Short answer
A small roustabout company working under an operator MSA usually needs five policies: general liability, commercial auto, workers compensation, an umbrella or excess policy, and inland marine for tools and equipment. Pollution liability is often required too. The MSA sets the limits and endorsements, so the contract, not the size of the company, decides what "enough" means.
- Having the policies is half the job. The other half is the endorsements: additional insured, waiver of subrogation, and primary and non-contributory wording that match what the MSA says.
Start with the MSA, not a coverage checklist
Operators hire roustabout crews under a master service agreement, and the insurance exhibit in that MSA is the real spec sheet. It lists the policies, the minimum limits, and the endorsements you have to carry before anyone lets you on location. Two crews with the same trucks and the same headcount can need different programs because they signed different MSAs.
So the first step is boring but important: pull every MSA you have signed or are about to sign, find the insurance section and the indemnity section, and read them together. The indemnity language tells you what risk you agreed to take on. The insurance section tells you how you are expected to pay for it. Our MSA insurance requirements guide walks through how those exhibits are usually built.
The core policies and what each one does
Here is the usual stack for a small roustabout outfit. Not every MSA asks for every line, but most ask for most of them.
| Policy | What it responds to | Why the operator cares |
|---|---|---|
| General liability | Injury to third parties and damage to their property from your operations | Operator wants to be an additional insured on it for claims tied to your work |
| Commercial auto | Liability from your trucks, including hired and non-owned vehicles if endorsed | Crews drive lease roads and public highways daily |
| Workers compensation and employers liability | Injuries to your own employees | Most MSA indemnity schemes assume each side covers its own people |
| Umbrella or excess liability | Sits above GL, auto, and employers liability | MSA limits often run higher than a single primary policy provides |
| Inland marine (contractors equipment) | Your tools, welders, and equipment, on location or in transit | Usually your risk, not the operator’s, but a loss can stop work |
| Pollution liability | Cleanup and third-party claims from a release | GL policies typically exclude most pollution |
Workers comp is optional in Texas. In the oilfield it rarely is.
Texas is the one state where private employers can choose whether to carry workers compensation. Section 406.002 of the Texas Labor Code says an employer "may elect to obtain" coverage. That choice has a cost. Under Section 406.033, an employer without coverage who is sued by an injured employee loses the defenses that the employee was contributorily negligent, assumed the risk, or was hurt by a co-worker's negligence.
In practice, the operator decides this for you. Knock-for-knock indemnity works because each company takes care of its own employees, and MSAs commonly require workers comp with employers liability and a waiver of subrogation in the operator's favor. If you are thinking about going without it, read whether oilfield contractors need workers comp in Texas first, then read your MSA.
Endorsements are where small crews get rejected
A certificate that shows the right policies with the right limits can still fail review. The usual reasons are endorsement problems:
- Additional insured. The operator wants to be an insured on your GL, usually for both ongoing and completed operations. See what a blanket additional insured endorsement is.
- Primary and non-contributory. Your policy has to answer first without asking the operator's insurer to share. See why operators want primary and non-contributory.
- Waiver of subrogation. Your insurer gives up the right to recover from the operator after paying a claim. See what a waiver of subrogation is.
If the policy doesn't actually carry these endorsements, checking the box on the certificate doesn't create the coverage. Prequalification platforms check for this, which is why we cover ISNetworld insurance requirements separately.
Indemnity changes how much coverage you really need
Most roustabout work falls within "well or mine service" under the Texas Oilfield Anti-Indemnity Act (Chapter 127 of the Civil Practice and Remedies Code). That statute voids many indemnity promises for the other side's negligence unless the indemnity is backed by insurance the parties agreed to in writing. That's why the indemnity clause and the insurance exhibit have to be read together, and why your liability limits may be doing more work than you think. Our Texas oilfield anti-indemnity act page explains the mechanics, and knock-for-knock indemnity covers the usual structure.
A quick self-check
Can you point to the page of each MSA that lists your required limits, and to the endorsement form on each policy that delivers additional insured, waiver, and primary wording? If either answer is no, that is the gap to close before the next certificate request.
Common questions
Do I need pollution coverage if I only do roustabout labor?
Often yes. Roustabout crews work around flowlines, tanks, and produced fluids, and general liability policies usually exclude most pollution. Many MSAs list pollution liability as a separate requirement. Check your MSA and your GL pollution exclusion together.
Can I add the operator to my policy only when they ask?
You can, with a scheduled endorsement, but every new MSA means another policy change. A blanket additional insured endorsement that applies when a written contract requires it is usually cleaner for a crew with several operators.
Is a certificate of insurance proof that I meet the MSA?
No. A certificate is a summary that does not change the policy. The endorsements on the actual policy decide whether the operator is covered.
Does an umbrella automatically cover the operator too?
Not automatically. Many umbrellas extend to anyone who is an insured on the underlying policy, but the wording varies. Check that the umbrella follows the additional insured status the MSA requires.
Sources
- Texas Labor Code, Chapter 406 (Workers’ Compensation Insurance Coverage). Section 406.002 (coverage generally elective) and Section 406.033 (common-law defenses lost without coverage).
- Texas Civil Practice and Remedies Code, Chapter 127. Definition of well or mine service, voidness of indemnity for the indemnitee’s negligence, and the insurance exception in Section 127.005.
- ISO CG 20 10 12 19, Additional Insured: Owners, Lessees or Contractors, Scheduled Person or Organization (copy published by New York OGS). Ongoing operations additional insured wording and limits tied to contract requirements.
- ISO CG 20 37 12 19, Additional Insured: Owners, Lessees or Contractors, Completed Operations (copy published by IIAT). Completed operations additional insured wording.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
By trade
What insurance does my roustabout company need to work under an operator MSA?
Contract requirements
The operator sent me an MSA. What insurance does it actually require?
Questions
What is a blanket additional insured endorsement for oilfield work?
Questions
Do oilfield contractors need workers comp in Texas?
Coverage
How much umbrella do operators want, and why does my certificate keep failing on it?