The oil and gas industry has unique challenges that go along with it, so it stands to reason that NM oil and gas insurance needs would also be unique in some ways. There are also some more unique coverages required by these companies, such as pollution liability and a commercial umbrella policy.
Commercial Umbrella Policy
If you are found to be culpable for a catastrophic loss, you will be required to pay any resulting damages. Your primary liability coverage may not sufficient to cover the ensuing penalties and legal fees. A commercial umbrella policy will cover you in the event that your liability policy’s upper limits are exceeded as the result of losing a lawsuit.
Pollution Liability Insurance
In the oil and gas industry, the risk of spillage or fire is ever present. No matter how careful or conscientious you and your employers may be, an accident could happen at any time. Due to the potentially widespread negative impact on the environment such incidents can have, pollution liability coverage is essential to prevent you from having to pay damages to an affected third party.
Because of the needs unique to oil and gas companies, it is essential to obtain the NM oil and gas insurance coverage you require. An insurance company that specializes in covering companies like yours will be able to help you assess risks and find the coverage you need.
Oil and Gas is an important industry to New Mexico. In fact the state has been a major producer of oil and gas since the 1920s. This is why NM oil and gas insurance is so important for those working in the industry.
Importance to New Mexico
The oil and gas industry has been very important to New Mexico’s economy for many years. With an estimated 15-20 percent of state revenue coming from this industry, those involved may want to ensure they have the best coverage available.
There are a number of steps to process involved in obtaining oil or gas. Each of these steps could potentially involve a different insurance plan. It’s often considered best to start by looking at plans designed for the particular process you want to cover and then see what additional coverage is available. Coverage options may be available for pumping, workers compensation, trucking, tong and casting, general liability, and more. A professional can help you select the right coverage plans for your needs.
With a wide range of industry fields, NM oil and gas insurance options depending on a company’s needs. From commercial liability to workers compensation plans can very. If you have any questions on choosing the right plan for your company needs a professional can help.
Oil and gas drilling contractors face many unique and dangerous risks every day. It’s an important industry in the US and the world over, but comes with severe exposures that could, as it has been known in the past, upset the ecosphere with the accidental release of toxins in the processes that have served this sector for many years. It certainly helps having an insurer that knows and understands these risks.
Contractors need specialized coverage solutions that can help them to protect their employees, their equipment and ultimately their business viability. The answer can be found in NM oil and gas insurance, specifically designed to address the needs of this dynamic industry.
Volatile situations can crop up daily
Running a successful drilling business is no easy task to undertake. It involves the overseeing of rig equipment and tools, conducting well evaluations, and organizing crews, along with complying with ever-evolving government regulations. With so much to manage, it’s easy to see how the situation can become rife with potential problems. Your clients want to know that they are protected in the event that something goes wrong. Your first priority should be to troubleshoot any of the potential events that could possibly threaten their operation.
Each operation is unique unto itself, with contractors being assigned the task of working on land or in the water, or both. They take on the roles of drillers or well-servicing contractors, they can be required to stimulate wells or perform Plug & Abandon work. They’re often called upon to build, install, maintain or repair platforms and facilities and, while oil and gas operators basically all have wells, the depth, structure and location of each can be uniquely different. Therefore their concerns and needs will often vary and the insurance program for each must be equipped to recognize those differences.
There is so much to consider in developing an appropriate nm oil and gas insurance program for operators and contractors, and it starts with the insured’s risk management philosophy. It’s important to present a true exposure picture to underwriters in order to be able to negotiate the most favorable terms and conditions for the insurance program of your choosing.
Subcontracting is becoming a lucrative business due to oil prices being at a low. However, those in the oil and gas industry will be checking to make sure you have the coverage you need to cover any mishaps that might cost you (or them) money that you don’t have. You need to have the following NM oil and gas insurance to even be considered for most industry jobs.
Errors and Omissions Insurance
Some employers may consider this secondary, but you’re sure to get more jobs if you have errors and omissions insurance. This type of insurance covers any mistakes you might make that would end up heavily costing their clients. It will protect your employer from being sued if there’s a big mishap.
Almost every employer will require that you have a Certificate of Liability Insurance that has appropriate limits and expiration dates to handle the current project. They want to be sure that any damaged property or injuries caused by your working there will be adequately covered, as their business insurance probably won’t include it.
NM oil and gas insurance is required to work as a subcontractor in the industry. Employers want to know that they’re not liable for your mistakes. Recognizing what types to get and maintain will help you gain the best positions available in today’s market.