CERTCON SERVICES - ENERGY INDUSTRY

CERTCON Services For The Energy Industry

As an oil and gas operator, do you really need a contract and certificate management program?

You really do. Because the Operator will usually be held liable for any bodily injury claim. Even if he uses an independent contractor, he can still be held liable.

The greatest exposure is a contractor's employee getting hurt, collecting Workers' Comepensation, and then suing the Operator because he "failed to furnish a safe place to work." The Commercial General Liability (CGL) and Umbrella Liability policies usually cover this type of claim, but if you have a frequency of such claims your premiums will increase. Continue having them and you can become uninsurable. And, if you have a large Self Insured Retention, you are paying directly for these claims.

So, To Avoid:
	The loss of time, the cost, and the aggravation of litigation;
	The increasing cost of buying insurance;
	The possibility of becoming uninsurable,
Establish in a Master Service Agreement (MSA) who is responsible for each loss and make certain the other party has the correct insurance to backup its responsibilities.

There are four areas that must be addressed in order to have a successful MSA:
	Responsibility - assignment of each party's obligations;
	Indemnification - correctly worded to make it legally enforceable;
	Insurability - complete insurance requirements to backup the indemnifications;
	Verification - sufficient methods to make certain that insurance requirements are met.
The first three areas are necessary to make certain that the contract works correctly. The fourth area is necessary to make certain that the insurance the other party has agreed to carry meets the specifications, and you need to know a lot more about the insurance than what is shown on a standard certificate.

The Problem Is...
	Checking Certificates of Insurance correctly takes more expertise than most people think.
	Checking them completely and then responding to them and then following up in them is extremely time consuming.
	You must, however, make certain, in detail, that the other party carries the insurance required, so that your insurance, or you, will not have to pay claims that you expect the other party's insurance to pay.
CERTCON Services helps oil and gas operators alleviate their burden of processing the multitude of contracts that are necessary in operating wells, i.e., the Master Service Agreements (MSA), the Master Charter Agreements, Pumper Agreements, etc., and the even greater number of Certificates of Insurance that are necessary to make certain the insurance requirements in these contracts are met. The operator can outsource to CERTCON the myriad of activities associated with these procedures.
CERTCON Services handles all of these procedures, along with gathering much more important information than is on the standard insurance certificate, and makes the information instantly available to the operator so they may stay informed of the contractor/vendors' response to the contracts and to the insurance requirements.

Here Is What CERTCON Will Do!
	Mail MSAs and requests for certificates of insurance, and have them returned to CERTCON. Mail follow-up notices where information is not returned.
	Record all information for use in evaluation and subsequent notices.
	Forward MSA to Client for final execution, indicating any changes made by the vendor.
	Analyze certificates of insurance for compliance with the MSA.
	Mail reports to vendors indicating compliance or non-compliance, and requesting corrections as required.
	Monitor expiration dates and request renewal certificates upon expiration.
	Re-analyze revised certificates and send follow-up non-compliance notices as necessary.
	Make the information instantly available to the operator via the internet so he may stay informed of the contractor/ vendors' response to the contracts and to the insurance requirements.

Here Is What CERTCON WEBREPORT information will indicate:
	Whether the Vendor has signed a contract.
	Vendors that have made changes to their contract.
	If contract changes effect the insurance or indemnity provisions.
	If the Vendor's insurance meets the MSA.
	Specific items of insurance in non-compliance.
	Non-compliance notices sent to vendors.
	Definitions of deficiencies in vendor's insurance.
	Vendors meeting accepted deviations.
	Insurance companies used by the vendors.
	A.M.Bests Rating Service ratings and licenses of companies used by the vendors.
	Workers' Compensation reports to be used in the Client's Workers' Compensation audit.
	Plus other pertinent contractor/vendor information.

Today's Date is: Sunday, December 22, 2024