Short answer
Often, yes, as long as you raise it before you sign the MSA. Insurance requirements are contract terms, and operators set them per vendor. ISNetworld, for example, says hiring client requirements "can be configured by location, level of risk, or specific designations." The best asks are specific: name the clause, say what you can deliver, and explain why.
- Terms that commonly come up: limits above what your work justifies, notice of cancellation your insurer will not endorse, primary wording on every line, and requirements that do not fit your trade.
- The indemnity and insurance sections move together. Change one without the other and you can create a gap. Your attorney reviews the contract and we make the insurance match it.
Why there is room to negotiate
An MSA's insurance exhibit is a business term, not a law. The operator picks the numbers and endorsements it wants, and prequalification platforms check your documents against those choices. ISN says documents are reviewed against "regulatory and Hiring Client requirements," and that the client sets those requirements by location, risk level or designation. The same operator may ask a hot oil unit and a roustabout crew for different things.
The statute also gives both sides a reason to get the numbers right. Under Texas Civil Practice and Remedies Code Section 127.005(b), a mutual indemnity is limited to the coverage each party agreed to obtain for the other. In a 2022 Fifth Circuit case, the court said an MSA's required limits were "the floor, but not the ceiling," and noted that if the operator had wanted more, the parties "could have so fashioned their agreement." The required limits in the exhibit are a negotiated number with real consequences.
Terms that commonly come up
These are the items where a specific, reasoned request has the best chance. None of them is guaranteed.
| Requirement | Why it can be a problem | A reasonable ask |
|---|---|---|
| Limits far above your scope | Umbrella cost can outrun the work | Limits matched to the work you actually do for that operator |
| 30 days’ notice of cancellation to the operator | Your insurer may not endorse it | Notice "in accordance with policy provisions," or what your insurer will endorse |
| Primary and non-contributory on all policies | Not every line has a form that delivers it | Primary wording on the lines your insurers can endorse |
| Pollution, professional or other lines that do not fit your trade | Paying for coverage the work does not need | Remove or scope the requirement to the services you provide |
| Deductible or retention caps | Your program may use a larger deductible | A cap that fits your actual program |
| Insurer rating minimums | A rating minimum can rule out an insurer you already use | Confirm which rating your insurers carry before you sign |
What usually does not move
Some terms hold the indemnity structure together, so asking to remove them undercuts the deal the MSA is built on:
- Workers comp with a waiver of subrogation where the MSA uses knock-for-knock. Each side takes care of its own people. See whether oilfield contractors need workers comp in Texas.
- Additional insured status on your GL for liabilities you assumed. See indemnity vs additional insured.
- Insurance supporting the indemnity. Under Chapter 127, the insurance is what makes much of the indemnity enforceable, so both sides want it in writing.
Asking to adjust the limits behind these terms is a more realistic request than asking to drop them.
How to make the ask
- Get the MSA before the first job. Asking for changes after you are on location is harder.
- Mark up the exhibit, not the whole contract. List each change, the reason, and what you will deliver instead.
- Bring proof. A summary of your current program, endorsement form numbers, and what your insurers will and will not endorse.
- Match the indemnity. If you ask for lower limits, check how that affects the indemnity and the Chapter 127 limits. Your attorney should review those sections.
- Get the agreed version signed. A side email saying "we will accept lower limits" does not change the MSA, and ISN reviews against the requirements the client loads.
If the answer is no
If the operator will not move, the choice is to buy what the MSA asks for or pass on the work. We can price the change so you know what the contract costs before you sign it.
Common questions
Will asking for changes cost me the work?
It can, if the ask is vague or strips out core protections. Specific requests tied to what your insurers will actually endorse are easier for an operator’s risk team to approve.
Can I agree to the MSA and fix the insurance later?
You can, but until the policy changes you are in breach of the MSA and may show as deficient in ISNetworld or Avetta. It is better to know the cost before signing.
Does buying more than the MSA requires help me?
It protects your own balance sheet. Whether it increases what you owe the operator under the indemnity depends on the MSA and your policy wording, as a 2022 Fifth Circuit case showed.
Can I negotiate requirements in ISNetworld directly?
ISN applies the requirements the hiring client sets. Changes generally come from the operator, which then updates what it asks for.
Sources
- ISN: Contractor Management Platform for Hiring Clients. Hiring client requirements configured by location, level of risk, or designation.
- ISN: RAVS Disclaimers. Insurance review covers limits, insured parties, retentions, deductibles, insurer ratings and dates.
- Texas Civil Practice and Remedies Code, Chapter 127. Section 127.005: insurance-supported indemnity; mutual obligations limited to agreed coverage; $500,000 cap for unilateral.
- U.S. Court of Appeals for the Fifth Circuit, No. 20-50892 (Feb. 14, 2022). MSA minimums as a floor, not a ceiling; parties could have drafted for more.
- IRMI glossary: notice of cancellation endorsement. Insurers vary in willingness to expand notice obligations.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
Contract requirements
The operator sent me an MSA. What insurance does it actually require?
Questions
What insurance limits do oil and gas operators require from contractors?
Questions
What is a notice of cancellation endorsement, and why does my MSA ask for one?
Questions
What is an MSA in oil and gas, and why does it control my insurance?
Contract requirements
What does knock-for-knock mean in my MSA, and what insurance does it take?