General Liability (CGL) is a crucial form of coverage for all Oilfield Contractors. It protects your business from third-party claims related to bodily injury, property damage, and advertising injury. The policy covers incidents on your premises, job sites, and even after project completion. It also provides legal defense and a limit of liability for covered events.
In states like Texas and California, clients often require a Certificate of Insurance (COI) naming their company as "Additional Insured" on your policy. This typically applies to core coverages: General Liability, Commercial Auto, and Workers Comp. Some clients have specific wording requirements for these certificates.
Before bidding on any contract, ask for the client's insurance requirements. Review your contract to understand the costs, terms, and additional responsibilities you may be assuming.
Many contracts now require Excess Liability insurance. Project owners are transferring liability to contractors through contractual agreements. We can help you review these contracts and understand your obligations.
Ensure your Subcontractor Agreement is up to date, especially the indemnification (Hold harmless) part. We can provide a sample agreement or help you tailor one for your specific needs.
Subcontractors should match the general contractor's insurance limits, including excess coverage if required. They should also be named as "Additional Insured" on their general liability and commercial auto insurance, with a waiver of subrogation. Certificates of Workers Comp with a waiver of subrogation are also necessary.
Owners often require OCP insurance to cover third-party claims from employees of the general contractor or subcontractors suing owners for negligence due to job site conditions. This helps with defense costs for the owner.
General liability insurance is essential for Oilfield & Energy Contractors. It protects your business from financial losses due to accidents, injuries, or property damage. By understanding your specific insurance needs and reviewing your contracts carefully, you can ensure adequate coverage and mitigate risks.