Commercial Liability Insurance for the Energy Industry

Course Details

This course is not subject to discount pricing.

Additional Credit Available:

Add Insurance CE

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Field of Study: 

Specialized Knowledge

Last Reviewed: 

March 2019



Exam Requirements

Proctor Required: 


Passing Grade: 




Please note: Adding Additional Credit may change exam requirements.

Note: Interactive exercises within this course are best viewed on a desktop computer.

Course Description
The energy industry has most of the same exposures as all industries, but it also faces some unique exposures. This course will examine each of the three coverage parts of the commercial general liability (CGL) policy—bodily injury and property damage (Coverage A), personal and advertising injury (Coverage B), and medical payments (Coverage C)—including the insuring agreements and exclusions. The most significant coverage section for operators, drilling contractors, oilfield service contractors, consultants, independent contractors, and most other business entities in the energy industry is “bodily injury and property damage.” After a careful review of the basic policy’s coverage parts, key policy provisions and conditions are examined, such as who is an insured, limits of insurance, and notice requirements. Various endorsements that can be attached to the policy to broaden or restrict the scope of coverage or otherwise alter the basic policy terms and conditions are reviewed. The course concludes with a brief discussion of umbrella liability insurance for energy industry companies.

Learning Objectives
This is an intermediate-level self-study course. Students who successfully complete this course will be able to

  • identify the major categories of insurable liability risk faced by energy industry companies and explain how each is covered by the standard CGL policy; 
  • differentiate the two coverage triggers used in CGL insurance policies and explain how each trigger defines what policy will apply to specific liability insurance;
  • identify examples of (1) “bodily injury” and (2) “property damage” and differentiate “bodily injury” from “personal injury”;
  • identify the scope of the CGL exclusions, such as contractual liability, pollution, professional services, and underground resources and equipment, and explain when they do and do not apply to claims;
  • recognize the significance of “insured” status to the availability of coverage under a standard CGL policy and differentiate between a named insured, an automatic insured, and an additional insured under the standard CGL policy;
  • recognize the significant coverage differences that occur when saline substance contamination and underground blowout and cratering endorsements are added to a CGL policy;
  • identify the insurance protections afforded to energy industry companies by using a waiver of subrogation endorsement, using additional insured endorsements, and making the coverage provided to the additional insured “primary and noncontributory”; and
  • recognize the function of umbrella liability insurance, differentiate the coverage available under a typical umbrella policy and under a standard CGL policy, and identify the major ways in which an oil industry limitation endorsement alters the coverage of an umbrella policy.


A basic understanding of commercial liability exposures and insurance coverage is needed.

CPE Field of Study
Management Services

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