In the oilfield service world, most business owners assume their general liability (GL) policy
covers “everything that can happen on a job site.” Unfortunately, this assumption is one of the
most dangerous pitfalls in the industry.

The Pitfall: GL policies are full of exclusions that specifically carve out oilfield risks. Downhole
tool damage, underground resources, blowouts, and pollution are some of the most common
exclusions. Many contractors don’t discover these gaps until after a claim occurs—when it’s too
late.

The Fix: The only way to avoid this mistake is to align your insurance coverage with the exact
exposures in your contracts and operations. If your crews are working on rigs, running wireline,
providing frac support, or transporting fluids, your insurance program needs to specifically
address those exposures. Coverage like “oilfield broad form,” control of well, and pollution
liability aren’t luxuries—they’re necessities.

Reducing Costs While Closing Gaps: Many assume adding these coverages will skyrocket
premiums. The reality is that insurers price risk based on how transparent and proactive you are.
A well-documented safety program, signed MSAs that shift risk appropriately, and subcontractor
compliance can all help you negotiate better rates—even when adding critical endorsements.
Takeaway: Insurance isn’t about buying the cheapest policy—it’s about making sure the money
you spend actually protects you. The #1 mistake isn’t “buying bad coverage.” It’s assuming
you’re covered when you’re not.

When was the last time someone walked you through every exclusion in your policy? Contact
us for a coverage review before the next job starts.