Equipment and Property Coverage Options
Control of well insurance (also may be known as operators extra expense (OEE)), which covers expenses incurred in regaining control of a well after cratering or blowout. Additionally, endorsements may be added to this policy to cover pollution, equipment malfunction (such as casing damage), evacuation costs and damage to the property as a result of the cratering or blowout.
Oil lease property (OLP) coverage, which covers a loss or damage to petroleum storage tanks at scheduled locations.
Riggers legal liability coverage, which insures oil contractors when handling a worksite’s equipment. This coverage would cover damage to a wellhead during installation by a contractor. A standard CGL policy would not cover such an event.
Rig and equipment physical damage coverages, which will protect much of the equipment used on a worksite from weather, breakdown and theft events, such as tornadoes and hurricanes. These coverages are often written with business interruption coverage, which replaces income lost due to a loss of production. Specific types of physical damage coverage include:
- Onshore production property damage
- Offshore platform and pipeline damage
- Onshore and offshore construction
- Drilling rig physical damage
- Marine cargo insurance and hull physical damage
- Don’t forget about cyber liability coverage for your operation. In the event of a cyber attack, cyber liability coverage would help cover the costs of breach notifications and losses due to downtime.
Travis T. Beynon
Principal and Risk Manager
Travis’ practice has a key focus on the Energy Industry and he brings years of valuable experience and risk management expertise to those he works with.