Dry dirt construction yard with crane and cylindrical buildings in background

Navigating the Current Challenges in the Property Insurance Market for Commercial SWDs

12/14/2023 Written by: Trevor Gilstrap

In the current landscape, navigating the Property insurance market has proven to be arduous for many. A sector that has been particularly impacted is commercial saltwater disposal (SWD) companies, which are facing significant challenges in securing coverage for their oil lease property (OLP).

As insurance brokers, it is our responsibility to adapt and innovate in the face of such difficulties. Recently, our team achieved noteworthy success by devising creative underwriting strategies explicitly tailored for SWD companies. The focal point of this success lies in a unique approach to limit delineation.

Traditionally, SWD OLP rates cast a broad net, uniformly encompassing all equipment affiliated with a given SWD site, irrespective of its specific location on that site. Our breakthrough came through persuasive discussions with underwriters.

We contended that equipment residing directly on the pad should adhere to SWD OLP rates. Conversely, we successfully argued that equipment positioned off the pad inherently faces diminished risks, particularly regarding factors like lightning strikes. Consequently, we advocated a more pragmatic approach, suggesting that such off-pad equipment be afforded the cost-effective advantages of traditional OLP rating.

This strategic delineation has yielded substantial savings to numerous clients, with cumulative benefits reaching hundreds of thousands of dollars. It’s a testament to the power of innovative underwriting strategies in a challenging market.

Our commitment to finding tailored solutions remains unwavering as we continue to navigate this demanding insurance landscape. The success stories from our recent endeavors underscore the importance of adaptability and creativity in not just weathering but thriving in turbulent times.

Want more insights from our energy team? Subscribe today!


Electric vehicle charging
The Dual Rise: Global Oil Demand and Electric Vehicles
Energy02/12/2024

In a world where energy demands are constantly evolving, 2024 marks a pivotal year as we witness a unique phenomenon in the oil and gas industry. Despite numerous challenges, global oil demand...

Engineers surverying outdoor factory/plant
Comparative Negligence: What You Need to Know
Energy01/19/2024

Comparative negligence is a legal principle used in personal injury cases to allocate fault and determine the extent of liability among the parties involved. This principle is applied when more than...

Electrical boxes and solar panels with a city skyline and wind turbines in background
Powering the Future: Recent Developments in the Energy Sector
Energy11/22/2023

In the energy industry, staying abreast of the latest developments is crucial for businesses to thrive. From technological innovations to policy shifts, the energy sector is undergoing transformative...