The oil and gas sector operates in one of the most high-risk, technically complex, and financially exposed environments in the world. Standard insurance policies are often insufficient or contain exclusions that make them ineffective for this industry.

Whatever you need, Drillers Insurance can cover you.

Core & Non-Negotiable Coverages

These are the absolute essentials that virtually every company in the oil & gas sector.

1. Control of Well (COW) / Well Control Insurance: This is arguably the most specific and critical policy for drillers and operators. It covers the enormous costs of:
   • Regaining control of a well that has blown out or is blowing out.
   • “Making the well safe” after a blowout (e.g., drilling a relief well).
   • Redrilling or restoration expenses to return the well to its condition before the blowout.
   • This is the policy that responds to a “Deepwater Horizon” type event in its initial phase.
2. Pollution Liability (Absolute/Unlimited): Standard GL policies have a “Total Pollution Exclusion.” You need a specialized policy that covers:
   • Third-party bodily injury and property damage from a sudden and gradual pollution release.
   • Clean-up costs on-site (first-party) and off-site (third-party).
   • Legal defense costs. For high-risk operations, insurers may offer “Unlimited” pollution limits for a specific project.
3. Operator’s Extra Expense (OEE): Works hand-in-hand with Well Control. It covers the massive additional costs incurred while the well is out of control, such as:
   • Rent for the rig or equipment that is standing by but not operating.
   • Wages for personnel waiting for the well to be controlled.
   • Cost of bringing in specialized well control experts and equipment (e.g., Boots & Coots, Wild Well Control).
4. General Liability (with Broadened Endorsements): A standard CGL is not enough. It must be specifically endorsed for oil and gas operations to address the unique liabilities of sites, fracking fluids, etc.
5. Workers’ Compensation (with Maritime & USL&H Endorsements): This is critical due to the high-injury-risk environment. If your employees work on or over water (e.g., on a drilling platform, crew boats), you need endorsements for US Longshore and Harbor Workers’ Compensation Act (USL&H) and potentially Jones Act coverage for crew members.
6. Commercial Auto & Mobile Equipment: Covers not just standard vehicles but also specialized mobile equipment like fracking trucks, wireline trucks, cementing units, and other heavy machinery that travels to and from sites.

High-Risk / High-Value Asset Coverages

These cover the massive physical and financial assets at stake.

7. Offshore Energy Package (OEP) / Onshore Energy Package: These are tailored package policies that combine property damage, business interruption, and liability coverages for specific assets like:
   • Offshore: Drilling Rigs (jack-ups, semi-subs, drillships), Platforms, Pipelines, FPSOs (Floating Production, Storage, and Offloading vessels).
   • Onshore: Drilling Rigs, Fracking Equipment, Production Facilities, Gas Plants, Refineries.
8. Drilling Rig Insurance: A highly specialized form of “Inland Marine” or “Property” insurance that covers the physical damage to the rig itself, including the mast, substructure, power plant, and machinery. It’s often written on an “All Risks” basis.
9. Physical Damage to Property (PDP): Covers damage to the operator’s own property, such as the well itself, casing, tubing, and downhole equipment, from insured perils like a blowout, fire, or collapse.
10. Business Interruption / Loss of Production Income (LOPI): For operators, this is crucial. If a covered event (e.g., a fire at a platform) shuts down production, this policy covers the lost revenue based on the price of oil/gas and the volume of production that would have been sold.
11. Seepage, Pollution & Contamination (SPC): Often a standalone policy or part of a package, this specifically covers the costs of cleaning up pollution that occurs gradually or from a non-sudden event, which may be excluded from a primary Pollution Liability policy.
12. Construction All Risks (CAR) / Erection All Risks (EAR): Essential for building new facilities, pipelines, or installing new platforms. It covers physical loss or damage to the project during the construction/installation phase.
13. Pipeline Insurance: Specialized coverage for onshore and offshore pipelines, covering third-party damage, corrosion, and other operational risks that can lead to catastrophic releases.

Specialized Liability & Niche Coverages

These address the complex legal and contractual obligations.

14. Umbrella / Excess Liability: The primary liability limits in this industry are often in the hundreds of millions. Umbrella policies provide the necessary excess layers to reach limits of $1 Billion or more, which are commonly required by joint operating agreements (JOAs).
15. Protection & Indemnity (P&I) Insurance: For any vessel operations (crew boats, supply vessels, FPSOs), this is the marine equivalent of liability insurance. It covers third-party liability for bodily injury, property damage, wreck removal, and pollution.
16. Contractual Liability / Assumed Liability: Oil and gas contracts (e.g., Master Service Agreements – MSAs) often require one party to assume the liability of another. This coverage protects you when you have contractually taken on the risk of another entity.
17. Directors & Officers (D&O) Liability: The strategic and financial decisions in this volatile sector carry immense risk. D&O is critical to protect the personal assets of directors and officers from shareholder lawsuits.
18. Cyber Liability for Operational Technology (OT): Beyond standard data breach coverage, this is vital for protecting against the cyber-physical risks of a cyber-attack on industrial control systems (ICS) and Supervisory Control and Data Acquisition (SCADA) systems, which could lead to catastrophic operational failure, blowouts, or pipeline ruptures.
19. Cargo / Transportation Insurance: Covers equipment, machinery, and materials while in transit via truck, ship, or rail to and from remote and often hazardous locations.
20. Decommissioning Liability / Abandonment Insurance: Provides coverage for the massive costs of properly plugging wells and removing platforms and infrastructure at the end of a field’s life, as required by regulators. This is a growing and critical area of risk.