Oil and gas insurance built around the work performed in the field.
General liability, pollution liability, equipment, commercial auto, workers compensation, control-of-well and specialty coverage for oil and gas operators, lease owners, drilling contractors, service companies and energy businesses throughout Arkansas.
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What oil and gas insurance actually protects.
Oil and gas insurance is a coordinated commercial insurance program for businesses involved in exploration, drilling, production, well servicing, lease operations, equipment rental, transportation and other energy-related work. It can protect against bodily injury, property damage, environmental contamination, vehicle accidents, equipment losses and employee injuries.
A standard contractor policy may not be broad enough for oilfield work. Many ordinary policies contain exclusions involving pollution, subsidence, underground property, explosion, well operations, professional services or work performed at energy locations. The policy should be written around the exact operations performed.
What insurance does an oil and gas business need?
An oil and gas business commonly needs general liability, pollution liability, commercial auto, workers compensation, property and equipment coverage. Depending on the operation, it may also need control-of-well, underground resources, rig or contractor's equipment, inland marine, professional liability, umbrella and environmental cleanup coverage. The correct program depends on whether the business owns wells, drills, services equipment, transports materials or performs contract work at lease sites.
Oil and gas operation and coverage matcher.
Choose the type of energy work your business performs to see common coverage needs, underwriting concerns and policy features that may affect carrier eligibility. This tool provides general educational guidance and is not a quote or coverage determination.
Coverage for businesses working throughout the oil and gas lifecycle.
Oil and gas insurance is not limited to major drilling companies. Lease owners, small operators, specialty contractors and equipment businesses may all need energy-specific policy forms.
Lease Operators
Businesses responsible for producing wells, tank batteries, pumping units, flow lines and daily lease operations.
Working-Interest Owners
Owners with financial and operational interests in wells who may share responsibility for liability and operating expenses.
Drilling Contractors
Contractors operating drilling rigs, crews, machinery and equipment at well sites.
Well-Service Contractors
Companies performing workover, maintenance, plugging, swabbing, wireline or production-support services.
Pipeline Contractors
Contractors installing, repairing, maintaining or inspecting gathering lines and related systems.
Equipment Rental Companies
Businesses leasing pumps, generators, tanks, compressors, trailers or specialized oilfield machinery.
Vacuum and Fluid Haulers
Companies transporting water, brine, drilling fluids, waste products or other oilfield materials.
Oilfield Consultants
Engineers, geologists, inspectors, project managers and consultants providing technical or operational services.
Plugging and Abandonment Contractors
Contractors closing wells, removing equipment and restoring sites after production ends.
What a complete oil and gas insurance program may include.
Energy operations combine contractor liability, environmental exposure, heavy vehicles, mobile equipment, specialized machinery and potentially catastrophic losses. These risks usually require several coordinated policies.
Core and commonly required coverage
- General Liability — bodily injury, property damage and completed-operations claims arising from field work
- Pollution Liability — qualifying spills, releases, cleanup costs and third-party environmental claims
- Commercial Auto — service trucks, pickups, tankers, trailers and vehicles traveling between sites
- Workers Compensation — covered employee injuries involving machinery, vehicles, heights, pressure and field conditions
- Contractor's Equipment — rigs, pumps, compressors, generators, tools and mobile machinery
- Commercial Umbrella — additional liability limits for severe accidents or contractual requirements
Specialized coverage and exclusions to review
- Control-of-well, redrilling and seepage or pollution expense
- Underground resources, subsurface property and reservoir damage
- Sudden and accidental pollution versus gradual pollution
- Blowout, explosion, collapse and well-control exclusions
- Property in the business's care, custody or control
- Damage to the particular part being worked on
- Contractual liability and indemnification requirements
- Professional or engineering services excluded from general liability
- Transportation pollution arising while materials are in transit
- Saltwater disposal, waste hauling and cleanup operations not disclosed
The most important underwriting issue is accurately describing every operation. A business insured only as a general contractor may not have the correct coverage for well servicing, lease operations, hauling fluids, pipeline work or plugging abandoned wells.
One oilfield incident can involve several policies.
The cause of the loss, property owner and business operation determine which policy may respond. General liability, pollution, auto, workers compensation and equipment coverage are not interchangeable.
Contractor damages lease property
Equipment operated by a contractor damages a tank, flow line, fence or other property belonging to the operator.
Produced water is released
A hose, tank or line failure releases contaminated fluid and creates cleanup expenses and third-party property damage.
Service truck rollover
An employee loses control of a loaded service truck while traveling between lease sites.
Employee injured by equipment
A worker is injured while operating a pump, handling pipe or working near moving machinery.
Mobile equipment is stolen
A generator, pump, trailer or specialized tool is stolen from a remote job site.
Loss of well control
An unexpected well event requires control operations, redrilling or specialized response services.
Technical recommendation causes loss
An operator alleges that engineering, geological or consulting advice contributed to a financial or operational loss.
Catastrophic third-party injury
A serious explosion, vehicle accident or site incident exceeds the limits of an underlying liability policy.
General liability may not cover an oilfield pollution loss.
Most standard general liability policies contain pollution exclusions. Oil and gas businesses should review whether coverage applies to sudden releases, gradual pollution, transportation, cleanup, disposal sites and contamination discovered after work is complete.
| Environmental loss | General liability | Pollution liability | Important issue |
|---|---|---|---|
| Produced water spills from a tank | May be excluded or limited | May cover qualifying cleanup and third-party claims | Sudden versus gradual release |
| Fuel leaks from mobile equipment | Coverage may be restricted | May apply depending on the form | Mobile-equipment pollution endorsement |
| Pollutant is released during transportation | Auto and pollution exclusions may apply | Transportation pollution may be required | Who owned and transported the material |
| Contamination is discovered after work ends | Completed-operations coverage may not include pollution | Contractors pollution may respond | Discovery and reporting periods |
| Waste is taken to the wrong disposal location | May be excluded | Non-owned disposal-site coverage may be needed | Waste manifests and disposal contracts |
| Cleanup is ordered without third-party damage | First-party cleanup may not be covered | Policy may include on-site cleanup costs | First-party versus third-party coverage |
Coverage depends on the environmental policy, definitions, exclusions, reporting provisions and facts of the incident.
Oilfield contracts can transfer significant liability.
Master service agreements and lease contracts may require specific limits, additional insured status, waivers of subrogation, primary wording and broad indemnification. Insurance requirements should be reviewed before work begins.
Additional Insured Status
Operators may require protection under a contractor's liability policy for qualifying claims arising from the contractor's work.
Primary and Noncontributory
Contracts may require the contractor's insurance to respond before the operator's policy.
Waiver of Subrogation
The insurer may be asked to waive certain recovery rights against the operator or other contracting parties.
Completed Operations
Additional insured protection may need to continue after the contractor finishes the work.
Higher Liability Limits
Many energy contracts require commercial umbrella coverage above general liability and auto limits.
Pollution Requirements
Contracts may specifically require contractors pollution liability and transportation-pollution coverage.
Oilfield transportation risk extends beyond ordinary pickups.
Oil and gas businesses may operate service trucks, tankers, trailers, vacuum trucks, cranes, winch trucks and mobile machinery. Vehicle weight, radius, cargo, driver experience and lease-site use all affect underwriting.
Commercial auto issues to review
- Owned service trucks, pickups and heavy units
- Vacuum trucks and fluid-hauling operations
- Trailers carrying tools, tanks or machinery
- Hired and non-owned vehicle use
- Driver qualifications and motor vehicle records
- Operating radius and interstate travel
- Pollution arising during transportation
- On-hook, cargo or property being transported
Equipment coverage misunderstandings
- Assuming commercial auto covers every piece of mobile equipment
- Failing to schedule high-value rigs, pumps or compressors
- Using actual cash value when replacement cost is needed
- Ignoring rented or leased equipment
- Not covering tools and equipment left at remote sites
- Failing to include equipment in transit
- Not reviewing mechanical breakdown or electrical damage
- Underestimating total equipment values at one location
Oilfield work can produce severe workers compensation claims.
Employees may work around pressurized equipment, heavy machinery, moving vehicles, heights, chemicals, extreme temperatures and remote job sites. Accurate job descriptions and payroll classifications are critical.
Lease Operations
Pumpers and field employees may travel between remote sites and work alone around operating equipment.
Drilling and Well Service
Crews may face pipe-handling, pressure, falls, crush injuries and machinery hazards.
Driving Exposure
Long distances, unpaved roads, heavy trucks and fatigue can increase employee auto claims.
Contract Labor
Uninsured subcontractors can create unexpected workers compensation or audit exposure.
Safety Programs
Documented training, personal protective equipment, driver controls and incident reporting can affect underwriting.
Return-to-Work Planning
Modified-duty and return-to-work procedures may help control claim duration and lost-time costs.
How to request oil and gas insurance in three steps.
Quotes move faster when the operations, contracts, vehicles, equipment and environmental exposures are documented accurately.
Describe every operation
Tell us whether you own or operate wells, drill, service equipment, transport fluids, install pipelines, rent equipment or provide consulting.
Provide exposure details
Include payroll, revenue, vehicle schedules, equipment values, well counts, subcontractor costs, loss history and service territory.
Review contracts and coverage
We compare liability, pollution, auto, workers compensation, equipment, umbrella and specialty policy options.
Energy insurance should be based on the exact work performed.
Oil and gas operations can be difficult to place when the application does not clearly explain the work, contracts and environmental exposure. Cribb Insurance helps organize the risk before approaching standard or specialty commercial markets.
Operation-by-operation review
We identify lease operations, drilling, hauling, pipeline, equipment and consulting exposures before requesting terms.
Pollution coverage review
We examine cleanup, transportation, gradual pollution and non-owned disposal-site exposure.
Contract requirement support
We help review limits, certificates, additional insured requirements and requested endorsements.
Independent carrier access
We compare available commercial and specialty markets rather than relying on one insurance company.
Oil and gas insurance FAQs.
Call (479) 286-1066 or start the commercial quote form for help reviewing your operation.
What insurance does an oil and gas company need?
An oil and gas company may need general liability, pollution liability, commercial auto, workers compensation, commercial property, contractor's equipment and umbrella coverage. Operators and drilling businesses may also need control-of-well, underground resources, professional liability or other specialty protection.
Does general liability cover oil spills?
Standard general liability policies commonly contain pollution exclusions. A separate pollution policy or endorsement may be needed for spills, releases, cleanup costs, transportation pollution and environmental claims.
What is control-of-well insurance?
Control-of-well insurance can help pay qualifying expenses associated with regaining control of a well after a covered event. Depending on the policy, it may also include redrilling, seepage and pollution expense or other related coverage.
Does oil and gas insurance cover underground damage?
Damage to underground resources, reservoirs, wells, pipelines or property beneath the surface may be excluded from standard liability policies. Specialized endorsements or energy-specific coverage may be required.
Do lease operators need pollution liability?
Lease operators should consider pollution liability because tanks, flow lines, produced water, fuel, chemicals and field equipment can create cleanup and third-party contamination exposure.
Does commercial auto cover vacuum trucks and fluid hauling?
Commercial auto may cover qualifying owned vehicles, but fluid hauling can create additional pollution, cargo, tank and regulatory exposures. All vehicle types, materials hauled and operating territories should be disclosed.
Are subcontractors covered under an oilfield liability policy?
Coverage involving subcontractors depends on the policy and contract. Some carriers require written agreements, certificates, additional insured status and minimum liability limits from every subcontractor.
Does oil and gas insurance cover faulty work?
Liability insurance may cover certain resulting bodily injury or property damage, but the cost to redo defective work or replace faulty materials is often excluded. Damage to the particular part being worked on may also be restricted.
How much does oil and gas insurance cost?
Pricing depends on operations, payroll, revenue, vehicle count, equipment values, subcontracting, well ownership, environmental exposure, loss history, contracts and requested limits. A lease operator has a different insurance profile from a drilling contractor or vacuum-truck company.
Can a new oilfield contractor get insurance?
New ventures may be eligible, but carriers often review owner experience, employee qualifications, contracts, safety procedures, projected payroll, equipment, vehicles and the exact services the business plans to perform.
Oil and gas insurance for Arkansas energy businesses.
Cribb Insurance Group works with lease operators, oilfield contractors, equipment businesses, pipeline contractors and energy service companies in Northwest Arkansas and throughout the state, including Bentonville, Rogers, Springdale, Fayetteville, Fort Smith and surrounding Arkansas communities.
Build coverage around the field work, equipment and contracts.
Tell us whether you own wells, operate leases, drill, service equipment, transport fluids or perform contract work. Cribb Insurance will help compare liability, pollution, auto, workers compensation, equipment and specialty coverage for your operation.
Cribb Insurance Group Inc · 1601 SW Regional Airport Blvd, Bentonville, AR 72713 · (479) 286-1066. Coverage descriptions and underwriting guidance on this page are general information only and are not an offer of insurance, legal advice, environmental advice, a coverage determination or a guarantee of eligibility or price. Oil and gas, lease operator, drilling, pipeline, hauling and energy contractor policies vary by carrier and may contain specific classifications, warranties, deductibles, retentions, sublimits, conditions and exclusions. Coverage for pollution, cleanup costs, transportation pollution, control of well, underground resources, subsidence, professional services, subcontractors, faulty work, property in the insured's care, custody or control, equipment in transit and non-owned disposal sites is not automatic and must be confirmed in the policy issued. Speak with a licensed insurance agent and qualified legal, environmental, safety and contract professionals regarding your specific operation.