Working with offshore oil rigs is potentially rewarding, but also exposes owners and crew to danger. In worst case scenarios, operators have to consider worker injuries, damaged equipment and the possibility of an oil spill. Purchasing and managing appropriate marine insurance will potentially provide reimbursement for energy companies when a catastrophe makes facilities unusable.
There are specific risks that may only impact the rig, but not the crew or equipment on it. Below are three instances of damage to an oil platform that might warrant financial recompense:
- Environmental danger: Some operations take place in inherently dangerous locations, including remote arctic waters. For places like these, ice and cold winds are possible concerns for rig stability. But general environmental exposure issues, like erosion, are threats in region that don’t have harsh weather. Rough seas can impact a structure by pounding it with heavy waves that hurt important pieces of it.
- Fires: In one fell swoop an inopportune blaze can halt production, cause structural damage and require an immediate evacuation from a platform. In addition, both the crew and the boats taking them to safety should be insured for companies to avoid losses that take place off of the rig as well as on it.
- Machinery-related flaws: As a LiveScience article from 2010 pointed out, oil drilling operations often involve complicated technology that moves activity deeper and further into the ocean. With the long hours and need for consistent operations, a critical failure in a major system may potentially affect important functions on the rig. For example, weak points within a pipeline or well could lead to possible disruptions, especially for pipelines stretching many miles in length.
Choosing an oilfield insurance policy that addresses the specific risks of a rig’s location will provide adequate financial support if sites are damaged during use.