Drilling Contractors: General Liability vs. Control of Well Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
For oil well drilling contractors, insurance isn’t optional—it’s a critical part of operating safely and securing contracts. Two of the most important policies in 2026 are General Liability (GL) Insurance and Control of Well (CoW) Insurance. Understanding the difference between these coverages can protect your business and satisfy operator requirements.
At Wexford Insurance we help drilling contractors nationwide obtain policies tailored to their risks and ensure they meet all operator insurance standards.
What is General Liability Insurance?
General Liability Insurance is foundational coverage for drilling contractors. It protects your business against:
Third-party bodily injury
Property damage caused by your operations
Legal defense costs for covered claims
Operators often require contractors to have GL coverage with specified limits, such as $1M per occurrence / $2M aggregate. They may also require you to list the operator as Additional Insured on your certificate.
GL insurance does not cover incidents directly related to a well blowout, loss of well control, or pollution events. This is where Control of Well insurance comes in.
What is Control of Well Insurance?
Control of Well (CoW) Insurance is specialized coverage designed specifically for oil well drilling operations. It provides protection against:
Blowouts or uncontrolled flows of oil or gas
Damage caused to the well or equipment during drilling
Costs associated with regaining control of a well
CoW insurance is typically required by major operators for all drilling contractors, especially on high-pressure wells or offshore operations. It is considered a higher-risk, specialized policy compared to General Liability.
Key Differences Between GL and CoW Insurance
Coverage | General Liability | Control of Well |
Purpose | Protects third parties | Protects your operations / well |
Typical Claims | Bodily injury, property damage | Blowouts, loss of control, equipment damage |
Operator Requirement | Standard for vendor approval | Required for drilling contracts on high-risk wells |
Additional Notes | Often bundled with Umbrella/Excess | Highly specialized, may be project-specific |
Why Both Policies Are Essential
Drilling contractors cannot rely on General Liability alone. CoW insurance fills critical gaps, covering risks unique to well control and high-pressure operations. Operators often will not approve contractors without both.
Working with an oil well drilling insurance specialist like Wexford Insurance ensures your coverage:
Meets operator-specific requirements
Includes proper endorsements and certificates
Protects your business from financial and operational losses
