Safety, Risk, and Insurance in Oil and Gas: Key Takeaways from Our Energy Webinar

Oil and gas companies operate in one of the most complex and hazardous industries in the world. From well sites and pipelines to transportation fleets and third-party contractors, the risks are real and often costly. At the same time, insurance markets are shifting, with carriers asking tougher questions and requiring more documentation around safety, compliance, and contractual risk transfer.

In our recent webinar with KPA, our team shared practical insights on the biggest safety pitfalls we see, the insurance market trends shaping coverage and pricing, and how technology like KPA Flex is helping companies strengthen safety programs. Here are the highlights

Why Human Error Still Drives Most Incidents

According to industry data, human factors are responsible for more than 90% of incidents in the oil and gas industry. The root causes are often:

• Complacency
• Poor communication
• Inadequate training
• Failure to follow procedures

One example shared during the webinar was a worker performing welding on a container without purging flammable vapors. The result was an explosion, an OSHA case, and a costly workers' compensation claim, which could have been prevented with proper training and adherence to procedures.

For risk managers, documentation matters. When claims go to hearing, especially in workers’ comp, the ability to show training records and corrective actions can be the difference between a fair settlement and an expensive judgment.

Compliance vs. Best Practices: What Insurers Look For

Meeting OSHA requirements is critical, but regulatory compliance alone doesn’t guarantee you’ll be viewed as “best in class” by underwriters. Carriers are increasingly evaluating:

• Use of telematics and driver safety programs
• Hazard communication and labeling practices
• Fall protection training and proper attachment points
• Machine guarding and corrective action programs
• Contractor oversight and documentation of qualifications

Put simply, carriers reward proactive safety cultures, not just compliance checklists. Having data you don’t monitor, or safety guards you don’t enforce, can actually work against you in court.

Insurance Market Pressures You Should Know

Our energy team outlined several market realities companies are facing:

• Commercial Auto: Nuclear verdicts and large settlements are pushing auto liability rates higher nationwide, especially in regions like West Texas and New Mexico. These claims are also driving up umbrella and excess pricing.
• Umbrella Coverage: Where $10M limits were once standard for oil and gas contracts, many carriers now cap coverage at $5M or less. Brokers often need to “stack” policies to reach required limits, which increases overall costs.
• Surety Bonds: State mandated plugging and abandonment (P&A) bonding requirements are shifting from blanket amounts to single-well assurances, increasing collateral and personal indemnification demands.
• Alternative Risk Transfer: Group captives, retro plans, dividend programs, and even new asset retirement agreements are helping companies manage volatility and reduce long-term costs.

The common thread? Underwriters want proof that you are actively managing risks, not just insuring them.

Using Technology to Support Safety and Insurance Programs

The right tools can make all the difference. KPA Flex, a safety management platform born in the oilfield, helps companies:

• Capture field-level data through digital safety forms and inspections
• Manage training programs and competency tracking
• Keep equipment inspection schedules up to date
• Centralize Safety Data Sheets (SDS) for easy access and compliance

For underwriters, technology like this signals commitment to continuous improvement. For operators, it reduces paperwork, speeds up hazard response, and strengthens defense in claims situations.

Key Takeaways for Oil and Gas Leaders

• Prioritize a proactive safety culture by training, documenting, and acting on identified hazards.
• Go beyond compliance to show underwriters how you’re exceeding minimum requirements.
• Stay informed on market trends and work with your broker to explore creative risk transfer options.
• Leverage technology tools like KPA Flex to streamline safety management and demonstrate accountability.

At AssuredPartners, we understand the challenges energy companies face. Our team partners with clients to build insurance programs that protect people, assets, and balance sheets while supporting operational goals.