Insurance Requirements for Coil Tubing Companies Working With Major Operators
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
Coil tubing companies often partner with major oil and gas operators, providing specialized services for well intervention, production enhancement, and maintenance operations. While these contracts can be highly profitable, they also come with strict insurance requirements. Major operators require contractors to carry comprehensive coverage to protect against operational risks, liability claims, and environmental incidents.
Understanding and meeting these requirements is critical not only for compliance but also for protecting your business and workforce.
Common Insurance Requirements
Major operators typically mandate that coil tubing contractors maintain the following types of coverage:
General Liability Insurance: General liability protects your business from third-party claims, including bodily injury, property damage, and legal defense costs. This is often the baseline requirement for any contractor working with a major operator.
Workers’ Compensation Insurance: All coil tubing crews must be protected in case of on-the-job injuries. Workers’ comp ensures medical care and wage replacement for employees while keeping your business compliant with state regulations.
Pollution/Environmental Liability Insurance: Oil and gas operations carry the risk of environmental incidents. Pollution liability insurance protects your company from claims related to spills, contamination, or regulatory fines.
Commercial Auto and Equipment Insurance: Rig-up trucks, service vehicles, and specialized coil tubing equipment are high-value assets. Coverage for these assets protects against damage, theft, or operational failures.
Umbrella/Excess Liability Insurance: Some operators require additional liability limits beyond standard policies to cover catastrophic events or multi-million-dollar claims.
Meeting these requirements ensures your company can safely operate on operator sites while mitigating financial exposure from accidents, damage, or environmental risks.
Factors Affecting Insurance Requirements
Major operators often tailor insurance requirements based on:
Size and scope of the contract
Type of operations performed
Crew size and equipment involved
Location and regulatory environment
Companies that work on offshore or high-pressure wells may face stricter requirements compared to onshore projects.
Why Choose Wexford Insurance
At Wexford Insurance, we specialize in helping coil tubing companies meet the insurance requirements of major operators. Our approach is designed to protect your business while keeping you competitive:
Custom Coverage Plans: We work with multiple top-rated carriers to tailor policies for your operations, equipment, and risk profile.
Industry Knowledge: Our team understands the specific insurance mandates imposed by major oil and gas operators.
Ongoing Support: Beyond coverage, we assist with risk management strategies, claims support, and regulatory compliance to keep your operations running smoothly.
