Insurance Requirements for Saltwater Haulers Working With Major Operators
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
Saltwater (produced water) hauling is one of the most heavily regulated and highest‑risk sectors in oilfield transportation. Hauling companies operating in the Permian, Eagle Ford, Bakken, and other basins must meet strict insurance and compliance requirements before major operators like Chevron, ExxonMobil, Shell, and ConocoPhillips will approve them for work.
Produced water is extremely hazardous, containing salts, hydrocarbons, metals, and chemicals, making spills environmentally damaging and costly to remediate. The U.S. Geological Survey notes that produced water is chemically complex and creates significant exposure pathways when spills occur during handling or transport.
Because of this risk, major operators require saltwater haulers to carry specific insurance coverage before issuing MSAs, gate passes, or on-boarding approvals.
1. Workers’ Compensation Insurance
All saltwater haulers must carry workers’ compensation covering drivers and field personnel. Oilfield hauling is high‑hazard due to:
Loading/unloading injuries
Exposure to contaminated water
Slip‑and‑fall hazards at SWDs
High accident risk on rural oilfield roads
Workers’ comp is mandatory to meet both state law and operator approval requirements. Many operators require statutory WC + employer’s liability limits (often $1M).
2. General Liability Insurance
Major operators require General Liability (GL) to protect against:
Third‑party injury
Property damage
Site incidents involving produced water
Operators like Chevron, ExxonMobil, and Shell typically mandate GL before approving contractors for work. GL is also an ISNetworld requirement for upstream operators.
3. Commercial Auto Insurance
Saltwater haulers must carry strong auto liability coverage due to the high spill and accident risk of tanker operations. A single crash can create massive environmental damage, as seen in recent hazmat trucking incidents where thousands of gallons spilled into waterways, forcing emergency responses.
4. Pollution Liability Insurance
Because produced water spills can contaminate soil, groundwater, and ecosystems, operators require pollution coverage for:
Emergency spill response
Soil/water cleanup
Environmental remediation
Regulatory penalties
Most auto or GL policies do not automatically cover produced water spills. Operators usually require either a standalone Pollution Liability policy or auto pollution endorsements.
5. Excess/Umbrella Liability
Major operators frequently require $5M–$10M umbrella limits to cover catastrophic loss scenarios, especially for high‑volume haulers.
Get Operator‑Approved Coverage With Wexford Insurance
Wexford Insurance helps saltwater hauling companies across the U.S. secure operator‑required insurance, including WC, GL, Auto, Pollution, and Umbrella Liability.
👉 Request a saltwater hauler insurance quote from Wexford Insurance today and get fully compliant with major operator standards.
