You’ll often have policies to protect liabilities both inside your offices and at other sites. Keep in mind, you might need multiple liability policies, however. Make sure your agent understands the nature of your property ownership and occupancy.

Oil and gas industry operators deal with an expensive and dangerous commodity. As a result, they’ve got to do what they can to keep accident risks low. Proper risk management, therefore, must play into standard operating procedure. Why is this important? What are some of the things you can do in your business to make it safer?

At the end of the day, the oil industry remains tightly regulated. Therefore, you’ll need to meet all minimum standards to keep operating within safe means. Engage in risk prevention and carry insurance to make the most of your protection.

Risk Management Equals Less Money Lost

If an accident like a fire or spill, impacts your business, damage costs might skyrocket. Injuries, lawsuits, workers’ comp claims, regulatory fines and property damage could add up. As a result, the smart business is one that prevents such accidents in the first place.

While you can’t prevent every business accident, you can keep standard mishap risks low. So, there’s a smaller chance of something coming along for which you cannot prepare. As a result, your likelihood of having to file a claim on your commercial insurance will likely drop. Your insurer might view this as a sign that you are less of a risk to insure, and this could lead to rate savings in the end. Risk management does not eliminate the need for insurance coverage. However, it can make it more cost effective.

Furthermore, you also decrease the likelihood of encountering problems not covered by insurance. As such scenarios won’t qualify for financial help, you might have to pay for them out-of-pocket. That’s a substantial loss which most executives don’t want to face. Thus, controlling risks can save even more money than just reducing insurance costs.

Preventing Commercial Risks

It’s virtually impossible to know every personal or property risk in your business. However, you should have at least a baseline grasp of where to take steps to make your business more secure. Target areas of concern first and foremost when making safety improvements.

For those who need guidance in risk management, various avenues exist. First, strict industry standards govern the oil and gas industry. Businesses must follow all guidelines, and not take liberties regarding safety or performance.

Furthermore, insurance companies, industry leaders and local entities can often provide risk management counseling for those that want to put in place further security. Use these resources to review safety procedures and implement strategies to keep your operations secure.

The oil and gas industry is a vital economic market. Stills, the market has a tendency to fluctuate. Therefore, oil companies have to do what they can to weather the environment. Most of them cannot afford to clean up major disasters out of their own pockets. Nor, in fact, should they have to do so.

Whether you’re a large conglomerate or small business, your company needs protection. Commercial insurance is a mandatory protective approach that every business should take. Don’t try to operate without it.

Coverage Options Available

Every oil and gas business is different. Yet, they all face risks that look a lot alike. Among the common threats are rig explosions, corporate property damage, machine breakdown, cyber losses and other problems. How can you react to issues like these?

No matter what you do, the risk will always exist that a hazard might affect operations. So, an appropriate reaction will likely help you recover faster. One of the ways you can respond effectively is to look to your commercial insurance. Your coverage can provide funding for a variety of problems that, without protection, could cause significant financial losses.

Still, commercial insurance comes in several different forms. Depending on some of the attributes of your firm, you might need various policies. These include

• Property coverage: Can protect to rigs, offices, contractor utilities and more.
• General liability protection: In case you cause property damage or injury to third parties through your business activities, this coverage can help compensate them.
• Professional liability insurance: If your services or advice cause harm to a third party, this coverage can pay for defense or settlements.
• Pollution liability coverage: Covers cleanup of contamination from spills and other accidents.
• Well control protection: Helps clean up and fix damage from a blown well.
• Commercial auto insurance: Protect company vehicles during transport.
• Inland marine coverage: When shipping products or materials over highways, use this coverage to insure those items.
• Workers’ compensation: You likely have to provide your employees with workers’ comp if they get hurt on the job. Use this coverage to pay them.
• Surety Bonds: If you have a contract with another party, but cannot complete your duties as stipulated, this coverage can help repay that party.

Keep in mind, this is not an exhaustive list. You should talk to your insurance agent at 800.475.0001 about the specific practices of your company. Your agent can then likely help you tailor coverage more specifically to your needs. Never operate your business without the coverage that’s right for you.