Master Service Agreements - Oil and Gas Insurance
In the Oil and Gas industry, Master Service Agreements (MSAs), establish a contractual relationship to govern ongoing work during exploration, drilling, production and service without having to renegotiate terms and conditions multiple times. This is important because, in most Oil and Gas operations, there are multiple employers, many workers, extensive property and numerous simultaneous objectives being achieved on a single work site. In the Oil and Gas environment, operations can change much more quickly than lawyers can negotiate new contracts- which is why oil and gas insurance coverage and your Master Service Agreements are so important.
The Oil and Gas industry created the MSA to respond to two crucial needs: the necessity to respond quickly to operational changes and the implementation of a carefully planned risk allocation strategy that is suitable for multiemployer work sites. Without an Oil and Gas MSA in place, those two issues would constantly be in conflict with one another. All parties can benefit from having a pre-determined risk allocation program in advance of any actual work order being requested and accepted.
The need for an Oil and Gas MSA is magnified by the existence of multiemployer work sites and the inevitable difference in risk philosophies between companies involved in differing operation of a relatively small geographic space. The agreement to a mutually beneficial Oil and Gas MSA can be further complicated by legal counsel and risk management departments that must come together to create a workable solution.
At SwingleCollins & Associates, we have extensive experience in reviewing Oil and Gas MSAs to give your company power in negotiating before the work order has been placed. In all cases, oil and gas insurance and indemnity will be dictated by the language of the MSA. Larger parties involved in the contract tend to push their liability onto smaller parties to the contract, which is why your company needs guidance and advice from a commercial oil and gas insurance professional you can trust before signing. Whether your company is the one hiring multiple subcontractors or you are the sub in need of a good job to keep employees on the clock, SwingleCollins & Associates is here to help you protect your employees, assets and reputation.
Swingle, Collins & Associates specializes in oil and gas insurance coverage. The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for control of well, or master service agreements insurance please contact your dedicated risk manager to discuss the benefits and services of personal homeowners insurance coverage.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.