What is General Oilfield Services?
General oilfield services refer to the wide range of support operations that keep oil and gas exploration, drilling, and production running smoothly. These operations include equipment transport, site preparation, well servicing, maintenance, and waste management. Because of the complex and hazardous nature of these tasks, companies providing these services face a unique set of liability and property exposures.
Who needs it
This type of insurance is essential for contractors, service providers, and operators working in the oil and gas industry. Businesses that perform workover operations, equipment hauling, or provide on-site support are especially vulnerable to operational hazards and transportation risks. Even subcontractors and specialty service providers should consider coverage to protect against potential third-party claims and property damage.
What it typically covers
Insurance for general oilfield services often includes several key components:
- Commercial general liability: Protection against bodily injury or property damage claims from third parties.
- Property coverage: Covers tools, machinery, and equipment used on-site.
- Commercial auto exposure: For vehicles used in transporting equipment and personnel.
- Contractor’s equipment coverage: Protects mobile machinery such as rigs, pumps, or loaders.
- Pollution liability: Coverage for environmental incidents during operations.
For example, if a piece of machinery leaks fluids and causes environmental damage, pollution liability coverage may help cover cleanup and legal costs.
Common exclusions or limitations
Policies typically exclude intentional damage, wear and tear, and faulty workmanship. Some may also limit coverage for underground resource damage or blowouts unless specifically endorsed. It’s important to review policy exclusions carefully and understand what is or isn’t covered for high-risk tasks like fracking or horizontal drilling.
Factors that influence cost
Several underwriting factors can impact premiums for oilfield service insurance, including:
- Type and scope of services provided
- Past claim history
- Number and value of vehicles and equipment
- Worksite location and regional risk factors
- Safety protocols and risk management procedures
Proof of insurance & compliance
Most oil companies and operators require contractors and vendors to provide proof of insurance before working on-site. Certificates of insurance (COIs) are commonly used to demonstrate adequate coverage. Having proper documentation ensures compliance with contractual obligations and helps maintain business continuity.
How to get a quote
To get a customized quote for your oilfield service business, contact a provider familiar with the energy sector. They can help evaluate your exposures and recommend appropriate limits and endorsements. Start your quote request here.
For specialized programs, you may also explore options like Oil and Gas Drilling and Workover Contractors Insurance or Oil and Gas Workers Compensation Insurance Program to ensure full-spectrum protection.
Frequently Asked Questions
What types of businesses qualify for general oilfield services insurance?
Contractors, service providers, equipment haulers, and maintenance crews working in the oil and gas industry typically qualify.
Does this insurance cover environmental damage?
Pollution liability may be included or added as an endorsement to cover accidental environmental incidents.
Are subcontractors covered under my policy?
Not automatically. You may need to list them as additional insureds or require them to carry their own coverage.
Can I get coverage for equipment used off-site?
Yes, contractor’s equipment coverage often protects mobile machinery used across different job sites.
Is proof of insurance required for oilfield contracts?
Yes. Most operators require a certificate of insurance before allowing access to job sites.
Still have questions? Talk to a local insurance expert.