Drilling Rig Insurance for Canadian Oilfield Operations

Drilling rigs are complex, high-value assets operating in demanding environments. Physical damage, equipment failure, transportation, downtime and contractual obligations can create substantial exposures for rig owners and operators.

SWS works with retail insurance brokers to pursue specialized insurance solutions for land-based drilling rigs, associated machinery and related oilfield operations throughout Canada.

Coverage Considerations for Drilling Operations

The appropriate insurance program will depend on the type of rig, equipment values, ownership structure, operating territory and contractual requirements.

Coverage considerations may include:

• Physical damage to drilling rigs

• Associated machinery and equipment

• Property and contractors’ equipment

• Commercial general liability

• Sudden and accidental pollution liability

• Transportation-related exposures

• Loss of hire or business interruption

• Replacement-cost or agreed-value options

• Excess liability

• Other operational exposures

Coverage availability, valuation and terms are subject to underwriting and the individual characteristics of the risk.

Information Insurers May Require

A complete submission helps insurance markets understand both the equipment and the way it is operated.

Information may include:

• Rig type, age and specifications

• Current equipment schedule and values

• Ownership, leasing and financing arrangements

• Operating territory

• Transportation and storage procedures

• Maintenance and inspection programs

• Operator and management experience

• Current contracts

• Loss history

• Requested limits, deductibles and valuations

Market Access and Placement Support

SWS has experience working with specialized drilling and energy risks requiring access to domestic or international insurance markets.

We assist the retail broker with reviewing the submission, identifying missing information and presenting the opportunity to markets capable of considering specialized drilling-rig exposures.

Our role is to provide practical placement support while helping the retail broker retain control of the client relationship.