Oil and Gas Insurance Texas
Your Texas energy business deserves protection from a partner who understands the complexities of the oil and gas industry.
• Deep understanding of Texas oil and gas regulations and risks
• Expert knowledge of state-specific environmental and safety requirements
• Customized coverage for Texas-based energy operations, from the Permian Basin to the Gulf Coast
We go beyond basic oil and gas coverage with premium risk management services tailored for Texas operations. Our enhanced coverage options include quarterly risk assessments, specialized environmental liability protection, and customized business interruption coverage. This proactive approach helps prevent claims while ensuring complete protection for your Texas energy business.
• Exploration and Production Companies: E&P firms operating in Texas shale plays like the Permian Basin and Eagle Ford need comprehensive coverage for drilling operations, well control, and environmental risks.
• Oilfield Service Providers: Companies supplying equipment, transportation, or specialized services to Texas oil and gas operations require liability and equipment coverage.
• Midstream Operators: Pipeline companies and storage facilities in Texas need protection against infrastructure damage, environmental incidents, and business interruption.
• Refineries and Petrochemical Plants: Downstream operations along the Texas Gulf Coast require specialized coverage for property damage, worker safety, and product liability.
Let our local experts analyze your current coverage and identify potential gaps or savings for your business.
Comprehensive protection for Texas energy operations, addressing regional risks and regulatory requirements specific to the Lone Star State.
Our Texas oil and gas insurance provides robust protection for energy operations across the state. Key coverage components include:
• General Liability: Protection against third-party bodily injury and property damage claims
• Property Insurance: Coverage for physical assets, including rigs, equipment, and facilities
• Environmental Liability: Protection against pollution incidents and cleanup costs
• Well Control: Coverage for blowouts and other well-related incidents
• Business Interruption: Financial protection for operational disruptions
Texas energy companies face unique risks requiring specialized coverage:
• Seismic Activity: Protection against earthquake damage in areas like the Permian Basin
• Water Contamination: Coverage for groundwater pollution claims, crucial in drought-prone regions
• Hurricane and Flood Risks: Vital for Gulf Coast operations and coastal refineries
• Cybersecurity Threats: Protection against data breaches and operational technology attacks
• Regulatory Compliance: Coverage for fines and penalties related to Texas Railroad Commission regulations
Texas has specific insurance requirements for oil and gas operations:
• Well Control: The Texas Railroad Commission mandates specific coverage levels for drilling operations
• Environmental Liability: State law requires minimum coverage for potential pollution incidents
• Workers' Compensation: While not mandatory, many operators choose coverage to protect employees
• Motor Carrier Insurance: Required for companies transporting oil and gas products within Texas
Our Texas insurance experts ensure your coverage meets or exceeds all state requirements.
Enhance your Texas energy operation's protection with these critical coverage options:
• Control of Well Endorsement: Extended coverage for complex drilling operations
• Gradual Pollution Liability: Protection against long-term environmental impacts
• Excess Liability: Additional coverage layers for high-risk operations
• Operator's Extra Expense: Coverage for costs beyond standard well control policies
• Contingent Business Interruption: Protection against supply chain disruptions
Oil and gas insurance costs in Texas vary widely, typically ranging from $5,000 to over $1 million annually. Your specific premium depends on several key factors:
Companies with strong compliance records and robust safety programs may qualify for lower premiums, reflecting reduced risk to insurers.
Frequently Asked Questions
Quick answers to questions you may have. Can’t find what you’re looking for? Contact us here.
Oil and gas insurance in Texas typically includes general liability, property damage, environmental liability, and operators extra expense coverage. It also often encompasses control of well insurance, which is crucial in the event of a blowout. Given Texas' position as a leading oil producer, policies here often have higher limits and more specialized coverages than in other states, particularly for offshore operations in the Gulf of Mexico.
Texas' regulatory environment, overseen by the Railroad Commission of Texas, mandates specific insurance requirements for oil and gas operators. For example, operators must maintain a minimum of $1 million in general liability coverage. The Texas Commission on Environmental Quality also requires financial assurance for certain activities. These regulations are more stringent than many other states due to the industry's prominence in Texas.
Several factors influence oil and gas insurance costs in Texas, including the company's size, operational locations (onshore vs. offshore), drilling depth, and claims history. The volatile nature of oil prices also impacts premiums. Texas-specific factors include heightened hurricane risk for Gulf operations and earthquake risks in areas with extensive fracking. As of 2023, Texas premiums are generally 10-15% higher than the national average due to these factors.
Oil and gas insurance in Texas typically includes robust environmental liability coverage due to the state's stringent regulations. This coverage addresses risks such as groundwater contamination, soil pollution, and cleanup costs associated with spills or leaks. Given Texas' diverse ecosystems, from the Gulf Coast to the Permian Basin, policies often include region-specific environmental protections. Some insurers also offer specialized coverage for fracking-related environmental issues.
Texas oil and gas companies face unique risks including severe weather events like hurricanes for offshore operations, earthquakes in fracking-heavy regions, and political risks due to the industry's economic importance. Specialized insurance often covers these risks along with cyber threats targeting critical infrastructure. Given Texas' border location, some policies also address cross-border operational risks for companies working in both U.S. and Mexican waters.
To ensure adequate lawsuit protection, Texas oil and gas companies typically carry high-limit general liability and umbrella policies. Many also opt for directors and officers (D&O) liability insurance. Given Texas' reputation for large jury awards, companies often secure excess liability coverage. It's common for Texas-based companies to work with local insurance brokers who understand the state's legal landscape and can recommend appropriate coverage limits based on recent case law and settlement trends.
Start Your Coverage Today
Request a Free Quote
For over a decade, TWFG Khan Insurance Services has been the trusted partner for businesses across Texas and neighboring states. We specialize in complex insurance solutions for maritime, oil & gas, and construction industries where standard coverage isn't enough.
Don't let gaps in coverage put your business at risk. Our team of specialists will work with you to create a comprehensive protection plan that keeps your business secure and compliant.
Join the hundreds of businesses who trust us with their most critical insurance needs.
