2026 Market Outlook: Insurance Rate Trends for Oil Well Drilling Contractors
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
The insurance market for oil well drilling contractors insurance continues to adjust in 2026 as carriers respond to higher claims costs, rising repair expenses, and ongoing risk exposure in the oil & gas industry. While the market is not as hard as 2023–2024, drilling contractors can still expect moderate rate increases across several key coverage lines.
Workers’ Compensation: Flat to +8%
Workers’ compensation remains one of the most stable insurance lines for drilling contractors in 2026. Industry data shows that WC continues to be profitable for insurers, helping to keep renewals steady for most businesses.
What to expect in 2026:
Clean accounts: 0% to +3%
Average accounts: +3% to +5%
Poor loss history: +6% to +8%
Because drilling contractors historically experience more severe injuries than other oil & gas segments, small increases are still common. OSHA data confirms the sector reported more than 2,100 severe injuries between 2015–2022.
Commercial Auto: +10% to +20%
Commercial auto continues to face the highest increases due to:
inflation in parts and labour
vehicle accident severity
long‑distance driving to remote rig sites
Industry outlooks show commercial auto remains “one of the most challenging lines” heading into 2026.
2026 general rate expectation:
Most drilling fleets: +10% to +15%
Heavy fleets / rig‑moving units: +15% to +20%
General Liability: +5% to +10%
General liability continues to rise due to:
higher lawsuit settlement amounts
operator‑required limit increases
contractor‑to‑contractor incidents on multi‑service locations
The global oil & gas insurance market is projected to continue growing as operational risks rise.
2026 general GL trend:
Typical drilling contractor: +5% to +10%
Pollution Liability: +8% to +12%
Environmental liability is becoming a larger concern, especially for contractors working near environmentally sensitive areas or deeper wells.
Expected 2026 trend:
Most contractors: +8% to +12%
Equipment / Inland Marine: +5% to +10%
Higher values for replacement rigs, pumps, tools, and vehicles continue to affect rates.
General increase:
+5% to +10%
Plan Ahead for 2026 With Wexford Insurance
Insurance rates are changing, but the right agency can help you keep costs under control. Wexford Insurance works exclusively with oil & gas insurance carriers and understands the unique risks drilling contractors face.
👉 Request a drilling contractor insurance quote from Wexford Insurance today and get coverage tailored to your operation.
