The oil and gas industry is one of the most significant industries worldwide. It is valuable not only in revenues produced but also in terms of investment and personnel. But amidst its significant contributions to the world, its risky processes make workers susceptible to many risks such as explosions and fires, falls, vehicular accidents, machine hazards, accidents from high-pressure lines, construction accidents, health hazards in confined places, and many more.
Due to the various subsets associated with the oil and gas industry, there isn’t one insurance cover that can take care of all the potential risks. That’s why specific insurance covers should be put in place to accommodate the needs of the oil and gas industry. It applies to all areas of the industry, whether on the upstream, midstream, or downstream sub-sectors. Workers in every sector are always in demand, from engineers to laborers. Texas energy job opportunities are available if you are looking for placement in the energy sector.
To mitigate costs of equipment and property damage, costs associated with personal injury, and business liability in the oil and gas industry, below are some things to know:
- Workers Compensation Insurance
Working in the oil and gas industry comes with health and safety risks no matter where you’re stationed. Your employees will be regularly exposed to severe weather and dangerous conditions amid potentially risky-to-maneuver machinery. If your employees get hurt on the job, workers’ compensation insurance will ensure that your employees are compensated for lost wages equivalent to the days they are incapacitated. It will also take care of their medical bills. In case of disability, workers’ compensation insurance will pay the victim disability benefits and take care of funeral expenses in the event of death. This insurance will prevent you from shouldering such expenses out of your pocket.
- General Liability Insurance
Every oil and gas venture presents unique challenges. As a contractor, no matter how many safety precautions you may take, some accidents are inevitable. General liability insurance can cover actions that you may be legally responsible for. These are accidents on the business premises, suits arising from products manufactured, distributed, or sold, and even contractual liability. This insurance will provide cover against legal liability arising from bodily harm to third parties or your employees. It also offers cover for damage to third parties’ property by equipment under your care, custody, or control at the time of such damage.
- Professional Liability Insurance
Professional liability insurance covers potential risks that you or your employees could face through errors and omissions. You or your employees could be sued for not being able to provide products or services you were contracted for or if there were defects in the goods or services you provided. You could also be sued if you committed errors while providing the goods or services. These errors and omissions can happen at any stage: upstream, midstream, or downstream and can be very costly, especially if the damages awarded against you are huge. If there isn’t a proper cover to shield you, you can be derailed or forced to close shop. Professional liability insurance will ensure you against professional negligence, breach of contract costs, and criminal defense expenses.
- Rigs And Hull Insurance
The type of equipment used in the oil and gas industry can’t be covered by the usual standard insurance policy. It may be due to the nature and the level of risk they carry. The future of any oil and gas business is heavily reliant on their equipment. The cost of such equipment is usually astronomical and must therefore be guarded by all means. This insurance covers your equipment from damage that may occur during the installation stage, mechanical breakdowns, adverse weather situations that may damage the equipment, or even theft.
If you’re in the mid-stream sector of the oil and gas industry and you transport crude oil and other products via the sea, you will need hull insurance. This insurance will cover your equipment onshore and offshore if parts need replacement due to damage.
The oil and gas industry is one of the industries that carry potential risks due to the complex tasks and high-risk machines used in such an industry. These risks include employee injuries and business liability. With all these potential risks creeping on the sides, you should be sure to get the insurance that’s customized to take care of the specific needs of your business. Doing so will help avoid falling into unnecessary financial hardships and possible legal repercussions.