All Albertans know that oil and gas is a major driver of the province’s economy, and everyone is proud of the major innovations that have been made in the market. It is unlikely, however, that we will ever see oil at over $100 a barrel again (at least not in the foreseeable future), and so oil and gas business owners are going to have to get even more creative in order to stay viable.
Oil and gas insurance is a specially designed product tailored for those in the industry. It covers everyone from drillers to welders to inspectors, and can be customized specifically towards whatever service you provide. We have knowledgeable and experienced oil and gas insurance experts on hand that know exactly what questions to ask to get you the coverage you need.
Components of oil and gas insurance should always include:
Property insurance: If your business is housed in a permanent location, property insurance is a must. Not only does it cover the building, but also the contents in it. That includes your computers and business assets. Usual named perils for property insurance include damage incurred from fire, vandalism, and extreme weather. Flood insurance for businesses is also available in Alberta, and has been for some time.
General liability insurance: This is your catch-all coverage that protects you from liability resulting from third-party property damage and third-party bodily injury. That means if your business operations somehow cause harm to someone else’s property, if someone is hurt while carrying out their job, or if a client is injured while visiting your job site, you will be covered for necessary reparations.
Additional oil and gas insurance coverages may include (but are certainly not limited to):
Business interruption insurance: This type of coverage protects you if your business becomes inoperable. Business interruption insurance will help bridge the gap and allow you to keep paying your bills and employees until you can become fully operational again.
Contractors equipment insurance: This coverage can provide for a contractor’s loss of income, reimbursement for rental equipment, and the replacement cost for a contractor’s personal equipment.
Crime: You can’t predict everything, including the actions of your employees. Crime coverage will protect you from the dishonest actions of your employees, including theft, counterfeiting, and forgery.
Keeping your Oil and Gas Insurance Costs Low
A few ways to ride out the recession with lower oil and gas insurance costs include:
- Study your list of drivers. If you have a commercial auto insurance policy, how your drivers are operating their vehicles matters. If some have racked up tickets or been in accidents, consider removing their driving privileges completely. Usage-based insurance is a great way to keep track of these things without having to ride around with your employees all the time, and, with good driving behaviour, can earn you discounts on your premiums.
- Check your deductibles. Raising deductibles is a fast and easy way to help lower premiums. Just remember to always have the deductible amount saved up in case it is needed.
- Get a property assessment done. It may be that, in Alberta’s changing real estate world, your property isn’t worth as much as it was a couple years ago. A professional property assessment can help you determine this.
- Review your revenues with your broker. If revenues have changed quite a bit, your coverage should reflect that. Remember, coverage can be changed at any time, not just when your renewal comes around.
- Go through your operations, case by case. If there are some operations you can halt or alter that require specific coverage you may be able to lower your premiums. Or, we may be able to shop around for different providers to find the best fit for your needs.
- Take stock of your equipment and property. It’s possible you are paying for coverage for things you don’t even own anymore. Or, if you have equipment you wouldn’t replace in the event of a loss, you may want to consider removing it from your policies.
- Revise your equipment usage. If there is some equipment that is simply not being used at the moment, let your broker know so they can potentially remove some unnecessary coverage for use and wear and tear.
Additional ways to help you save on your business insurance include reducing risk wherever you can. Ensure your workplaces are safe and employees are fully trained.
Looking for Comprehensive, Affordable Business Insurance in Alberta?
Lane’s Insurance is a leading Alberta-based insurance brokerage that offers the lowest possible rates and value-added service to all business clients. If you are looking to reduce your business insurance rates in Alberta, or if you have any other questions about the kinds of coverage you do and don’t need, contact a Lane’s Insurance representative for friendly, prompt, personalized advice.