4.1.3 Aircraft insurance & indemnity
Level of Insurance
The OGP Member should determine the level of insurance required in line with its company risk management guidelines.
Evidence of insurance
OGP Members should require that: a) Each aircraft operator provide documentary evidence of the required insurance coverage.
b) Such insurance not be cancelled or changed materially during the course of the contract without at least thirty days written notice to the OGP Member.
Subrogation, cross liability & additional insured
a) To the extent necessary to reflect indemnities given by an aircraft operator under the con-tract, insurers should waive rights of action/subrogation against the OGP Member and the OGP Member should be named as an additional insured under the policy.
b) Liability insurance should contain a severability clause (Cross Liabilities).
Additional cost
The OGP Member’s Risk Management and or Insurance specialists/advisors should be consulted if there will be a cost associated with the requirement to name the OGP Member as additional insured or to obtain a waiver of subrogation.
4.1.4 Use of third-party (turnkey) contracts
The following points are stressed should an OGP Member choose to use turnkey contractors:
a) OGP Member’s personnel on company business who in the course of their work are expected to use aircraft owned by other companies or chartered by third parties/other companies should exercise caution and should consult with the OGP Member’s Aviation Advisory staff before using the aircraft.
b) Third-party aircraft should meet standards of safety / technical quality comparable to those of the OGP Member; they should provide an adequate level of liability coverage (see previ-ous comments above) and the crew/staff should meet OGP Member equivalent competence standards.
c) While emergency situations may not allow sufficient notice for advance evaluation, employ-ees should liaise with their OGP Member’s Aviation Advisor, either directly or through locally designated contacts, whenever possible.
d) Included are aircraft operating to OGP Member contracted facilities and provided through third-parties as a “turn key” contract operation for other services such as seismic, barge, geophysical survey, cargo, mobile offshore drilling units (MODUs), etc.
e) Reviews of the aviation contractor by the Aviation Advisor should still be required, whether or not a turnkey contract is in place. f) Supervision of the aviation services should be maintained and the aviation contractor’s per-formance continuously monitored. g) The Aviation Advisor’s review of the contractor would also specifically cover the local OGP Member’s business unit’s ability to monitor and maintain standards.
4.2 Operating categories & usage
4.2.1 Use of scheduled airlines & airline safety
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