General Liability vs. Pollution Liability for Coil Tubing Contractors
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
Coil tubing contractors in the oil and gas industry face a variety of operational risks. Choosing the right insurance coverage is essential for protecting your business, employees, and equipment. Two of the most critical policies for coil tubing operations are general liability insurance and pollution liability insurance. While both provide protection, they cover different types of risks—and understanding the difference can save your business from costly surprises.
What Is General Liability Insurance?
General liability insurance is the foundation of business protection. It covers third-party claims for:
Bodily injury on your job site
Property damage caused during operations
Legal defense costs in case of lawsuits
For coil tubing contractors, general liability protects against everyday incidents, such as accidentally damaging a client’s property or injuries to a visitor at your worksite. It is not designed to cover environmental damage, which is why additional policies like pollution liability are often necessary.
What Is Pollution Liability Insurance?
Pollution liability insurance, sometimes called environmental liability insurance, covers claims arising from the release of pollutants during operations. This includes:
Oil spills or chemical leaks
Environmental cleanup and remediation costs
In the oil and gas industry, environmental risks are significant. Even a small accidental release during coil tubing operations can result in expensive cleanup costs and regulatory fines. Pollution liability insurance ensures your business is financially protected against these risks.
Key Differences Between the Two Policies
Feature | General Liability | Pollution Liability |
Covers environmental damage | ❌ | ✅ |
Covers bodily injury & property damage | ✅ | ❌ (unless caused by pollution) |
Legal defense coverage | ✅ | ✅ |
Required for most clients? | Often | Sometimes (industry-specific) |
Many businesses mistakenly assume general liability covers pollution risks. For coil tubing contractors, combining both policies is often the safest approach to fully protect your operations.
Get a Quote from Wexford Insurance
At Wexford Insurance, we specialize in helping oil and gas business owners find tailored insurance solutions. Our team works with multiple national carriers to provide the best rates and comprehensive coverage for coil tubing contractors.
Protect your business today with the right combination of general liability and pollution liability insurance, and focus on safe, efficient operations with confidence.
