What Insurance Do Oil Well Drilling Contractors Need?
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Operating an oil well drilling contracting business comes with some of the highest risks in the energy sector. From heavy drilling rigs to hazardous job sites, your business faces exposures that could be financially devastating without the right insurance coverage.
In 2026, operators and regulators require specific insurance to ensure contractors are protected and compliant. At Wexford Insurance we help oil well drilling contractors nationwide secure coverage that meets operator requirements and protects employees, equipment, and your business.
1. General Liability Insurance
General Liability Insurance is essential for oil well drilling contractors. It protects your business against:
Bodily injury to third parties
Property damage caused by operations
Legal defense costs for covered claims
Most operators require proof of General Liability coverage and often request that the operator is named as Additional Insured on your certificate.
2. Workers’ Compensation Insurance
Drilling operations involve high-risk environments, making Workers’ Compensation vital. This coverage:
Protects employees injured on the job
Shields your business from lawsuits related to workplace injuries
Often required by major operators regardless of state mandates
Having Workers’ Compensation coverage demonstrates your commitment to employee safety and compliance with OSHA standards.
3. Commercial Auto Insurance
Oil well drilling contractors rely on trucks, trailers, and service vehicles to move rigs, equipment, and crews. Commercial Auto Insurance covers:
Liability for on-site or highway accidents
Physical damage to vehicles used in operations
Required limits for operator contracts, often $1M or higher
This coverage ensures your operations continue smoothly if vehicles are damaged or involved in accidents.
4. Umbrella / Excess Liability
Umbrella or Excess Liability Insurance provides additional protection beyond General Liability and Auto coverage. It’s essential for:
Large or catastrophic claims
Meeting operator contractual requirements
Protecting your drilling business’s financial stability
5. Pollution Liability / Environmental Coverage
Oil well drilling carries inherent environmental risks. Pollution Liability Insurance protects contractors from claims related to:
Spills or leaks during drilling
Contamination of soil or water
Environmental cleanup costs
Many operators mandate pollution liability coverage for drilling contractors to mitigate environmental risk.
6. Contractor’s Equipment Insurance
Drilling rigs and specialized tools are the backbone of operations. Contractor’s Equipment Insurance safeguards against:
Damage at the drilling site
Theft or loss during transport
Repair or replacement costs for essential equipment
Without this coverage, an equipment failure could halt operations and lead to financial losses.
Why Wexford Insurance?
Insurance for oil well drilling contractors is highly specialized. Wexford Insurance ensures your policies:
Meet operator requirements nationwide
Are tailored to your drilling operations and risk exposures
Include all required endorsements and certificates
Protect your drilling business today.
