Workers’ Comp Requirements for Oil Well Drillers Working in High‑Risk Zones
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Oil well drilling is one of the most hazardous operations in the oil & gas industry. From heavy machinery to volatile substances and remote locations, the risks are significantly higher than in most other sectors. Because of this, workers’ compensation insurance is essential, and often mandatory, for oil well drillers operating in high‑risk zones.
Oil and gas extraction workers face seven times the rate of serious injury compared to all other industries, highlighting the importance of regulatory compliance and proper insurance coverage.
Below are the key workers’ comp requirements oil well drilling companies must meet before operating in high‑risk environments.
1. Workers’ Compensation Coverage for All Employees
Most states require employers to carry workers’ compensation for all employees performing oilfield work, this includes drillers, floor hands, derrick hands, drivers, and temporary or seasonal workers. In many cases, coverage must extend to subcontractors unless they provide proof of their own policy.
Many operators (Chevron, Shell, BP, etc.) also mandate workers’ comp coverage before allowing contractors to access their drilling sites.
2. Compliance With OSHA Safety Regulations
Even though workers’ compensation is regulated at the state level, OSHA standards directly affect coverage eligibility and premium pricing.
Provide proper PPE
Maintain safe equipment
Conduct hazard communication and site‑specific training
Implement fall‑protection, confined space, and lockout/tagout procedures
These safety measures apply to all oil and gas extraction operations under 29 CFR 1910.
Non‑compliance can lead to higher workers’ comp costs, or denied claims after an incident.
3. State‑Specific Workers’ Comp Requirements
Workers’ comp laws vary significantly:
Texas allows companies to opt out, but this exposes them to substantial liability.
California requires workers’ comp for any business with one or more employees.
North Dakota requires employers to purchase workers’ comp exclusively through the state fund.
Oil companies operating across multiple states must ensure compliance in each jurisdiction.
4. Proof of Insurance (COI)
Drilling operators and site managers typically require a Certificate of Insurance with specific limits before allowing contractors onsite. Failing to provide this can halt drilling operations or invalidate contracts.
Protect Your Oil & Gas Business With Wexford Insurance
Meeting workers’ comp requirements in high‑risk drilling zones can be complex, but you don’t have to navigate it alone. Wexford Insurance works with top carriers nationwide that specialise in oil & gas operations coverage, ensuring your coverage meets both legal and operator‑level requirements.
👉 Request a workers’ comp quote for your oil & gas business from Wexford Insurance today and stay compliant in every high‑risk zone.
