If a well blows out while being drilled, the resulting bodily injury and property damage are covered by a typical General Liability policy. What is not covered is the cost to extinguish the fire and to restore the well to the condition it was in before the blowout. This may involve drilling a new well. Continue Reading …
Third Party Action Over
December 20, 2010 By
Mutual hold harmless agreements (Master Service Agreements) are common in the oilfield. Typically, Company A will hold the company for whom they are working, Company B, harmless for injury to Company A’s employees. An employee of Company A is injured. Due to Workers’ Compensation laws, he may be precluded from bringing a liability suit against his Continue Reading …
Underground Resources
December 20, 2010 By
If a well leaks and damages resources that are underground (oil, water or other mineral resources) belonging to others and those resources are not in the insured’s care, custody or control, the insured has liability. Underground resources coverage will respond to that liability, if you have it in your policy.
Flow Line Spill
December 20, 2010 By
A lease operator or well owner can experience a flow line break, with resulting Pollution. If the loss is not controlled or discovered immediately, oil can flow to adjoining properties or waterways. A contractor working on a well can also break a flow line or valve causing a spill, with damage to property of others. Oil storage Continue Reading …