NEW YORK ( TheStreet) -- Warren Buffett's Berkshire Hathaway ( BRK.A) is expanding its underwriting of the oil and gas industry.

In an agreement with Willis Group Holdings ( WSH), the insurers will provide coverage up to $250 million on new policies.

"This additional capacity is excellent news. It provides substantial and easy access to AA+ rated paper to the market at a time when the need for additional capacity on a range of operating and construction risks has never been greater," Willis Group CEO Alistair Rivers said in a statement.

Insurance rates have increased for oil since the BP ( BP), Deepwater Horizon disaster.

--Written by Maria Woehr in New York.

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