How to Start a Coil Tubing Services Company in 2026 Step‑by‑Step Guide
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
Starting a coil tubing services company in 2026 can be a lucrative opportunity for entrepreneurs in the oil and gas industry. Coil tubing operations are critical for well intervention, production optimization, and maintenance, but starting this type of business requires careful planning, investment, and the right insurance coverage to protect your assets and employees.
Step 1: Conduct Market Research
Before launching, research the demand for coil tubing services in your target region. Identify major oil and gas operators, competitor services, pricing trends, and regulatory requirements. Understanding market dynamics helps you define your business model, services, and target clients.
Step 2: Develop a Business Plan
A solid business plan should include:
Services offered (well intervention, production optimization, maintenance)
Startup and operating costs (equipment, vehicles, labor)
Marketing strategy and client acquisition plan
Financial projections and funding requirements
Your business plan is essential for securing loans, attracting investors, and guiding your operations.
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Step 3: Register Your Business and Obtain Licenses
Choose a legal structure (LLC, corporation, etc.) and register your company with your state. Obtain any required permits or licenses specific to oilfield operations and coil tubing services. Compliance with federal and state regulations is crucial for operating legally and securing contracts with major operators.
Step 4: Invest in Equipment and Staff
High-quality, reliable coil tubing units, rig-up trucks, hydraulic control systems, and support equipment are necessary. Hiring trained, experienced personnel is equally important to ensure safe and efficient operations.
Step 5: Secure Insurance Coverage
Insurance is critical for protecting your business, employees, and equipment. Essential policies for a coil tubing company include:
General Liability Insurance: Protects against third-party injuries and property damage
Workers’ Compensation Insurance: Covers employee injuries and ensures compliance with state laws
Commercial Auto & Equipment Insurance: Covers rig-up trucks and specialized equipment
Pollution/Environmental Liability Insurance: Protects against spills, contamination, and regulatory fines
Step 6: Establish Operational and Safety Procedures
Implement safety programs, maintenance schedules, and quality control processes. Regular inspections, training, and compliance with OSHA and EPA standards reduce risk, improve efficiency, and lower insurance premiums.
Brief Why Choose Wexford Insurance
At Wexford Insurance, we specialize in helping coil tubing startups secure custom insurance solutions tailored to oil and gas operations. Our team provides:
Access to multiple top-rated carriers
Guidance on risk management and claims prevention
Comprehensive coverage for liability, workers’ comp, equipment, and environmental risks
