Understanding the terms and conditions of your agreements or Master Service Agreements (MSAs) with customers is essential. These MSAs likely specify certain coverage types and minimum amounts of insurance that your company must maintain to be eligible for work or service provision. To ensure compliance, it’s important to work closely with your insurance agent who can review the insurance requirements outlined in your MSAs and help you procure the appropriate coverage. Pay close attention to any exclusions or endorsements that the MSAs may stipulate. Commonly required endorsements include pollution coverage, contractual liability, and professional liability.
“Most insurance agents are able and willing to review the insurance requirements of your MSA…to be compliant.”
Even if you don’t have formal written agreements with customers, it is still vital to have sufficient insurance coverage that aligns with the size and scope of your business operations. This typically involves General Liability, Auto and/or Equipment Liability, and Worker’s Compensation/Employer’s Liability coverage. Your insurance agent can assess the risks inherent in your operations and recommend policies that best suit your company’s needs. It is crucial to review your coverage at least annually to ensure that it keeps pace with any growth your company has experienced.
Adequate Worker’s Compensation insurance remains a necessity to safeguard your company from potential catastrophes in the event of employee injuries or accidents. Moreover, Worker’s Compensation is legally required in most states. Should an employee sustain an injury while working for your company, you may bear legal liability for their medical care and a portion of their lost income and may also face a lawsuit.
Staying compliant with these updated insurance requirements is paramount for the success and resilience of your business in the oil industry. Collaborate closely with knowledgeable insurance agents to tailor policies that suit your unique needs and mitigate potential risks. Regularly review your coverage to ensure ongoing compliance and effective protection as your business evolves. By prioritizing proper insurance, you can confidently navigate the challenges of the oil patch and safeguard your company’s future.