If you’re looking to get into the oil and gas insurance market, becoming familiar with contract requirements and the element auto coverage plays is most important, according to San Antonio provider, Quirk & Company.
“Especially in Texas, there are certain civil remedy codes that allow for certain things to be passed along that are not allowable in other sectors,” Thomas Blanquez, business development manager and energy broker for Quirk & Company said.
“For example, in energy construction you can pass on full negligence of others through a contract and that’s a very tricky thing.”
Blanquez explained passing on the negligence was contingent on contractual language.
“You have to make sure you make the proper additional insured endorsements. You have to make sure you have the proper contract language in the insurance contract to acknowledge the service agreements and drilling contracts,” Blanquez said.
But the transportation element is a part of the business many might not assume was integral to the oil and gas insurance market.
“Surprisingly, the auto exposure is another thing you’ll have to factor in,” Blanquez said. “Most of the companies that I write for consider themselves energy companies but when you have 100 (vehicle) units or more, you fall into a lot of trucking and federal requirements and so there are other things they need to take care of.”
Blanquez said he’s seen more auto accidents blow through limits than actual work events over the past couple of years.
“The auto liability for these larger service companies that have several units over the road, that’s a major exposure for them,” Blanquez said.
Quirk & Company’s coverage extends from the drilling and pipeline equipment to vehicles and to workers’ compensation.
“If we write a pipeline operator or a pipeline owner, we perform extensive loss control, we’re seeing a lot of aerial (mapping) drones are flying over pipelines and zooming in if it’s an above ground pipeline,” Blanquez said.
“If it’s below ground, we see the last time they were methodically tested, what those results were, we want to see actual maintenance on the liners.”
Quirk & Company’s pipeline coverage includes repair and cleanup after a spill, business interruption and indemnification.
An Elephant in Texas