Insurance for Oil and Gas Consultants
As an oil and gas consultant, large oil corporations, oilfield service companies and other energy-related businesses rely on your expertise to build resilience and reduce risk throughout their processes. You might help organizations find ways to maximize the value within oil reserves, deploy the latest automation solutions or even offer new strategies to support alternative energy sources.
It may come as a surprise that you may be held liable for almost any negative impact your services have on a business. Even if you only make recommendations and don’t have the authority to enforce change, people rely on your professional expertise. Despite every precaution you take, there is always a risk that an accident could happen or your professional advice is erroneous. It’s important to protect yourself, your clients, and your business with a risk management strategy.
We’re on a mission to make insurance as accessible as possible. With over fifty partners, we’ve helped oil and gas consultants across Canada protect their businesses with insurance policies tailored to meet their specific needs.
We wrote this guide to help you navigate the basics of liability insurance for oil and gas consultants.
What is Oil and Gas Consultant Insurance?
Oil and Gas Consultant Insurance is a policy package designed to accommodate the full range of consulting services you may provide within the industry. This coverage can provide financial protection against specific risks associated with consulting, such as negligence, errors and omissions that result in third-party losses. This insurance package can extend coverage for more generalized risks, such as third-party property damage and bodily injury.
What does it cover?
We believe a comprehensive policy for your business should cover the risks you are most likely to face. Those risks will vary by your specific services within the oil and gas industry; however, the following core coverages apply to most businesses:
- Professional Liability Insurance: As an oil and gas consultant, Professional Liability Insurance is essential to protect yourself from liabilities associated with providing this type of service. While your role may be restricted to only making recommendations, your advice is part of your professional opinion, which can lead to professional risk exposure. Professional Liability Insurance (also known as Errors and Omissions Insurance) protects oil and gas consultants against client claims alleging financial loss due to a service you provided, as well as lawsuits alleging negligence, misconduct, and failure to deliver services as promised. For example, you’re a pipeline supervisor overseeing a clients’ site, and you’re audited. If your directions aren’t compliant with health and safety measures, your business could be sued for negligence. Professional Liability Insurance could cover the cost of legal fees from the lawsuit.
- Commercial General Liability Insurance (CGL): Commercial General Liability Insurance can protect oil and gas consultants and contractors against common claims or lawsuits alleging third-party bodily injury, property damage, false advertising, and libel/slander. For example, you’re conducting a meeting at your office with an oilfield operator finalizing the deal to provide consulting services. Unfortunately, the client cuts themselves on the corner of your glass desk, injuring their arm, and sues you for bodily injury. In this case, CGL may cover legal defence costs and medical costs.
- Pollution Liability Insurance: Any individual or business such as an oil and gas contractor exposed to pollution risks or harmful materials should have Pollution Liability Insurance. Pollution Liability Insurance covers third-party bodily injury, property damage, and environmental damage due to both gradual and sudden pollution events that occur on a job site. For example, if transportation equipment malfunctions and results in an oil spill, it can be devastating. Pollution Liability Insurance can provide coverage for emergency response costs and clean-up costs.
How much does it cost?
Every consulting or contracting project is unique, and insurance coverage will vary by size and industry. The cost of insurance for oil and gas professionals will depend on the following factors:
- Years of Experience
- Number of Employees
- Claims History
- Involvement in Design-Build Projects
- Size of Operations
- Annual and Projected Gross Revenue
We want to make sure you’re covered for everything you should be. That’s why we’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.
Who needs it?
Any oil and gas consultant or contactor providing services within the energy sector should protect their business with a liability insurance policy package. If a client determines your advice or service was less than satisfactory or resulted in a financial loss to them, they may take legal action.
We’ve insured oil and gas professionals from many different roles in the industry, including:
- Drilling Supervisors
- Energy Consultants
- Environmental Consultants
- Oilfield/Land Surveyor
- Petroleum Engineers
- Pipeline Inspectors
- Oil and Gas Contractors
Common claims scenarios
Frequently asked questions