Commercial Auto & Heavy Equipment Insurance for Drilling Contractors Explained
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Oil and gas drilling contractors rely heavily on trucks, rigs, trailers, and high‑value machinery to operate efficiently. These assets face daily exposure to extreme conditions, remote sites, rough terrain, and high‑risk job environments. That’s why commercial auto insurance and heavy equipment insurance are essential for drilling businesses looking to protect their investments and stay compliant with operator requirements.
Below is a clear breakdown of what drilling contractors need to know when choosing the right coverage.
Commercial Auto Insurance for Drilling Operations
Commercial auto insurance covers business‑owned vehicles used in drilling operations, including:
Crew trucks
Pickup trucks
Welding trucks
Water trucks
Hotshot vehicles
Fuel delivery trucks
Personal auto policies typically exclude business use, especially in high‑risk oilfield environments. Drilling contractors need specialised commercial auto coverage to protect against:
Collisions and vehicle damage
Liability claims involving third‑party injury or property damage
Medical payments and uninsured motorists
Towing and downtime losses
Oilfield driving is one of the top sources of worker fatalities, making adequate commercial auto coverage essential for drilling contractors operating across rural or multi‑state areas.
Heavy Equipment Insurance for Drilling Contractors
Drilling operations depend on high‑value machinery that must be protected on‑site, in transit, and during operation. Heavy equipment insurance typically covers:
Drilling rigs
Work-over rigs
Excavators
Derrick equipment
Frac tanks
Service trucks and trailers
Power units and generators
Coverage helps protect against:
Theft or vandalism
Fire or explosion
Weather damage
Accidental damage on‑site
Equipment breakdown‑related losses
Because drilling contractors work in high‑risk zones, many operators require proof of equipment coverage before allowing rigs or machinery onto their sites.
Why Specialised Oil & Gas Coverage Matters
Generic business auto or equipment policies often exclude oilfield and high‑hazard operations, leaving drilling companies exposed. Oil and gas insurance carriers understand unique industry risks like blowouts, remote access, high‑pressure systems, and transportation of hazardous materials.
Working with a specialised agency ensures:
Proper oilfield endorsements
Coverage that meets operator contract requirements
State‑specific compliance for multi‑state drilling
Access to insurers that cover high‑risk oil and gas operations
Get the Right Oil & Gas Insurance With Wexford Insurance
If you want tailored coverage for your drilling vehicles and heavy equipment, Wexford Insurance can help. We work with insurance companies nationwide that specialise in oil and gas businesses and understand the unique exposures drilling contractors face.
👉 Request a commercial auto or heavy equipment insurance quote from Wexford Insurance today and protect your drilling operation with confidence.
