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Wholesale Distr to Oil & Gas contractors in AR

Posted: Tue Nov 08, 2011 4:34 pm
by bboswell
Not having any luck placing this account, hoping others may be able to help. Wholesale distributor concentrating on the supplies used by oil & gas drilling and field service contractors. Basically, they are not too different than a typical hardware store, or a distributor for HVAC contractors. Hand load and unload type boxes, not big industrial equipment. Hand tools, cleaning supplies, W-D40, spray paint, plumbing fittings and the like. While some of the tools and hardware are specific to the industry, the majority of what they sell could be found at any Home Depot or Ace Hardware. They do not repackage, alter or re-label anything, so the Prod/Comp Ops passes thru them.

They have a dozen pick up trucks and a couple of box vans to deliver goods to their clients warehouses and sometimes to the job site. Occasionally, the job site is where a well is being drilled, but in those cases, designated delivery areas are away from the actual rig and the work being performed. Most of the time, when delivering to the job site, no drilling is taking place.

Have been to all the standard admitted markets we use (Chubb, Trav, Hartford, Hanover, LM, Zurich, etc) but they are either too small (total premium about $50k) or they wont write because its oil/gas. Risk if they were an oil/gas contractor or operator high, but a distributor? Home Depot doesn't get sued if they sell supplies to an electrician who is negligent causing a fire. How are the sales in this case any different?

Not getting much love from the E&S markets either, so wondering if the brokers I am using are not reaching out to the most appropriate markets? Has to be a huge number of carriers selling to the suppliers of this market niche, and somebody is insuring them. Appreciate any suggestions you may be able to offer.

Re: Wholesale Distr to Oil & Gas contractors in AR

Posted: Wed Nov 09, 2011 1:40 pm
by dlaughlin
I'd like to talk to you about this risk as I may be able to help. We've had experience with this type of risk in AR before. Not sure of the coverages you're seeking, but give me a call if you haven't already placed it.

Dennis Laughlin
Midwest Risk Management Services, Inc.
Rogers, AR
479-271-7475
dlaughlin@mrmsi.com