General Liability vs. Equipment Insurance for Well Drillers

Water well drilling contractors face a wide range of risks—from property damage and injuries to equipment breakdowns and theft. To protect your business, it’s essential to understand the types of insurance available and how they differ. Two of the most important policies are general liability insurance and equipment insurance.

Let’s break down what each covers, and why both are crucial for well drilling operations.

What Is General Liability Insurance?

General liability insurance is the foundation of most contractor insurance plans. It protects your business from third-party claims related to:

• Bodily injury (e.g., a visitor gets hurt near your drilling rig)

• Property damage (e.g., your crew accidentally damages a nearby structure)

• Completed operations (e.g., a defect in your work causes damage after the job is done)

• Advertising injury (e.g., claims of slander or copyright infringement)

This type of insurance is often required by clients and state regulations before work begins.

What It Doesn’t Cover:

• Damage to your own equipment

• Injuries to your employees

• Environmental damage caused by drilling

• Theft or loss of tools

What Is Equipment Insurance?

Equipment insurance—often called contractor’s equipment coverage or inland marine insurance—protects your business assets. This includes:

• Drilling rigs and pumps

• Portable tools and machinery

• Down-the-hole tools (lost or damaged during drilling)

• Equipment in transit between job sites

If your equipment is stolen, damaged, or breaks down, this policy helps cover repair or replacement costs, minimizing downtime and financial loss.

Request a Water Well Drill Insurance Quote!

Key Benefits:

• Covers theft, fire, vandalism, and accidental damage

• Includes transit coverage for mobile operations

• Can be customized to include high-value or specialized tools

Why You Need Both

While general liability protects you from external claims, equipment insurance safeguards your internal assets. Together, they provide comprehensive protection for your water well drilling business.

For example:

• If your rig damages a client’s property → General Liability covers it

• If your rig breaks down during a job → Equipment Insurance covers it

Get the Right Coverage with Excavating Insurance Partners

At Excavating Insurance Partners, we specialize in business insurance for water well drilling contractors. Our tailored policies include:

• General Liability Insurance – Protects against third-party claims

• Equipment Insurance – Covers your rigs, pumps, and tools

• Workers Compensation – Ensures employee protection

• Business Auto Insurance – Covers vehicles used in drilling operations

We help contractors nationwide get the coverage they need to operate safely and confidently.

Request a Water Well Drill Insurance Quote!

Conclusion

Understanding the difference between general liability and equipment insurance is key to protecting your water well drilling business. With the right coverage, you can focus on delivering quality work while minimizing financial risk. Contact now!