Energy, Oil and Gas Industry: Are You Properly Insured? Some Firms Are Learning that they Are Underinsured

Since the start of the Industrial Revolution of the 19th century, mankind has battled with nature. From the Exxon Valdez spill in the US to Chernobyl in Russia, environmental disasters are part of doing business in the energy sector. Alberta is no stranger to accidents that plague the forests, lakes, and wildlife in the province. Just this past spring, Alberta Energy Regulator reported a leak of 290,000 liters of oil and saltwater.

Even though it appeared no water bodies or wildlife were affected, the aftereffects of clean-up, investigations, and potential fines can take months to sort through. If your company was responsible for a leaking railroad car, do you have the cash reserves to pay for cleaning up the site?

Many companies believe they are covered until disaster does strike and they need to file a claim with their insurance company. They soon discover that they may have to foot half of a 1.2 billion dollar restoration bill because they did not have sufficient coverage. As a leader of your company, you want to ensure everyone is protected. Having the right policies in place is as simple as talking with a trusted insurance broker from TSG Insurance.

 

Types of Costs for Cleaning Up an Oil or Gas Spill

The variables that make up how much a clean up will cost depends on a few factors:

  • Quantity: The more that gets spilled, the worse the effect on the environment and the more time and money it will take to make it right.
  • Type of Material: When it comes to crude oil, there may be bitumen, light oils, and distillates. Saltwater can wreak havoc on the wildlife.
  • Location: If the area of the spill is remote, the costs can rise exponentially. Imagine having to build a road to get equipment to your secluded leak site.
  • Disposing of Material: To get rid of the contaminants requires specialized landfills, and the further away from the dump the spill is, the more expensive it will be.

It pays to do some research and obtain the correct coverages based on your unique needs. One policy worth having is pollution liability. It is likely that you may have a general liability policy for claims that may arise while working on site. Problems occur when general liability does not cover claims from pollution. One small accident can leave your company uninsured. Getting specialized pollution coverage can fill the gap.

Experienced Alberta Brokers Provide the Best Insurance Service Options

Working with the trusted brokers at TSG Insurance goes far in discerning the best coverage for your company’s specific needs. Rely on our team to discuss your requirements and tailor a portfolio of policies at a reasonable price. Whether you are in Calgary, Medicine Hat, or Brooks, we have a location near you.

Feel free to call one of our offices:

Calgary: 403.723.9416        Medicine Hat: 403.526.3283           Brooks: 403.501.5123

Call us toll-free at 800-830-9423 to book an appointment with our licensed professionals at one of our convenient locations. You can also contact us online for a free quote, and we will respond as quickly as possible.