Pitfall: Assuming rental companies’ insurance covers you. Their policies usually protect them, not you. Fix: Add coverage for leased/rented equipment on your inland marine policy. Takeaway: Always assume you’re responsible for rented equipment until proven otherwise.
Pitfall: Treating OSHA compliance as separate from insurance. Carriers review OSHA violations when pricing policies. Fix: Maintain strong OSHA logs, training, and compliance. Demonstrating safety lowersrisk scores. Cost Angle: Fewer violations = lower premiums.
Pitfall: Focusing only on physical damage coverage. When operations stop, lost income is often greater than property damage. Fix: Add business interruption coverage to replace income during downtime. Takeaway: The pitfall is overlooking business continuity. The fix is protecting your… Continue reading Business Interruption Coverage in the Oilfield
Pitfall: Hiring experienced CDL drivers but skipping structured training. Experience doesn’t guarantee safety. Fix: Create driver orientation programs covering fatigue, distracted driving, and oilfield-specific hazards. Cost Angle: Insurers offer fleet credits for documented training programs.
Pitfall: Accepting your EMR as “fixed.” In truth, EMR is driven by loss history. Fix: Control claim frequency, implement return-to-work, and appeal incorrect EMR calculations. Takeaway: Lower EMR = lower premiums and more contract opportunities.
Pitfall: Insuring property at book value instead of replacement cost. Oilfield equipment often costs more to replace due to inflation and supply chain delays. Fix: Base coverage on current replacement cost, not depreciation. Cost Angle: Underinsurance penalties (coinsurance) reduce claim… Continue reading The Danger of Underinsuring Property
Pitfall: Relying solely on COIs for subcontractor compliance. COIs don’t show exclusions or ensure active coverage. Fix: Require policy endorsements and monitor renewals. Certificates are only snapshots. Takeaway: Certificates prove little. True compliance comes from policy verification.
Pitfall: Assuming general liability covers wrongful termination, harassment, or discrimination claims. It doesn’t. Fix: Employment Practices Liability Insurance (EPLI) protects against employee lawsuits—one of the fastest-growing risks in the industry. Cost Angle: These policies are affordable and often bundled with… Continue reading EPLI: Protecting Against Employment Claims
Pitfall: Overlooking waiver of subrogation requirements in contracts. Without it, insurers can seek reimbursement from operators—breaching your contract. Fix: Add waivers of subrogation where required. It’s usually inexpensive and protects your contract relationships. Takeaway: The pitfall is ignoring contract insurance… Continue reading The Importance of Waiver of Subrogation
Pitfall: Many companies assume their property policy covers tools and equipment on job sites or in transit. It usually doesn’t. Fix: Inland marine coverage protects tools, equipment, and rented gear whether at a yard, in transit, or on location. Cost… Continue reading Inland Marine Coverage: Protecting Tools & Equipment