The Specialty Energy Insurance Guide
Energy Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Energy Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Energy Insurance policies they might need to do business.
Learn about Specialty Energy Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Energy Insurance Types
Click on the links below to learn more about Specialty Energy Insurance types and coverages:
- Alternative Energy Plants Insurance
- Biofuel Distributors Insurance
- Biofuel Manufacturers Insurance
- Coal Mining Insurance
- Force Majeure Insurance
- Geothermal Energy Projects Insurance
- High Technology Exposures Insurance
- Liquefied Petroleum Gas Dealers Insurance
- Logging Insurance
- Mining Insurance
- Offshore Oil Drilling And Service Insurance
- Oil And Gas Deficiency Insurance-Guaranteed Performance Insurance
- Oil Drilling Equipment Insurance
- Oil Drilling Rigs And Well Servicing Equipment Insurance
- Oil Jobbers And Petroleum Distributors Insurance
- Oil Landmen And Lease Brokers Errors And Omissions Insurance
- Oil Lease Property Insurance
- Oil Well Liability Insurance
- Operators Extra Expense - Oil And Gas Insurance
- Solar Energy Products And Installers
- Solar-Heated Risks Insurance
- Wind Farms Insurance
What Type Of Insurance Do Alternative Energy Plants Need?
A number of alternative energy sources to traditional oil, gas, and coal industries are being explored. Examples include wind, hydropower, waste-to-energy, ethanol, geothermal, solar, methane gas recovery, and cogeneration/IPP facilities. Investor willingness to pursue such a wide variety of fuels signals a dynamic and growing energy industry. Some large insurers have arrangements that coordinate property, casualty, and nonstandard coverages and provide technical services to meet the needs of power producers.
What Type Of Insurance Do Biofuel Distributors Need?
Biofuel distributors provide biofuel blended to the specification of its customer base. They are similar to other fuel distributors with the same fire and explosion concerns. Most biofuels are distributed through rail or motor carrier and not through pipelines which is a major exposure.
What Type Of Insurance Do Biofuel Manufacturers Need?
The most commonly recognized biofuel is ethanol but it is not the only biofuel. A biofuel is any fuel that is made using plant-based/renewable material. Many of the same underwriting concerns related to any type of fuel manufacturing are present with biofuels except that the plants tend to be on a smaller scale. A major concern has been the economic viability of the biofuel due to the availability of lower-priced natural gas and crude oil.
What Type Of Insurance Do Coal Mining Operations Need?
Coal mining presents different exposures than those that are presented in iron, lead, copper, nickel, precious metals, and semiprecious metals mining. Surface mining is safer than underground mining from a workers compensation standpoint but presents more significant liability and environmental impairment exposures and issues. Both underground and surface mining present significant equipment exposures but the equipment used and the hazards involved are very different. Workers compensation in any mining operation is a significant loss exposure.
What Is Force Majeure Insurance?
Force majeure literally means 'greater force.' These clauses excuse a party from liability if an unforeseen event beyond the party's control prevents it from performing its obligations under the contract. Force majeure insurance is a very broad form financial consequence policy that protects insureds that suffer financial loss because unavoidable circumstances lead to the loss of a contract through the force majeure section of that contract. This coverage is usually used with large contracts but not exclusively.
What Type Of Insurance Do Geothermal Energy Projects Need?
A multipronged approach for energy independence has resulted in a variety of alternatives. Geothermal energy is one that has many direct and indirect applications. Large scale projects involve extracting water or steam from the earth's core. This coverage protects the owners of or investors in geothermal wells from loss of the resource itself. It does not protect the party that uses the resource. Losses occur if the source dries up or fails to produce for an agreed-on operational period. Limits are tailored to each applicant's needs.
What Type Of Insurance Do High Technology Exposures Need?
These are cutting edge industries, including businesses that develop new sources of and uses for energy, robotics, nanotechnology, and outer space travel. Large insurance brokers, insurers, and reinsurers have established special departments to handle significant technology exposures.
What Type Of Insurance Do Liquefied Petroleum Gas Dealers Need?
Liability insurance on propane and bulk oil dealers requires specialty underwriting. These businesses need insurance coverage at their storage locations as well as off-premises where the fuel is delivered. There is a significant exposure to catastrophic loss and inspecting the facilities is usually a part of the underwriting process.
What Type Of Insurance Do Logging Operations Need?
There are certain parts of the country where logging and lumbering operations are important to the economy, and agents and brokers must find and maintain markets that understand and write logging and lumbering risks. Placing coverage with specialty carriers is necessary due to the special equipment and vehicles used in logging operations and to transport the logs to the mill for sawing and shaping into lumber. In addition to the liability hazards, workers compensation coverage is also often difficult to place and must be handled by carriers that are familiar with this class of business.
What Type Of Insurance Do Mining Operations Need?
Mining risks have always been considered a specialty class of business because of the liability and workers compensation exposures and hazards as well as physical damage to elaborate and expensive equipment used to mine coal or metal ores. Workers compensation for any mining operation is extremely hazardous because the workers are exposed to occupational diseases such as black lung in addition to the potential for cave-ins and underground explosions. Large and high-valued special-purpose mining equipment requires special named perils or "all risk" inland marine coverage forms to insure against both above ground and below ground physical damage losses. These coverages are underwritten by the following:
What Type Of Insurance Do Offshore Oil Drilling And Service Risks Need?
Property coverage for this class of business is usually written on a named or specified perils basis. There are several different types of offshore rigs, including mobile offshore drilling units and ship-shape floaters, and rigs built on ship hulls. Rigs that are anchored into the seabed and rigs that have submersible oil drilling apparatus pose problems for property insurers. Offshore drilling operations also have significant liability and workers compensation exposures. Workers compensation requires United States Longshore and Harbor Workers Act and Jones Act coverage and must have sufficiently high limits to protect the owners, operators, and drilling contractors and their employees. The threat of water pollution from offshore oil drilling operations adds to an already difficult and complicated insurance coverage arrangement.
What Is Oil And Gas Deficiency Insurance-Guaranteed Performance Insurance?
Developers and investors whose oil and gas fields do not produce as expected can still get a return on their investments with oil and gas deficiency insurance. If the field's actual output falls short of engineering report projections, the financial institutions, independent oil producers, individuals, or partnerships are indemnified for the loss. Fields with proven reserves that currently yield through at least three producing wells can also qualify for this insurance. Operators must provide equipment needed for the operation and maintain it in good condition. There is no coverage for inadequate cash flow due to price fluctuations, excessive supply, rising petro-loan interest rates, profit or loss from tax risk, environmental regulations that impede production, operating expenses, hazards, and other uninsurable risks.
What Is Oil Drilling Equipment Insurance?
Property coverage written on special "all risk" as well as named perils coverage forms protect the owner, lessee, or lessor of land-based drilling rigs, portable well service equipment, exploration vehicles, and work-over rigs for loss or damage to this equipment. Ocean marine coverage forms and policies insure offshore drilling rigs, barges, and service craft.
What Is Oil Drilling Rigs And Well Servicing Equipment Insurance?
Oil drilling rigs and other equipment necessary to service oil wells present substantial values.
What Type Of Insurance Do Oil Jobbers And Petroleum Distributors Need?
Petroleum distributors face many risks. The primary concern related to property is damage to their equipment by fire and explosion. Large distributors and even oil and gasoline service stations face the difficult liability exposure of pollution from underground oil or gasoline storage tanks. A number of insurers write a full package of coverages for oil jobbers and distributors, including commercial general liability, commercial auto, property, and workers compensation. Coverage is available for retail service stations, wholesale operations, bulk stations, and products being transported in tankers to and from bulk oil and LPG stations to retailers.
What Is Oil Landmen And Lease Brokers Errors And Omissions Insurance?
This coverage is tailored to meet the specific needs of oil landmen. They provide title search and oil lease purchasing services on behalf of clients who are beginning to develop oil properties. This errors and omissions coverage insures the landman's errors and omissions.
What Is Oil Lease Property Insurance?
Property coverage is available on special "all risk' type or named perils coverage forms that insure wellhead equipment, oil-gas separators, oil tanks, gas compressors, treating plants, pump stations, gasoline-sulfur recovery plants, and similar oil field service equipment that are commonly used at oil lease sites.
What Is Oil Well Liability Insurance?
This commercial general liability coverage form insures oil well drilling operators, contractors, pipeline owners, and fabricators for bodily injury and property damage that arises from their ownership, operation, or use of oil wells.
What Is Operators Extra Expense - Oil And Gas Insurance?
Oil and gas producers have increased their exploration, drilling, and production activities. The risk/reward ratio of these drilling efforts is matched by concerns about environmental accidents and damage to equipment. Operator's extra expense insurance is designed to cover the cost of well control, seepage, and pollution, removing and nullifying, cleanup and containment, and re-drilling expenses as a result of a blowout. Coverage can be endorsed to cover underground blowouts, "unlimited" re-drilling, and offshore operations.
What Type Of Insurance Do Solar Energy Products And Installers Need?
Businesses that manufacture or install custom solar collectors used to heat air or water or to generate electricity for dwellings, swimming pools, or commercial buildings need commercial general liability, products and/or completed operations liability, and/or bailees coverage.
What Type Of Insurance Do Solar-Heated Risks Need?
Heating by solar energy continues to grow as an alternative source of energy. Some individuals construct their own solar heating systems, relying in part or totally on the sun for energy to heat their homes, while others purchase commercially manufactured systems. Some even sell excess energy back to their local utility provider. Hazards include the breakdown of combustible materials near collectors, susceptibility to wind, rock, or hail damage, and theft or vandalism losses that involve copper and glass collector systems. Insurers require inspections of homes that use such heating systems.
What Type Of Insurance Do Wind Farms Need?
Wind farms are collections of wind turbines used to supply energy to a single business or to provide energy to the power grid. The property exposure is significant because of the cost of each turbine. The commercial general liability exposure depends on the various types of contractual relationships. Workers compensation exposures are significant because employees work at great heights and the difficulty of gaining access to certain parts of the turbine.
Energy Insurance - The Bottom Line
We hope that the Energy Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.