Top Mistakes New Oilfield Trucking Companies Make And How to Avoid Them
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 3 min read
Starting an oilfield trucking company can be highly profitable—but only if it’s done right. In 2026, oil & gas operators expect trucking vendors to meet strict safety, insurance, and compliance standards. Unfortunately, many new trucking companies make preventable mistakes that delay contracts, increase insurance costs, or shut down operations altogether.
Below are the most common mistakes new oilfield trucking companies make and how to avoid them.
1. Buying Equipment Before Securing Insurance
One of the biggest mistakes is assuming commercial auto insurance alone is sufficient. In reality, oilfield trucking companies typically need multiple policies working together, including:
Commercial Auto Insurance – Covers accidents involving trucks and trailers
General Liability Insurance – Covers third-party injuries or property damage at well sites, yards, or terminals
Environmental / Pollution Liability Insurance – Covers spills, leaks, and contamination
Cargo Insurance – Protects the value of oil, chemicals, sand, or produced water being hauled
Workers’ Compensation Insurance – Required for drivers and field employees
Operators often require specific limits and endorsements, and missing even one policy can result in contract rejection.
2. Underestimating Insurance Requirements
Oilfield trucking insurance goes far beyond standard commercial auto. New companies often fail to carry:
Environmental / pollution liability
Adequate cargo coverage
Sufficient liability limits required by operators
Major operators frequently require $1M–$5M liability limits, additional insured endorsements, and pollution coverage—especially for crude oil, chemical, or saltwater hauling.
3. Choosing the Wrong Hauling Niche
Trying to haul everything from day one can backfire. Each hauling type has different risks:
Crude oil → fire and spill exposure
Chemicals → hazardous materials compliance
Produced water → environmental liability
Sand → high accident frequency
Specializing early allows better safety controls, easier underwriting, and more competitive insurance pricing.
4. Poor Driver Hiring and Training
Driver experience plays a major role in insurance approval. Common issues include:
Hiring drivers without oilfield experience
Lack of documented safety training
No drug testing or MVR monitoring
Carriers favor companies with formal safety programs, driver onboarding processes, and ongoing compliance tracking.
5. Ignoring Environmental Exposure
Environmental claims are one of the fastest ways a new oilfield trucking company can fail. A single spill can cost hundreds of thousands of dollars in cleanup and fines.
Without pollution liability insurance, many claims are excluded from standard auto policies.
6. Not Preparing for Operator Compliance Reviews
Oil & gas operators require proof of:
Safety manuals
DOT compliance
Loss history
Failing an operator audit can cost you contracts—even if your pricing is competitive.
How Proper Insurance Helps Avoid These Mistakes
The right insurance partner helps new trucking companies:
Structure coverage before buying equipment
Meet operator insurance requirements
Reduce premiums through risk management
Scale coverage as the business grows
Why Choose Wexford Insurance
Wexford Insurance specializes in oilfield trucking insurance nationwide. We help startups and established fleets secure coverage that aligns with:
Operator contract requirements
Environmental exposure
DOT and regulatory compliance
Our team works with carriers that understand oil & gas transportation risks.
Request a free oilfield trucking insurance quote from Wexford Insurance and build your trucking business the right way.
