Common Safety Risks at Oil Drill Sites

The oil and gas industry is a major employer throughout the southwest. Indeed, over 50,000 people in Oklahoma work in the production industry, with countless others in related sectors. Neighbor Texas has over 220,000 industry employees. Given the considerable industry size, the risk of employment liabilities, namely workers’ comp risks remain prevalent. All industry leaders should implement the strictest workplace safety standards at drill sites. What are these? What are some simple steps you can take today to make a site safer?

Sunset over Oil Drilling Site

Common Injury Risks at Drill Sites

Oil is a dangerous commodity if mishandled. Likewise, harvesting it requires considerable manual labor and an exposure to potentially-harmful hazards. Without following precautions, employees could sustain grievous injury from a sudden mishap.

Some of the common injury threats at your drill site might be:

  • Burn risks from fire, explosion or toxic exposure
  • Amputation risks stemming from mishandled equipment
  • Fall and slip risks, either from heights or on wet surfaces
  • Head injury risks from falling objects, falls or other incidents
  • Poison risks, again from toxic exposure

If you can imagine an accident, chances are it can happen on your rig. Therefore, observe every possible safety precaution to keep your employees safe.

Protecting Your Employees

To reduce employee liabilities at drill sites, take a two-tiered approach. First, you must abide by all industry, OSHA and other legal safety practices. Second, it’s often a good idea to promote your own safety regulations on top of individual mandates.

  • Employees must wear safety gear, no exceptions. These might include harnesses, hard hats, masks, eyewear and other items. Often, fire-retardant clothing will also come in handy.
  • Ensure that all employees have proper training for their respective tasks. Employees should not undertake tasks that they do not understand.
  • Carry workers’ compensation insurance. Most employers in Oklahoma must offer this coverage, though some exceptions exist. The coverage will help you compensate employees injured or made ill while on the job. Talk to your agent about your need for workers’ comp risks. Furthermore, consider other policies like general liability, EPLI insurance and personal injury coverage.
  • Place security warnings throughout the drilling area. Make sure any machinery has a warning label and instructions on how to use it.
  • Clean up any spills immediately and isolate any machine damage if it occurs.

Don’t forget, in the end, to foster a system of security and safety for employees themselves. They should receive adequate training in safety procedures to protect themselves and keep an eye out for potential hazards. A secure working environment will likely go a long way towards reducing liabilities.

Standard Liability Insurance for Oil and Gas Businesses

image of oil refineryOil 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.

Why Oil and Gas Risk Management is Important

image of business owner dealing with risk managementOil 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.

Common Workers’ Comp Incidents on Rigs, and How to Prevent Them

The oil and gas business has plenty of risks, primarily because workers deal with extremely sensitive commodities. Those who directly handle raw materials often have the highest risks of personal injuries. And if injuries occur, employees often have a legal right to requestimage of ocean oil rig workers’ compensation. Whether you run oil rigs or refineries, there’s a chance for injuries. What are some of these, what can you do to prevent them?

On one hand, you must provide a safe workspace for all your employees. However, because you cannot prevent every accident, that’s why you need workers’ comp. These two avenues can eventually converge to help you create a more secure environment for workers.

Common Injuries in the Oil and Gas Industry

Oil and gas are expensive, and dangerous in the right circumstances. Therefore, those who handle them can experience any number of injuries. These might include

  • Slips and falls from slick surfaces
  • Burns, both chemical and from combustion
  • Bodily injuries from heavy machinery
  • Head, neck or brain injuries

Any number of other injuries might result. Someone might get hurt in the break room, or while running a business errand. Situations like these might trigger the need to tap into workers’ compensation.

Workers’ Compensation Coverage

Workers’ comp provides supplementary income for workers who get hurt on the job. It’s financial protection for those who might not be able to work because of injuries.

An injury on the job might make an individual unable to work. Therefore, they can’t make an income. At the same time, they could accrue medical bills and even debt. With workers’ compensation, they can get the supplemental assistance to cover these costs, and increase their own security.

Furthermore, workers’ comp insurance can benefit the businesses that carry them, as well. When employees agree to take workers’ comp, they often surrender their right to sue the business for compensation. Therefore, this coverage eliminates the need for costly litigation for both parties, and makes them both more secure.

Preventing Employee Injuries

Every oil and gas business should engage in proper risk management. This means implementing safety practices that help keep risks of worker injury to a low ebb

To keep injury risks low, rigorously enforce all workplace safety laws. There are standards that all industries have to follow, so make sure you know the ones that apply to your workers. Furthermore, require safety gear in all situations. Also make sure that you hold employees to all appropriate standards of conduct at all times.

With these steps, you can better keep the risk of workers’ comp claims to a minimum. Whenever you need policy assistance, your agent can help you through the claims or adjustment process. Call InsuranceOne Agency today at 800.475.0001 with any questions or to begin your coverage.

Standard Insurance for Your Oil and Gas Business

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.

oil gas insurance oklahoma

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.

Your Professional Liability Insurance May Not Cover These Five Things

commercial liability insurance oklahoma

If you’re shopping for a professional liability insurance policy, you should know the limits first. While your commercial coverage can protect you from client claims, injuries and product malfunctions, it might not save you from false advertising, patent infringement and several other commercial dangers. Exclusions will almost always apply.

Below, we’re covering five claims your professional liability policy might not cover. If you’re expecting to face them, you might need more coverage.

One: False Advertising

A professional liability policy won’t protect you from false advertising. If a campaign represents your business in a false way, the responsibility is yours. If customers sue because you’ve failed to be honest, you may have to pay expenses out of pocket. Dishonesty is not an insurable trait.

Two: Patent Infringement

In most cases, patent infringement involves another vendor. Thus, your professional liability policy likely can’t protect you from it. Professional liability insurance isn’t designed for these claims. This said, you can get a patent insurance policy. Patent insurance will protect your intellectual property, and it can protect you if you face losses.

Three: Employment Disputes

While professional liability insurance policy will protect you from employee mistakes, it won’t protect you from disputes. Here’s an example. If you’re hiring a consultant, your policy will often protect you if they make a mistake when providing services. It won’t, however, protect you if another employee sues you due to age discrimination. Purchase employment practices liability insurance to fill the gap.

Four: Workplace Abuse

General liability insurance policies have come a long way. Even so, modern professional liability insurance doesn’t cover costs arising from workplace abuse. A comprehensive policy can protect you from allegations of abuse, but professional liability insurance can’t offer blanket protection in these cases. Again, an employment practices policy might prove beneficial in these cases.

Five: Intentional Wrongdoing

Intentional wrongdoing—or causing damage to a customer, client or employee on purpose—is excluded from most professional liability policies. If history proves you meant to cause harm to a client, your policy won’t protect you. Harm itself, isn’t so black and white. It can include:

  • Habitually missing an important client meeting
  • Giving incomplete advice
  • Giving professional instructions known to cause fiscal, or physical, damage
  • Bodily harm, such as physical or sexual assault. Criminal actions will almost never have protection.

While it might seem like professional liability insurance has a lot of gaps, it doesn’t fail in serving its purpose. A professional liability policy protects you from workplace errors and omissions. If you’ve made an honest mistake, your policy will protect you. By understanding your policy’s boundaries, you can be a better policyholder, business owner and partner. You can call one of our insurance professionals at 800.475.0001 to help you complete and/or verify your coverage.

Business Property Insurance for Your Artificial Intelligence and Advanced Technology

Many methods exist for protecting your business assets. As companies change and grow, the need to have updated business insurance is very evident. Property insurance should always match the type and amount of assets you own.

image of businesses in Oklahoma

As you change your business with new technology and advanced systems, you may find it more important than ever to have proper coverage. Take into consideration all the coverage you have. Is it enough to protect these valuable systems?

Advanced Technology Requires Careful Consideration

Many companies are investing in advanced technology. This may include artificial intelligence solutions that solve customer problems. They may include machine learning and virtual reality. Your company may be investing in robotics as well.

These technologies can offer a wide range of benefits. They can help to cut your costs. They can also help you to reduce problems and improve efficiencies. The problem is, they are expensive investments. The money you spend to put them in place is going to play a role in your long-term success with it.

That is why your commercial insurance needs to match the type of investment you make. As you add these types of technologies, contact your business insurance company. Discuss the value of these items. Talk about the cost to replace them should you face risks such as theft or vandalism. You also want to consider the importance of these systems. If they fail, could that cause a liability risk to your company? Discuss this with your insurer as well.

Why Update Your Business Insurance?

Most companies don’t think about boosting their commercial insurance after this type of investment. The two things do not seem to link. However, these tech investments are valuable. They add value to the property. They also add more value to the business. Should a fire occur, for example, these items could see significant damage. This should factor the cost of replacement of the technology as well as the cost to install it. You may need more insurance coverage to pay to replace these.

Advanced technology is changing the landscape for companies. It offers new opportunities of many types. Yet, it takes a significant amount of investment. Protect your investment with commercial property insurance. You will appreciate the benefit if something happens that leads to loss of these systems. Talk to your agent at 800.475.0001 about your specific needs. They can help you determine the coverage that will most benefit you.

3 Questions to Ask Before You Purchase Business Insurance

word image for various insurance termsBuying business insurance in Oklahoma is like any other investment made in your company. Buy with confidence. To do that, you need to know what you need. You also need a trusted agency that offers a variety of policy options. The more customized and specific the plan is, the better.

There are many things to ask your agent. Discuss concerns with pricing. Talk about your business operations. Work to minimize any risks present. These are three key questions you need to ask:

#1: What Are You Buying?

Be specific here. Most companies need a comprehensive plan. This should include:

  • Property insurance
  • Asset protection for inventory, equipment, and furnishings
  • Liability insurance
  • Business interruption insurance
  • Commercial auto insurance (if you operate a vehicle)
  • Workers’ compensation insurance

Then, ask about each policy. Know the limits of each. Examine the policies for the specific, named assets listed on them. Most importantly, focus on the cost. Be sure it fits within your company’s budget.

#2: What Exclusions Apply?

Next, ask the business insurance agent about exclusions. Nearly all business insurance will have exclusions. For example, property insurance often excludes flooding or terrorism-related damage. If your policy has an exclusion, find out why. Then, discuss any endorsements. An endorsement is an additional insurance policy. It allows you to cover the business for a specific risk. It is highly effective at protecting from high-risk situations. Discuss your need for these. Your business insurance agent can help you.

#3: What Insurance May You Need Soon?

Companies grow. As you increase your customer count and business products, your insurance needs change. Your business insurance needs to grow with you. For that to happen, you need a policy that is reliable. It needs to meet increasing revenue and risks. Your business insurance agent will help you with this.

Some key types of coverage to inquire about include:

  • Cyber liability insurance
  • Employee dishonesty insurance
  • Professional liability insurance
  • Umbrella liability coverage
  • Errors and Omissions insurance
  • Comprehensive property coverage

Discuss how your business works now. Discuss any pans you have to expand. Do you plan to scale your business? Perhaps you are moving into new products or services. Provide this insight to the agent. Keep this person updated on the changes to your company over time. This ensures your policy remains up-to-date and properly fitting to your needs.

Focus on your business insurance needs now. Work closely with your Insurance One agent to minimize the risk of not having proper coverage. You also need to have ample coverage. Review your policies on an annual basis. Update them to match your business’s current and growing needs. Call 800-475-0001 to speak to a local insurance professional.