Travelers to Offer Control of Well Coverage on an Admitted Basis

Travelers is now offering control of well coverage on an admitted basis to upstream oil and gas clients. This coverage will be immediately available on an admitted basis in 25 states, and is expected to be available in most other states in 2011.

With this announcement Travelers combines control of well coverage and specialized support services for incident prevention and well control management, all in one admitted insurance package.

By partnering with Travelers, insureds receive risk control and claim services and access to the well control provider, Wild Well Control, Inc. At no additional cost to the insured, Travelers Oil & Gas offerings include:

• 24/7 access to a globally recognized well control expert, who helps customers assess the well control problem and provides critical support on-site to help keep problems from escalating.
• First Sign of Trouble Endorsement, a one-time $25,000 reimbursement of ‘well out of control’ prevention expenses incurred for the hiring of our well control provider, Wild Well Control, Inc.
• Well control certification training offered through Wild Well Control, Inc., in accordance with IADC WellCAP requirements.
• Dedicated risk control and claim services risk control experts come directly from the oil and gas industry.
• Emergency response planning guide for managing well blowouts that occur on U.S. oil and gas land drilling operations. This resource provides a framework for establishing an early intervention and emergency response plan to address the catastrophic impact of blowouts.
• 24-hour telephone hotlines for well control questions and immediate assistance with well control issues such as well kicks, severe loss or gain of drilling fluid, small surface leaks, etc.
• Seminars that address pressure control issues and risk management techniques to help mitigate or minimize risks identified with control of well events.

Admitted Control of Well coverage will be available immediately in Alaska, Arkansas, Arizona, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Kentucky, Maine, Maryland, Minnesota, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont and Wyoming. Customers in other states can access control of well coverage from Travelers on a non-admitted basis through Travelers’ new wholesale partner, Towerstone, Inc., a subsidiary of The IMA Financial Group. Customers that purchase Control of Well coverage from Travelers on a non-admitted basis will also have access to Travelers’ well control services and training programs. The Towerstone Energy Practice works with independent agents and brokers throughout the U.S. to provide market access and energy industry expertise to assist in the placement and servicing of insurance products for the energy industry.

Source: Travelers