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Alternative Revenue Sources to Workers’ Compensation and Your Options Against Non-Subscribers

Workers’ compensation is not the only path to recovery after a workplace injury in Texas — and in the oil and gas industry, it is often not the most effective one. Once you move past workers’ comp, there are two primary avenues for recovering injury damages. The first is an exception to the standard restriction on civil suits against workers’ comp subscribers, and it applies in cases involving employer gross negligence that leads to a fatal workplace accident. If a loved one died as a result of a drilling or pipeline accident — even if gross negligence is not immediately obvious — you need to speak with an experienced lawyer. If the investigation reveals that the employer’s conduct rose to the level of gross negligence, surviving family members stand a strong chance of winning a civil wrongful death lawsuit, even against a workers’ comp subscriber.

The more commonly pursued path, however, is a third-party claim or lawsuit against someone other than your direct employer. This is exactly the type of liability that makes negligent employers and contractors deeply uncomfortable — and for good reason.

Third-Party Claims in Oilfield and Drilling Accident Cases

If a rig or drilling operation was not properly maintained, if safe working conditions were not provided, if faulty equipment caused an injury, or if a contractor or co-worker’s negligence was the cause of the accident, there may be one or more third parties who can be held accountable. A defective piece of machinery can support a product liability claim against the manufacturer. A drilling contractor working on the rig who acted negligently can be sued directly. The corporation that hired the contractor may also share in the liability. In offshore accidents involving helicopter ditches, inadequate emergency response, or hazardous conditions miles from shore, the range of potentially liable parties expands further.

In all of these situations, you can sue the non-subscribing responsible party or parties even if your direct employer subscribes to workers’ comp and is shielded from a civil suit. Importantly, pursuing a third-party lawsuit does not prevent you from also filing a workers’ comp claim against your employer simultaneously. In many drilling accident cases, a no-fault workers’ comp claim combined with a third-party civil suit against a clearly liable party is the combination that delivers full and fair compensation for an injured worker.

Why So Many Oilfield Employers Skip Workers’ Comp

Texas is the only state in the country that does not require private employers to carry workers’ compensation insurance. That quirk of Texas law is particularly common in the oil patch, where independent drilling operations and wildcatters frequently opt out. The reason is straightforward — workers’ comp premiums are a real cost, and companies operating on thin margins or moving from job to job find it easier to go without. Some simply assume their workers will never get seriously hurt, or that they can manage any claim informally if something does go wrong.

The consequences for injured workers can be severe. Without workers’ comp coverage, there is no automatic no-fault benefit system to fall back on. The injured employee must pursue the non-subscribing employer directly with a civil claim, notifying them of the injury and the compensation expected. If the employer has private liability insurance, the insurer typically takes over the defense immediately — and their first move is almost always to dispute your allegations.

The Sole Proximate Cause Defense — And How to Beat It

Non-subscribing employers and their insurers rely heavily on one particular defense strategy: claiming that the injured worker was solely responsible for their own injuries. Known as the sole proximate cause defense, this argument essentially blames the victim — accusing the plaintiff of carelessness, poor judgment, or outright recklessness. Insurance companies and their attorneys are experienced at building these narratives, and they will dig into your work history, your training records, your conduct on the day of the accident, and anything else they can use to shift blame onto you.

Countering this defense requires an experienced drilling accident attorney who has seen these tactics before and knows how to dismantle them. That means a thorough independent investigation of the accident scene, preservation of physical evidence, identification and interview of witnesses, expert analysis of equipment and safety conditions, and a clear legal strategy that puts liability back where it belongs — on the negligent employer, contractor, or equipment manufacturer.

What Damages Can You Recover?

In a successful third-party oilfield injury claim, injured workers and their families can pursue the full range of personal injury damages available under Texas law. These include past and future medical expenses, lost wages, loss of future earning capacity, physical pain and suffering, mental anguish, and in cases of permanent disability, compensation for the long-term impact on quality of life. In wrongful death cases involving gross employer negligence, surviving family members can also pursue wrongful death and survival damages on behalf of their loved one.

Talk to a Drilling Accident Attorney Today

Oilfield and pipeline injury cases are among the most complex in personal injury law. The web of potential defendants — employers, contractors, equipment manufacturers, rig operators, and corporate overseers — requires an attorney who knows this industry and knows how to investigate these accidents thoroughly. Our drilling accident lawyers have handled these cases for over 30 years and understand what it takes to go up against the oil patch’s deep pockets and aggressive defense teams. If you or a family member has been hurt in a drilling, pipeline, or oilfield accident in Texas, call us today for a free consultation.

Please note, the Carabin Shaw Law Office has moved to 875 E Ashby # 1100 San Antonio, Texas 78212