{"id":943,"date":"2025-06-19T13:00:09","date_gmt":"2025-06-19T13:00:09","guid":{"rendered":"http:\/\/www.xinetica.com\/?p=943"},"modified":"2025-06-19T14:28:29","modified_gmt":"2025-06-19T14:28:29","slug":"mosaic-develops-hybrid-coverage-to-support-orphaned-well-projects-in-north-america","status":"publish","type":"post","link":"http:\/\/www.xinetica.com\/index.php\/2025\/06\/19\/mosaic-develops-hybrid-coverage-to-support-orphaned-well-projects-in-north-america\/","title":{"rendered":"Mosaic develops hybrid coverage to support orphaned well projects in North America"},"content":{"rendered":"

Mosaic Insurance, a specialty insurer focused on complex and emerging risks, has introduced a new product aimed at supporting efforts to remediate abandoned and orphaned oil and gas wells across North America.<\/p>\n

\"mosaic-insurance-logo-2\"The company\u2019s environmental division has created a hybrid insurance solution that combines elements of pollution and well control coverage.<\/p>\n

The policy is intended to manage the specific risks associated with plugging disused wells\u2014efforts that have gained momentum due to government-funded programs targeting climate-related goals.<\/p>\n

“Mosaic is proud to be at the forefront of supporting companies tackling this urgent challenge that enables real progress on climate mitigation,” added Karen Reilly, Mosaic\u2019s Head of Americas, Environmental Liability.<\/p>\n

“Our innovative, responsive coverage brings certainty to the many liabilities involved. By doing so, Mosaic is helping unlock the growth of projects that directly reduce greenhouse gas emissions\u2014a win for our partners, our industry, and the planet.”<\/p>\n

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According to the US Environmental Protection Agency, there are an estimated two million unplugged oil and gas wells in the US alone. These sites can leak hazardous substances, including methane\u2014a greenhouse gas with a strong climate impact\u2014and pose potential risks to surrounding ecosystems and communities.<\/p>\n

To address this, the US government launched the Orphaned Well Program in 2021 under the Bipartisan Infrastructure Law, allocating $4.7 billion toward sealing wells and restoring affected areas on federal lands. Similar initiatives are underway in Canada at both federal and provincial levels.<\/p>\n

Max Horn, an environmental risk specialist at Mosaic, led the development of the new policy after identifying a lack of suitable coverage options for well-plugging contractors and related stakeholders.<\/p>\n

“We saw an opportunity to bridge the divide between traditional Contractors Pollution Liability (CPL) and standard Control of Well (COW) policies,” added Horn, who collaborated with global broker Aon and Tradewater, a developer of emissions-reduction projects.<\/p>\n

“While CPL typically covers pollution events and COW covers well control and redrill costs, neither fully addressed the needs of orphaned well remediation projects. Mosaic created a tailored solution that combines the two, offering more comprehensive protection for this evolving risk.”<\/p>\n

Mosaic and Aon have entered an exclusive agreement to distribute the product to contractors, carbon credit buyers, and project developers involved in well remediation work.<\/p>\n

Beyond orphaned wells, Horn is also working on insurance offerings for other energy-transition efforts, such as carbon capture and sequestration (CCS), another area that has gained traction through public funding and involves distinct environmental and operational risks.<\/p>\n

“Through well-designed policies to cover these potentially complex challenges, insurers can play a significant role in advancing climate solutions,” commented Horn.<\/p>\n

The post Mosaic develops hybrid coverage to support orphaned well projects in North America<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mosaic Insurance, a specialty insurer focused on complex and emerging risks, has introduced a new product aimed at supporting efforts […]<\/p>\n","protected":false},"author":1,"featured_media":945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"_links":{"self":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/943"}],"collection":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/comments?post=943"}],"version-history":[{"count":3,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/943\/revisions"}],"predecessor-version":[{"id":947,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/posts\/943\/revisions\/947"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/media\/945"}],"wp:attachment":[{"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/media?parent=943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/categories?post=943"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.xinetica.com\/index.php\/wp-json\/wp\/v2\/tags?post=943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}