How Coil Tubing Contractors Can Lower Insurance Premiums in 2026 And How to Prevent Them
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
Coil tubing contractors operate in one of the most high-risk sectors of the oil and gas industry. From heavy machinery to high-pressure wells and remote work sites, these operations expose businesses to equipment damage, environmental liability, and workplace injuries. While insurance is essential, premiums can be costly. The good news is that there are strategies to lower insurance premiums while improving safety and preventing claims.
1. Maintain a Strong Safety Record
Insurance carriers reward businesses that prioritize safety. Contractors with a clean claims history often receive lower premiums. Strategies to improve safety include:
Conducting regular safety audits
Implementing OSHA-compliant training programs
Maintaining personal protective equipment (PPE) and ensuring proper usage
A strong safety record not only reduces the risk of injuries and equipment damage but also demonstrates to insurers that your operations are well-managed.
2. Bundle Coverage for Cost Savings
Many coil tubing contractors require multiple policies, including:
Equipment and rig-up truck coverage
Pollution/environmental liability insurance
Bundling these policies under a single carrier can reduce overall premiums and simplify claims management. Many national carriers offer discounts for packaged policies that cover multiple risks.
3. Invest in Equipment Maintenance and Training
High-value coil tubing equipment and rig-up trucks account for a significant portion of insurance costs. Preventative maintenance reduces the likelihood of claims due to breakdowns or accidents. Additionally, training your crews to handle machinery correctly can prevent costly incidents.
4. Implement Environmental and Spill Prevention Programs
Environmental liability is a major cost driver in oilfield insurance. Accidental spills or contamination can result in expensive claims. Preventative measures include:
Spill containment systems
Regular environmental risk assessments
Employee training on chemical handling and emergency procedures
By reducing environmental risks, your company can lower pollution liability premiums while staying compliant with EPA regulations.
5. Review and Adjust Coverage Annually
Insurance needs change as your business grows. Reviewing policies annually ensures you are not over-insured or under-insured. Adjusting coverage to match current operations helps control premium costs while ensuring proper protection.
Why Choose Wexford Insurance
At Wexford Insurance, we specialize in helping coil tubing contractors find affordable, tailored insurance coverage. We work with top-rated carriers nationwide and offer guidance on:
Risk management strategies to prevent claims
Bundled coverage to lower premiums
Coverage customization for equipment, vehicles, and environmental liabilities
