Whenever you budget the expenses of your business, Petroleum Engineers insurance must be high on the list because you can’t always know exactly what is going to happen in the future.
Need General Liability Insurance for Your Petroleum Engineers
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With the protection provided by general insurance and all the other types of insurance we will tell you about, you can protect your business and yourself in case something unforeseen happens.
Like any business owner, for your Petroleum Engineers enterprise, you must consider how much financial danger you are taking on.
If your Petroleum Engineers business runs without proper insurance, you are taking a giant chance not just of losing some money but of a complete wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the results of their actions.
In this article, we are giving very general guidelines for small businesses to explain what the main kinds of insurance that you need are, and where available, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your Petroleum Engineers business?
What this means, for any Petroleum Engineers business owner, is that if some company claims that your business caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your Petroleum Engineers business is not sheltered by laws in the same way as states are, where legislation can place a “cap” on the maximum level of liability.
In some states, like Montana, there are specific monetary levels that limit the amount a judge can award in any case against the state.
In a court case, it’s purely the privilege of the jury to award whatever amount they deem appropriate, even sometimes giving a person more than they have sort.
When you are running your Petroleum Engineers operations, you can’t deny responsibility for the outcomes of your actions.
Even more importantly, unless you have spent up-front the money necessary to have your business running as a corporation, all of that liability belongs to you as an individual.
What does Petroleum Engineers insurance protect you from?
For your Petroleum Engineers business, the most important types of insurance are designed to cover the risks to your business from accidents, from unexpected events, and from mistakes.
In addition there are some legal kinds of insurance that various states require.
In the next few paragraphs, we will describe the most important points any Petroleum Engineers business owner should consider when negotiating the insurance needed.
The main types of insurance for your Petroleum Engineers businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any Petroleum Engineers business is dealing directly with customers, and that means you generally have the danger that some accident can happen to them themselves or else something of theirs can be ruined.
In such a case, they can sue you for compensation.
General liability insurance policy for your Petroleum Engineers business insures you against claims coming from injury to clients or damage to their property.
It protects your Petroleum Engineers business from the claims themselves and also to any resulting court costs and legal fees of the lawsuits.
In many cases, it can also help you to qualify for extra business from city and state organizations, where contracts insist on proper liability insurance.
The normal level of general liability insurance for your Petroleum Engineers business would be with a boundary of $1 million for a single event and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your Petroleum Engineers insurance operations.
Professional liability insurance for your Petroleum Engineers business
In the event where a buyer alleges some negligence, errors, or omissions in how you conducted your Petroleum Engineers business for them, you can quickly be involved in a court case.
Even if the matter against you is ruled in your favor, the cost of defense can be high, and the impact on your reputation can be damaging.
Most small Petroleum Engineers business should have enough professional liability insurance to cover a once-off claim of $25,000, with annual cover of $50,000.
See the table in the cost of Petroleum Engineers insurance section below for average prices of professional liability insurance for your Petroleum Engineers operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that buyers may claim that what they received didn’t meet your description of function, or that your guidance was basically incorrect.
You need to know the explicit laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held culpable for results caused by products claimed to be defective.
To cover yourself against any likely lawsuit, you need Product liability insurance for Petroleum Engineers
Only you can estimate exactly how much insurance you should get.
Best advice is to talk to experienced insurance agents, brokers or company representatives for support.
Commercial vehicle insurance for your Petroleum Engineers business
Beware! – practically all policies for private vehicle insurance do not cover any occurrence like theft or accidental damage when the van is being used for business purposes.
The proper way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a direct commercial vehicle insurance package.
Commercial car policies cover the value of any vehicle in case of accident, malicious damage, fire, or theft.
In addition, in case of any accident, the car itself, the content and any legal bills, medical expenses, and property damage is insured if your car is involved in a collision.
Most states, other than Virginia and New Hampshire, insist on this type of insurance.
The necessary value of the insurance is calculated on the depreciated value of the vehicle, and your intended level of cover of contents.
Tools and Equipment insurance
Since your Petroleum Engineers business needs specific and costly equipment, you know how much it can cost to replace it in case of any damage, loss, or theft.
The tools may be subject to malicious damage, deliberate fire, theft, other such unexpected acts.
As well, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can wipe-out your whole business in one stroke.
Unless you can afford to immediately replace such specialized gear quickly out of your own pocket, you must have full-level equipment insurance so that you can immediately buy any equipment needed to keep your Petroleum Engineers business running.
It is impossible to advise how much equipment insurance you need – it’s essentially dependent on how much you have invested in your Petroleum Engineers business’ equipment.
Commercial Property insurance
Any Petroleum Engineers business that owns or rents space in a building needs a commercial property insurance policy.
If you own the space, you may already have a substantial capital investment, as well as a big liability if there’s a mortgage.
Any physical building location must carry insurance coverage for the value of the premises and contents against unexpected occurrences like fire and storms, and against deliberate damages like theft and vandalism.
If your Petroleum Engineers business deals in areas of high risk, like Texas or Georgia, additional coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Illinois, where unlimited cold snaps can cause damage to outer coverings of Petroleum Engineers business premises, there is a need for more extra cover than in warmer climes.
Although the level of cover depends mainly on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of Petroleum Engineers insurance section below to give some idea of the average prices per million dollars of property insurance for your Petroleum Engineers business.
Temporary insurance by month, week or day for your Petroleum Engineers business
Is your Petroleum Engineers business working part-time or casually, or is the level of business variable?
Using short-term insurance makes excellent sense. Business insurance by the month, day, or week – temporary insurance for Petroleum Engineers – are special policies where you can cover a nominated period when you want to be covered.
By only paying for that period of cover, you will save by having less premiums but still having the same risk cover.
The essential feature of short-term insurance is that you pay for the cover for a defined period – a specific date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of larger business activity, get the existing cover improved.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your Petroleum Engineers business
You have the option to combine several of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP combines commercial property and public liability insurance by incorporating these coverages into one insurance policy, which can save you money.
BOP insurance will protect you if any claims of injury or property damage are made.
It is often the right choice for small and medium-sized Petroleum Engineers businesses, such as yours.
There are a few limits that will rule whether BOP is suitable for your own business.
BOPs do not cover your professional liability or commercial vehicle cover.
Also, the size of your business will determine whether you are eligible to take out BOP cover.
The usual business that is eligible for a BOP policy must have less than one hundred employees, and not more than five million dollars in annual revenue.
As well, you must separately take out the mandated worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your Petroleum Engineers business employees
In most states, it is mandatory to have workers compensation insurance when your Petroleum Engineers business has one or more employees.
Workers compensation insurance covers the operation against any costs that arise if an employee experiences an injury or becomes sick as a result of work.
The benefits include medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s laws in this regard can leave you as the employer having to pay penalties levied by the states.
In these states, you may not obtain your workers compensation obligations from private insurance companies.
Workers compensation rates are calculated based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must see the relevant authorities in your state.
Average costs of these types of insurance
Although every Petroleum Engineers insurance need is unique, there are enough examples of standard quotes from insurance companies for us to give rough guidelines, including what are the cheapest rates offered.
Of course, you should always check with an insurance representative what’s relevant for your business.
The list below is of annual premiums we have collected for the main types of insurance your Petroleum Engineers businesses needs.
|Types of insurance||Price range|
|Product liability insurance||$200 – $680|
|Commercial vehicle insurance||$1545 – $3145|
|Public liability insurance||$395 – $530|
|Commercial insurance||$1065 – $2745|
|Equipment insurance||$345 – $1060|
|General liability insurance||$650 – $1115|
Cost of insurance for your Petroleum Engineers operations depends on many different factors.
We have estimated these figures for small independent Petroleum Engineers businesses.
The location and size and type of your Petroleum Engineers business can have a big effect on the cost of different policies.
You should consult with professional insurance agents and brokers, or insurance company representatives.
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As well you can let the internet do the work for you by searching for insurance companies near where your business is located.
Another useful source of information is the local Better Business Bureau in your suburb.
What is small business insurance for Petroleum Engineers operations?
This is a general term used to describe standard insurance policies designed to protect Petroleum Engineers business owners from risks like bodily injury, property damage, claims of negligence.
Does my Petroleum Engineers business have to have insurance?
Some of the forms of insurance are not mandatory for you to operate your business, but they can protect you from risks in your business operations.
Some other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small Petroleum Engineers business insurance policy cover?
Liability insurance provides protection against lawsuits or claims filed by a third-party for bodily injury, property damage, or negligence.
The precise cover will vary based on your own operations.
See the table in the costing section above for average prices of the best policies for Petroleum Engineers insurance.
How much will Petroleum Engineers business insurance cost?
On top of the size of the business, several other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
You can search for more information insurance for Petroleum Engineers, in the search box below, and follow the relevant links.