Commercial Auto vs. Environmental Liability: What Saltwater Haulers Must Carry
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
Saltwater hauling is a critical operation in oil and gas production, moving produced water from well sites to disposal or treatment facilities. With heavy vehicles, hazardous fluids, and strict operator requirements, insurance is not optional—it’s a business necessity. Two key policies every saltwater hauler must understand are commercial auto insurance and environmental liability insurance.
Commercial auto insurance covers the vehicles and drivers used in daily hauling operations. Key points include:
Liability Coverage: Protects against bodily injury or property damage caused by your trucks in an accident.
Collision & Comprehensive: Covers damage to your trucks from collisions, weather, theft, or vandalism.
Cargo Coverage: Some policies extend to the transported saltwater or fluids.
Commercial auto insurance is often a mandatory requirement by midstream and upstream operators before awarding contracts. A clean driver record and properly maintained vehicles can help reduce premiums. For federal regulations affecting commercial trucking, contractors can review FMCSA guidelines.
Environmental (Pollution) Liability Insurance
While commercial auto protects vehicles and third parties, environmental liability insurance addresses risks associated with spills, leaks, or contamination:
Spills & Leaks: Coverage for accidental release of produced water during transport.
Cleanup Costs: Covers remediation of soil, water, and surrounding areas.
Legal & Regulatory Fines: Protects against penalties from environmental agencies.
Environmental liability insurance is essential because even minor spills can lead to expensive cleanup costs and legal claims. Operators often require proof of pollution coverage to minimize risk exposure.
Why Saltwater Haulers Need Both
Relying solely on commercial auto insurance leaves contractors vulnerable to environmental risks. Conversely, pollution liability alone does not cover vehicle collisions or third-party claims. A comprehensive approach ensures:
Compliance with operator and regulatory requirements
Protection for your fleet, cargo, and employees
Financial security in the event of accidents or environmental incidents
Partner With Wexford Insurance
Navigating insurance requirements for saltwater haulers can be complex. Wexford Insurance specializes in providing oil and gas trucking contractors with tailored coverage, including:
Pollution and environmental liability insurance
We work with top-rated carriers nationwide to ensure your business meets operator requirements and is fully protected against risks.
Request a quote from Wexford Insurance today.
