Rig insurance policy

Oil Rig insurance

Oil Rig insurance policy is designed to provide comprehensive insurance package coverage for the myriad of complex risks presented by the offshore and onshore exploration, production and contractor segments of the upstream oil and energy industry.

Rig Insurance policies covering oil rigs are standard policies that are managed according to risk specificities.

This policy is necessary for Upstream, oil and gas, both onshore and offshore including owners, operators and contractors.


The rig insurance is included two parts:

1) Hull & Machinery

Offshore Unit's Hull, Machinery and Equipment and everything connected therewith, nothing excluded, including miscellaneous equipment, consumables and materials while in transit or in storage.

2) Liability

Including coverage as per Liability arising to the Insured as per Article 7 of the International Convention on Civil Liability ( or agreed ) for Bunker Oil Pollution Damage, 2001; subject to a standalone limit.



This insurance shall be governed by and construed In accordance with the law of Iran and each party agrees to submit to the exclusive jurisdiction of the Courts of Iran in the event of a dispute arising hereunder.

Type of Risk in Oil Rig insurance

Type of Risks that might offer in Oil Rig insurance in Iran 

  • Offshore Physical Damage for platforms, sub-sea & pipelines
  • Offshore Construction Projects
  • Operators Extra Expense (control of well insurance)
  • Hull & Machinery, Loss of Hire, and P&I for offshore drilling rigs, FPSO’s, Drill ships and the like
  • Business Interruption, Loss of Production Income
  • Land Rigs & associated drilling equipment

Sample Conditions

London Standard Drilling Barge Form. Collision Liability excluded.
Institute War and Strikes Clauses Hulls-Time 1/10/83 (Cl 281).
Confiscation and Expropriation Wording 2. (RJM May 1971)
London Blocking and Trapping Addendum 
Violent Theft, Piracy and Barratry Extension - for use with the Institute War & Strikes Clauses Hulls - Time 1/10/83 (JW2005/002 dated 17/10/2005).
Sanction Limitation and Exclusion Clause LMA3100 (JH2010/009 dated 29/7/2010).
Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause (Cl 370).
Institute Cyber Attack Exclusion Clause (Cl 380).
Special Cancellation Provision clause.
Claims Handling Procedure clause.
Moves of Insured MOU’s clause.
Marine Warranty Surveys clause.
Terrorism coverage excluded absolutely.
80% Constructive Total Loss Clause.
Towage conditions
1. Towage shall be in accordance with IMO recommendations and confirmed by the class of the vessels, class shall remain IACS.
2. Before towage order it shall be surveyed and towage certificate shall be issued.
3. Recommendations and requirements to comply with safety requirements during period of towage is obligatory.

Extension of Coverage:

Warranted all rigs to be classed and class maintained
7 days cancellation clause in respect of terrorism.
Several Liability Notice LSW 1001 
Lay-up and returns clause 
Simultaneous settlement clause 09/82 LP048
Premium Instalment Clause
Claims Control Clause 
Cross Liability Clause LSW 1622 
Separation of Interest Clause 
Other Insurance clause.
72 Hours Clause 
Sister ship Clause 
Mobile Shift Addendum- LSW 498 
Helicopter Clause 
Port of Refuge Clause 
Institute Radioactive Contamination, Chemical, Biological, Biochemical and Electromagnetic Weapon Exclusion Clause CL370 dated 10 November 2003 
Institute Cyber Attack Exclusion Clause Cl. 380 dated 10 November 2003 
Conformity clause
Any movement of rigs outside present location to be agreed by the Underwriters.
Wherever the words Underwriter or Underwriters appear in standard forms or clauses referenced herein, it is deemed amended to read Insurer or Insurers (as applicable)
Cross Liability Clause.
In the event of any accident or occurrence likely to give rise to a claim hereunder, the Insured shall appoint loss adjusters from the following pre agreed panel: Matthews Daniel, Charles Taylor Associates.
The claims surveyor shall not be the warranty surveyor.
Reactivation clause to apply in respect of vessels laid up for period greater than 60 days.
JRC Communicable Disease Endorsement JR2020-016