Aon launches coverage for plugging abandoned oil, gas wells

Aon PLC Friday launched a product to cover liabilities associated with plugging abandoned oil and gas wells in the United States.

The plug and well exit liability coverage, which was developed with Chicago-based environmental company Tradewater LLC, includes the option to add an associated state regulatory agency as an insured, an Aon statement said.

The product provides some protection for buyers and investors in carbon credits arising from the projects, Aon said.

The program’s primary insurer, Mosaic Insurance Holdings Ltd., offers $25 million in limits, but excess capacity can be built up to $100 million, an Aon spokeswoman said.