Insurance Risks Associated with Gas Drilling

Here are a few insurance risk issues to give you an idea of the scope of liability associated with gas drilling:
Is environmental liability subject to a sublimit under the policy?

• Are terms provided on an occurrence basis or claims-made only?

• Are fines, penalties and punitive damages covered (where insurable by law)?

• Are emergency-response costs included? If so, are they sublimited?

• Is coverage for natural-resource damage included?

• Is coverage provided for non-owned disposal sites?

• Are defense costs inside or outside the limits of liability?

• Does the applicant have driller blow-out policy or well blow-out coverage?