Why Insurance for the Energy Sector Is Crucial

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Energy and insuranceEvery industry needs its own specific insurance options, especially the energy field. After all, there are multiple hazards involved when you work with oil, gas, electrical power, and even renewable energy sources. The energy sector is also among the top targets for cyber attacks; in one year, 16 percent of cyber attacks every day were targeting energy companies. So no matter what your typical day in the energy sector involves, it’s important to make sure you have the right insurance policy for this industry. You’ll know why that is once you see what it covers for each area of the energy sector.

Oil and Gas

As you know, working with oil and gas can be dangerous in many ways. But thanks to our heavy reliance on these necessities, someone has to do it. You’re not alone, though, when you have insurance coverage that can pay for the variety of financial obstacles you might uncover. For example, if employees are injured while working on an oilrig, you need good insurance coverage to pay for the medical bills that result. Even employees who work in your office could get injured on the job, as can anyone who visits, which is why you need insurance to pay for the ensuing medical treatment. And of course, your energy sector insurance will also pay for property damage that is caused by oil or gas.

Electric and Gas Utilities

If you’re in the field that’s responsible for offering utilities – such as gas and electrical power – to residences and business, you need insurance for this area. Both gas and electricity can be dangerous in some situations, which is why injuries may occur on the job as employees set up utilities, fix power lines, or perform any other duties in this line of work. And if customers are injured due to gas or electricity, you will need ample insurance coverage to reduce the chances of legal action being taken. For this reason, the largest, most successful utility companies tend to have more than enough insurance coverage in case the worst occurs.

 

Renewable Energy

Working in the renewable energy field can be exciting and rewarding, but it’s not without its hazards. Solar and wind power projects keep growing in number. For example, Texas alone has more than 24,000 wind jobs, while more than 208,000 Americans work in the solar industry. All of these employees deserve to be protected from possible workplace dangers as they install, repair, or transport major equipment for solar and wind power projects. Then there’s the fact that equipment may malfunction or not be very efficient during major fluctuations in the weather, which can negatively affect customers relying on renewable energy. This is especially the case for businesses, which may miss out on a lot of money if their solar or wind power equipment doesn’t generate the energy they need to run a business. So if you want to decrease the possibility of a lawsuit to recoup that money, you need business insurance specifically for the energy sector.

Regardless of which of these areas you’re involved with, you need to make sure you have the right energy sector insurance coverage. Otherwise, you could face legal action and financial repercussions for your energy business.

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