Downhole Tool Insurance
Protect your high-value downhole tools and manage financial risk with specialized insurance coverage for equipment that becomes stuck, lost, or damaged below the surface.
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What is downhole tool insurance?
Downhole tool insurance covers the replacement cost of scheduled tools while they are below the rotary table in a pre-approved well. The tools are covered for loss or damage while downhole. Our main loss event occurs when the assembly becomes stuck in the wellbore.
Some other common terms used for this coverage are:
- Lost-in-hole (LIH) insurance
- LIH equipment coverage
- LIH coverage
- Specialty drilling equipment
- Downhole tool insurance
- Downhole equipment insurance
- Stuck drillstem
What types of tools are covered?
Below is a list of the most common types of tools that we cover. If you have a special need for a tool not listed, please contact us.
- Measurement-while-drilling (MWD)
- Motor
- Drill collar
- Stabilizer
- Sub
- Jar
- Drillpipe
- Drill bit
- Heavy-weight drillpipe
Downhole fishing service coverage
When insured downhole tools become stuck, recovery costs can add up quickly. Transpac’s fishing service coverage helps cover costs incurred when hiring a third-party fishing company to retrieve or free stuck tools. Coverage is available only for well sections where the BHA or equipment is insured by Transpac.
Who is eligible?
Coverage is available to anyone who owns tools or is contractually obligated to safeguard the tools while below the rotary. In most cases, the following parties are eligible:
- Oil and gas operators
- Wireline contractors
- Tool rental companies
- Tool manufacturers
How do we charge?
We charge on a day-rate basis for each day the covered tools are below the surface.
- All rates on a day-rate basis
- Multiple well discounts are offered (click for more info)
- Special rate plans for directional drilling contractors
How are losses handled?
Losses are handled by claims adjusters specializing in the energy industry. This translates into quick turnaround times for you when it comes to proof of loss and payment. We know time is money, and unlike other contractors and insurance companies, we provide claim payments in days rather than months.
We're here when you need us
We understand that drilling does not stop at 5 p.m. or on the weekends. We are available to assist you in getting coverage 24/7. Upon receiving a completed application, we can get a quote in your hands in less than 24 hours.
