An oil or natural gas product is an environmentally-sourced product. Nevertheless, these products, when extracted from the ground, become contaminants. In many cases, they can harm humans. If they get into the wrong place, they can harm the environment. So, in a nutshell, the products you deal in can cause pollution if handled incorrectly. If they do, you might have an obligation to clean up the mess. Luckily, within your commercial insurance, you might have pollution coverage. What’s this protection? What can you do to avoid ever having to use it?
In the oil and gas industry, pollution coverage is among the most important coverage from which you might benefit. Don’t hesitate to get this coverage today.
Why You Need Pollution Insurance
During the course of collecting or storing a gas product, there’s a chance of a spill or other damaging incident. The product (liquid, solid or gas) might enter into the surrounding environment. In other words, it will go somewhere it was not supposed to go. In its wake, it might damage structures, or cause fire or explosion risks. More importantly, perhaps, it could harm local vegetation, wildlife and people.
Think in the case of a gas spill that seeps into a local creek. It could permeate the local water supply, and sicken local residents. The cleanup alone will likely be expensive. The resulting medical bills, property damage or injury costs to affected parties might skyrocket. The reason that affects the business is that the costs of recovery might fall squarely on your shoulders. Businesses who cause harm to others, even accidentally, often have to pay for the recovery.
Should you face allegations of causing pollution, a pollution liability policy might come in handy. Consider its importance in helping your recovery.
Coverage Provided by Pollution Insurance
A pollution policy functions like liability insurance. It can help you pay for the pollution damage you cause to others. It might help you pay for:
- Clean up costs, including wages and labor
- Regulatory fees triggered by the mistake
- Settlements or judgements imposed by courts
- Legal fees incurred during defense of an allegation
The key is to get the pollution liability coverage that’s appropriate to your unique line of work. Therefore, talk extensively with your insurance agent at 800.475.0001 about the type of products you handle. They can therefore advise you on the right course to take to achieve full protection. They’ll also help you understand the financial limits, deductibles and exclusions within your coverage. Therefore, you’ll better be able to tailor your coverage. Don’t hesitate to ask about your coverage options extensively.
Also Read: Fire Risk Management in Oil and Gas Drilling