Michigan Oil And Gas Lease Insurance Policy Information
Michigan 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 Michigan oil and gas lease insurance insurance.
Michigan 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 MI 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 Michigan 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 MI 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 Michigan oil and gas lease coverage that should be considered.
MI 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 Michigan 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.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
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
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- 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 Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.