How Much Does Insurance Cost for a Water Well Drilling Business?
- Nate Jones
- Sep 30, 2025
- 2 min read
Running a water well drilling business comes with unique risks—from operating heavy rigs to managing crews in unpredictable environments. That’s why having the right insurance coverage is essential. But how much does it actually cost to insure a water well drilling business?
At Excavating Insurance Partners, we specialize in providing tailored insurance for water well drilling contractors across the U.S. Whether you’re drilling irrigation wells or installing water pumps, we help protect your business with the right coverage at the right price.
Types of Insurance You’ll Need
Water well drilling contractors typically need four core types of insurance:
General Liability Insurance – This protects your business from third-party claims involving property damage or bodily injury. It’s essential for job site protection and client trust.
Workers Compensation Insurance – Required in most states, this covers medical expenses and lost wages if an employee is injured on the job.
Commercial Auto Insurance – Covers vehicles used for transporting equipment, crews, and materials. It includes liability, collision, and comprehensive coverage.
Equipment Insurance (Inland Marine) – Protects your drilling rigs, tools, and machinery from theft, damage, or breakdowns—whether on-site or in transit.
What Does It Cost?
While pricing varies based on your location, business size, and risk exposure, here are some general cost ranges:
General liability insurance typically costs between $1,000 and $2,500 per year.
Workers compensation insurance can range from $1,500 to $5,000 annually, depending on payroll and job risk.
Commercial auto insurance usually runs $1,200 to $3,000 per vehicle per year.
Equipment insurance may cost $500 to $2,000 annually, depending on the value and type of equipment.
According to EK Insurance and General Liability Insure, full coverage for a water well drilling business typically falls between $3,000 and $10,000 per year.
What Affects the Cost?
Several factors influence your insurance premiums:
Number of employees – More workers means higher workers comp costs.
Type and value of equipment – Expensive rigs increase equipment insurance.
Business location – State laws and local risks affect pricing.
Claims history – A clean record can lower your premiums.
Annual revenue – Higher revenue may increase liability exposure.
Why Insurance Is a Smart Investment
Insurance isn’t just a legal requirement—it’s a business safeguard. Without proper coverage, a single accident could cost tens of thousands in medical bills, legal fees, or equipment replacement. With the right policies in place, you can focus on growing your business while minimizing risk.
At Excavating Insurance Partners, we help you:
Stay compliant with state regulations
Protect your employees and assets
Minimize downtime after accidents
Build trust with clients who require proof of insurance
Final Thoughts
The cost of insurance for a water well drilling business depends on your specific operations, but budgeting between $3,000 and $10,000 per year is a smart starting point. With the right coverage, you can protect your team, your equipment, and your future.
Need a quote? Contact Excavating Insurance Partners today to get a customized insurance package for your drilling business.