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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.
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 contractor 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.
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.
Below are some industry niches and professionals that typically require oil contractor 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.
The general liability policy of oilfield contractor insurance programs have a $1 million-$2 million per occurrence and aggregate limit.
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:
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.
| 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 |
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.
| 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 |
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as the oil and gas 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 oil and gas contractor insurance is a stand-alone policy although It can be modified
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:
The average oil and gas contractor 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:
| 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 |
NEXT doesn’t underwrite an oil and gas insurance bundle for drilling and fracking contractors. NEXT 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.
Average cost: $67 per month
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.
Chubb provides general liability coverage, commercial auto, workers’ compensation, occupational accident insurance, equipment breakdown, errors & omissions (E&O) liability,property coverage.
Average cost: $80 per month
Our rating: 8/10
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.
Average cost: $70 per month
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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 and more.
Average cost: $84 per month
Liberty Mutual was founded in 1912, which means it understands the complexities and details of the energy industry, particularly the oil and gas sector. They provide oil and gas contractor insurance tailored options to protect your business, whether you operate a compressor station, gas storage, LPG and LNG facilities, or a gas processing plant.
Average cost: $87 per month
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Not all those who wander are lost.
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