To protect themselves from financial loss in the event of an accident, water well drilling contractors need to have water well drilling insurance. This insurance covers them in case of damage to their equipment, injuries to workers or third parties, and other unexpected events.
Who Needs Water Well Drilling Insurance?
Water well drilling insurance is essential for any individual or company involved in the drilling of water wells. This includes contractors, drilling companies, and well owners.
Any business or individual that drills wells for commercial purposes needs this type of insurance to protect their assets and cover liability risks.
Homeowners who hire contractors to drill wells should also make sure that the contractor is adequately insured to avoid any financial liabilities in case of an accident.
Types of Water Well Drilling Insurance
There are different types of water well drilling insurance policies available in the market. The most common types include:
General Liability Insurance
General liability insurance is essential for water well drilling contractors. This type of insurance covers third-party bodily injury, property damage, and advertising injury claims. General liability insurance can also cover legal fees, medical expenses, and other costs associated with a claim.
Workers’ Compensation Insurance
Water well drilling can be a dangerous job, and accidents are not uncommon. Workers’ compensation insurance covers employees injured on the job, providing them with benefits such as medical expenses and lost wages. In most states, workers’ compensation is required by law.
Commercial Auto Insurance
Commercial auto insurance covers vehicles used for business purposes, such as drilling rigs and other equipment. This insurance covers damage to the vehicle, third-party liability claims, and medical expenses in case of an accident.
Equipment Insurance
Equipment insurance covers damage or loss of the drilling equipment, including the drilling rig, trucks, and other equipment used in the drilling process. This insurance covers the cost of repair or replacement of damaged equipment.
How Much Does Water Well Drilling Insurance Cost?
The cost of water well drilling insurance varies depending on several factors, including the type of insurance, coverage limits, location, and the size of the business.
The cost of general liability insurance, for example, can range from $500 to $1,500 per year. Workers’ compensation insurance can cost between $1,000 to $5,000 per year, depending on the number of employees and the level of risk associated with the job.
Equipment insurance can cost between 1% to 3% of the total value of the equipment, while commercial auto insurance can range from $750 to $2,000 per year.
The cost of insurance can also differ depending on the deductible amount chosen by the business owner.
Water Well Drilling Insurance Requirements
Water well drilling insurance requirements vary from state to state. Some states require water well drilling contractors to have general liability insurance, workers’ compensation insurance, and commercial auto insurance. Other states may require additional insurance, such as pollution liability insurance or professional liability insurance.
It is important for water well drilling contractors to understand the insurance requirements in their state and ensure that they have the required coverage to avoid any legal or financial penalties.
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
Water Well Drilling Insurance – Bottom Line
Water well drilling insurance is essential for any individual or company involved in the drilling of water wells. It provides protection against financial loss in the event of an accident, injury, or damage to equipment.
There are different types of insurance policies available to cover various aspects of the drilling process, including general liability insurance, workers’ compensation insurance, commercial auto insurance, and equipment insurance.
By having the right insurance coverage, water well drilling contractors can focus on their work without worrying about financial risks and liabilities. To learn more about water well drilling insurance and how it can protect your business, contact us today.