Contracts in the oilfield are written to transfer risk—and if your insurance doesn’t align with
your master service agreements (MSAs), you could unknowingly take on millions in uninsured
liability.

The Pitfall: Many oilfield service companies sign MSAs without fully reviewing the indemnity
and insurance requirements. For example, you may be required to name an operator as additional
insured on your policies. If you fail to secure the right endorsements, your contract could put you
on the hook for another party’s liability—without coverage.

The Fix: Always have your insurance broker review MSAs before signing. Align your policy
endorsements with contractual obligations. This often means adding blanket additional insured,
waiver of subrogation, and primary/non-contributory endorsements.

Cost Consideration: Some owners fear these endorsements will inflate premiums. In reality,
most are low-cost and readily available if requested upfront. The real expense comes when a
claim is denied because your coverage didn’t match your MSA obligations.

Takeaway: In the oilfield, your contract can be more dangerous than the work itself. The pitfall
is blindly signing, but the fix is straightforward—review and align before you sign.

Do you know if your MSAs align with your insurance? We’ll review them for you.