2026 Market Outlook: Insurance Rate Trends for Coil Tubing Services
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
The oil and gas industry continues to evolve, and coil tubing services are no exception. For 2026, insurance rates for coil tubing contractors are expected to reflect a combination of operational risks, market conditions, and claims history trends. Understanding these trends is essential for business owners to budget effectively, maintain coverage, and protect assets.
Current Insurance Rate Trends
Several factors are influencing coil tubing insurance rates in 2026:
Increased equipment costs: High-value coil tubing units and rig-up trucks drive premiums higher.
Rising environmental liability claims: Pollution, spills, and regulatory fines are increasingly impacting rates.
Market-wide underwriting adjustments: National carriers are adjusting rates to reflect historical claims data and operational risks.
Safety and risk management: Companies with strong safety records and proactive risk management programs are seeing slower rate increases.
Industry analysts predict that while rates will rise moderately in 2026, businesses that implement risk reduction strategies and maintain compliance can stabilize their insurance costs.
Types of Coverage Impacting Rates
Coil tubing contractors typically require multiple insurance policies, all of which influence overall premiums:
General Liability Insurance: Protects against third-party injury or property damage.
Workers’ Compensation Insurance: Covers employee injuries and ensures regulatory compliance.
Pollution/Environmental Liability: Protects against contamination, spills, and cleanup costs.
Equipment & Rig-Up Truck Coverage: Insures expensive machinery and vehicles.
Umbrella/Excess Liability: Provides additional coverage above standard policy limits.
Businesses that bundle policies or maintain comprehensive coverage often benefit from more favorable pricing and reduced administrative complexity.
Strategies to Manage Insurance Costs
Coil tubing companies can implement several strategies to mitigate rising premiums:
Invest in safety programs: Training, PPE, and OSHA-compliant procedures reduce claims and improve underwriting scores.
Maintain equipment proactively: Regular inspections and maintenance prevent costly equipment claims.
Review coverage annually: Adjust policies to match operational needs, avoiding over-insurance or gaps.
Partner with knowledgeable brokers: Working with specialized brokers ensures the company secures competitive rates tailored to oilfield risks.
Why Choose Wexford Insurance
At Wexford Insurance, we help coil tubing contractors navigate the complex insurance market with confidence. Our team:
Works with multiple top-rated carriers nationwide
Tailors policies for general liability, workers’ comp, pollution, and equipment coverage
Provides guidance on risk management to prevent claims and stabilize premiums
