Oilfield contractor insurance facts
The rules that shape what an operator's MSA asks of your insurance, one fact at a time. Each one stands on its own, links to its primary source, and links to the page here that explains it. Free to quote with a link back. Updated October 27, 2026. Also available as JSON.
Texas indemnity law
Under Texas Civil Practice and Remedies Code Section 127.005(b), a mutual indemnity obligation in an oilfield agreement is enforceable only to the extent of the insurance coverage the parties agreed in writing to provide.
Source: Tex. Civ. Prac. & Rem. Code ch. 127. Read the explainer
Under Texas Civil Practice and Remedies Code Section 127.005(c), a unilateral (one-way) oilfield indemnity backed by insurance is enforceable only up to $500,000 of required insurance coverage.
Source: Tex. Civ. Prac. & Rem. Code ch. 127. Read the explainer
In Ken Petroleum Corp. v. Questor Drilling Corp. (Tex. 2000), the Texas Supreme Court held that when parties to a mutual oilfield indemnity agree to unequal insurance amounts, the indemnity is enforceable only up to the lower amount.
Source: Ken Petroleum Corp. v. Questor Drilling Corp., 24 S.W.3d 344 (Tex. 2000). Read the explainer
Neighboring states
New Mexico has its own oilfield anti-indemnity statute, NMSA 56-7-2, which is not a copy of Texas Chapter 127 and also reaches additional insured and waiver of subrogation provisions used to get around its indemnity ban.
Source: NMSA 56-7-2. Read the explainer
New Mexico requires workers' compensation for employers with three or more workers, and for any business licensed under its Construction Industries Licensing Act regardless of size.
Source: New Mexico Workers’ Compensation Administration FAQ. Read the explainer
Louisiana's Oilfield Anti-Indemnity Act (La. R.S. 9:2780) was amended by Act 328 of 2026, which allows additional insured coverage only through a set process where the party seeking coverage requests a quote and pays the premium directly.
Workers compensation
Workers' compensation coverage is generally elective for private employers in Texas: Texas Labor Code Section 406.002 says an employer may elect to obtain coverage.
Under Texas Labor Code Section 406.033, a Texas employer without workers’ compensation coverage that is sued by an injured employee loses the defenses of contributory negligence, assumption of risk, and fellow-employee negligence.
In Texas, the workers’ compensation waiver of subrogation is a TDI-approved endorsement, WC 42 03 04, which can be written for a named party (specific) or for anyone your written contracts require (blanket).
Source: Texas Department of Insurance, workers’ compensation endorsements. Read the explainer
A total recordable incident rate (TRIR) is calculated as the number of OSHA-recordable cases times 200,000, divided by total hours worked by all employees.
Source: Bureau of Labor Statistics, how to compute incidence rates. Read the explainer
Trucking and hauling
Under 49 CFR 387.9, federal minimum auto liability for regulated motor carriers is $750,000 for non-hazardous property, $1,000,000 for oil and most hazardous materials, and $5,000,000 for certain bulk hazardous materials.
Source: 49 CFR 387.9 (eCFR). Read the explainer
In Texas, transporting oil and gas waste for hire off the lease where it was generated requires a Railroad Commission waste hauler permit under 16 Texas Administrative Code 4.193.
Since July 1, 2025, Texas waste hauler permit forms (WH-1, WH-2 and WH-3) must be filed online through the Railroad Commission’s LoneSTAR system, with an active P-5 Organization Report on file first.
Source: Railroad Commission of Texas, waste haulers. Read the explainer
Railroad Commission
Texas Railroad Commission Rule 36 (16 TAC 3.36) requires operators in hydrogen sulfide areas to use trained service company personnel and to obtain written certification of that training from the service company; systems under 100 ppm H2S are exempt.
The Texas Railroad Commission covers the Permian Basin mainly through Districts 08 (Midland office), 7C (San Angelo office) and 8A (Lubbock office).
Source: Railroad Commission of Texas, oil and gas counties and districts. Read the explainer
Texas Railroad Commission Districts 5 and 6, which include the Texas side of the Haynesville, are served from the Commission’s Henderson office.
Source: Railroad Commission of Texas, locations. Read the explainer
After a magnitude 5.4 earthquake in Reeves County on November 16, 2022, the Texas Railroad Commission expanded the Northern Culberson-Reeves Seismic Response Area to the New Mexico border, to 2,601 square miles covering 78 active disposal wells.
Source: Railroad Commission of Texas, NCR SRA statement (Dec. 13, 2022). Read the explainer
Certificates and records
Under Texas Insurance Code Section 1811.152, a certificate of insurance is not a policy of insurance and does not amend, extend, or alter the coverage provided by the policy.
Source: Texas Insurance Code Sec. 1811.152. Read the explainer
Under Texas Insurance Code Section 542.102, a property and casualty insurer must give the policyholder, on written request, a list of claims charged against the policy and payments made on each; Section 2051.151 gives a similar right for workers’ compensation.
Endorsements
The standard ISO additional insured endorsements for contractors are CG 20 10 (ongoing operations) and CG 20 37 (completed operations); an operator that wants coverage after your work is finished needs the completed operations form or an equivalent.
Source: IRMI, additional insureds and completed operations. Read the explainer
The MCS-90 endorsement is a federal financial responsibility guarantee to the public, not coverage for the trucking company: the insurer can seek reimbursement from the insured for payments it would not otherwise owe.
Oilfield Service Insurance explains insurance, not law. Coverage is placed through a licensed Texas insurance agency. No figure on this page is a market statistic or an estimate: each is a rule, a statutory amount, or a published agency figure.