Control Of Well Insurance Maine Policy Information
Control Of Well Insurance Maine. It's imperative that wells are kept fully functioning in the oil and gas industry. Wells are, after all, one of the most vital components of your business. Given the fact that oil and gas are highly combustible, there is always a risk of an explosion or a fire.
Should that happen, not only would you be looking at serious damages that would need to be repaired, but it's likely that your business would also have to be shut down during the restoration process.
What would you do if a blowout did happen? What would you do if your ME wells needed to be restored or re-drilled? Would you be able to cover the costs of any of these situations on your own? More than likely, the answer is a resounding 'no'. That's why it's so important to carry a control of well insurance Maine policy.
Control of well insurance Maine helps restore the operations of your oil and gas wells after a well blowout occurs - including coverage for bringing well back under control, legal liability, cleaning up pollution, redrilling and more. Get a fast quote and your certificate of insurance now.
What Is Control Of Well Insurance?
Control of well insurance (also known as well control insurance), is a specialized insurance policy that is designed to cover all or some of the costs that are linked to regaining the control of an oil or gas well. This type of insurance also provides coverage for cleaning up any pollution that might occur should a blow out, re-drilling, or restoration project were to happen.
In simple terms, control of well insurance Maine is designed to companies in the oil and gas industry, with the coverage they need for any of the risks that are associated with drilling and maintaining a well. The process of extracting gas and oil is a very complex process.
There is always a risk that something could go wrong and a well could sustain damage or become ineffective as the result of an explosion or some other catastrophic event.
Due to the process of extracting oil and gas, containing and stopping the flow of these substances can be very difficult. Trying to regain control of a damaged well can be extremely costly; not to mention the environmental damage that could occur should a well explode or otherwise become damage.
With control of well insurance Maine, any necessary repairs that would need to be made should a well become damaged would be covered. This type of coverage also helps to pay for the efforts that are needed to stop any leaking oil or gas, as well as the cleanup and restoration process. It can also cover the re-drilling of a well after it has become damaged.
Control Of Well Insurance Coverages
Following are four important ME control of well insurance coverages for oil and gas well operators to consider:
- Cost of Well Control - Covers the costs to bring the well under control after a blowout, and to cap or plug the oil well.
- Redrilling & Restoration Expense - Covers the costs of restoring the oil or gas well or replacing the lost well by redrilling a new one.
- Pollution Cleanup - Covers costs for pollution liability and cleanup and prevention costs to contain or remove toxic substances coming from the well above ground.
- Care, Custody, & Control - Covers third party property damage including: contractors' equipment, supplies, and rental tools, piping, and other equipment on site - which are usually damaged to some degree during a blowout.
Investing In Control Of Well Insurance
There are a number of highly reputable insurance companies that provide control of well insurance coverage. The policies they offer are designed to provide coverage for onshore and offshore wells. What a policy will cover varies from insurance provider to insurance provider; however, generally, these policies offer coverage for the following:
- The efforts that are necessary to regain control of a well after an explosion or other damage occurs.
- The expense of re-drilling the damaged well.
- The cleanup efforts and the costs that are associated with them after an explosion or other damage occurs.
The amount of control of well insurance Maine coverage you would need depends on the exact specifications of your business, such as where in ME you are drilling (on-shore or off-shore) and the size of your wells, for example; however, it is well understood that the limits for control of well insurance are rather high; they can cost into the 7-figure range, if not more.
How Much Does Control Of Well Insurance Cost?
The cost of this type of insurance coverage varies from insurance company to insurance company; it is also based on the specific details of your business. For example, you might need to carry more coverage if your wells are located off-shore, as there is more of a risk for pollution after an explosion; plus, it usually costs more to re-drill a well that has been damaged.
Together with a reputable insurance broker, you can determine exactly how much control of well insurance you need to carry and how much your coverage will cost you.
Control Of Well Insurance
Gas and oil well drilling can be quite lucrative; but, the risks can also be great. By carrying the right type of control of well insurance Maine, you can ensure that your business, your employees, and anyone who lives near the oil well will be well-protected.
Maine Economic Data, Regulations And Limits On Commercial Insurance
You have a great idea for a business and you have developed excellent products and services that you are certain people will benefit from. You've also developed a viable business plan. Now you need to choose a place to start your company.
In order for your company to be as successful as possible, you need to choose a location that offers a favorable market for your specific business. After all, if the area doesn't offer a job force to support your operation or a target market that will purchase your products and services, you likely aren't going to succeed.
With that said, if you are thinking about starting a business in Maine, having an understanding of the state's economic trends is essential. It's also important to know what type of commercial insurance you'll need to carry. Below, we offer an overview of this information so that you can determine if ME is right for your business.
Economic Trends For Business Owners In Maine
Unemployment rate is a good indicator of a state's economic climate. The lower the rate, the more opportunities exist for business owners, as it suggests that there are ample job opportunities, and the more job opportunities, the more successful businesses there are in the region.
As per the Bureau of Labor Statistics, the unemployment rate in the state of Maine was 2.9% in December, 2019; that's 0.6% lower than the national average, which was 3.5% at the same time.
Additionally, according to economists, more employment opportunities are expected in the coming years, which will further reduce the unemployment rate.
While locations throughout the state offer opportunities for business owners, there are certain locations that are ideal for entrepreneurs. These locations include:
- Bar Harbor
These cities are the largest in the Pine Tree State, so it's understandable why they offer the best opportunities for businesses. While Maine is home to multiple industries, there are specific sectors that do particularly well here, including:
- Finance and insurance
- Hospitality and tourism
- Information technology
- Professional services
- Real estate
Therefore, if you are considering launching a business in any of these industries, Maine is likely a good location for your company.
Commercial Insurance Requirements In Maine
The Maine Bureau of Insurance regulates insurance in ME. Maine mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Maine requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. Independent contractors do not count as employees, but if those contractors employ subcontractors, the subcontractors must be covered by a workers compensation policy.
Maine also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Miscellaneous & Non-Profit Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
- Adult Daycare Insurance
- Agriculture, Forestry, Fishing & Hunting
- Bail Agent
- Control of Well
- Employment / Staffing Agency
- Engraving Business
- Facility Support Services
- Mail Order
- Oil And Gas Lease
- Personal Concierge
- Photofinishing Lab
- Portable Sanitation
- Printers & Publishers
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- Security Guard
- Surety Bonds
- Unmanned Aerial Vehicles (UAV) Drone
- Waste Disposal Landfill
- Wedding Planner
An insurance contract is an agreement where one party obligates itself to make good the financial loss or damage sustained by a second party when a designated event occurs. The event must be fortuitous and happen by accident. The named insured must have insurable interest at the time of loss. One final point is that in order for any contract to be considered insurance, there must be a risk of loss.
Fortuitous Event - An occurrence largely beyond the control of any involved party; happening by chance; accidental; for example: fire, lightning, windstorm, explosion or flood.
Insurable Interest - In order to recover from a loss to property, the holder must have an insurable interest in the property at the time of the event or occurrence. An insurable interest is any right, title or interest in property where the holder of that right, title or interest sustains financial loss if the property is damaged or destroyed. Any lawful and substantial economic interest in the safety or preservation of the property from loss, destruction or damage also constitutes an insurable interest.
An entity does not have to be the property owner to have an insurable interest in it. Examples include, but are not limited to, mortgagees, trustees, vendors, lessees and bailees. Insurable interest for any entity must exist at the time the loss occurs.
Risk Of Loss - If property could never be destroyed, there is no risk of loss. If property must necessarily disintegrate or be destroyed, there is no risk of loss. Between these two extremes is the exposure of risk that can be insured.
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Also learn about Maine small business insurance requirements for general liability, business property, commercial auto & workers compensation including ME business insurance costs. Call us (207) 401-4779.