NM Oil and Gas Insurance: Avoiding Costly Q4 Claims

It’s the way of the world: Whenever the fourth quarter unfolds, New Mexico’s oil and gas sector faces mounting operational pressures. That makes having comprehensive oil and gas insurance even more essential.

These last few months of the year are busy and tense. Production quotas intensify, deadlines tighten, and crews push harder to close out the year strong. While this period drives revenue, it also brings heightened risk. Extended shifts, equipment fatigue, and rushed schedules can lead to workplace incidents and expensive insurance claims that impact your bottom line well into the new year.

Fortunately, the right coverage can protect your business from financial setbacks and ensure that you will start the year off right.

Why Q4 Is High-Risk for Oil and Gas Companies

There’s a lot that can go wrong when refinery workers are in a rush. The fourth quarter is a time to be especially wary of potential accidents across the oil and gas industry. Longer work hours, fatigued workers, and seasonal crews with less experience can increase the likelihood of mistakes.

According to OSHA, the oil and gas extraction industry faces significant hazards year-round. But end-of-year production pressures can amplify risks related to falls, struck-by incidents, and vehicle collisions.

Of course, it’s not all human error that can bring about expensive accidents. Aging equipment that’s been running hard all year becomes more prone to breakdowns. (From 2015 to 2022, machinery was the leading source of injury in the oil and gas industry, according to the Centers for Disease Control and Prevention.)

Meanwhile, weather conditions in New Mexico — from sudden temperature drops to high winds — add another layer of complexity, particularly for field operations and transportation.

How Oil and Gas Insurance Protects Against Costly Claims

Effective oil and gas insurance is built around the specific risks your operation faces. At Daniels Insurance, we customize coverage programs for upstream, midstream, and downstream operations, ensuring protection that aligns with your business model and operational footprint.

Key coverage types include:

• General liability: Protects against third-party bodily injury or property damage claims that may arise from your operations
• Workers’ compensation: Provides medical benefits and wage replacement for employees injured on the job — critical in high-risk environments like drilling sites and refineries
• Pollution liability: Covers cleanup costs, legal defense, and damages related to spills, leaks, or environmental contamination
• Equipment coverage: Protects drilling rigs, compressors, pumps, and other heavy machinery from damage or breakdown
• Commercial auto: Covers company trucks, transport vehicles, and mobile equipment used to move personnel, materials, and products

Comprehensive oil and gas insurance minimizes out-of-pocket losses when incidents occur. It helps your business maintain compliance with regulatory requirements enforced by agencies like the New Mexico Energy, Minerals and Natural Resources Department.

With decades of experience serving New Mexico’s energy sector, Daniels Insurance understands how to structure policies that address real-world exposures without leaving critical gaps.

Q4 Risk-Prevention Strategies for Oil and Gas Businesses

Avoiding costly claims starts with proactive risk management. As the year winds down, consider implementing these strategies:

• Conduct year-end safety audits: Inspect equipment for wear and tear, review maintenance logs, and address any deferred repairs before they lead to failures.
• Review contractor agreements: Verify that all subcontractors carry proper insurance certificates and that their coverage limits align with your contract requirements.
• Reassess coverage limits: If you’ve acquired new assets, expanded operations, or increased production capacity during the year, check your policy limits to ensure they reflect current values.
• Update business auto schedules: Seasonal fleet changes — such as additional transport trucks brought in for Q4 — should be reported to your insurer to avoid coverage gaps.

Daniels Insurance can help you identify potential policy gaps and recommend adjustments before renewals or expansions. A year-end insurance review ensures you’re not underinsured heading into the new year and gives you a clearer picture of your risk exposure.

Partner With Daniels Insurance To Strengthen Your Q4 Risk Strategy

Proactive planning and tailored coverage are the keys to preventing costly year-end claims in New Mexico’s oil and gas industry. Whether you operate upstream drilling operations, midstream transportation networks, or downstream refining facilities, Daniels Insurance brings the local knowledge and industry expertise needed to protect your business.

Don’t wait until an incident occurs to discover gaps in your coverage. Schedule a year-end risk review or request a customized oil and gas insurance quote from Daniels Insurance today.

About Daniels Insurance

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.