Pollution risks are high in the oil industry and incidents can be extremely costly. For example, the disaster at the Deepwater Horizon rig cost British Petroleum approximately $69 billion. As commercial general liability insurance does not cover most pollution events, investing in pollution liability insurance suited to your operations is essential. Here are three types of insurance coverages for oil companies that protect against these risks.
Contractors Pollution Liability
If you have a contracting business, this is the policy you need. It protects against third-party claims of environmental or property damage and bodily injury.
Pollution Legal Liability and Environmental Impairment Liability
These policies are claims-made and site-specific. They cover an event that has occurred over time and whose inception is difficult to identify, such a small pipeline leak.
Storage Tank Liability
If your business stores oil or other chemicals in tanks, this will provide coverage for third-party claims of bodily injury or property damage that occur as a result of a pollution event that originates from these storage units. It will provide protection for both above- and below-ground tanks.
Your oil business faces pollution risks in its daily operations. If your company lacks proper coverage, an incident can endanger your business and your livelihood. An expert in the field of oil and gas insurance can help ensure that you have the protection you need.