Water Well Drilling Insurance Policy Information
Water Well Drilling Insurance. Well drilling contractors dig or drill wells for water for agricultural or industrial use, or for drinking water for residences, businesses or communities. Shallow wells are occasionally made by driving (pounding) lengths of screen-covered piping into sand or soft soil until it reaches the water table.
The more common method is to drill with a truck-mounted rig, using an auger attached to lengths of piping. Typically, a pump with a submersible motor is then installed at the base of the pipes to supply water to the customer.
Companies engaged in water well drilling have very specific insurance needs that must be met if they are to remain in operation. The legal requirements regarding insurance policies vary depending on the state. However, it is not enough to simply have the bare minimum.
In order to ensure that your entire business operations, including your staff, equipment, and reputation, stay protected, you should be sure you have full and comprehensive water well drilling insurance policy.
Water well drilling insurance protects your business from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked water well drillers insurance questions:
- What Is Water Well Drilling Insurance?
- How Much Does Water Well Drilling Insurance Cost?
- Why Do Water Well Drillers Need Insurance?
- What Type Of Insurance Do Water Well Drillers Need?
- What Does Water Well Drilling Insurance Cover & Pay For?
What Is Water Well Drilling Insurance?
Water well drilling insurance is a type of insurance coverage that is specifically designed for companies and individuals who are involved in the business of drilling water wells. It provides protection against financial losses that can occur due to damage to the drilling equipment, injury or death of employees, and other unexpected events related to the drilling process.
This type of insurance typically covers the costs associated with repairing or replacing the drilling equipment, as well as medical expenses and compensation for lost wages for employees who are injured or killed on the job. Additionally, some policies may provide liability coverage for damage to third-party property or injury to third-party individuals, as well as coverage for environmental damage caused by the drilling process.
How Much Does Water Well Drilling Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small water well drilling businesses ranges from $87 to $179 per month based on location, size, payroll, sales and experience.
Why Do Water Well Drillers Need Insurance?
As a water well driller, you face a range of risks associated with your work, including damage to equipment, liability for accidents on the job, and the possibility of losing income due to business interruption. Insurance can provide coverage for these risks and help protect you against financial losses.
Equipment Damage: Drilling equipment can be expensive, and if it's damaged or destroyed on the job, you could be facing a large financial loss. Insurance can provide coverage for equipment damage, so you're not out-of-pocket for repairs or replacement costs.
Liability: If someone is injured on the job or if your drilling activities cause damage to property, you could be held liable for those losses. Liability insurance provides coverage for legal fees and damages that you may be responsible for paying.
Business Interruption: If you're unable to work because of an accident or damage to equipment, you could lose a significant amount of income. Business interruption insurance provides coverage for lost income during this time.
In summary, insurance is an important investment for water well drillers as it helps protect their business and financial stability. It provides peace of mind and protection against unexpected events, allowing them to focus on their work and providing their clients with quality services.
What Type Of Insurance Do Water Well Drillers Need?
Regardless of industry, there are a few key areas of coverage that all businesses should have. They may not be mandated by state legislation, but it is always advisable to opt for increased coverage to ensure you stay protected. These common areas include:
- General Liability to protect you from third party claims of bodily injury or property damage. Drilling rigs are powerful and accidents can be costly.
- Commercial Property to protect your buildings, products, tools, equipment, assets, information, and personal property. Property liability insurance also extends to third parties in most cases, covering their belongings and land should something go wrong.
- Business Auto to cover any commercial vehicles. Many water well drilling companies opt for property and inland marine insurance, which often contains flow down-the-hole coverage and compensation for lost or damaged tools.
- Commercial Umbrella to protect your company should a catastrophic liability claim render it impossible for you to conduct business at the same volume as you once could.
- Workers Compensation to cover medical expenses and to compensate employees for lost wages if they get injured on the job.
- Employers Practices Liability coverage to ensure you and your company have funds to defend yourselves against lawsuits and other employee-related claims.
In addition to the basic insurance needs that all companies have, water well drilling companies have specific and unique concerns. If something goes wrong for one of these companies, the cost of any damage could be astronomical. Instead of risking it, and potentially losing your company, it is best to invest in extra insurance coverage.
Flow breakout containment coverage and limited pollution coverage are two types of policies that all water well drilling companies should invest in:
- Flow breakout containment coverage compensates companies for the costs they incur when containing any type of flow breakout, including the services, labor, and materials involved.
- Pollution coverage is a must-have, as it protects you from paying financial damages caused by any accidental contamination or pollution affecting any water well drilling sites.
Another type of water well drilling insurance coverage that water well drillers should have is inspection liability. It covers any errors or omissions made regarding work done in cooperation with water inspectors. For example, if there are any environmental concerns that arise as a result of a faulty or inadequate inspection, this type of coverage can compensate you for delays in work.
Data breach protection is another type of coverage that most companies should receive. Water well drilling companies in particular should consider this type of policy. Most companies in the industry have a lot of information about their clients. If a data breach or cyber-attack occurs, you could potentially lose that information, or have it stolen by unauthorized third parties. This type of technological coverage guarantees that you have the funds needed to secure your systems, notifying your clients, and settle any legal claims without going into debt or losing your company.
Water Well Driller's Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access.
At the job site, excavation and construction pose numerous hazards. The area of operation should be restricted by barriers and proper signage to protect against trips, slips and falls from debris, equipment, or uneven ground. Construction sites create an attractive nuisance hazard, especially if work is close to residential areas.
Digging can result in cutting utility cables, damaging property of the utility company and disrupting service to neighboring residences or businesses. Absence of detailed procedures to determine utility locations and to research prior uses of the land before digging may indicate a morale hazard.
In certain areas, upfront testing is imperative as deep drilling may take place near natural gas pockets that can explode unless controls are in place.
Completed operations exposures may arise from the failure of the well to supply the water expected. Submersible pumps are expensive to replace.
Workers compensation exposures can be high. Back injuries, hernias, sprains and strains can occur from lifting, material handling and work with hand tools. Overturn of equipment can result in severe injury or death from crushing or suffocation. Cumulative exposure to the high-decibel operations may result in permanent hearing impairment.
Underground hazards may arise from striking objects or utilities, collapse of retaining or holding walls, mudslides, landslides, underground water, and sinkholes. Any contact with utilities, specifically electrical cables or gas lines, can cause injury from explosion, electrocution, or inhalation of caustic substances.
The absence of good maintenance, proper use of basic safety equipment, such as steel-toed shoes, hearing and eye protection, and strict enforcement of safety practices may indicate a morale hazard.
Property exposures at the contractor's own location are usually limited to an office and storage of materials, equipment, and vehicles. The equipment and material in the yard is not normally susceptible to damage by fire or weather, but may be subject to vandalism.
Welding equipment, if any, presents a heavy fire exposure and should be conducted away from flammables. Any flammable chemicals or oxygen tanks must be properly labeled, separated, and stored in approved containers, cabinets, and rooms.
Crime exposures are from employee dishonesty. Background checks, including criminal history, should be obtained on each employee prior to hiring. Ordering, billing, and disbursement should be handled as separate duties with reconciliations occurring regularly. There should be appropriate procedures in place when employees accept payments off site.
Inland marine exposures include accounts receivable if the driller offers credit to customers, contractors' equipment taken to job sites, and valuable papers and records for customers' and suppliers' information. Drilling equipment can be large and difficult to transport without adequate loading, tie-down, and unloading procedures.
Ground at the construction site may be uneven. Equipment may strike underground objects, strike utility cables, fall into holes or pits, slip or fall into mud, water, or sinkholes, be damaged in rock, land or mud slides, or burst into fire from overload. Equipment left at job sites may be targets for theft and vandalism.
Commercial auto exposures can be high due to the transport of materials, machinery, and equipment. All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted.
Vehicles must be well maintained with records kept in a central location. Since the drilling rig is normally truck-mounted, much of the actual drilling falls under the auto liability hazard rather than premises liability. Some of the driving may be done on temporary access roads, increasing the risk of collision and overturn.
What Does Water Well Drilling Insurance Cover & Pay For?
Water well drillers can be sued for a variety of reasons, including:
- Property Damage: If the well drilling process damages the surrounding property, the property owner can sue the driller for the cost of repairs. This can include damage to buildings, landscaping, and underground utility lines.
- Personal Injury: If someone is injured during the well drilling process, such as by falling into the well or being hit by falling equipment, the driller may be sued for medical expenses, lost wages, and pain and suffering.
- Breach of Contract: If the driller fails to complete the job according to the terms of the contract, the property owner can sue for breach of contract.
- Environmental Damage: If the well drilling process causes damage to the environment, such as contaminating groundwater or causing soil erosion, the driller may be sued for environmental damages.
Insurance can help protect water well drillers from these types of lawsuits by providing coverage for various types of claims. For example:
General Liability Insurance: This type of insurance can cover property damage and personal injury claims. If the driller is sued for damaging a property or causing an injury during the drilling process, their general liability insurance can help cover the cost of legal fees, settlement or judgement costs, and other related expenses.
Professional Liability Insurance: This type of insurance can protect well drillers from claims of professional negligence, such as failing to complete the job according to the terms of the contract. If a property owner sues the driller for breach of contract, their professional liability insurance can help cover the cost of legal fees and other related expenses.
Environmental Liability Insurance: This type of insurance can cover claims related to environmental damage caused by the drilling process. If the driller is sued for contaminating groundwater or causing soil erosion, their environmental liability insurance can help cover the cost of legal fees, cleanup costs, and other related expenses.
Overall, insurance can provide a safety net for water well drillers in case they are sued for any of these reasons, helping to protect them from financial ruin and allowing them to continue providing their services to customers.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1781 Water Well Drilling
- NAICS CODE: 237110 Water and Sewer Line and Related Structures Construction
- Suggested Workers Compensation Code(s): 6204 Well Drilling - Water & Drivers
1781: Water Well Drilling
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 178: Water Well Drilling
1781 Water Well Drilling: Special trade contractors primarily engaged in water well drilling. Establishments primarily engaged in drilling oil or gas field water intake wells on a contract or fee basis are classified in Mining, Industry 1381.
- Drilling water wells-contractors
- Geothermal drilling-contractors
- Servicing water wells-contractors
- Well drilling, water: except oil or gas field water intake-contractors
Water Well DrillingvInsurance - The Bottom Line
Water well drilling companies need to be incredibly picky when looking for an insurance provider. You need to be sure that the company you opt to go with understands your industry and can put together a customized insurance package that meets your needs. This may mean spending a bit of time searching for insurers that offer multiple types of policies, including the ones listed above.
Consider asking other leaders in your industry which insurers they use and start your search from there. It is very important that the water well drilling insurance company you go with can offer you all the coverage you need and getting recommendations from others in the industry is a great way to do this.
All water well drilling companies need to have robust insurance policies to keep them protected. Well drilling is a complex field, so it is crucial that you consult with an insurance broker before purchasing any policy.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
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The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.