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 language. The fix is aligning your
coverage with those obligations.
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