Electric energy is now being used for transportation and heating. Nonetheless, it can’t equate to the efficiency of energy released from petroleum products sold by gas stations and other related businesses.
As more and more people think of starting their own fuel stations, The oil and gas sector is evolving constantly–and so is the exposure to risks. Oil and gas operators, oilfield contractors, and manufacturers of the parts and products used in the industry are exposed to unique risks at every level of the oil and energy process.
That's why it's critical to have oil and gas insurance coverage. With such an insurance policy, oil and gas businesses can protect their employees and assets and ensure they remain viable in the long term.
Insurance for oil and gas industry is an essential coverage for any player in the energy sector. The insurance policy protects oil and gas companies and oilfield contractors from the financial losses they might incur due to unexpected events, such as accidents, equipment failure, and natural disasters.
This type of insurance can cover the expenses related to repairs and replacement of damaged or vandalized equipment and third-party liability claims.
Offshore oil and gas explorations in deep-sea ecosystems are increasingly becoming major environmental concerns. We've heard of accidental oil and gas releases and spillages in marine environments.
If your company is held responsible for such activities, authorities can impose significant fines and penalties, which can lead to huge financial losses and dented reputation. With oilfield business insurance, you can protect your company from the potential environmental risks related to the production, transportation, and storage of oil and gas products.
Liabilities in the oil and energy industry vary widely, so it's better to protect your drilling or fracking operations than to be sorry after the damage is done. Below are some industry niches and professionals that typically require oil and gas operator insurance:
Oil exploration and production companies
Well operators and oilfield contractors
Service providers like well-logging and testing companies
Manufacturers of oil drilling equipment
Pipeline operators
Companies involved in hauling and storing oil and gas products
Companies operating in the oil and gas sector typically require oilfield liability insurance as the basic coverage. This insurance policy is designed to protect against the financial implications resulting from lawsuits and claims. General liability, pollution liability, and professional liability are the common types of oil and gas liability insurance.
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Can be included |
| Hired/non-owned auto liability coverage included? | Yes | No | Can be included |
| Equipment breakdown floater included? | No | Yes | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 |
The operations of an oil and gas contractor involves the construction of structures and the installation of materials. If this is done near residential sites, then it’s possible to face frivolous claims for bodily injuries, property damage, or even nuisance.
The general liability policy of an oil and gas contractor insurance program allows your business to cover costs. Use the table above to see which insurance companies offer the best oil and gas general liability insurance.
Oil and gas contractors as well as operators can use general liability insurance to cover claims for bodily injuries or property damage because:
The pipeline burst and damaged nearby houses
An independent contractor experienced a work-related accident during a drilling and fracking project
Injuries were sustained while touring the oilfield
Similar to the general liability policy of solar contractor insurance programs, the general liability policy of oifield contractor insurance programs have a $1 million-$2 million per occurrence and aggregate limit. Oilfield insurance programs offer higher amounts of coverage, and their general liability policy can have up to $25 per occurrence and aggregate limit.
Public liability insurance works the same way as general liability insurance. The only catch is that it might not have optional endorsements such as business equipment coverage, hired/non-owned auto liability coverage, and others.
| CoverWallet (Best) | NEXT | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Name additional insureds? | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | No |
| Deductible | $500 | $500 | $500 |
Drilling and fracking projects are complex. A lot of attention had to be poured in designs and calculations. Small oversights can cause accidents that will result in costly delays and damages.
Clients can demand you provide reimbursement for the extra expenses they incurred after you’ve committed errors and lapses. Purchase professional liability insurance to protect yourself. Use the table above to see which insurance company offers this type of oilfield services insurance best.
A professional liability policy is the oilfield business insurance that contractors like you can leverage when:
A client files a claim for breach of contract
A client accuses you of negligently hiring subcontractors
A client files a claim for breach of confidentiality
A client files a claim after you lost or damaged the materials for a fracking and drilling project
A client files a claim because your work has a lot of costly delays
Insurance companies automatically include a defective work endorsement in their professional liability coverage for oil and gas contractors. Note that this will only cover the cost of lawsuits and reimbursement for the client’s losses. Coverage doesn’t apply to bodily injuries or property damage that result from oil well defects.
Oil and gas drilling, if done under poorly controlled conditions, is devastating to the environment, the public, and wildlife. Leaky pipes can spill oil into rivers, residential sites, forests, and farmlands. Oil well blowouts can release smoke, oil, and debris.
Pollution liability insurance, which you can also find in other energy business insurance bundles such as renewable energy insurance, will protect you when third parties as well as government authorities file a claim. This will cover the expenses for:
Environmental restitution
Legal defense
Debris removal
Professional services for environmental specialists
Public relations
Medical treatment of injured third parties
Reimbursement for damaged properties
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $300,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $25,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Included |
| Accounts receivable | Excluded | Excluded | Included |
| Money and securities | Excluded | $2,500 | Included |
| Lock and keys | Excluded | $2,500 | Included |
| Business interruption floater | Excluded | Included | Included |
| Equipment breakdown floater | Excluded | Included | Included |
| Inland marine insurance floater | Excluded | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | Excluded |
Commercial property insurance, also included in gas engineer and gas fitter insurance programs, protects your office, warehouse, or any other owned, leased, or rented physical location against fire, theft, vandalism, weather, and other covered perils.
This grants help by reimbursing the actual cash value or replacement cost of the covered property. Use the table above to see which insurance company offers the best commercial property insurance for oil and gas contractors.
Yes. But only if it gets damaged or destroyed due to fire, weather, vandalism, and other covered perils while it’s in the premises of your warehouse.
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $300,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes |
A business owner’s policy bundles general liability and commercial property insurance into one product. That said, you can use this to cover liability claims and commercial property damage losses. Use the table above to see which insurance company offers the best business owner’s policy for oil and gas contractors.
Well blowouts, though rare, can happen during a drilling and fracking operation. This is why it’s a good idea to invest in well control insurance.
A well control insurance policy is an inclusion that’s exclusive to oil and gas well insurance programs.
If a well-blowout happens, this will allow you to reimburse the value of the client’s well. You can also use this to cover the extra expenses for labor, materials, and equipment needed for re-drilling and restoring the well. Last but not the least, this will also cover your liability for environmental pollution that resulted from the well blowout.
Oil well drilling is hazardous and it’s common for work-related accidents to happen because of blowouts, structural failures, storms, and hurricanes. In line with this, you, as the contractor, must provide adequate compensation to part-time and full-time employees who sustained a work-related injury or disease.
Workers compensation insurance allows you to cover medical treatments, medication, hospitalization, and rehabilitation on an employee’s behalf. The policy also covers lost wages. And if the employee dies, workers compensation insurance will provide the legally mandated death benefits.
Tools and equipment insurance will cover repair or replacement expenses if your drilling rig and other equipment gets damaged or lost due to fire, theft, vandalism, electrical breakdown, and other covered perils. Coverage applies regardless of where the damage or loss happened.
Tools and equipment insurance for gas and oil contractors is a stand-alone policy that can be modified with endorsements that grant coverage for employee safety equipment and personal effects, pollution caused by equipment breakdown, and lease payments for hired drilling rigs.
Trucking is the heartbeat of the energy industry, ensuring oil and gas products reach the designated distributors and retailers on time. These trucking companies haul everything, from pipes, fracking sand, chemicals, and produced water to drilling fluids, drilling equipment, crude oil, and rigs of all sizes.
Oilfield trucking insurance is a specialized type of insurance policy designed to protect oilfield hauling companies and their drivers from the unique risks associated with the transportation of oil and gas products. These are the most common inclusions:
Auto liability coverage–Any business, including oilfield trucking, requires auto liability coverage as the basic form of insurance. This policy covers third-party claims of property damage and bodily injury caused by a crash involving a company's truck
Physical damage coverage–This offers protection against any damage to the company's trucks and trailers due to accidents, theft, vandalism, and other covered events
Cargo insurance–This coverage insures the freight being hauled. It covers losses or damages to in-transit oil and gas products
Bobtail insurance–Bobtail insurance provides coverage for accidents that occur when a truck is being driven to get a trailer placed in a different location
Non-trucking liability insurance–This type of insurance offers protection for accidents that occur while the truck is not under commercial use. For example, when a driver is using the truck to visit a local handy goods store, or computer shop.
You’re eligible. However, the coverage that you’ll get might be too much. Consider going for an oil and gas consultant insurance program. Policies that are usually included in oilfield consultant insurance are general liability, professional liability, commercial property, and business owner’s policy.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $91 | $1,092 | $0-$500 |
| Professional liability insurance | $100 | $1,200 | $0-$500 |
| Commercial property insurance | $95 | $1,140 | $1,000-$2,500 |
| Business owner’s policy | $180 | $2,160 | $500-$1,000 |
| Workers compensation insurance | $250 | $3,000 | $2,000-$5,000 |
| Pollution liability insurance | $260 | $3,120 | $500-$1,000 |
| Control of well insurance | $160 | $1,920 | $1,000-$2,000 |
| Commercial auto insurance | $115 | $1,380 | $500-$1,000 |
| Non-trucking liability insurance | $105 | $1,260 | $1,000 |
| Bobtail insurance | $107 | $1,284 | $1,000 |
| Cargo insurance | Depends on the value of cargo | Depends on the value of cargo | $1,000-$3,000 |
The average oil and gas insurance cost is $91 per month or $1,092 per year for a $1 million general liability coverage. The cost of oil and gas contractor insurance depends on several factors, such as:
Annual revenue
Experience and expertise of the people involved in the work
Whether or not you have risk management strategies in place
Location
Type of insurance needed
Amount of insurance required
Deductibles
Claims history
Take a look at this table that shows the cost of a $1 million general liability policy from the recommended insurance companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $67 | $804 | Best overall; Fastest general liability insurance for oil and gas contractors |
| CoverWallet | $70 | $840 | Comparing insurance quotes for oil and gas contractors online |
| Tivly | $72 | $864 | Comparing insurance quotes for oil and gas contractors over the phone |
| Hiscox | $75 | $900 | Insurance for oil and gas contractors with worldwide coverage |
| Chubb | $80 | $960 | Businesses looking for specialized insurance packages |
| Travelers | $84 | $1,008 | Risk management resources |
| Liberty Mutual | $87 | $1,044 | Businesses wanting to work with local risk control and claims experts |
It's easy to find the cheapest general liability and cheapest public liability insurance for gas engineers that can protect your oil company. To do that, shop around and compare insurance quotes from various providers by clicking the “Get Quotes’ button on this page.
Some insurance carriers offer discounts and special rates for certain types of gas companies or those with a good claims history. Furthermore, trade organizations, such as the Independent Petroleum Association of America (IPAA), enter into agreements with insurers to provide discounted rates to their members.
Get all the best quotes from leading providers in a click of a button!
Running an oil and gas operation has its risks, and the financial losses can accrue pretty quickly if the unexpected occurs.
That said, you need to find an insurance provider that can guarantee peace of mind in case of adversity.
Here are the top oil and gas insurance companies. Read to know their pros, cons, and cost of a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for oil and gas contractors
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT doesn’t underwrite an oil and gas insurance bundle for drilling and fracking contractors. However, you might get covered through this company’s insurance package for “all other building equipment contractors” that offers the following:
$1 million-$2 million general liability insurance
$1 million-$2 million professional liability insurance
Workers compensation insurance
Commercial property insurance
Business owner’s policy
The reason why NEXT is on the first list of this review of the best oil and gas insurance companies is because it issues an online certificate insurance that you can send to clients as an email or social media post. It also offers a 10% policy bundle discount.
Best for: Best overall; Fastest general liability insurance for oil and gas contractors
Average cost: $67 per month
Our rating: 10/10
Compare quotes online
Stable rates
Helps you find the best companies in an instant
Allows you to cancel your coverage anytime
Easy online policy management
Not an insurance company but an insurance broker
Similar to NEXT, CoverWallet doesn’t have an oil and gas insurance bundle. After all, it’s not an insurance company but is one of those oil and gas insurance brokers that can help you look for the best carriers to work with. To get a quote, you need to use CoverWallet’s online quotes comparison platform to curate the quotations from insurance companies such as Chubb, Liberty Mutual, and others.
Best for: Comparing insurance quotes for oil and gas contractors online
Average cost: $70 per month
Our rating: 10/10
Responsive customer service
Compare quotes over the phone
A partner of NEXT and other reputable insurance companies
Creates a tailored package that suits your unique needs
Doesn’t issue instant online quotes
Tivly (formerly CommercialInsurance.NET) covers oil and gas contractors through its contractor insurance package that’s made up of general liability, commercial property, workers compensation insurance and more. You need to call a representative to compare quotes over the phone and get covered.
Best for: Comparing insurance quotes for oil and gas contractors over the phone
Average cost: $72 per month
Our rating: 9/10
Automatic policy renewal
Coverage applies even if you’re working abroad
Get a quote online or with the help of an agent
Fast to process claims
Doesn’t sell a stand-alone commercial property insurance
If you work with Hiscox, then you will get covered through its geological engineering insurance package that offers a general liability policy, professional liability policy, and business owner’s policy. You can get a quote online or talk with an agent.
Best for: Insurance for oil and gas contractors with worldwide coverage
Average cost: $75 per month
Our rating: 10/10
Provides a wide range of coverage options
Excellent customer service
24/7 claims reporting
A++ (Superior) AM Best financial stability rating
Certificate of insurance may not be offered immediately
Phone support is available only if a customer purchases insurance directly from Chubb
Not a BBB-accredited company
Chubb is one of the globally renowned oil & gas insurance companies, providing specialized insurance package policies, pollution liability, and umbrella liability to businesses operating in the energy sector.
Whether you're a drilling contractor, oil and gas lease operator, or a natural gas pipeline company, you'll find the insurance coverage that meets your liability needs. Chubb provides general liability coverage, commercial auto, workers' compensation, occupational accident insurance, equipment breakdown, errors & omissions (E&O) liability, crime/financial fidelity, property coverage, etc.
Additionally, Chubb offers 24/7 claims reporting, and with its A++ financial strength rating from AM Best (one of the industry's rating agencies), you can rest assured that the company will pay your claims. Besides, the insurance carrier only partners with skilled oil and gas insurance brokers who understand the industry and can answer any queries you have about pollution and other liability.
However, there are some drawbacks. For example, insurance certificates aren't provided immediately, because you'll be purchasing from an insurance agent. Moreover, customers can only get phone support if they purchased coverage directly from Chubb and not from an insurance broker.
Best for: Businesses looking for specialized insurance packages
Average cost: $80 per month
Our rating: 8/10
Anyone included in a workers' compensation, including employers and employees, can access an online portal to track their claims
Extensive library of risk management resources
Available in all 50 states, including Puerto Rico and Washington D.C.
Online quoting isn't available
Travelers has been in the insurance business since 1853. Over the years, the company has developed specialized expertise and products that help petroleum companies and oilfield contractors protect their businesses, employees, and assets.
Travelers is one of the oilfield insurance companies that offer a wide range of oil and gas products, including general liability, rigs and equipment coverage, commercial property, contractors' equipment, oil and gas lease property, umbrella liability, and workers' compensation. The company has an online portal where anyone involved in the workers' compensation policy – the employer or employee–can track their claim.
Travelers offers oil and gas contractor insurance in 50 states, including Puerto Rico and Washington D.C. The only downside is that the company doesn't provide online quotes, which means customers must directly speak to an insurance agent to get the rate and other policy details.
Best for: Risk management resources
Average cost: $84 per month
Our rating: 8/10
Global market presence
A rating from AM Best
Successful track record of protecting oil and gas businesses
Wide range of policies to cover the needs of most petroleum companies
Industry-specific coverage options for oil and gas companies
Online quotes aren't available
Website lacks in-depth information on commercial insurance policies
Liberty Mutual was founded in 1912, which means it understands the complexities and details of the energy industry, particularly the oil and gas sector. The Boston, MA-based insurance provider provides tailored coverage options to protect your business, whether you operate a compressor station, gas storage, LPG and LNG facilities, or a gas processing plant.
With Liberty Mutual, you can get a wide range of oilfield services insurance policies, including property coverage, equipment breakdown, business interruption, commercial surety, commercial auto, contractors' professional liability, Course of Construction, etc.
Liberty also has local risk control and claims experts who have local authority and are seasoned in defending oil and gas claims. Before purchasing insurance, the company sends its risk control specialists to review your specific oil exploration activities to help you devise the most effective risk management strategy and advise on the best policies that suit your business.
Oilfield contractors and operators can purchase insurance policies with up to $150 million in coverage. Combined with its A rating for financial strength from AM Best, customers can rest assured knowing that they are dealing with a company capable of paying their claims. One of the disadvantages of purchasing Liberty's oilfield consultant insurance is that the company doesn't provide online quotes.
Best for: Businesses wanting to work with local risk control and claims experts
Average cost: $87 per month
Our rating: 8/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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