You don’t need to be told that oil and gas is the backbone of Texas. From rigs in the Permian to refineries along the Gulf, this industry powers homes, fuels economies, and creates opportunity. But it also carries risk. Serious risk.
A single incident, such as a well control failure, a spill, or a trucking accident, can bring operations to a standstill and put your entire business on the line. The stakes are high, and the insurance market is getting tighter. Carriers are requiring stronger controls, and premiums are climbing.
At Rollo Insurance, we understand the unique exposures you face across upstream, midstream, and service operations. Our job is to help protect your people, your assets, and your future with a coverage strategy designed for the realities of Texas energy work.
Understanding the Risks That Define Your Industry
Oil and gas isn’t like other industries. The risks are specialized, and the consequences of a loss are often catastrophic. A standard commercial insurance package won’t cut it.
Well Control and Blowouts
The uncontrolled release of hydrocarbons is one of the most severe events in the field. Between capping the well, redrilling, and environmental cleanup, costs can skyrocket in a matter of hours.
Environmental Spills and Contamination
Crude oil, produced water, drilling muds, or chemicals—even small amounts—can trigger major regulatory issues. Cleanup, fines, and lawsuits can stretch into the millions.
Trucking and Transportation Liability
Whether you’re hauling pipe, water, or equipment, you’re operating in one of the most litigated sectors in Texas. Commercial auto verdicts, especially in West Texas, are reaching record numbers. One accident can turn into a financial disaster.
Equipment Failure and Downtime
From pump jacks to high-pressure valves, every piece of equipment is essential. If something breaks down, it’s not just a repair bill. It’s lost production, missed deadlines, and unhappy partners.
Human Error
This is often the wildcard. Training gaps, fatigue, or skipped procedures can cause a chain reaction that leads to injury, property damage, or pollution events.
The bottom line: your insurance program needs to be just as tough as the conditions you work in.
Must-Have Coverages for Texas Energy Operators
No matter your size or role in the field, there are a few coverages that form the core of a solid oil and gas insurance program.
Control of Well Insurance
This policy is your financial lifeline in the event of a blowout. It helps cover the cost of regaining control of the well, redrilling, pollution cleanup, and equipment damaged by the incident. Without it, you’re exposed to one of the most dangerous and expensive risks in the industry.
Environmental and Pollution Liability
Most general liability policies specifically exclude pollution-related claims. This coverage steps in where others fall short, covering third-party bodily injury, property damage, and cleanup costs tied to a spill or environmental release.
It’s not just for worst-case events. Even a slow leak that contaminates a neighboring property can turn into a serious legal problem.
Commercial General Liability (CGL)
CGL is the backbone of your legal defense. It protects your company if someone claims you caused injury or property damage through your work.
For oil and gas operations, you’ll likely need special endorsements that address underground resources, blowout damage, or loss of use. These are exposures unique to the energy sector.
Commercial Auto and Fleet Insurance
If your team is on the road, your company is liable for what happens out there. From service trucks to water haulers, proper commercial auto coverage includes high liability limits and coverage for physical damage.
In today’s legal climate, having the minimum won’t protect you. Texas energy businesses are increasingly required to carry $1 million or more in combined single limit coverage.
Workers Compensation
Texas may not require all employers to carry workers comp, but for the oil and gas industry, it’s not optional in practice. This coverage pays for medical care and lost wages when employees are injured on the job.
More importantly, it helps protect your business from lawsuits that can arise if employees or subcontractors aren’t properly covered.
Protecting the Equipment That Keeps You in Motion
Once your liability risks are covered, it’s time to make sure your physical assets are protected.
Commercial Property Insurance
This covers your offices, warehouses, maintenance yards, and other fixed structures against damage from fire, storms, theft, and other covered perils.
Inland Marine Insurance (Rig and Equipment Coverage)
Despite the name, this isn’t marine coverage. It’s designed for high-value, mobile equipment. Whether you’re moving rigs, compressors, pumps, or tools from one job site to another, inland marine ensures your gear is protected in transit, on location, and in storage.
A stolen or damaged piece of equipment can mean major delays. This policy helps keep your operation moving.
Advanced Protection for High-Stakes Contracts
As projects and partnerships grow in size, so does the need for advanced protection.
Umbrella and Excess Liability
Some contracts now require $10 million or more in liability coverage. Umbrella insurance helps you meet those requirements by stacking on top of your general liability, auto, and employers’ liability limits.
It also adds long-term protection against severe claims that could wipe out your primary policies.
Professional Liability (Errors and Omissions)
If you provide consulting, engineering, inspection, or other non-physical services, E&O coverage is essential. This policy protects against claims of negligence, misrepresentation, or mistakes in your work that result in financial loss.
This is especially relevant for drilling consultants, geologists, engineers, and safety supervisors.
Business Interruption Insurance
If a covered event such as a fire at your processing site or a key piece of equipment going offline forces you to shut down operations, business interruption coverage can help cover lost income and ongoing expenses until you’re back up and running.
Directors and Officers (D&O) Liability
Executives and board members can be held personally responsible for decisions related to contracts, compliance, and company performance. D&O coverage protects their personal assets and gives your leadership team the confidence to operate decisively.
Surety Bonds for Plugging and Abandonment
The Railroad Commission of Texas often requires P&A bonds to ensure that wells will be properly closed and the land restored after production ends. Having the right bond in place is critical for regulatory compliance and securing future drilling permits.
What Texas Operators Need to Know About Compliance and Cost
Railroad Commission Requirements
The Railroad Commission of Texas (RRC) enforces specific insurance requirements for companies involved in fuel transport, storage, and well operations. Depending on the type of license, you may need to show proof of:
- General Liability: Minimum $300,000 per occurrence
- Commercial Auto: $500,000 combined single limit
- Pollution coverage: If applicable to your scope of work
These numbers are just a baseline. Many contracts and partners require far higher limits.
Average Insurance Costs
Oil and gas insurance is not a fixed package. Costs vary depending on your role, revenue, payroll, and safety record.
General Liability for a small oilfield services company typically starts around $5,000 to $15,000 per year. That’s before you add Well Control or Pollution coverage. Businesses involved in high-risk work such as fracking, welding, or pipeline repair will see higher premiums.
Adding Control of Well or Pollution Liability can push annual costs significantly higher, especially as carriers tighten underwriting standards and limit capacity.
Partnering with Rollo Insurance
The oil and gas industry doesn’t allow room for guesswork. Your clients, investors, and regulators expect risk management to be tight. Your insurance coverage should reflect that.
At Rollo Insurance, we work with Texas energy businesses of all sizes. From independent operators to service contractors and consultants, we build tailored coverage strategies that align with your operations and contractual obligations.
When you’re ready to strengthen your insurance program, we’re here to help. Let’s drill down on the details and make sure your business is protected from every angle.
Ready to get started?
Find Your Local Office
