While the right energy insurance coverage is always important, it’s especially crucial during times of unpredictable environmental and economic conditions.
Businesses involved in the energy business can have a combination of coverage, depending on their industry. Some of the insurance products available to the energy industry include:
• Oil & Gas Insurance
• Natural Gas Drilling Insurance
• On Shore Drilling
• Off Shore Drilling Insurance
• Pollution Liability Insurance
• Environmental Insurance
• Energy Insurance
Energy insurance will protect against penalties and legal actions that can affect your finances and growth in the event of an accident or lawsuit. Even with top equipment, staff and training, accidents happen.
While not all accidents or spills are catastrophic, they can have serious implications for your business. It’s important to have coverage not only for legal fees, but to cover unexpected and unprepared for expenses, such as:
• Clean up and containment costs
• Injury to workers and bystanders
• Damage to equipment and property
An important point to remember is that not only your company’s track record of accidents affects your costs and coverage requirements.
Incidents like the BP oil spill and natural disasters like Hurricane Katrina have caused changes to insurance requirements as well as cost increases on energy insurance.
Insurance coverage requirements can change regularly, making it difficult to keep up with changes. A lapse in coverage or not having the necessary coverage can lead to financial devastation.
It’s important to keep up with the industry. This is much easier and less time consuming for customers who connect to an insurance professional who knows current regulations and standards like the experts at Texas Energy Insurance, Katy Texas.
The right energy insurance provider can determine not only if you have the right amount of coverage, but will advise if you’re paying too much for it or have coverage you don’t need.
Poor or unstable economic conditions mean increased competition – competition that makes it important to get the right amount of coverage without paying too much for premiums.
Insurance packages vary by the type of business you are involved with. Oil & Gas Insurance includes drilling insurance and energy insurance.
Drilling insurance provides coverage for development and exploration enterprises. Energy insurance covers pipeline operators and petrochemical plants. Both On Shore Drilling and Off Shore Drilling Insurance coverage can range from general liability to pollution liability.
The energy industry is a high visibility, high competition area with regularly changing insurance requirements. Since they involve heavy investment and high operating costs, improper coverage can result in catastrophic legal actions. The long term financial implications of these can hinder growth for years or even shut down operations or cause insolvency.
Buying energy insurance provides protection against these threats. It is a smart decision.