What Insurance Do Oilfield Contractors Need to Work for Major Operators?

Nate Jones, CPCU, ARM, CLCS, AU
7 days ago
2 min read

Working with major oil and gas operators like Chevron, Shell, and BP can significantly grow your contracting business—but it comes with strict insurance requirements. Understanding what insurance policies these operators require is essential for qualifying as a vendor or contractor.

At Wexford Insurance, we specialize in helping oilfield contractors secure the right coverage to meet these standards and protect their businesses nationwide.

Essential Insurance for Oilfield Contractors

Major operators typically require contractors to carry multiple types of coverage to mitigate risks in oilfield operations:

1. General Liability Insurance

Covers bodily injury, property damage, and legal fees. Most major operators require minimum coverage of $1–$5 million per occurrence.

2. Workers’ Compensation Insurance

Mandatory for all employees on the jobsite. Coverage must meet state requirements and often includes employer liability coverage.

3. Commercial Auto Insurance

Required if your business vehicles operate on-site or transport equipment. Coverage limits are often specified by each operator.

4. Excess Liability / Umbrella Insurance

Provides additional protection beyond primary liability limits, often required by large operators to ensure robust risk management.

5. Equipment and Contractors’ Equipment Insurance

Covers tools and machinery used on the jobsite against theft, damage, or loss.

6. Environmental Liability Insurance

Protects against pollution, spills, and environmental damage—critical when working in sensitive locations.

For more industry insurance guidelines, check resources like the American Petroleum Institute (API) for contractor safety and compliance standards.

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Operator-Specific Insurance Requirements

Chevron: Requires contractors to carry general liability, workers’ compensation, auto liability, and excess liability insurance. Minimum coverage limits are specified in vendor contracts.
Shell: Requires proof of liability coverage, workers’ compensation, and environmental liability. Policies must meet regional regulations and internal Shell standards.
BP: Contractors must have comprehensive general liability, workers’ compensation, and environmental coverage, with additional umbrella policies for high-risk operations.

Meeting these requirements ensures your eligibility to bid on contracts and reduces potential liability exposure.

How Wexford Insurance Can Help

Navigating insurance requirements for major operators can be complex. Wexford Insurance works with multiple carriers across the nation to provide coverage that meets or exceeds Chevron, Shell, and BP standards.

Why choose Wexford Insurance: