Workers’ Compensation Requirements for Oilfield Contractors in High‑Risk Work
- Nate Jones, CPCU, ARM, CLCS, AU
- 7 days ago
- 2 min read
Operating in the oil and gas industry comes with unique hazards—heavy machinery, remote worksites, and exposure to hazardous materials all increase the risk of workplace injuries. For oilfield contractors, workers’ compensation insurance is not just a legal requirement; it’s a critical safety net for employees and business owners alike.
At Wexford Insurance, we specialize in helping oilfield contractors secure workers’ compensation coverage that meets state requirements and protects high-risk operations nationwide.
What Is Workers’ Compensation Insurance?
Workers’ compensation (WC) insurance provides coverage for employees who are injured or become ill due to job-related activities. It typically includes:
Medical expenses for treatment of workplace injuries
Lost wages for employees unable to work due to injury
Rehabilitation costs if specialized care is required
Employer liability protection for lawsuits related to workplace injuries
In high-risk environments like oilfields, WC insurance is essential due to the potential severity of accidents and injuries.
Key Requirements for Oilfield Contractors
Oilfield contractors must meet both state-specific workers’ compensation laws and operator-specific requirements (for companies like Chevron, Shell, or BP).
Key requirements often include:
Coverage for all employees – Including temporary, seasonal, and subcontracted workers
Employer liability limits – Minimum coverage levels are specified by law and operators
Compliance with safety regulations – OSHA standards and company-specific safety programs
Proof of insurance – Many operators require certificates of insurance before work begins
Failure to meet these requirements can result in fines, contract termination, or legal liability.
Workers’ Compensation Costs for High-Risk Oilfield Operations
Premiums for workers’ compensation vary depending on several factors:
Employee roles – Drilling crews or heavy equipment operators have higher rates than office staff
State regulations – WC laws and rates differ from state to state
Claims history – Companies with prior workplace injuries may see higher premiums
Safety programs – Robust safety policies can reduce premiums
While costs differ, investing in proper coverage protects both your workforce and your business from financial risk.
How Wexford Insurance Can Help
Navigating workers’ compensation insurance for high-risk oilfield contractors can be complex. At Wexford Insurance, we provide customized solutions that ensure your business meets legal and operator-specific requirements.
Why choose Wexford Insurance:
Nationwide workers’ comp coverage for oilfield contractors
Expertise in high-risk oil and gas environments
Guidance on compliance with OSHA and operator requirements
Quick and easy insurance quotes
