Insurance for Water Well Drilling and Related Support Businesses
Anacortes Marine, Auburn, Everett, Islanders Insurance - San Juan County, Safe Harbor Insurance - San Juan County, Gig Harbor, North Cascade, Oak Harbor, Seattle, University Place

Water well insurance is a specialized type of commercial insurance designed to protect businesses involved in drilling, installing, and maintaining water wells. This insurance covers potential liabilities, property damage, equipment risks, and environmental hazards that may arise during water well operations.

Do Water Well Drilling Contractors Need Specialized Insurance?

Contractors in the drilling industry face unique operational risks that standard business insurance may not cover. Specialized insurance ensures protection against:

• Equipment breakdowns and accidents during drilling operations.
• Environmental contamination claims related to groundwater disturbances.
• Injuries to employees working with heavy machinery in hazardous environments.
• Property damage caused during drilling, excavation, or site preparation.
• Legal liabilities arising from project-related incidents.

Is Groundwater Covered by Insurance?

Groundwater itself is not typically covered as an insured asset under standard commercial insurance policies. However, Pollution and Environmental Liability Insurance can cover damages and cleanup costs related to groundwater contamination caused by drilling operations. This type of insurance helps protect businesses from financial losses due to:

• Accidental spills or leaks that contaminate groundwater.
• Claims of groundwater pollution from third parties.
• Regulatory fines and cleanup costs associated with environmental damage.

It’s essential for drilling contractors to ensure they have adequate environmental liability coverage, especially if their work involves operations that could potentially impact groundwater quality.

Does My Business Insurance Cover Water Well Pump Installation and Repairs?

Yes, commercial insurance can cover water well pump installation and repairs, but the specific coverage depends on the policy:

• General Liability Insurance: Covers third-party property damage or bodily injury claims resulting from faulty installation or repair work.
• Professional Liability Insurance (Errors & Omissions): Protects against claims of negligence, errors, or poor workmanship in pump installation or repairs.
• Contractor’s Equipment Insurance: Covers damage or loss of tools and equipment used during installation and repair operations.
• Completed Operations Coverage: Provides protection for claims arising after a project has been completed, such as equipment failure due to installation errors.

What Are the Benefits of Having Water Well Insurance for Drillers?

Comprehensive water well insurance offers several key benefits for drilling contractors:

• Financial Protection: Safeguards against costly lawsuits, claims, and unexpected damages.
• Business Continuity: Ensures your operations can recover quickly from equipment loss or site accidents.
• Regulatory Compliance: Meets state and contractual insurance requirements for licensed drilling contractors.
• Client Confidence: Enhances credibility with clients who require proof of insurance before awarding contracts.
• Peace of Mind: Reduces the stress of managing operational risks, allowing contractors to focus on their core business.

What Are Common Insurance Claims for Drilling Contractors?

Water well drilling contractors often face claims related to:

• Auto Accidents: Claims from commercial vehicle accidents while transporting equipment or employees.
• Down the Hole: Claims from equipment and tools lost or damaged underground.
• Environmental Incidents: Claims related to groundwater contamination, fuel spills, or site pollution.
• Employee Injuries: Accidents involving heavy equipment, falls, or exposure to hazardous materials.
• Third-Party Property Damage: Damage caused to nearby structures, utilities, or properties during drilling operations.
• Equipment Damage or Theft: Loss of drilling rigs, tools, or machinery due to accidents, vandalism, or theft.

How much does well-drilling insurance cost?

Earlier, we mentioned that no one well drilling contractor insurance policy looks like another. The same can be said for your premium as well. Because there’s so much variation between well-drilling businesses, there’s no precise estimate you can expect for your premium. However, we can tell you what factors can influence your premiums:

• Your business’s location
• Claims history
• Size of your operation
• Number of employees
• Your chosen deductible

You’ve worked hard to build your water well drilling business. The next step is to protect it. We’re happy to help you identify your needs and provide solutions to protect them.

We’d love to chat with you. Contact Jason Ehlert and Mike Hufschmid today!

Frequently Asked Questions

• How Much Does Well Insurance Cost for Drilling Companies?

  The cost of water well insurance is influenced by several commercial factors:

  • Business Size and Annual Revenue: Larger companies with higher revenue typically face higher premiums.
  • Employee Count: More employees can increase workers' compensation and liability insurance costs.
  • Types of Equipment Used: Specialized, high-value drilling equipment may require additional coverage.
  • Scope and Scale of Operations: Projects involving deeper wells, hazardous sites, or large-scale operations may result in higher premiums.
  • Claims History: A history of frequent claims or high-risk incidents can raise insurance rates.
• Is the drilling equipment on my truck covered under my auto policy?
  Unfortunately, many tools and equipment located on your truck are not covered under your commercial auto policy. As a good rule of thumb, your commercial auto insurance won't cover anything that's not bolted down to the vehicle but it still needs to be listed properly. To adequately protect your tools while they're in your car, you'll want inland marine coverage. As mentioned above, inland marine insurance covers business property that can be moved or transported.
• What types of insurance do water well drillers need?
  The exact insurance you purchase depends on your needs. Not every water well drilling business is the same, meaning no two water well drilling business insurance policies will be the same. However, there are general coverages any well-drilling company should consider.