Energy is an ever-evolving field, and as a result, oil and gas insurance can be a complicated matter. When you consider that fracking and horizontal drilling--both commonplace oil and gas practices now--weren't commonly used less than a decade ago, it's easy to see that significant industry practices can develop or change rapidly.
The oil price collapse that began in 2014 triggered several cost-cutting measures that have altered the energy landscape, and as prices climb back up, you may find your opportunities--for both standard and new practices--rising as well.
Consequently, the insurance coverage for your energy company needs to be comprehensive, and it needs regular re-examination by a risk management professional. Finding an agent that is knowledgeable about oil and gas insurance specifics that can also properly evaluate your business's particular risks is of the utmost importance if you want to ensure that your plan encompasses all of them.
For example, new drilling technologies on the horizon could breathe new life into your company, but you'll need to tailor your insurance to make sure you only reap gains from your growth, not losses from risks you didn't even know you had.
A knowledgeable agent can help prevent significant losses by customizing your coverage to take into account some of the lesser known risks that may be unique to your business. Even standard industry practices need careful attention, when it comes to oil and gas insurance coverage. Knowing whether or not you need a general liability policy with endorsements or a stand alone policy for the element in question--fracking insurance or well insurance, for example--is vital.
Oil and gas insurance is not one size fits all; upstream, midstream, and downstream companies all provide unique services and all have singular needs that require specialized attention. Your equipment, your employees, your advertising and professional liability risks...every aspect of your operation needs examination.
Your insurance solution will be as unique as your company--don't jeopardize your future by cutting corners on your coverage. Call one of our oil and gas insurance specialists today to talk about putting together your risk management plan.