According to the Associated Press, the BP oil spill created one of the biggest losses in the energy market. New safety measures, including timely inspections of deep-water operations should go a long way towards ensuring that fewer incidents of this type will occur. But anyone involved in the business of energy and energy products understands that these risks exist and are a real concern. Having adequate energy insurance in San Francisco will aid in keeping this area healthy, clean and safe.
No matter what type of disaster occurs, whether it is spills and subsequent clean-up, a missed delivery of products, product contamination, theft or damage to tools and materials, vehicle damage, or on-the-job accidents resulting in injuries of employees or others, having an emergency action plan in place can save the company, protect the workers, and help restore things to pre-disaster condition.
Safety is a key component
What’s equally as important as securing coverage is having the knowledge of where the exposures lie and implementing safety plans and programs designed to prevent instances from occurring, or properly dealing with the problem once it happens. Safety managers should make workers and employees aware of issues pertaining to their duties, as well as areas where risks and concerns are highest, and ensure they are following policies developed to stem the potential risk of an accident.
Keep good records for insurance claims
Once a problem occurs, it is important to ensure that the company receives adequate compensation, and having documentation of the events is crucial. With everything that goes on in the energy business, it is easy to forget to update the insurance policy and keep records of all properties. Without documentation and frequent revisions of viable assets, it is much more difficult to ensure that all damages will be covered. Having video footage and photos of all properties and structures, even those that are under construction, is advised.
Another pitfall that is particularly important to oil and gas companies who hold the potential to cause a massive environmental disaster is pollution exclusion. Review what local and circuit courts and the insurer classify as a “pollutant”. This may seem obvious, but picking the right Commercial General Liability (CGL) policy is the lifeline of any company, especially for smaller oil and gas companies. Keeping the Bay area clean and safe is everyone’s responsibility, and companies that transport and distribute chemicals need to have energy insurance in San Francisco to help aid in this mission.
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