What does blowout and cratering mean?

blowout and cratering meaning in Insurance Dictionary

when you look at the gas and oil production business, relates to uncontrolled eruption of oil, gasoline, water, or drilling fluid from a well that's undergoing being drilled (blowout) or even to the caving in of a well which includes been drilled. Blowouts are generally brought on by the penetration of a reservoir which has gas or oil that's under greater pressure than has been allowed for; usually the oil or gas captures fire. Whenever a really craters, the drilling rig itself goes under with all the fine. Coverage the insured's responsibility for problems for property of other people caused by blowout or cratering is optional available general liability (CGL) policy. a specialty coverage—control-of-well insurance—provides coverage the costs of bringing a blowout in order, cleaning any ensuing pollution, and injury to the home of this operator.