Working on Texas oil rigs is physically demanding and comes with significant injury risks. When oilfield accidents occur, injured workers often face growing medical bills, lost wages, and uncertainty about their financial future. At Terry & Thweatt, our Houston oilfield injury lawyers help workers throughout the Eagle Ford Shale and Permian Basin regions obtain the benefits they deserve after workplace accidents.
Texas has a unique approach to oilfield workers' compensation. Unlike most states, Texas does not require employers to carry workers' compensation insurance. This creates a two-track system for oil rig injury claims.
Your Employer Subscribes to Workers’ Compensation
If your oil company participates in the Texas workers' compensation system, you generally cannot sue your employer for workplace injuries. Instead, you must file a claim through the workers' compensation system, which provides several benefits.
Medical Benefits
Oilfield workers' compensation covers all reasonable and necessary medical treatment related to your work injury. Your employer's insurance carrier must pay healthcare providers directly, meaning you shouldn't receive bills for authorized medical care.
Income Benefits
Income benefits replace a portion of your lost wages while you recover. Temporary income benefits (TIBs) provide 70% of the difference between your average weekly wage and what you can earn after your injury, up to the state maximum ($1,219 per week for 2025).
Impairment Benefits
If your Eagle Ford Shale oil rig injury claim involves permanent impairment, you may be eligible to receive Impairment Income Benefits (IIBs) based on your impairment rating.
Death Benefits
If an oilfield accident results in a worker's death, surviving dependents may receive death benefits equal to 75% of the deceased worker's average weekly wage, subject to statutory maximums.
Your Employer Does Not Offer Workers’ Compensation Coverage
If your employer has opted out of workers' compensation coverage, you maintain your right to sue for workplace injuries. This affects your oil rig injury claim in several ways.
Higher Potential Recovery
In a successful lawsuit against a non-subscriber, you can recover full compensation for lost wages, medical expenses, pain and suffering, and other damages without the caps imposed by workers' compensation.
Negligence Proof Requirements
To win your Permian Basin accident case, you must prove that your employer's negligence contributed to your injury. Under Texas modified comparative negligence laws, if you were partially at fault, your compensation may be reduced accordingly. If you were more than 50% responsible, you may be barred from recovery entirely.
Limited Employer Defenses
Non-subscribers cannot use certain defenses, such as assumption of risk or the "fellow servant" rule, giving injured oilfield workers a significant advantage in these cases.
Filing a Workers' Compensation Claim for Oil Rig Injuries
The process of filing a workers' compensation claim involves several important steps and deadlines.
Report Your Injury Immediately
Texas law requires you to report your injury to your employer within 30 days. We recommend reporting injuries as soon as possible, ideally the same day the injury occurs. Be specific about how the injury happened and what parts of your body were affected.
Seek Medical Attention
After an oil rig accident, prompt medical care is essential both for your health and your injury claim. If your employer is a subscriber, you may need to see a doctor within their provider network unless it's an emergency situation. Keep detailed records of all medical visits, treatments, and recommendations. These records form the foundation of your claim.
File Your Claim Form
To officially begin your workers' compensation claim, you must file DWC Form-041 with the Texas Department of Insurance, Division of Workers' Compensation (DWC) within one year of your injury. Complete the form thoroughly and accurately, as inconsistencies may lead to denials or delays in receiving benefits.
Follow the Treatment Plan
Strictly follow your doctor's treatment recommendations. Skipping appointments or disregarding medical advice can not only hinder your recovery but also jeopardize your benefits. Insurance carriers frequently monitor compliance with treatment plans and may use non-compliance as grounds to terminate benefits.
Common Challenges in Oilfield Workers' Compensation Claims
Oilfield workers often face specific hurdles when pursuing workers' compensation claims.
Claim Denials
Insurance carriers may dispute the work-relatedness of injuries, especially with back injuries or conditions that develop over time, such as hearing loss from prolonged exposure to rig noise. Failing to report your injury within 30 days or file your claim within one year can also result in a denial.
If your claim is denied, you have the right to dispute the decision. The dispute resolution process includes informal resolution, benefit review conferences, contested case hearings, and appeals to the Appeals Panel. Having experienced legal representation during this process significantly improves your chances of success.
Independent Medical Examinations
The insurance carrier may require you to undergo an Independent Medical Examination with a doctor of their choosing. These examinations can be adversarial in nature, as the doctor is paid by the insurance company and may be inclined to minimize your injuries.
Before attending an IME, consult with your attorney. While you must attend the examination to continue receiving benefits, your attorney can advise you on how to handle the appointment and what information to provide.
Premature Termination of Benefits
Insurance carriers may attempt to terminate your benefits before you've fully recovered by claiming maximum medical improvement (MMI), like in Jones Act claims, or disputing your disability status. Your employer may also offer modified duties that they claim accommodate your restrictions. If you refuse, your temporary income benefits may be terminated.
If you believe your benefits have been wrongfully terminated, consult with a workers' compensation attorney immediately to protect your rights.
