Energy Pipeline: Insurance Costs Play A Role In Safety, Accident Clean-up

In the oil and gas industry, there are many penalties and regulations to ensure the safety of the workers, as well as the surrounding communities where the work is being done, yet still there are accidents and environmental spills, and these incidents happen quite a lot – more then we ever hear of in the news. The way oil and gas companies deal with this depends on how large the company is, with the options being either to pay for the damage with comprehensive insurance, or pay out of pocket for these expenses. Another consideration is damages done by contract workers, and generally these workers have insurance themselves to protect the company they are working for.

While these companies main goal is to have zero incidents, they also must determine if the cost of insurance would be less or greater then paying for liabilities out of pocket – it all depends on the company and how fiscally fit they are to afford either option. For the full article click here…

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