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Oil and Gas Contractor Insurance: Cost & Quotes From $11/mo

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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Table of contents
1. Why Purchase Oil and Gas Insurance?2. Which Companies Need Oil and Gas Insurance?3. Oil and Gas Liability Insurance4. Oil and Gas General Liability Insurance for Contractors 4.1. At Which Situations Can Your Oil and Gas Company Use General Liability Insurance?4.2. How Much Coverage Can You Get From General Liability Insurance?4.3. What Insurance Option Do I Have Aside From General Liability Insurance?5. Professional Liability Insurance for Oil and Gas Contractors5.1. When Can You Use Professional Liability Insurance?5.2. Does Professional Liability Protect Me if a Client Files a Claim for Mud Contamination, Hole Deviation, Circulation Loss, Borehole Instability, and Other Defects?6. Pollution Liability Insurance for Oil and Gas Contractors7. Commercial Property Insurance for Oil and Gas Contractors7.1. Will Commercial Property Insurance Cover My Drilling Rig?8. Business Owner’s Policy for Oil and Gas Contractors9. Well Control Insurance10. Workers' Compensation Insurance for Oil and Gas Contractors11. Tools and Equipment Insurance for Oil and Gas Contractors 12. Oilfield Trucking Insurance13. I Only Work as a Consultant for Oil Well Design and Planning. Am I Still Eligible for Oil and Gas Contractor Insurance?14. Oil and Gas Insurance Cost14.1. Getting Cheap Oil and Gas Contractor Insurance15. Top Oil and Gas Insurance Companies15.1. NEXT Oil and Gas Insurance  15.1.1. Pros15.1.2. Cons15.2. CoverWallet Oil and Gas Insurance 15.2.1. Pros15.2.2. Cons15.3. Tivly Oil and Gas Insurance 15.3.1. Pros15.3.2. Cons15.4. Hiscox Oil and Gas Insurance 15.4.1. Pros15.4.2. Cons15.5. Chubb Oil and Gas Insurance 15.5.1. Pros15.5.2. Cons15.6. Travelers Oil and Gas Insurance 15.6.1. Pros15.6.2. Cons15.7. Liberty Mutual Oil and Gas Insurance 15.7.1. Pros15.7.2. Cons 

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.

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.

Why Purchase Oil and Gas Insurance?

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.


Which Companies Need Oil and Gas Insurance?

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


Oil and Gas Liability Insurance

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.


Oil and Gas General Liability Insurance for Contractors


CoverWalletNEXT (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?YesNoCan be included
Hired/non-owned auto liability coverage included?YesNoCan be included
Equipment breakdown floater included?NoYesCan be included
Can you get a certificate of insurance online?YesYesYes
Name additional insureds?YesYes
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.


At Which Situations Can Your Oil and Gas Company Use 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


How Much Coverage Can You Get From General Liability Insurance?

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.


What Insurance Option Do I Have Aside From General Liability Insurance?

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.


Professional Liability Insurance for Oil and Gas Contractors


CoverWallet (Best)NEXTHiscox
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?YesYesYes
Waiver of subrogation included?YesNoNo
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.


When Can You Use Professional Liability Insurance?

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


Does Professional Liability Protect Me if a Client Files a Claim for Mud Contamination, Hole Deviation, Circulation Loss, Borehole Instability, and Other Defects?

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.


Pollution Liability Insurance for Oil and Gas Contractors

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

Compare Cheap Oil and Gas Contractor Insurance Quotes Online

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Commercial Property Insurance for Oil and Gas Contractors


CoverWalletNEXT (Best)Hiscox
Building coverage limit (minimum)$50,000$300,000$25,000
Contents coverage limit (minimum)$50,000$25,000$15,000
Outdoor signsExcluded$2,500Included
Accounts receivable ExcludedExcludedIncluded
Money and securitiesExcluded$2,500Included
Lock and keys Excluded$2,500Included
Business interruption floaterExcludedIncludedIncluded
Equipment breakdown floaterExcludedIncludedIncluded
Inland marine insurance floaterExcludedExcludedExcluded
Employee dishonesty floaterExcluded$5,000Excluded


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. 


Will Commercial Property Insurance Cover My Drilling Rig?

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. 


Business Owner’s Policy for Oil and Gas Contractors


CoverWalletNEXT (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?YesYesYes
Name additional insureds for free?YesYesYes
BOP discount?YesYesYes


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 Control Insurance

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. 


Workers' Compensation Insurance for Oil and Gas Contractors

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 for Oil and Gas Contractors 

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. 


Oilfield Trucking Insurance

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. 


I Only Work as a Consultant for Oil Well Design and Planning. Am I Still Eligible for Oil and Gas Contractor Insurance?

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. 

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Oil and Gas Insurance Cost


Cost per MonthCost per YearDeductible
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 insuranceDepends on the value of cargoDepends 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 MonthCost per YearBest for
NEXT$67$804Best overall; Fastest general liability insurance for oil and gas contractors
CoverWallet$70$840Comparing insurance quotes for oil and gas contractors online
Tivly$72$864Comparing insurance quotes for oil and gas contractors over the phone
Hiscox$75$900Insurance for oil and gas contractors with worldwide coverage
Chubb$80$960Businesses looking for specialized insurance packages
Travelers$84$1,008Risk management resources
Liberty Mutual$87$1,044Businesses wanting to work with local risk control and claims experts


Getting Cheap Oil and Gas Contractor Insurance

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.

Compare Cheap Oil and Gas Contractor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Top Oil and Gas Insurance Companies

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. 


NEXT Oil and Gas Insurance 

Pros

  • 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 

Cons

  • 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


CoverWallet Oil and Gas Insurance

Pros

  • 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

Cons

  • 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


Tivly Oil and Gas Insurance

Pros

  • 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

Cons

  • 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


Hiscox Oil and Gas Insurance

Pros

  • 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 

Cons

  • 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


Chubb Oil and Gas Insurance

Pros

  • Provides a wide range of coverage options

  • Excellent customer service

  • 24/7 claims reporting

  • A++ (Superior) AM Best financial stability rating

Cons

  • 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


Travelers Oil and Gas Insurance

Pros

  • 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.

Cons

  • 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


Liberty Mutual Oil and Gas Insurance

Pros

  • 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

Cons 

  • 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


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