Looking for Oil and Gas Insurance?

Most oil and gas operations need property coverage for rigs/facilities, general liability for third-party claims, workers’ comp for employees, and pollution liability for spills and contamination. Drilling operations often need control of well coverage for blowouts and well control costs, plus operators extra expense (OEE) for redrill/recompletion-related losses. Commercial auto is important for fleets and mobile equipment exposure, and umbrella/excess is common because catastrophic losses can exceed primary limits. Business interruption may be needed where downtime impacts revenue, especially for production operations.

Yes, requirements come from regulations and contracts even when not labeled “insurance required” in simple terms. State agencies often require financial responsibility for plugging and remediation, frequently satisfied through insurance and/or bonding. Offshore operations can face extensive federal requirements, including high-limit pollution liability expectations, and pipeline operators must satisfy federal safety/compliance standards that often flow into insurance requirements. Lenders require property and liability coverage tied to financed assets, and landowners may require insurance naming them in lease agreements.

Oil and gas pricing ranges widely because severity potential is high and operations differ dramatically. Small operators may pay $50,000–$150,000 annually, while mid-sized operators can pay $200,000–$1,000,000+ depending on wells, facilities, and pollution exposure. Large operators can pay millions annually due to scale, high limits, and complex coverage structures. Pricing is driven by drilling vs. production (drilling is typically higher), location, number and depth of wells, offshore vs. onshore, environmental history, safety programs, and claims record.

Pollution liability can cover cleanup costs, third-party damages, legal defense, and certain regulatory-related expenses tied to covered spill events. Coverage often has key limitations: gradual pollution may require specific endorsements, and intentional violations or operating outside permitted conditions can jeopardize coverage. Offshore operations may need specialized coverage aligned with Oil Pollution Act requirements and higher limits than onshore programs. Even when coverage applies, limits can be exceeded in major events, so excess pollution layers are often critical. The details of what triggers coverage (sudden/accidental vs. gradual) matter a lot in oil and gas.

Control of well coverage is designed for uncontrolled well events, including costs to regain control, firefighting, and specialized well control services. It can also address certain pollution and cleanup costs arising from the blowout, depending on program structure and endorsements. Operators extra expense (OEE) typically addresses additional costs to redrill or restore a damaged well that standard property policies exclude. These coverages are essential because blowout costs can escalate quickly into tens of millions.

Yes, JOAs often require non-operating working interest owners to be added as additional insureds on liability policies and sometimes addressed as loss payees on property policies. This helps align the insurance program with ownership structure and contractual indemnity arrangements. Certificates frequently must show specific language such as primary/non-contributory coverage and waivers of subrogation between parties. Proper endorsements matter more than the certificate itself, especially when multiple entities and contractors are involved.