Wellsure

Wellsure®

Wellsure® is a revolutionary program which provides exploration and production companies and insurers a unique opportunity to reduce the cost of risk.

WELLSURE® combines comprehensive prevention services, offered by Boots & Coots/IWC, with control of well insurance which is placed with Lloyd's of London through Global Special Risks, Inc. The cost of the prevention services and insurance are incorporated into a single product, and that product is designed to be a cost effective alternative to traditional control of well insurance. If a blowout does occur, WELLSURE® has already pre-addressed risk management concerns by streamlining the logistical and financial response to a blowout and the application of insurance to that blowout.

WELLSURE® can, if required, perform an initial prevention system review in conjunction with the risk management department to maximize prevention services available and to reduce the cost of such services currently being borne by an exploration and production company.

These prevention services ultimately reduce risk - some of which are not always insurable. At the same time, these services provide insurance underwriters with a better risk to insure, a better understanding of the exposures and accordingly, create more of a partnership between the insurer and the insured.

A risk manager that has experienced a blowout can attest to the far reaching impact of a well out of control. The immediate concern is obviously of a financial nature, but issues such as manpower, logistics and the environment also have a major impact on a company. The WELLSURE® partnership addresses these concerns and couples a risk manager with the most experienced emergency response firm in the world.

In a blowout situation, the WELLSURE® participant's "Strategic Event Plan" will help the operational employees immediately commence the blowout response. Boots & Coots/IWC will act as general contractor following a blowout situation and will combat the blowout under the direction of the WELLSURE® participant. Boots & Coots/IWC streamline the logistics behind equipment procurement, delivery and invoice tracking and compilation that is traditionally performed by an insured.

WELLSURE® also addresses financial concerns for both the insured and insurer. Boots & Coots/IWC, acting as a general contractor, have demonstrated that claim costs can be reduced by swift claim resolution. This is achieved by a unique policy amendment that amends the traditional "indemnification" wording to "pay on behalf of" (where Boots & Coots/IWC perform as general contractor) allowing payment to subcontractors/vendors in an expedited manner. Under this arrangement, covered expenses are funded directly to an escrow account for payment without first being paid by the insured.

Not all costs incurred during a blowout are covered by control of well insurance. In many instances, an insured is not made aware of uncovered expenses until the final adjustment which can be as much as a year after an event. The traditional method of adjusting claims is time consuming and can put an insured in a difficult position. WELLSURE®, together with the program's approved adjusters, takes a pro-active role in addressing coverage issues in a more timely manner through better communication between the insured, the adjuster, and insurers.

WELLSURE® underwriters benefit with fewer losses due to the program's loss control and prevention, and reduced claim amounts resulting from the alliance packaging and the streamlining of the response program. This can only ultimately benefit the WELLSURE® participant as he is not subjected to the general market reactions to the Control of Well class that historically has provided underwriters with significant loss settlements.