This is a pivotal year for the oil and gas sector, and by extension, the energy insurance market, as optimism is returning to the export sector according to Saskatchewan Government Insurance.
Though it’s still too early to say if pipeline approvals - including Keystone XL, Kinder Morgan, Trans Mountain and Line 3 - will have an effect on the market, more employment in the oil fields is revving up demand for liability insurance according to Glenda Marwick, senior director, underwriting commercial property at SGI, and brokers should keep a watchful eye on proceedings.
Search and compare insurance product listings for Oil and Gas Companies from specialty market providers here
“If I was a broker, and depending on where my office was situated, say there was an oil and gas trucking company nearby, what I would be doing is keeping a close tab on what was going on with that trucking company because once those trucks start to move, you know there’s some action going on,” Marwick said.
“In Canada, oil and gas is expected to make a full recovery and enjoy growth. From my perspective at SGI, we’re very optimistic and quite excited because we’re starting to see a little bit of movement on that dial.”
The movement, Marwick explained, is a pickup in business for contractors like welders or truck drivers who are required to carry liability coverage.
“We’re seeing more employment and with more employment comes the need for insurance,” Marwick said. “Contracted workers need a liability policy to do any work for an oil and gas company - they have to show they have coverage in place.”
Related stories:
CP Rail denies its involvement in Lac-Mégantic incident
Political risk insurance in high demand in Canada
.jpg)
