Maryland Oil And Gas Lease Insurance Policy Information
Maryland Oil And Gas Lease Insurance. You've put a tremendous amount of time, money, and effort into ensuring the success of your oil and gas business. You go above and beyond to make sure that you are offering the highest quality products, the best possible services, and the most affordable prices.
All of the equipment and machinery that you is state-of-the-art and regularly passes rigorous inspections, and your employees receive extensive training.
Despite all of your best efforts to ensure that your oil and gas business is running smoothly and safely, sometimes, the unexpected can happen. When it does, you'll be thankful that you have the right type of Maryland oil and gas lease insurance insurance.
Maryland oil and gas lease insurance protects your leased property from theft, damage and more with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Why Oil And Gas Lease Insurance Is Important
In order to operate n MD oil and gas lease property, you are legally required to have insurance coverage; but even if you weren't, you would still want to make sure that you were covered. Why? - Because you have invested a great deal of money in all of the tools and equipment that are needed to run your business. You also want to make sure that your employees, your clients - and you, yourself - are protected.
Being that oil and gas are highly combustible, in your line of work, there is always a risk of a fire or an explosion. Other issues can arise, such as spills, slips and falls, and property damage; just to name a few problems that you could encounter. The costs of repairs, lost property, medical bills, and any legal issues that could arise if a disaster did occur could be financially devastating. If you didn't have insurance, you would have to pay these astronomical expenses out of your own pocket. Would you have the money to pay for such exorbitant costs? More than likely, the answer is no.
Without Maryland oil and gas lease insurance insurance, if something goes awry, you could potentially go bankrupt. Insurance protects your business, your employees, your customers - and you and your family - from any travesties that could arise and the financial burdens that are associated with them.
What Type Of Insurance Coverage Should Oil And Gas Lessees Have?
There are a number of insurance policies MD oil and gas lesses should carry. Some examples of the types of coverage you should invest in include:
- Commercial Property Insurance - This type of insurance protects the physical structure of your commercial property, as well as the contents within it; your equipment, office supplies, etc. If a tree were to fall on your property and damage the building or if someone were to vandalize or rob your business, this type of coverage would pay for any damages or lost property.
- Commercial General Liability Insurance - This form of insurance provides protection against third party accidents, injuries, and legal claims. For example, if a customer were to slip and fall while visiting your commercial property and sustain an injury, this form of coverage would not only pay for any related medical expenses, but it would also help to cover the cost of any legal claims that the individual might make against you and your business.
- Workers Compensation Insurance - If an employee were to become injured on the job or develop a work-related illness, workers comp would cover any related medical expenses, wages that the employee would lose while he or she is unable to work; and, it could help to pay for any legal expenses, should the employee file a lawsuit against you.
- Inland Marine Insurance - Commercial property insurance doesn't cover equipment that isn't on the site of your commercial space. For instance, if a truck were out on a delivery and it were stolen, vandalized, or an explosion occurred, commercial property insurance wouldn't cover the damages. For that, you would need inland marine insurance. This type of insurance covers property as it is in-transit and off the premises of your commercial property.
These are just some of the types of Maryland oil and gas lease coverage that should be considered.
MD Oil & Gas Lessee's Risks & Exposures
Premises liability exposures at the job site, excavation and construction pose numerous hazards. The area of operation should be restricted by barriers and proper signage to protect against trips, slips and falls from debris, equipment, or uneven ground. Construction sites create an attractive nuisance hazard, especially if work is close to residential areas.
Digging can result in cutting utility cables, damaging property of the utility company and disrupting service to neighboring residences or businesses. Absence of detailed procedures to determine utility locations and to research prior uses of the land before digging may indicate a morale hazard.
Workers compensation exposures can be high. Back injuries, hernias, sprains and strains can occur from lifting, material handling and work with hand tools. Overturn of equipment can result in severe injury or death from crushing or suffocation. Cumulative exposure to the high-decibel operations may result in permanent hearing impairment.
Underground hazards may arise from striking objects or utilities, collapse of retaining or holding walls, mudslides, landslides, underground water, and sinkholes. Any contact with utilities, specifically electrical cables or gas lines, can cause injury from explosion, electrocution, or inhalation of caustic substances.
The absence of good maintenance, proper use of basic safety equipment, such as steel-toed shoes, hearing and eye protection, and strict enforcement of safety practices may indicate a morale hazard.
Property exposures are usually limited to:
- Crude Oil
- Pipelines & Gathering Systems
- Production Equipment
Welding equipment, if any, presents a heavy fire exposure and should be conducted away from flammables. Any flammable chemicals or oxygen tanks must be properly labeled, separated, and stored in approved containers, cabinets, and rooms.
Crime exposures are from employee dishonesty. Background checks, including criminal history, should be obtained on each employee prior to hiring.
Ground at the construction site may be uneven. Equipment may strike underground objects, strike utility cables, fall into holes or pits, slip or fall into mud, water, or sinkholes, be damaged in rock, land or mud slides, or burst into fire from overload. Equipment left at job sites may be targets for theft and vandalism.
Commercial auto exposures can be high due to the transport of materials, machinery, and equipment. All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted.
Vehicles must be well maintained with records kept in a central location. Some of the driving may be done on temporary access roads, increasing the risk of collision and overturn.
Oil And Gas Lease Insurance
To learn more and ensure that your business is properly protected with the right Maryland oil and gas lease insurance insurance, speak to a reputable insurance broker that specializes in insuring your industry. Together, you can discuss the different coverage options that are available and ensure that your gas or oil lease business is well-protected.
Maryland Economic Data And Business Insurance Regulations
Business owners that have their sights set on Maryland should to take a number of factors into consideration before the set up shop; namely, they need to determine if the state offers favorable for business owners in general, as well as their specific industry. After all, it doesn't matter how top-notch the products and services a business offers may be, if the location isn't favorable for the industry - and businesses, in general - the operation is going to have a hard time thriving.
Below, we examine key factors that indicate whether or not Maryland is favorable for business owners. We also look at some of the must-have types of commercial insurance coverage that are required in the state.
Economic Trends For Maryland Business Owners
A state's unemployment rate is key indicator of whether or not the climate is favorable for business operations. As of May, 2019, the unemployment rate in the Old Line State was 3.8 percent; 0.2 percent higher than the national average. In October of 2020, the rate hit a record low of 3.7 percent, so in less than a year, the unemployment rate has increased by .01 percent; a marginal increase. However, there have been gains in recent years; in 2010, the rate was 7.8 percent; that's a 4.0 percent increase in less than a decade.
The best place to start a business in Maryland is in Baltimore, the state's largest city. Suburbs of the city also offer promising conditions for business owners, such as Ellicott City, Columbia, Fulton, Lutherville, and Elkridge.
The state of Maryland offers a friendly culture for business of all shapes and sizes; but, the industries that are see the most success in the Old Line State include:
- BioHealth and Life Sciences
- Advanced manufacturing
- Information technology
- Aerospace and defense
- Financial services
- Energy (specifically green energy)
- Hospitality and tourism
Commercial Insurance Regulations In MD
The Maryland Insurance Administration regulates insurance in Maryland. Commercial insurance is designed to protect business owners from potential perils; it also protects anyone that interacts with a business, including consumers, vendors, and employees. Having the right type of coverage is not only crucial to avoid serious financial devastation in the even that a catastrophe does occur, but certain types of insurance are mandated, meaning business owners must carry specific forms of coverage.
In the state of Maryland, business owners are required to carry workers' compensation insurance, which offers coverage for on-the-job accidents and illnesses that employees sustain, is also required. Other forms of insurance coverage that business owners may need to invest in depend on the specific industry; for example, companies that distribute or sell alcohol will need liquor liability insurance, and businesses that utilize vehicles for business-related operations should carry commercial auto insurance to protect their drivers and other motorists on the road.
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
- Check Cashing
- 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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