How to Reduce Your Oil & Gas Equipment Insurance Bill
Are you looking to cut your oil and gas insurance costs on your company’s equipment? Unfortunately, you could be paying too much for your oil and gas equipment insurance and it’s time to re-evaluate your equipment values.
Follow The Auctions
There have been an increasing number of auction sales hitting the marketplace, and your equipment insurance values may be too high. Unless you have already changed the values of your equipment, you could be paying way too much for your oil and gas equipment insurance.
Very few oil and gas insurers offer a replacement cost valuation for your oil and gas equipment. Replacement cost is cost new for old. A typical insurer will offer actual cash value (ACV) for your oil and gas equipment. This is cost new, minus depreciation and less your deductible. Understanding these valuations are important to understand. So how do you know what your equipment values are worth?
Get An Equipment Appraisal
Contact an accredited appraiser who has expertise in the oil and gas industry. We recommend that the appraiser be accredited through the American Society of Appraisers. They will determine the current market value of your equipment and you can adjust the insurable value of your equipment accordingly. The appraisal is irrefutable evidence of the equipment’s value and will favor you in the event of a claim.
It only makes sense during these volatile times to re-examine the values of your oil and gas equipment. Once you determine the new values of your equipment, we will notify the insurance carrier of the new values which will ultimately lower your oil and gas insurance bill.
Get Alternative Equipment Insurance Quotes
Contact us today if you would like to get a quote for your oil and gas equipment insurance.
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