Just like the rest of us, oil and gas companies need insurance, from the juniors to the industry giants.

In fact, their insurance requirements are extensive, such as coverage for pollution liability, directors’ and officers’ liability, equipment, vehicles, control-of-well, property, builders’ risk and general liability.

But the kind of fierce competition that drives Canada’s $64-billion oil and gas industry has traditionally been lacking in the insurance industry, at least for business in the energy sector. You can count the major brokers or insurers on one hand and still have a finger or two left over. Enter JB Oil & Gas Insurance Ltd., a Canadian-owned joint venture between broker Jones Brown and the Canadian Petroleum Insurance Exchange (CPIXL) that offers corporate insurance and risk management. Since June of this year it has written more than $2.6 million in oil and gas insurance premiums – making JB a recognized broker in the oilpatch.

Company president Mark Terrill is pleased by that accomplishment, but more than anything he’s proud of the three-person team that made it a reality. They are Dave James, Kathy Kueber and Brad Inkster.

The experienced pros comprising the JB Oil & Gas team: (l to r) Mark Terrill, Brad Inkster, Kathy Kueber and Dave James.

“We’ve built a great team in just 90 days,” Terrill says.

Prior to joining Jones Brown, James managed the Sedgewick Calgary office for several years. Previously, he was risk manager for Turbo Resources and Aquitane Company of Canada.

Kueber joined JB in September after spending several years in the Marsh energy division in Calgary, preceded by her work with Crestar’s risk management division.

Inkster joined in late October and completed JB’s first recruiting phase. He had already built a solid reputation in oil and gas insurance, first with J & H, then with Marsh.

As Terrill puts it: “We’re new, but our team is very experienced. I’m excited about having these talented, capable people with such great credentials in the division.”

JB Oil & Gas Insurance opened its doors with a commitment to service that went beyond the norm, and with a full range of insurance offerings.

Through its sister company Jones Brown Inc., the firm offers access to major property and casualty insurers, servicing many market segments in the areas of entertainment and sports, commercial/industrial, technology/new economy, financial and aviation, among others.

An interesting aspect of oilpatch culture is the view, held by some junior oil companies, that it’s OK to take a chance and not be fully insured.

Such contentment can be abruptly shattered by a well blowout.

People in Calgary’s oilpatch “are some of the purest entrepreneurs you’ll ever meet,” says Terrill. “That’s a great thing in many ways, but sometimes they have the approach that just because something happens in California doesn’t mean it will happen here.”

“Some think they’re not vulnerable (to liability), and they’re not unique in this attitude.”

But even for the majority of oil and gas companies who do recognize how crucial proper insurance is, “there’s been very little choice,” Terrill continues.

“Insurance for upstream companies has been largely controlled by two or three brokerage firms and about the same number of insurance companies.

“We’re saying to the oil companies, you have a new kid in town.”

In fact, it’s also got a new approach. JB Oil & Gas took a look at insurance trends over the years and observed that the industry’s sophisticated networks of computers, while revolutionizing the bureaucracy of underwriting, have a downside.

Computers aren’t people.

“In that system, there’s no human relationship between the client and the broker, especially in the case of junior oil companies,” Terrill says. “It’s become an automatic process.”

Day after day, forms are filled out online and submitted via the Internet. Back come the confirmation, policy details and premium schedule, all by computer and/or mail.

JB Oil & Gas offers insurance expertise and competitive rates – but with a human touch.

“Our success has largely been built on relationships,” Terrill says. “I believe the clients have been hungry for an intimate relationship in business, and that’s going to be the key in the long run. There is no substitute for it.

“We’re a bit old-fashioned in that regard. We have all the necessary technology, but we also offer an intimate relationship, not an electronic relationship.”

For more information on JB Oil & Gas Insurance, call 403.265.1920 or e-mail cal@jonesbrown.com