What Insurance Do Prince George and Gas Companies Need?
Contractors and companies in the oil and gas business routinely work with risk. Customized insurance for your Prince George oil and gas operation helps financially protect you from liability claims.
The right oil and gas insurance coverage will protect your company and minimize potential losses and their financial consequences.
Your Western Financial Group business insurance expert will give you top commercial insurance for your Prince George oil and gas business and at the right value for you.
What is oil and gas insurance?
The oil and gas industry requires specific coverage to ensure compliance and minimize risk. Whether your business is international or services the local/provincial markets, it is important to have the right insurance to protect your company.
Oilfield insurance covers property damage, injury, and damage to the environment. It provides coverage in case of an accident due to the harsh working conditions, chemicals and equipment that are part of the oil and gas industry.
What is wellhead insurance?
Wellhead insurance is used in the oil and gas industry to describe commercial general liability (CGL) insurance. A wellhead is the physical structure of the well above the ground.
Commercial general liability insurance covers the wellhead contractor should there be third-party (client or supplier) property damage or bodily injury as a result of the wellhead’s operations.
Examples of who needs oil and gas insurance
- Oilfield consultants
- Oilfield service technicians
- Drilling rigs
- Downhole operations
- Land surveyors
- Well servicing
- Welders
- Pipefitters
- Drilling completions and workovers
- Site supervisors
- Rig managers
- Specific contracts or projects
How much does insurance cost for oil and gas companies and contractors?
There isn’t a set price to insure a Prince George oil and gas business.
The following factors are usually considered when determining the cost of your insurance:
- Your location(s)
- The kind of excavation/construction work you do
- Your equipment
- Annual revenues
- Number of employees
- Any past claims
Examples of why your Prince George company needs oil and gas insurance
- A supplier has tripped over some equipment left near the wellhead and has sprained his back. He has sued you. Your wellhead insurance (commercial general liability insurance) can help pay for the injured person’s medical expenses, lost wages, and your legal expenses.
- Area residents complain that one of your company’s wells has polluted their drinking water and they have tests done to prove it. Your pollution liability insurance can help pay for the cleanup costs and any municipal or provincial fines against your company for the damage to the water source.
- Your Prince George oil and gas office has been vandalized, including computer equipment. Commercial property insurance can help cover the costs of replacing equipment and getting your office repaired.
What’s in an insurance package for Prince George oil and gas companies
Commercial general liability (CGL) insurance
CGL insurance is also known as wellhead insurance in the oil and gas industry.
This type of insurance helps cover claims made by a third-party (client or supplier) regarding liability for property damage, injury, and related expenses. In the oil and gas industry, commercial general liability needs to be more comprehensive than for other industries because of the high risk.
Professional liability insurance
This type of insurance is also called errors and omissions insurance, or professional liability insurance, covers liability claims resulting from professional services or advice.
E & O insurance is essential for an oil and gas company or consultant that offers services and advice to other companies.
Pollution liability insurance
Oil and gas work can be exposed to environmental liability claims. Pollution liability insurance covers clean-up costs, third-party bodily injuries (such as illnesses due to your excavation work), or damage to a nearby property caused by pollution or toxic substances from the excavation site.
Tools and equipment insurance
Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.
Tools and equipment insurance provides financial protection for any transportable tools or equipment that your Prince George oil and gas business uses to do work.
Tools and equipment Insurance can provide reimbursement to repair or replace tools and equipment if they are lost, damaged, or stolen. Insured events apply to tools and equipment that are vandalized, stolen, lost, or damaged by fire or flood.
Mobile property insurance
If you regularly move equipment to different work locations as part of your oil and gas business, mobile property insurance provides coverage for property that you don't store at a fixed location, or for equipment routinely taken off site.
Mobile property insurance covers transit. It also covers theft that could happen due to property not being stored in a secure location, as opposed to commercial property insurance that covers property generally expected to be in a designated location.
Equipment breakdown insurance
Equipment breakdown insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy. You’ll need to have a list of the equipment that’s at your Prince George oil and gas business and how much it’s worth.
Commercial property insurance
It provides financial support to replace or repair your oil and gas company’s office or equipment storage warehouse if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the building’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Cyber liability insurance
Do you keep client information online and take online payments? If so, your oil and gas company could be hacked by cyberthieves. Cyber liability insurance will help protect you financially from a cyber-attack.
Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your computer system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform your customers affected by a breach.
Commercial vehicle insurance is important: When you or your employees are on the road travelling to a job site and anywhere in-between, commercial vehicle insurance may cover your vehicles in the case of an accident. Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Prince George oil and gas business.
Here’s an insurance checklist for your Prince George oil and gas business:
- Do you have the best oilfield business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
What do I do if my Prince George oil and gas business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Prince George oil and gas company the right commercial insurance package. Our experts are available now to help you navigate the commercial insurance journey to protect your business.
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