What does well control insurance cover?

You may have purchased well control insurance because your financial advisors said to do so, but Barry Insurance Group, serving Pearland, TX, wants you to understand why you need it and when it kicks in. Owning an oil company or prospecting for oil tends to start with exploring land or working as a landsman. You may wonder what the well control policy covers, so you know why you need it.

Items Covered by Well Control Policy

If you have worked in the oil and gas industry for a long period, you know the egregious problems that a well blowout causes. Your well control policy covers the costs of a well blowout. In a blowout, the crude natural gas and oil expel from the well in an uncontrolled manner. This saturates the ground around the well. The typical cause of a blowout is a failed pressure control system.

The blowout causes more than just a loss of raw materials from which you could have made money. Its ground saturation causes ecological issues for which you must apply mitigation. A blowout can cause fires, explosions, or other related issues that also cause damage. In addition to shutting down production, blowouts can also cause injuries or deaths among the well workers. While worker’s compensation covers the medical costs of these injuries or death, liability insurance covers the associated costs of personal injuries.

Cleaning Up a Blowout

While you still have the responsibility for the cleanup and the costs of injuries or death, obtaining a well control policy lets you transfer the cost and risk of a blowout to the third-party insurance company in exchange for a fee – your monthly premium. The well control policy covers the costs of:

  • Assuming control of the well, including temporary capping and/or repair of the pressure control system, etc.
  • Pollution abatement
  • Reinstate the well to proper working order, including redrilling

You can only claim this insurance policy if you own an oil or natural gas well that experiences a blowout. Contact Barry Insurance Group, serving Pearland, TX, for more information on how you can protect your working wells.

Do I need life insurance when I retire?

Once you start to think about retirement, many things come up. You consider downsizing and take a good look at your finances. Even though you have been planning for retirement for years, nothing prepares you for the change in your income and the new expenses you may have. Looking for things to cut back on, life insurance comes to mind. You may wonder if now that your life will be less complicated if you need life insurance. Talking to the experienced agents at Barry Insurance Group in Pearland, TX can answer your questions. 

Like at any point in your life, life insurance is not about you, it is about protecting the ones you love. When considering whether you need life insurance when you retire, it is important to consider who counts on your income. Your income when you retire maybe your social security and a pension. With the pension, you can decide to have your spouse continue to receive the pension by agreeing to take a lesser amount every month. 

Social security doesn’t allow this option, but your spouse can opt to keep yours and relinquish their payment if your payment is larger. No matter how you look at it, there will be considerably less income coming in. If you have made other financial decisions that will guarantee your spouse will still have adequate income even without you being there, life insurance is optional. 

If you are entering retirement with a mortgage and other debt, life insurance can help pay off these debts and your final expenses. Determining if you need life insurance when you retire is dependent on your total financial picture. 

Contact Barry Insurance Group in Pearland, TX to discuss your life insurance needs and any other insurance questions you may have. 

  • I have been a customer for years. BIG is always there to answer my questions and get me the right coverage.
    Dan Broussard
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