Young, ambitious oil tycoons can make fortunes by tapping into oil fields. Unlike the old days, oil startups need comprehensive liability insurance policies to protect their investments, their workers, and their futures. So, other than getting an insurance policy with a high liability coverage amount, your company needs the type of coverage that keeps it insulated from specific types of claims. The reality is that oilfield workers regularly get injured and even lose their lives while performing normal job-related duties.
You can hire experienced workers, supervise them well, and buy advanced equipment, but oil company owners always have to be prepared for accidents as well.
Liability Coverage for Oil Companies.
Running an oil company without liability coverage isn’t taking a risk – it’s simply operating until something dreadful happens and you lose it all in lawsuits. An oil company may go years without having to pay out an insurance claim, but then again, an accident might happen on the very first day of operation. When you consider the amount of starting capital needed to get an oil rig running, there’s simply no reason to go without liability coverage. OSHA also has to approve of the way that your oil company is set up, so safety goes a long way in keeping everything running smooth.
Reviewing Your Company Liabilities.
If your oil company is working at an established site, your liability insurance costs will be reasonable for the industry. Exploratory oil companies must set aside a bigger part of their budgets to absorb liability insurance costs. In general, liability coverage helps companies in all fields to pay large settlements in case they are sued for being negligent or simply responsible for causing an accident. It’s kind of hard to predict when an accident will happen in an oilfield, so liability coverage is the best kind of safety net that oil companies are able to depend on.
How Oilfield Accidents Can Impact Coverage.
Once an oil company reports that an accident has transpired with a worker, there is a full investigation that must take place. In the best-case scenarios, all workers survive and are able to recover and come back to work. Unfortunately, fatalities in the oilfield industry are not uncommon and can happen even while conditions appear to be ideal. There will be many different regulators and authorities that come out to perform investigations after an oilfield accident. Your liability insurance rates will probably also rise.
Some corporate costs just can’t be reduced, especially if they are critical to central operations. For example, leasing space at an oilfield is going to cost a lot because the product being sourced is literally liquid gold. Likewise, liability insurance is necessary to keeping your oil company protected in case of a serious accident that leaves operations shut down and workers injured. If you have a startup in the oil industry and you will be working with oilfield workers, don’t think that you can go a single day without having a comprehensive liability insurance policy in existence.