General Liability vs. Pollution Liability for Oilfield Contractors
- Nate Jones, CPCU, ARM, CLCS, AU
- 7 days ago
- 2 min read
For oilfield contractors, insurance is more than a requirement—it’s a safeguard against high-risk operations. Two types of coverage frequently discussed are General Liability (GL) and Pollution Liability (PL) insurance. While both protect your business, they cover very different risks.
At Wexford Insurance, we specialize in helping oil and gas businesses secure the right insurance to protect employees, equipment, and the environment.
What Is General Liability Insurance?
General Liability insurance covers third-party claims related to:
Bodily injury – For example, if someone is injured on your worksite.
Property damage – Damage caused to client or third-party property.
Legal fees – Costs associated with lawsuits or claims.
GL insurance is often the first type of coverage operators like Chevron, Shell, or BP will require from contractors. However, it does not cover pollution, environmental spills, or contamination.
What Is Pollution Liability Insurance?
Pollution Liability insurance is specialized coverage for environmental risks associated with oilfield operations, such as:
Oil spills or leaks
Hazardous chemical exposure
Soil or groundwater contamination
PL insurance is designed to protect contractors from environmental claims that can be extremely costly and are not covered under standard general liability policies.
Key Differences Between GL and PL Insurance
Feature | General Liability | Pollution Liability |
Covers bodily injury? | ✅ Yes | ❌ No |
Covers property damage? | ✅ Yes (non-pollution) | ✅ Yes (pollution/environmental) |
Covers environmental incidents? | ❌ No | ✅ Yes |
Often required by operators? | ✅ Yes | ✅ Often required for high-risk oilfield work |
Premiums | Generally lower | Can be higher due to specialized risk coverage |
Why Both Are Critical for Oilfield Contractors
Many oilfield contractors think GL is enough, but environmental claims are increasing and can quickly exceed standard liability limits. Operators like Chevron, Shell, and BP may require proof of both GL and PL insurance before awarding contracts.
By carrying both types of coverage, contractors can:
Protect business assets from lawsuits and environmental claims
Meet operator insurance requirements
Maintain a competitive edge in bidding for oilfield projects
How Wexford Insurance Can Help
At Wexford Insurance, we provide tailored insurance solutions for oilfield contractors, helping you combine General Liability and Pollution Liability coverage to meet operator requirements while managing costs.
Benefits of working with Wexford Insurance:
Nationwide coverage for oil and gas businesses
Guidance on operator-specific insurance requirements
Quick, no-obligation quotes
Get a quote today to make sure your oilfield contracting business is fully protected. Request a free oilfield insurance quote from Wexford Insurance.
