Workers’ compensation is one of the largest expenses for oilfield service companies, and it can
make or break your profit margins.

The Pitfall: Many operators treat workers’ comp as a fixed cost—something they can’t control.
But in reality, claims frequency and severity directly impact your Experience Modification Rate (EMR). One bad claim can inflate your EMR, making you uncompetitive on bids and costing you tens of thousands in excess premiums for years.

The Fix: The most effective way to control workers’ comp cost is through claims prevention
and claims management. That means:

• Investing in proactive safety training tailored to rig work, transportation, and heavy equipment.
• Implementing a post-incident return-to-work program to shorten claim duration.
• Partnering with medical providers who understand oilfield injuries and focus on safe, fast recovery.

Cost Reduction Angle: Many companies don’t realize insurers give substantial credit for
documented safety culture. If you can demonstrate regular training, toolbox talks, and equipment
maintenance logs, you can often negotiate lower base rates. Additionally, grouping policies
across states or using captives/retrospective rating plans may lower premiums for companies
with good loss histories.

Risk Reduction Angle: Workers’ comp isn’t just about costs—it’s about protecting your
workforce. The oilfield has some of the highest injury rates of any industry. A structured risk
management program doesn’t just save dollars, it helps you recruit and retain employees who
know their employer has their back.

Takeaway: Treating workers’ comp as “out of your control” is the biggest pitfall. The
companies who control their EMR ultimately control their insurance costs—and their ability to
win contracts.

Want to know how your EMR stacks up against competitors? We can run the numbers and
map out your savings opportunities.