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Oil & Gas

Oklahoma’s Natural Treasure

Insurance for Oil and Gas Industry

CompSource Mutual has been serving Oklahoma’s oil & gas industry for the better part of a century. Our team is based here – the heart of the oil & gas industry – so we know your business better than the other guys. 

Let us help you protect your greatest asset – your team. We know oil & gas and can get you coverage that makes sense at a fair price. Get a Quote 

Interested to learn more? Read on to get answers to common questions and concerns about workers’ comp in the petroleum industry. 

Insuring Your Oil & Gas Business

While CompSource Mutual specializes in workers’ compensation insurance, it is important to understand the entire ecosystem of insurance types that your business might need. 

Working in the oil and gas industry 

The oil and gas industry encompasses many different jobs and work environments. Each specialty within the petroleum industry comes with its own specialized equipment and risks. As a result, insurance for the oil and gas industry is highly specialized, as well.

Some workers in the oil and gas industry work on installation. That is, they may work as pipefitters or plumbers, installing pipes that carry heating oil or natural gas to homes or commercial properties. Others work on the engineering side of things. Mechanical engineers may work in offices but may conduct site visits to observe how a piece of machinery is functioning. Mechanical engineers design and consult on how things work: equipment, sensors, devices, and machines. They are an essential part of developing new and functioning technology in the oil and gas industry. There are also a number of other jobs in the engineering and science areas, including geoscientists, petroleum engineers, and hydraulic technicians. 

Oil and gas personnel working directly onsite with oil drills and rigs have the most dangerous and specialized jobs. On an oil or gas jobsite, there are many different roles that need to be filled: pump system operators, wellhead pumpers, and drillers. Although workplace fatalities among oil and gas workers are fewer than other industries, such as construction, it is still a dangerous job with a large emphasis on employee safety. Insurance for the oil and gas industry is critical for running an oil or gas business, and should include workers’ compensation coverage to ensure the safety of its employees.

Known risks in oil & gas:
  • Motor vehicle accidents
  • Falls from heights
  • Heavy equipment strikes
  • Lifting injuries
  • Exposure hazards
  • Explosion and fire injuries

The oil and gas industry in America

Oil and natural gas production have historically been important drivers of America’s growing economy. Although oil and gas are often considered one industry, there are major differences between the two. Oil is the black, liquid substance you may have seen spouting from an oil well; this is what drove the initial “oil rush” in America during the 1800s. Today, crude oil—the oil that comes straight from the ground—is refined into different petroleum products, like gasoline, kerosene, fuel oil, and butane. Refined oil powers our daily lives, like driving cars, flying in planes, and heating our homes. 

Natural gas, on the other hand, is a mixture of naturally occurring gases rich in hydrocarbons. Like oil, it is usually found far beneath the Earth’s surface, and must be extracted by drilling. It can also be extracted via fracking, which forces a mixture of water, sand, and chemicals into a well at high pressure to help force the gas out. This method of extracting gas is controversial because it can cause tremors, or small earthquakes, which can be disruptive to the environment and cause problems for people living in the area. It also uses a large amount of water.

The American oil and gas industry generates billions of dollars. It employs millions of people across the country. The U.S. produces much of its own oil and gas, which is sold worldwide, strengthening American trade connections and keeping the U.S. a central part of the global economy.

Oil and gas companies

Many petroleum companies are household names in America. However, a large number of American oil and gas wells are run by independent producers. These producers are defined by their size and scope. To be an independent producer, you must have less than $5 million in annual retail sales, or fewer than 75,000 barrels of oil refined each year.

Many independent producers are fairly small businesses, employing fewer than 20 people, and sometimes operate as family businesses. Many states require workers’ compensation for all employees, even for small businesses. Oklahoma’s insurance requirements make some exceptions for family businesses, but the rules are stringent; only family businesses that have five or fewer employees, who are all related to the owner, are exempt from providing workers’ compensation benefits. 

Fortunately, this means that most independent producers—and certainly all of the larger oil and gas companies—are required to carry oil and gas workers’ compensation policies. These policies are particularly important because of the highly specialized work that many oil and gas workers do; replacing an employee is not easy. If an employee becomes sick or injured on the job, petroleum workers’ compensation insurance will cover their medical bills and missed wages, ensuring that they get the recovery time they need before coming back to work. Insurance for the oil and gas industry is critical for reducing employee turnover and maintaining a stable, valuable workforce. 

Oil and gas companies should also consider buying other types of insurance in addition to workers’ compensation. Professional and general liability insurance will protect against third-party risks, while pollution insurance will help mitigate risks and costs that arise from environmental incidents like oil spills. There are many other types of insurance for the oil and gas industry that could be useful to oil and gas companies, such as commercial vehicle insurance, inland marine insurance, and commercial property insurance.

Why CompSource Mutual

Oklahoma is America’s fourth-largest producer of crude oil. It processes nearly 523,000 barrels of oil per day, making it a major part of Oklahoma’s economy. This also means that it employs a lot of Oklahomans. CompSource Mutual is Oklahoma’s go-to provider for workers’ compensation insurance and should be any company’s first stop when it comes to purchasing insurance for the oil and gas industry.

Oil and gas insurance may include lots of different types of insurance for the oil and gas industry, including liability insurance, property insurance, workers’ compensation, and pollution insurance.

Well control insurance, also called control of well insurance, covers some or all of the costs associated with a well blowout, which is when an oil well releases oil uncontrollably. Having well control insurance helps companies cover costs of regaining control, cleaning up pollution, and redrilling or restoring the well to operation.

The number one risk in any industry is transportation or vehicular accidents. But the oil and gas industry does have some specific known risks, such as being struck by or caught in heavy equipment; exposure to explosions and fires; and working with high-pressure lines and equipment.

Meet our Safety Team Image

Meet Our Safety Team

Are you committed to making your workplace safer? We’re here to make it easy for you. CompSource Mutual policyholders can get advice from our safety consultants and access personalized resources – it’s all absolutely free.

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