How to Scale an Oilfield Contracting Company to $1M+ in Revenue
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Breaking the $1 million revenue mark is a major milestone for oilfield contracting companies. In 2026, opportunities are strong—but so are the risks. Scaling successfully requires more than winning contracts; it demands operational discipline, financial planning, and the right insurance structure to support growth.
At Wexford Insurance , we work with oilfield contractors nationwide who are actively scaling their businesses and need insurance solutions that won’t slow them down.
Step 1: Secure Larger Operator Contracts
Most oilfield contractors reach $1M+ in revenue by working with major operators or expanding services for existing clients. Larger contracts typically offer higher pay rates and longer project timelines—but they also come with stricter requirements.
Operators often require:
Higher general liability limits
Commercial auto coverage with $1M+ limits
Workers’ compensation for all field employees
Umbrella or excess liability coverage
Without compliant insurance, even highly qualified contractors may be disqualified.
Step 2: Invest in Equipment & Workforce Expansion
Scaling revenue usually means expanding capacity. This includes:
Purchasing additional trucks or heavy equipment
Hiring experienced field crews and supervisors
Adding specialized services to increase job value
However, growth increases exposure to claims, injuries, and equipment losses. Contractor’s equipment insurance and properly structured workers’ compensation coverage protect these investments as you scale.
Step 3: Improve Safety & Risk Management
Operators prioritize contractors with strong safety records. According to OSHA, high-risk industries like oil & gas experience greater scrutiny around training and incident prevention.
Key safety investments include:
Written safety programs
Job Safety Analysis (JSA) procedures
Ongoing training and certifications
Improved safety performance not only reduces claims—it can also lower insurance costs over time.
Step 4: Control Insurance Costs as You Grow
Many contractors hit growth plateaus due to rising insurance premiums. Scaling to $1M+ requires strategic insurance structuring, not just buying more coverage.
Wexford Insurance helps oilfield contractors:
Package policies to reduce redundancy
Access oil & gas-specific carriers
Avoid overpaying for unnecessary coverage
Stay compliant with changing operator requirements
Our goal is to support growth—not limit it.
Step 5: Maintain Compliance Across Multiple Projects
As revenue grows, contractors often work across multiple states or job sites. This creates challenges with:
Multi-state workers’ compensation rules
Auto and equipment coverage consistency
Certificate tracking for multiple operators
Partnering with an oilfield-focused insurance agency ensures compliance stays intact as operations expand.
