Petroleum Insurance 

Why Petroleum Insurance Is Important 
 

As the demand for renewable energy grows, biodiesel, ethanol, wind power, and solar energy producers must prioritize fuel insurance like never before. With recent oil spill disasters and the increasing vulnerability of our coastlines, it’s crucial for fuel and energy companies to take proactive steps to protect not just their business, but also the environment.

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Why Petroleum Insurance is Essential for Producers:
 

• Severe Weather Events: Unpredictable weather, including hurricanes, floods, tornadoes, or even earthquakes, can cause significant damage to fuel plants, disrupting operations and service.

• Operational Hazards: Equipment breakdowns or the need for upgrades can lead to costly disruptions in service, affecting your operations and bottom line.

• Environmental Challenges: Changes in local wildlife migration patterns or population surges can create unexpected disruptions, potentially affecting business continuity.

• Employee Safety Risks: Working in energy plants exposes employees to higher injury risks compared to office settings, necessitating comprehensive insurance to cover potential accidents.

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While the need for petroleum insurance is clear, it’s crucial to understand the various liability aspects in order to design the right coverage for your specific needs.

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Discover which types of petroleum insurance offer the best protection for your business. Request a quote online or contact us at 601.371.9911 to get started.

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What Does Petroleum Insurance Cover?
 

While general petroleum insurance is mandatory for all gas, oil, and energy producers, many businesses choose to invest in additional coverage to protect against other potential risks:
 

• Property Damage: Protection against both natural and man-made disasters that could damage your facilities.

• Equipment Failure & Breakdown: Replacement parts can cost thousands, if not millions, and equipment failure could lead to larger, catastrophic impacts on operations.

• Business Disruption: Insurance to recover lost revenue in the event of property damage or equipment failure, helping keep your business afloat.

• Workers’ Compensation: The energy industry is risky, and providing coverage for your employees is crucial to their safety and your compliance.

• Liability: Without liability insurance, a lawsuit may arise if someone is injured on your property.

• Business Auto: Coverage for company vehicles or personal cars used for company purposes.

• Umbrella Insurance: Extra protection when claims exceed the limits of your standard policy.

• Pollution Coverage: Vital for fuel and energy companies, ensuring you're covered for fuel spills, gas emissions, and other environmental hazards.

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Not all energy producers need every type of coverage—only an experienced petroleum insurance agent can determine which protections are essential for your specific needs.