Insurance Pitfalls to Avoid Post-Deepwater Horizon Disaster

Oil and gas companies have all felt the burden of rising insurance premiums in the wake of the Deepwater Horizon explosion and the largest oil spill in American history. According to the Associated Press, the BP oil spill created one of the biggest losses in the energy market and drove energy premiums up between 10-30%. Just as energy underwriting was easing and premiums were going down, the oil spill drove up deep water operations insurance by 25-30% and deep water drilling by more than 100%. New safety measures including timely inspections of deep water operations, certification of equipment to prevent well blowouts will add to the already rising costs companies are facing.
[Read more…]