For oil and gas companies, it’s important to ensure that your company is protected with insurance.
What many companies don’t realize though, is that standard commercial insurance policies usually only provide protection for equipment or property that is on the business premises -they generally do not extend to provide coverage for goods, equipment, or tools, while they are in transit. For goods or property that is in transit, a separate type of coverage is required. This coverage is known as: inland marine insurance.
If your energy company is involved with transporting goods, a marine insurance policy is valuable coverage that you should consider.
Why Inland Marine?
Despite its name, inland marine isn’t just insurance for shipping companies. Inland marine owes its name to the 17th century, when this insurance originated. In those days, the insurance provided coverage for goods that were transferred via cargo ships, which is how it become known as inland marine.
Today, this insurance is available for a wide range of commercial exposures which involve the transfer of goods, no matter which mode of transportation is used; and no matter if the goods are oil, gas, equipment, or even electricity, or data.
For this reason inland marine insurance is especially valuable for oil and gas companies that are involved in the shipment or transportation of oil and gas through pipelines, or via land or sea.
Types of Coverage
It’s important to ensure that you obtain coverage that’s adequate for your needs. One thing to pay close attention to, is the perils are covered in your policy. Coverage is available on a “named perils” basis, where specific perils are listed, or on a more comprehensive basis, on an “all perils” basis, in which specific perils that are not included will be listed on your policy.
Inland Marine may or may not be part of your standard commercial package policy. If you are in the oil and gas sector, it’s a good idea to ask your insurance agency whether or not your policy includes inland marine, and whether it would be beneficial in your situation.
For more information on insurance for oil and gas companies, contact Texas Energy Insurance today.