Energy Insurance and Risk Management
Solutions for the Energy Industry
USI’s Energy Practice serves a wide range of clients including upstream, midstream, and downstream energy businesses. Our clients include onshore and offshore exploration and production companies, drilling and service contractors, pipeline and transportation/distribution, gas processing, refining and petrochemical companies. We also work with green energy and coal mining operations. USI relies on the deep knowledge and expertise of our recognized industry leaders to provide critical, value added solutions designed to help clients, control costs and manage risks in the face of changing regulations and an often volatile energy market.
Our management team advises clients on a variety of onshore and offshore energy risk exposures and challenges such as oil & gas well blowout risks, fracking risks, political risk, environmental exposures, terrorism, supply & demand fluctuations, underground property exposures, general and excess liability and loss of business income. For offshore businesses, USI assists with Marine Liabilities, Hull & Machinery and P&I and Maritime Employers Liability. USI’s Energy practice is also fluent in alternative energy and mining exposures.
USI structures insurance for energy risks, including:
- Control of Well / Operators Extra Expense
- Energy “Package”
- Downhole Tool Coverage
- Oil Lease Property
- Care, Custody & Control for third-party equipment
- Rig PD
- Drilling Permit Bonds
- Plugging and Abandonment Bonds
- Heavy Load Permit Bonds
- Onshore and Offshore Property
- Cargo
- Stock Throughput
- Owner-Controlled Insurance Programs
- Builders Risk
- Equipment Floaters
USI also provides a variety of analytical and risk management resources such as Contract Review (Joint Operating Agreements, Master Service Agreements, and Partnership agreements), Classification and Exposure Review, Loss Forecasting, Collateral Review, Loss Control and Claims Advocacy, Environmental Review, Catastrophic Modeling and Certificate Tracking.
To analyze our clients' business issues and challenges, our Energy team leverages USI ONE®, a fundamentally different approach to risk management. USI ONE integrates proprietary business analytics with a network of local and national technical experts in a team based consultative planning process to evaluate the client’s risk profile and identify targeted solutions. Clients then receive tailored recommendations for improving their total cost of risk.
Experience the USI ONE Advantage® and learn how USI’s nationally and locally based Energy Practice serves the constantly evolving risk needs of the energy market. Email pcinquiries@usi.com to learn more or contact your local USI office today.
CASE STUDY:
A USI client sold a set of oil wells to another operator. After the sale, the purchasing operator retained our client’s services to manage the day-to-day operation of the wells. Under the arrangement, USI’s client also insured the wells under their Control of Well program. Recognizing the unusual nature of the arrangement, USI’s energy team modified the client’s Control of Well program to insure the wells and tailored the client’s other policies to provide coverage for risks assumed under contract. Two days after the sale transaction was complete, an explosion at one of the wells caused significant damage. USI’s thorough review of the contractual arrangements and subsequent alignment of the various insurance policies to cover risk exposures protected the client from a $500,000 loss.
CASE STUDY:
A middle market petrochemical producer needed help estimating the potential lost earnings and expenses that might be incurred in the event of a property loss. Working closely with the client, USI’s energy practice evaluated the financial impact of different loss scenarios and then arranged insurance to protect the client’s income stream in the event of a loss. Later that year, the client suffered a loss at their main facility when one process vessel collapsed into another, creating an explosion. In addition to property damage, the client incurred extra expenses repairing the damage and restoring operations. USI’s claim consultants helped the client present their claim properly to the insurer—taking advantage of the tailored policy placed by USI. The combination of USI’s pre-loss insurance program design with business income analysis and post-loss claim consulting protected the client against a $1,500,000 loss.
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