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Derricks, drawworks and mud systems face fire, collapse and handling losses.
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Onshore Drilling Rigs Insurance
Your rig travels as components before it becomes a working installation on the next pad. Equipment protection should follow dismantling, rigging and transit without assuming truck liability or ordinary site cover insures the whole move.
Talk with The Southern Agency about your operation, policy terms, and the information carriers need.
Industry overview
You are a drilling contractor that moves rigs between pads, drills wells, and dismantles equipment for future use. A rollover during transport or a fire on-site can stop your operations and damage your specialized mobile equipment.
The Southern Agency can review your rig moves and drilling responsibilities to help select appropriate insurance. For example, we can help you coordinate mobile equipment protection with crew and road-use liabilities.
Risks worth discussing
Downhole pressure escapes
A blowout can create control, property, and pollution expenses that ordinary equipment cover does not combine.
Mud and fuel escape
Containment failures can contaminate a pad and surrounding land.
Crews and heavy moves
Rotating machinery, heights, and trucking expose workers and the public to severe injuries.
Coverage worth discussing
Policies to ask about. Which ones fit depends on your operations, your contracts, and the carrier’s forms.
- Inland Marine InsuranceScheduled rig and equipment terms may address insured physical damage during accepted operation, rigging or transit. Confirm phases, ownership and values; ordinary inland marine can exclude downhole or well-control interests.
- General Liability InsuranceGL may address covered third-party site claims, subject to drilling, property-being-worked-on, and contractual restrictions.
- Environmental Liability InsuranceMay address covered cleanup and third-party claims from accepted drilling-fluid or fuel releases. Match the operations, substances and reporting terms; control-of-well costs need separate review rather than being assumed part of a pollution grant.
- Workers Compensation InsuranceWorkers compensation can help with eligible medical and wage benefits after employee rig injuries. Describe actual duties, work jurisdictions and employers rather than treating every worker on the pad as the contractor's employee.
- Business Auto InsuranceAuto can address heavy-vehicle liability and selected physical damage. Hauled rig components require separate cargo/equipment protection.
- Equipment Breakdown InsuranceBreakdown may address qualifying top-drive, drawworks or power failures; wear and overhaul are not covered breakdown.
- Umbrella / Excess Liability InsuranceAdditional limits may apply above scheduled drilling liabilities after attachment requirements are met. The form must accept the operations and actual underlying policies; an operator's requested contract limit does not establish availability or insure an excluded drilling event.
Situations to think through
These hypothetical examples are not agency claim results. Whether a loss is covered depends on the facts, policy terms, and applicable exclusions.
Hypothetical: Rig burns during drilling
A fire damages the rig during drilling and work stops. Scheduled rig protection may address included physical damage where the phase, equipment and cause are accepted. Ownership, valuation and restrictions matter; lost daily-rate income needs its own applicable interruption terms.
Hypothetical: Rig-haul truck overturns
A rig-haul truck overturns, damaging components and another road user's property. Accepted auto terms may address covered road liability and selected truck damage. Transported rig components need suitable equipment or cargo terms for the actual move, not an assumption that the truck's limit insures its load.
Hypothetical: Mud escapes containment
Drilling mud escapes damaged containment and contaminates surrounding soil. Contractor pollution may address covered cleanup or third-party claims where the operation, material and event are included. Follow reporting and response terms; repairing containment or controlling a well is not automatically the same insured expense.
Before you talk to an agent
Questions to raise
- Separate rig, well-control, and downhole interests.
- Include rigging and transport phases.
- Review daily-rate income and idle-time provisions.
Contract terms to check
- Drilling contracts can allocate well-control, underground damage, and knock-for-knock responsibilities. Compare actual indemnities with policies and applicable law; neither a certificate nor a large limit guarantees that every allocation is insured.
What the agent conversation looks like
Start with the work you do and the questions your current policies leave unanswered. Carrier options depend on your location, risk, and underwriting. Explore our approach.
- ListenReview your operations, current coverage, and past claims.
- AssessIdentify potential hazards and discuss ways to reduce risk.
- BuildDiscuss policy and carrier options, premium costs, and audits.
- SupportReview changes and help you plan ahead as your needs develop.
Questions owners ask
How are the rigs themselves insured?
Use suitable scheduled rig protection that includes declared locations, rigging, and movement, with ownership and replacement values confirmed.
Is well-control exposure part of standard coverage?
No automatic inclusion should be assumed. Dedicated well-control arrangements and assigned contract duties need specialist assessment.
Why is auto coverage critical for drilling contractors?
Rig moves expose road users as well as the truck. Equipment being hauled is a separate insured interest.
Do operator contracts dictate my coverage?
They can request protection and allocate duties; the insurer must independently accept those interests and terms.
Is equipment breakdown separate from rig property?
Potentially. External damage, qualifying internal failure, wear, and downhole losses can have different treatment.
What most affects onshore drilling insurance cost?
Rig values, drilling scope, moves, crews, controls, and prior losses inform underwriting. No standard cost is implied.
Talk through your onshore drilling rigs coverage
Bring your questions, current policies, and relevant contracts. An agent can review coverage terms, exclusions, and the information carriers ask for, then explain the options available to you.