When the Gulf of Mexico suddenly went ablaze, Petroleos Mexicanos (Pemex) quickly fought to extinguish the flames. While Pemex investigates the cause of the gas leak, this recent spill emphasizes why O&G companies need environmental insurance.
An eye-opening liability coverage revelation
Unfortunately, the Pemex incident is not the first of its kind. Some could argue that spills are just part of the territory, but is that truly so? With the proper precautions, upkeep, and procedures, most probably could have been prevented.
The costs of putting out flames, stopping the leak, and repairs are just the tip of the iceberg. With spills into the Gulf come environmental pollution claims. In total, you may be facing billions in damage claims.
While most companies in the Industry may think that their general liability insurance covers spill costs, the reality is not so reassuring. Pollution costs are not always covered. That’s where environmental or pollution liability insurance comes in.
Under this highly specialized insurance policy, an insurer will help cover pollution damage cleanup costs. In addition, the policy will usually cover third-party claims of property damage or injury.
However, this is a two-way street.
In exchange for cost coverage, the insurance company will work with the oil and gas company to go over the latest risk management techniques. In addition, they will help the company establish methods to ensure their team can easily follow and document procedures and policies.
Striving for excellence
The Energy industry seems to be entering the spotlight much more frequently these days, especially in Houston, Texas. Unfortunately, oil and gas companies tend to make headlines for incidents, not their contributions to the economy and world.
At Texas Insurance, we know the Oil and Gas industry works very hard to maintain and often give back to the environment. We see the conservation efforts and protective measures you take when drilling and fracking wells. And with the rising excellence in subsurface monitoring technology like fiber deployment solutions, we know your downhole and offshore insight has grown leaps and bounds from even just 5 years ago.
A few bad apples can make it challenging to maintain a good image. We can work with you to protect your business, workers, and the environment. Give us a call today to see if you qualify for environmental insurance.