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Wednesday, 5 August 2015

Oil and Gas Insurance

Due to its potentially hazardous nature of work, oil and gasinsurance is a specialist area of cover. Being in the oil and gas industry both onshore and offshore is very risky as production can often be situated in war, terrorist and areas of civil unrest. Executives can be vulnerable to kidnap and ransom demands.
  • There are different types of oil and gas insurance packages offered by insurance companies including:
  • Hold harmless agreement - this is an agreement that states an individual or organization is not liable for any injuries or damages caused to the individual signing the contract.
  • Waiver of subrogation - this clause instructs an insurer to give up their right to pursue another party - your client, for example - for repayment of any damages resulting from a claim.
  • Corporate manslaughter - this cover pays for your legal provision in the event you are charged under the Corporate Manslaughter Act.

International cover - an international cover is perfect for oil and gas engineers working abroad. A standard international cover doesn't include the US or Canada, however, if you are going to be working in the US or Canada increased cover levels are available, as well as cover for specific activities or job roles.

The oil and gas industry is associated with a huge variety of technological processes involving a variety of functional units including pipelines, tank farms, pumping stations, processing plants and much more. The main features of such facilities is increased fire load, the presence of equipment that operates at high temperatures or pressures, equipment with high-speed moving parts. The basic element of an oil and gas insurance should include three main components:

  1. Insurance of property against named risks, when only events listed in the contract are insured, or All Risk, when all risks not expressly excluded by the insurance contract are covered. This part of the policy is designed to protect against such risks as fire, explosion, action of water, natural disasters, etc.
  2. Insurance of machinery and equipment from damage. This includes errors in equipment design or installation, overheating, power supply disruptions, human error, etc.
  3. Insurance against business interruption. This means financial loss caused by partial or full stoppage of the enterprise as a result of events insured under the previous two sections

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