Oil and Gas Insurance
Definition - What does Oil and Gas Insurance mean?
Oil and Gas Insurance is an insurance policy that covers human life, the environment and property from any accidents and oil and gas organization activities. The oil and gas industry consists of series of procedures, chemical reactions and harsh and difficult working conditions which tend to increase the risk to cost-intensive property, human life and environment. Thus, the industry needs to be insured to cover certain proportion of the liability in case of any accidents.
Petropedia explains Oil and Gas Insurance
Oil and gas insurance helps oil and gas sector organizations recover their losses in the event an accident occurs. Due to the increase in the demand of petroleum products, the refining process as well as various processes from crude oil extraction to transportation (supply chain value) and marketing becomes more complex. The oil and gas industry poses unique risks at every stage of the production process, and oil and gas insurance provides various plans to cover up the risks of an organization operating in all the three segments of the oil industry. It also helps in protecting the cost-intensive infrastructure, employees, physical assets, etc., and thus helps in long-term viability of any oil and gas operating organization.