The Complete Insurance Checklist for Oilfield Service Contractors in 2026
- Nate Jones, CPCU, ARM, CLCS, AU
- 7 days ago
- 2 min read
Running an oilfield service contracting business comes with unique risks—from heavy equipment operations to environmental hazards. To protect your employees, assets, and contracts, having the right insurance coverage is essential.
At Wexford Insurance, we help oilfield service contractors nationwide secure comprehensive insurance policies that meet operator requirements and keep your business protected.
General Liability (GL) protects your business against third-party claims for:
Bodily injury
Property damage
Legal defense costs
Most major operators, including Chevron, Shell, and BP, require proof of GL coverage before awarding contracts.
Workers’ compensation (WC) is essential for high-risk oilfield work and provides coverage for:
Medical expenses for workplace injuries
Lost wages due to time off work
Rehabilitation costs
Employer liability protection
Compliance with state-specific WC laws and operator requirements is mandatory.
If your business operates vehicles or transports equipment, Commercial Auto Insurance is required. Key considerations include:
Coverage for trucks, trailers, and specialized vehicles
Liability protection for accidents on and off the jobsite
Higher premiums for high-risk operations, long distances, and heavy loads
4. Pollution and Environmental Liability
Oilfield operations can pose environmental risks. Pollution Liability Insurance protects your business against:
Oil and chemical spills
Environmental contamination claims
Cleanup costs and legal defense
Operators may require this coverage for contracts involving sensitive or environmentally regulated sites.
Your tools, rigs, and machinery are valuable assets. Equipment and Property Insurance ensures protection against:
Theft or vandalism
Fire, natural disasters, or accidental damage
Replacement or repair costs
6. Excess Liability / Umbrella Insurance
Excess Liability or Umbrella Insurance provides additional coverage beyond your primary policies. This is especially important for high-risk oilfield operations with potential for large claims.
7. Operator-Specific Requirements
Major oil and gas operators often impose additional insurance requirements. These may include:
Minimum coverage limits
Specific endorsements for liability or environmental risk
How Wexford Insurance Can Help
At Wexford Insurance, we specialize in helping oilfield service contractors build customized insurance programs that protect your business and satisfy operator requirements.
Benefits of working with Wexford Insurance:
Nationwide coverage for oil and gas businesses
Expert guidance on operator-specific requirements
Bundled insurance options to reduce cost
Quick, no-obligation quotes
