Travelers on Monday announced the availability of higher limits and broader Care, Custody and Control coverage for oil and gas well operators, non-operators and drilling contractors, who are being asked to assume more financial responsibility for loss or damage to non-owned equipment located at oil or gas lease sites.
More and more contracts for specialized oil and gas field services, such as well-fracturing services, are incorporating a “special event” or “catastrophe” clause that makes the operator responsible for damage to the service provider’s equipment at the lease site, whether the insured leases or rents the equipment or has it in its care, custody and control. The EnergyPro® Care, Custody and Control Broadening Amendment was designed to enhance coverage for this type of liability.
“The EnergyPro® Care, Custody and Control Broadening Amendment provides additional protection to oil and gas operators,” said Richard G. Gustafson, President, Travelers Oil & Gas. “This is an important change, particularly in today’s environment where an operator may be assuming responsibility for non-owned equipment with total values in excess of $5 million while it is concentrated at a lease site.”
In addition to the new broadened coverage, Travelers Oil & Gas is also addressing operators’ and drilling contractors’ need for higher Care, Custody and Control limits. While typical industry limits for Care, Custody and Control have ranged from $1 million to $5 million, Travelers Oil & Gas can provide limits up to $30 million with the EnergyPro® Control of Well Insurance Form. Higher Care, Custody and Control limits are available upon request.
“The combination of the broadened coverage and higher limits for Care, Custody and Control provides our customers with an additional level of protection in an environment where their exposure to financial loss has increased dramatically,” Gustafson said.