The oil and gas industry is known for its complex operations, high-risk environments, and potentially significant financial losses. Each stage comes with its own set of risks, from drilling and refining to transportation. Because of this, standard insurance policies may not fully protect oil and gas companies from large-scale claims. Excess liability coverage provides an extra layer of financial protection, ensuring your business is shielded from potentially catastrophic liabilities.
Excess liability coverage, sometimes referred to as umbrella insurance, is a type of policy that kicks in when the limits of your primary liability policies have been exhausted. For example, suppose your company faces a lawsuit that exceeds the coverage limits of your general liability policy. In that case, excess liability coverage will cover the remaining amount up to its limit. This type of coverage is especially useful in high-risk industries like oil and gas, where accidents, environmental damages, and legal disputes can result in multimillion-dollar claims.
The oil and gas industry is fraught with risks that can lead to massive financial consequences. The potential liabilities are immense, from environmental damage and pollution to employee injuries and equipment failure. Companies face risks such as:
Given these risks, having sufficient liability protection is essential. Standard liability policies often have insufficient coverage limits for handling such large-scale claims.
Excess liability coverage ensures that your company is protected from financial losses that exceed the limits of your existing insurance policies. Excess liability serves as a safety net in the oil and gas industry, where a single accident could lead to millions of dollars in damages or lawsuits. Without it, your business may be forced to cover the costs out of pocket, potentially risking the company’s financial stability. Excess liability coverage applies to several types of liability insurance, including:
By adding excess liability, you effectively increase the protection available across these policies.
The benefits are:
Excess liability coverage protects against large claims that could otherwise bankrupt your company. Knowing you have coverage for worst-case scenarios lets your business operate with peace of mind.
Excess liability coverage offers a buffer against unexpected, high-cost incidents in an industry where accidents are often unpredictable. Whether it’s an environmental catastrophe or a major lawsuit, you’ll have the financial support you need.
Many oil and gas contracts require companies to carry a certain level of liability coverage. Having excess liability coverage can help your company meet contractual obligations and remain competitive.
Ensure your oil and gas company is fully protected with excess liability coverage from Anderson Insurance Affiliates. Our team of experts understands the industry’s unique challenges and can help you find the right coverage to manage risk effectively. Contact us today to learn more about how we can safeguard your business from costly liabilities. Call us at (936) 362-7841 for further assistance.
