Oil and Gas Insurance

Oil and Gas Insurance

Get a comprehensive oil and gas insurance policy to protect your business from financial losses resulting from insurable risks.

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Zensurance - Oil and Gas Contractor

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Insurance for oil and gas businesses

Canada is the world’s fifth-largest producer of oil and natural gas. Canadian oil and natural gas contributed an estimated $105 billion to our country’s gross domestic product in 2020, and the industry employs nearly 400,000 people.

But oil and gas businesses and contractors face a multitude of risks that call for a customized insurance policy to provide them with financial support when something goes wrong.

What is oil and gas insurance?

Oil and gas insurance is a policy containing different coverages that are designed to cover the liabilities and threats faced by companies and professionals working in the industry. 

From risks posed by volatile markets and shifting government regulations to day-to-day operations or accidents, a customized oil and gas insurance policy from Zensurance can protect your business and provide you with peace of mind.

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What does it cover?

A comprehensive oil and gas insurance policy may include the following coverages:

  • Commercial General Liability (CGL) Insurance: CGL covers your daily operations from the risk of third-party bodily injury and property damage claims. It provides financial support for third-party damages caused by your business’s operations due to an accident (such as a slip and fall).
  • Professional Liability Insurance: Professional liability, also known as errors and omissions (E&O) insurance, protects you from client claims alleging negligence, misconduct, errors, and failing to deliver a service as promised. It provides you with funds for legal support and damages related to your professional services, products, and media and advertising.
  • Commercial Property Insurance: Commercial property insurance protects your business’s office and other attached physical structures as well as your contents and inventory. Also known as business property insurance, it pays to repair or replace your furniture, computers, and equipment if damaged by fire, flood, a natural disaster, vandalism, or theft. Commercial property insurance may also include business interruption coverage, or it can be added to your commercial property coverage as a rider.
  • Equipment Breakdown Insurance: Also referred to as ‘boiler and machinery’ coverage, equipment breakdown insurance pays to repair or replace your equipment and machinery if damaged by an electrical or mechanical malfunction. It covers a wide range of equipment and machinery, including HVAC systems, refrigerators and other appliances, alternative energy equipment, and computers and production systems.
  • Tools and Equipment Insurance: This type of coverage pays to repair or replace the transportable tools and equipment you use to complete operations if they are lost, damaged by fire or flood, vandalized, or stolen. It covers a broad range of items from hand tools to heavy equipment vehicles.
  • Pollution Liability Insurance: Whether due to leaks, spills, or explosions, pollution liability insurance covers the cost of sudden or gradual damages causing environmental harm and third-party bodily injury or property damage because of your operations.
  • Cyber Liability Insurance: Protecting your customers’ confidential data is every business’s responsibility. Cyber liability insurance safeguards you from loss or damage resulting from cyber-attacks and data breaches. It provides funds for your legal defence and damages including repairing and restoring your software systems and computing hardware affected by a cybersecurity incident, crisis management and credit monitoring, and coverage for losses sustained during a systems outage.
  • Commercial Auto Insurance: The vehicles your business uses require commercial auto coverage. Private-passenger car insurance is not designed to cover vehicles used for business purposes. It protects cars, trucks, vans, and trailers. A basic or standard policy includes third-party liability, accident benefits, uninsured auto, and direct compensation-property damage. Optional coverages, such as collision and comprehensive insurance, can be added to your policy.
  • Legal Expense Insurance: Hiring a lawyer or seeking legal counsel can cost thousands of dollars. Legal expense insurance is considerably less. It provides you with funds to hire or consult a lawyer for several issues, including employment or contract disputes, debt recovery, tax protection, statutory licence protection, and coverage to pursue legal action against an individual or organization.

Who needs oil and gas insurance?

There are several types of oil and gas businesses and professionals that need coverage, including: 

  • Compressor and pump stations
  • Crane operators
  • Directional drillers
  • Down hole operations
  • Drilling contractors
  • Gas processing plants
  • Gas storage facilities
  • Geologists
  • Liquified natural gas facilities
  • Oilfield consultants and service technicians
  • Pipeline construction contractors
  • Pipeline inspectors
  • Pipefitters
  • Petroleum refineries
  • Rig managers
  • Service contractors
  • Snubbing operators

How much does it cost?

Insurance companies consider a range of factors when determining the cost of an oil and gas insurance policy, including:  

  • The products and services you provide
  • Your business’s size and location
  • How many employees you have
  • Years of experience
  • Your annual and projected revenues
  • Previous insurance claims
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Common claims scenarios

Frequently asked questions

Are there any exclusions in my oil and gas insurance policy?

All insurance policies have exclusions, or risks that are not covered by your policy. For instance, an oil and gas insurance policy may exclude inland marine coverage or protection for equipment that’s in transit. Talk to a licensed broker about what exclusions, limits, and deductibles apply to your policy.

Do oil and gas subcontractors need to have their own insurance coverage?

Yes. Any time you hire a subcontractor for any project, ask to see their certificate of insurance or proof of insurance document. Hiring a subcontractor who is not insured will expose you to risks.

Do you offer excess liability coverage?

Yes. You can purchase what is known as commercial umbrella liability insurance to get an extra layer of coverage to pay for costs that exceed your existing coverage limits. Speak to a Zensurance licensed broker about this option.

Are subcontractors covered in my Oil and Gas Insurance policy?

No, subcontractors aren’t covered, but all employees are. However, your policy limit typically applies to all employees under your policy rather than individual employees. You have the option to increase your limit to accommodate your entire staff, or, alternatively, you can ask them to carry their own Liability Insurance.

Does my insurance policy cover multiple oil and gas job sites?

Yes, your insurance policy will cover the various oil and gas sites that you are contracted to work. If you’re providing services at multiple locations, let your broker know to ensure your coverage limits are adequate.

Does Oil and Gas Consultant Insurance provide coverage for oil transportation?

Unfortunately, we do not provide insurance for any upstream production or downstream transportation of oil.  We are only able to provide insurance for Oil and Gas consultants who provide consultancy services.

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Let’s drill down to what really matters: protecting your business. 

Fill out an online application to get a free quote from Zensurance. Our licensed brokers will shop our partner network of more than 50 insurance carriers and provide you with a customized policy that suits your requirements.

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