Most of us are quite familiar with the concept of health insurance, auto insurance, and life insurance. But not many people know that there are kinds of insurance policies also. Oil insurance is one of them. Oil insurance provides coverage to the oil and energy industries. Most of the petroleum companies opt for oil insurance policies.

Oil insurance

Most of the small oil insurance companies focus primarily on petroleum firm’s insurance management whereas larger companies focus on special types of insurance programs. The most popular type of oil insurance policy is cargo insurance. Usually, this kind of insurance premium provides coverage for the contents of the ships, spill response, ecological response and pollution on an accidental basis. Driver training and spill or discharge response courses are also taught under some premiums.

Most of the oil insurance companies work in the traditional methods. However, after the technological boom in the last decade, many oil insurance companies are working online. The companies have launched websites where insurance transactions can be easily done from the farthest corner of the world. Through these websites, people can do transactions at any time. Since, everything is handled online, so there is not much need of any kind of paperwork. Relevant documents can be obtained quickly. The insurance claims are also settled within few days. This is a great benefit of online oil insurance.

Oil insurance also provides coverage for oil rigs, wells. Generally, this kind of insurance policies provides coverage to the entire oil drilling business. Previously, there was a market cap value on the rigs and wells insurance. But the situation has changed after oil industry was hit by hurricanes such as Rita and Katrina in the last few years. National Insurance Commission (NAICOM) has brought some changes in the guidelines of the oil insurance. These changes have been brought so that the small insurance companies can have access to the similar kind of insurance levels as offered to the richer businessmen.

Finally, the owners of the petroleum companies need to know that the insurers have hiked the premium rate (by 50%) of those oil insurance policies that provide coverage to oil rigs in deep water.