Oilfield Master Service Agreements

 

The old oil patch way “We’ll take care of ours and you take care of yours” is long gone.

Way back when, very few oil and gas operators required vendors, oilfield service contractors, and oilfield consultants to sign master service agreements.

Today, MSA’s are the rule rather than the exception.

It’s difficult to find a standard M.S.A in use by oil and gas lease operators. They all may share common features, but they are all very different.

We recommend that you review any oilfield master service agreement with your attorney prior to executing the contract.

Got Questions?

Oil Patch Insurance specializes in oilfield insurance for oil and gas lease operators, oilfield contractors, and oilfield consultants domiciled in the United States.

Oilfield insurance is who we are and what we do.

Call us today at 918-504-6723 to improve your existing insurance program, get a competitive quotation, or to begin the process of procuring insurance coverage for your new venture.

 

Oilfield Insurance Requirements Within The Master Service Agreement

 

Many oilfield operators’ master service agreements attempt to categorize all oilfield contractors & oilfield consultants according to the type of hazards they present to their lease site, but many operations still fall through the cracks.

Oftentimes we see an oilfield master service agreement that requires contractors or consultants to provide insurance coverage for exposures that don’t exist.

Maybe the contractor is required to carry blow out & cratering coverage, underground resources & equipment, and pollution coverage, but the contractor does not work over or near the well bore.

On the flip side, maybe the consultant is only required to carry general liability vs. their true exposure of professional liability.

Upon review, we point out the specific discrepancies and explain why the insurance requested does not apply to the oilfield contractor or consultants’ operations.

Or we will point out a coverage like consultants professional liability that should be included in their program.

Once the oilfield contractor or consultant understands they don’t have the exposure, they then can request a variance or exception be applied to the contract.

 

Working With Compliance Companies

 

Working with compliance companies is sometimes required if you are working with some of the larger lease operators. ISNetworld and PEC are two larger companies in the compliance space today.

On the compliance company’s website, the operator/owner client outlines their specific master service agreement / insurance requirements.

Then you or your agent will need to upload a certificate of insurance that will satisfy the oilfield master service agreement.

If our client’s wish, we will upload certificates of insurance directly to the compliance website.

This service has saved our clients countless hours and they appreciate the service. For more information on how Oil Patch Insurance does this, check out How We Upload Certificates of Insurance.

 

Just Ask For A Variance

Just ask for a variance. The variance will be approved or denied.

The most common variance that an oilfield contractor or consultant is granted is lower excess or umbrella liability limits. Sometimes the owner/operator requires 10MM or 5MM in excess liability limits.

Additionally, if your an oilfield contractor that doesn’t work around the wellhead or perform over the hole work then blow out and cratering coverage, underground resources and equipment, and pollution coverage can be waived.

Often times the limits will be lowered if not completely eliminated if you just ask.

Variance approval acceptance just depends on if the specific operations of the oilfield contractor or oilfield consultant, and ultimately the owner/client lease operators’ flexibility with their oilfield master service agreement.

 

How can we help you today?

Oil Patch Insurance specializes in oilfield insurance for oil and gas lease operators, oilfield contractors, and oilfield consultants domiciled in the United States.

Oilfield insurance is who we are and what we do. Call us today at 918-504-6723 to improve your existing insurance program, get a competitive quotation, or to begin the process of procuring insurance coverage for your new venture.

 

Will Your Business Insurance Protect You Against The Risks and Threats That Today’s Oil & Gas Companies Face?

Operating a business working in The Oil Patch isn’t for the faint of heart. There are many liabilities that can affect your bottom line. That’s why Oil Patch Insurance (OPI) from Fred Daniel & Sons offers a comprehensive portfolio of insurance products tailored to meet the unique needs of businesses working in The Oil Patch. Our integrated coverage offers seamless protection for nearly any type of loss your Oil & Gas Company may experience.

As one of the oldest, most experienced insurance agencies in the U.S., and
as leaders in our industry, OPI is granted the highest level of access to the most superior insurance products and programs designed for businesses working in The Oil Patch — And we offer them at competitive prices.

OPI provides the following insurance products, and can develop a customized portfolio according to your company’s unique requirements:

  • General Liability
  • Commercial Auto
  • Inland Marine
  • Workers’ Compensation
  • Umbrella/Excess Liability
  • Employment Practices Liability
  • Directors & Officers Liability
  • Kidnap & Ransom

Our customer base includes risks for any-sized business working in The Oil Patch (both over-the-hole and non-over the hole), including but not limited to:

  • Operators/Non-operators
  • Drilling Contractors
  • Well Servicing Contractors
  • Wireline/Logging Contractors
  • Roustabouts
  • Pipeline Contractors
  • Oilfield Equipment and Supplies Dealers
  • Manufacturers/Distributors of oil field products
  • Geophysical Contractors

The team at OPI is available 24/7 to ensure your Oil & Gas Company can keep operating in the event of a loss. They offer a wealth of knowledge, and years of experience in the latest risk-control solutions for Energy Companies and businesses working in The Oil Patch. For more information, or to arrange for a complimentary consultation, contact Josh DeBoer, Advisor at OPI at: 918-504-6723 or contact@oilpatchinsurance.com

What we specialize in:

“Drill Baby Drill!”  OPI provides strategic and comprehensive package policies for those companies involved in the exploration and production upstream energy sector.Processing and transporting energy commodities is no easy task. We would like to partner with you and ensure your company’s future.Over the past 70 years we have been providing comprehensive insurance solutions for the energy sector. We have established strong, unbreakable relationships with our insurers. If you have a need, we will provide a solution.

What To Do Now

We understand how hard it is to get the right insurance solution, so here's how we've made it easy and risk free.

1. You contact us, letting us know what you need.

2. We'll review your application to identify the best fit for your business.

3. We'll contact you to review your options and the next steps.

Why wait? Contact us now.

Request A Quote

Our exquisite Expertise

  • Commercial Property & Casualty Oil & Gas Insurance 93%
  • Employee Benefits 87%
  • Personal Lines Insurance 78%
John Smith
We have had the privilege to work with Oil Patch Insurance for a couple years now and the service we have received has been second to none.
I would like to highly recommend Josh DeBoer and the staff with Oil Patch Insurance. When Josh took over our company’s insurance in 2009 we experienced a major decrease in our premiums, enhanced coverage, and experienced wonderful service from Josh and his staff. Visit with Josh to see for yourself. I’m glad we did.
Kevin Rigsby
I would strongly recommend Josh & OPI for your business insurance needs.