The “energy” category of insurance has a broad definition and these clients often require varying types of coverage. Energy clients range from blending & mixing facilities, oil and gas servicing contractors, and refineries, to more alternative energy risks, such as biodiesel facilities and contractors handling windmills and solar-powered services/equipment.
And, while some of these activities are regional, most companies operating in the energy industry span across the country. Here are some of the environmental coverages they often require:
General Liability/Contractors Pollution Liability
Combined General Liability and Contractors Pollution Liability policy that provides coverage for pollution claims arising from an insured’s covered and completed operations.
Products Pollution
Provides liability coverage for bodily injury and property damage to third parties arising out of a manufactured product. This would be especially important for blending/mixing facilities, companies that make solar panels, etc.
Transportation Pollution Liability
Coverage for insureds who need protection for pollution conditions caused by transportation. This coverage can also include loading/unloading should the insured’s cargo create a pollution condition. This would be important for haulers of any placard use, salt water disposal companies, etc.
Excess
Follow form Excess policies provide additional limits, following form over the underlying General Liability, Pollution, and any associated Professional, Employers, and Auto liability.
Although environmental liability insurance is not always required, the Gulf of Mexico oil spill is the perfect example of why it is crucial for energy companies to have adequate coverage. This is a great opportunity to contact your energy clients to make sure they have the right insurance program in place. For more information or to discuss a specific energy account, call us at 1-800-596-2156 or email us.
