Success Stories

Case Studies

Huge Potential Loss Prevented by Close Contract Review

The Situation

Reviewing contracts for insurance requirements is invaluable to contractors close to bidding on a job, or a client about to sign a lease agreement or to any oil and gas account. While the construction industry has some consistency in their contracts, other industries, such as oil and gas, lack standardized contracts. And even those that are generally standardized, such as day-work contracts, are susceptible to minor modifications, which can create enormous gaps in coverage. The addition of an obscure sentence not even found in the insurance requirements section limited an operator's liability for our insured's oil rig to $1 million. And the rig, which was valued at more than $13 million, was left with a coverage gap of more than $12 million.

The INSURICA Solution

After notifying the insured of the huge coverage gap on their oil rig, INSURICA agents were able to find a more appropriate insurance solution, not for our client, but for the operator. By helping the operator obtain insurance, we helped protect our client from potential loss.

The INSURICA Experience

After asking us to review their contract, our client was saved from a potential $12 million loss on equipment vital to their business.

Additional examples of loss prevention due to INSURICA's involvement in contract review:

  1. While meeting with our client to discuss the details of a contract that redefined their employees, our client realized they would be losing $65,000 on the job if they signed the contract as written.
  2. By reviewing a contract in advance, our client was able to negotiate the removal of an insurance requirement that would have added $57,000 to their insurance cost.
  3. By reviewing a contract in advance, we were able to advise the client that without renegotiating the contract, he would be assuming the liability of the other party - including those situations where our client wasn't even partially negligent.
  4. By reviewing a lease agreement, we were able to advise our client of the need to increase their Fire Legal Liability limit to $1,000,000, as required by the landlord.