«Knock for knock» is also used in a specific analog sense, z.B. in the «Law at War» of the U.S. Army website : alternatively, this responsibility can be reassigned to a service company by a «less is more» approach. For example, a service agreement between an operator and a service company with standard knock-for-knock compensation may also include a seemingly harmless exception for all «losses» caused or attributable to the «serious negligence» of the service company. While this type of provision does not clearly indicate that «loss» contains «loss» of well damages, the net effect by omission is the same; the service company is contractually responsible for compensating and defending the operator from and against damages suffered by the operator, which are or are the result of all or part of the gross negligence of that service company. The lawyer must also have a firm understanding of the commercial/operational aspects of the target service company, the role of the target service company at the well site, and the pitfalls associated with oil field service agreements and compensation rules. Make sure you understand all the risks associated with your investment in the target service company and attribute those risks as much as possible to the target service company`s seller. «Knock for knock» is a regime widely used in the offshore oil and gas industry. It is often found only in disputes that arise after a serious disaster, when the parties concerned try to determine whether they (or one of their contractual partners) should be held financially responsible for the costs of the disaster.
A knock-for-knock agreement is an agreement between two insurance companies that, if the policyholders of both companies suffer losses in the same case of insurance (usually a car accident), each insurer pays the losses incurred by its own policyholder, regardless of who is responsible. Compensation is generally awarded by each party on behalf of all employees and real estate within its «group.» Individuals and companies belonging to the «groups» of each contracting party are defined in the agreement and generally include a party`s subcontractors and affiliated companies, as well as all their employees, executives and guests. Since a party is responsible for all claims to its group, it is important that the scope of each party`s «group» be carefully defined in the definitions. «Knock for knock» is a joint contractual agreement in the oil and gas industry.  The operator of an oil and gas property needs the help and know-how of many types of contractors, including drilling companies, drilling service providers, facility builders, equipment suppliers and caterers. As a general rule, the operator will use these services as part of a master service contract that defines the essential general conditions under which the work is performed.