The oil and gas industry faces unique risks, and environmental disasters are not unheard of. Considering this, general liability insurance is not sufficient for oil and gas business owners, suppliers and contractors. If you’re involved in this industry and are in the market for oil and gas insurance in New Mexico, you should consider getting environmental liability insurance.
Your general business liability insurance does not provide coverage for pollution damage and environmental disasters caused by your business operations. When accidents happen in the oil and gas industry, they are usually large and costly. Depending on the specific insurance policy, environmental liability usually provides coverage for bodily injury, property damage, business interruption, and cleanup expenses. Furthermore, third-party claims, legal defense fees, and court costs can often time be included. However, keep in mind that if the accident was intentional or due to non-compliance with applicable laws, coverage may be denied.
Accidents can and do happen fast in the oil and gas industry. All it takes is an oil spill from a leaking oil tanker or a wrecked oilfield truck. No matter if you already have oil and gas insurance in New Mexico or if you’re looking to purchase insurance for your operations, environmental liability insurance can be recommended for your particular situation.