Water Well Drilling Insurance: Do I Need Workers' Compensation Insurance If I'm a Ground Water Well Driller or Contractor?
Who doesn’t like good water well especially if you live in California or Arizona as you are running out of water?
So if you are thinking about becoming a professional water well driller and contractor, there is one question you might be asking yourself: Do I need workers’ compensation insurance for my company?
The answer to that question is a resounding yes! You also need an insurance agency with access to insurance carriers who specialize in this specific insurance coverage.
Integrity Now Insurance Brokers specializes in protecting your drilling equipment and your employees. Talk. with one of our water well driller insurance agents to learn more about the different liability coverages your company needs. Now let’s dive in.
Table of Contents
What is Workers' Compensation Insurance Coverage?
Workers’ compensation insurance is a type of insurance that provides benefits to your water well drilling business employees who are injured or become ill as a result of their job. Coverage typically includes paying medical bills, income replacement, and death benefits.
Workers’ compensation insurance can provide important financial protection to employees who are injured or become ill as a result of their job. It also provides protection for the employer from catastrophic financial loss.
Not only should you buy workers’ compensation insurance for our water well construction business, but it’s also the law in all 50 states.
What does Workers' Compensation Insurance cover for Water Pump Installers and Drilling Contractors?
Water well drilling operations can be dangerous and we have talked with many drilling contractors about some pretty serious injuries they have experienced. Workers’ compensation insurance can help cover the costs of injuries that occur on the job. This includes medical expenses, lost wages, and rehabilitation.
If a worker dies while working on a water well, the workers’ compensation insurance can help cover the costs of their death and the financial liability their families might seek from a business. This includes funeral expenses and lost wages for their family.
Workers’ compensation insurance can help cover the cost of medical treatment for injuries that occur on the job. This includes doctor’s visits, hospital stays, prescription medication, and physical therapy.
An employee who is injured on the job will not be able to seek help from their health insurance plan, as their doctor will report this as an on-the-job-related injury. Once this report is released the health insurance company will deny the claim.
Who is Required to have Workers' Compensation Insurance?
Workers’ compensation is typically mandatory in most jurisdictions, meaning employers must provide coverage for their employees even if they only have one employee. For Water Well Drilling companies, it can take up to 30 days to obtain the needed coverage or longer.
It is vital that you plan ahead prior to hiring your first employee, to give the insurance broker enough time to obtain the needed quotes and coverage.
Consequences of not having workers’ compensation insurance:
If an employer does not have workers’ compensation insurance and an employee is injured or becomes ill as a result of their job, the employee may sue the employer for damages. The employee may also be entitled to receive benefits from the state’s workers’ compensation program.
This is not a risk any employer should take on and penalties could be added for employers who operate without workers’ compensation insurance.
How much does Water Well Drilling Insurance Cost for a Workers Compensation Insurance Policy?
The cost of workers’ compensation insurance for water well drilling contractors varies depending on a number of factors, including the size and type of business, the state in which the business is located, and the amount of coverage purchased.
How rates are determined:
The most important factor in determining rates is the company’s claims history; businesses with more claims will pay higher rates than those with fewer claims.
Contractors who have lots of claims will face increases due to their experience modification factor being increased along with the insurance company’s rates being increased.
Other factors that can affect rates include the type of work performed, the average salary of employees, and whether employees are full-time or part-time.
Factors that affect rates:
There are a number of factors that can affect workers’ compensation insurance rates for water well drilling contractors. The most important factor is claims history; businesses with more claims will pay higher rates than those with fewer claims. Other factors that can affect rates include the type of work performed,
Integrity Now Insurance Brokers specializes in water well drilling contractors insurance and has multiple insurance programs designed specifically for contractors in the water well drilling industry. Our workers’ compensation and liability rates are about half the costs compared to other companies.
How do I get Workers' Compensation Insurance for my Water Well Drilling Company?
The best way to buy workers’ compensation insurance is through an insurance broker who specializes in water well drilling contractors.
Integrity Now Insurance Brokers has been specializing in this industry for years and can provide you with the needed coverage and quotes you need.
We have access to over 5 plus insurance companies that specialize in the water pump and water well drilling industry.
Do I need Workers' Compensation Insurance if I'm a Water Well Driller or Contractor?
Water well drilling is the process of excavating a hole in the ground to reach groundwater. The hole is then lined with a pipe and pump to bring the water to the surface.
Workers’ compensation insurance requirements for water well drilling:
In most states, water well drillers and contractors are required to have workers’ compensation insurance. This insurance protects employees if they are injured on the job. Exceptions to the rule:
There are a few exceptions to this rule. In some states, sole proprietors and partners are not required to have workers’ compensation insurance.
Additionally, some states exempt certain types of businesses from the requirement, such as those with fewer than five employees or those that are considered high-risk. Penalties for not having workers’ compensation insurance:
If you do not have workers’ compensation insurance when required, you may be subject to penalties, including fines and jail time.
What happens if I don't have Workers' Compensation Insurance?
If you’re an employer and you don’t have workers’ compensation insurance, you’re subject to a fine of up to $5,000 or more. You may also be required to pay for any medical treatment your employees need as a result of work-related injuries or illnesses.
Exceptions:
There are a few exceptions to the rule that employers must have workers’ compensation insurance.
For example, if you’re a sole proprietor with no employees, you don’t need to carry workers’ compensation insurance. Similarly, if you’re an independent contractor, you typically don’t need to have this type of coverage.
What other types of Business Insurance do Water Well Drillers and Contractors need?
Commercial General Liability Insurance: Well Drilling Contractors
General Liability Insurance provides comprehensive insurance to protect your business from third-party lawsuits resulting from bodily injury and property damage. General Liability coverage covers a broad range of expenses related to physical damage to a customer’s property, bodily injury, and personal injury that occur as a result of your business operations.
Commercial Auto Insurance / Business Auto Insurance
Business auto liability insurance protects vehicles used for business purposes. Auto insurance coverage will cover expenses related to accidents, vandalism, and theft. To keep your cost down it is critical to implement a driver screening program allowing you the ability to reduce insurance premiums by lowering your risks.
Drill Rig Insurance
Drill rig auto insurance is a specialty insurance product that helps protect your equipment. This type of insurance will cover expenses related to accidents, damages, and theft.
Down-the-Hole Insurance
Downhole insurance is a type of policy that protects your equipment at a job site while being used. This type of insurance will cover expenses related to accidents and damages to your drill equipment. This additional coverage is a must-have for all commercial and residential water well drillers.
Business Interruption Insurance
Business income insurance protects their business in the event that they are unable to operate due to an accident or natural disaster. This type of insurance will cover expenses such as lost income, relocation costs, and employee salaries.
Inland Marine Insurance
Inland Marine Insurance is a type of insurance that protects your belongings when you’re away from home. It’s important to have this type of insurance if you’re going to be traveling with expensive items or if you’re going to be away from home for an extended period of time. This type of insurance will cover your belongings in the event that they are lost, stolen, or damaged while you’re away from home.
Contractors Pollution Liability
Contractors Pollution Liability (CPL) is a type of insurance that protects contractors from liability for pollution-related damages. This insurance can help cover the cost of clean-up, third-party bodily injury, and property damage resulting from pollution.
CPL policies can be customized to fit the specific needs of a contractor and can be purchased as standalone policies or as part of a business owner’s policy (BOP).
Liability and workers’ compensation insurance protection are vital to be included in any small business insurance program, and the groundwater industry is no exception to the rule.
Make sure you are working with licensed agents who understand your industry so they can obtain insurance quotes that include an insurance package policy designed to cover your specific insurance needs.
Stop wasting money on insurance premiums that do not truly include coverage for your business organization.
Where can I get more Information about Workers' Compensation Insurance for Water Well Drillers?
There are a number of insurance markets available for water well drilling contractors. Each state has different requirements for workers’ compensation insurance, so it’s important to check with your state’s workers’ compensation board or department of insurance to find out what the requirements are.
In some states, water well drillers and contractors may be required to have workers’ compensation insurance if they have employees.
How to get coverage:
The primary way most water well contractors are getting a quote for their business is through an insurance broker.
Insurance brokers have access to specialty insurance companies that provide specific coverage options for their contractor clients. These programs include coverage for workers’ compensation, liability insurance, inland marine policy, builders risk, and other related insurance coverages a contractor may require.
Integrity Now Insurance Brokers can Help you Get Your Free Quote Today
Integrity Now Insurance Brokers can help you gain access to multiple insurance products including our exclusive water well drilling insurance program for water well contractors. We are a team of insurance experts who are here to help you find the best possible coverage for your needs.
We also understand that our contractor clients need a certificate of insurance for some of their jobs. We are here to help provide those needed certificates and endorsements your clients need in a timely manner.
Our clients have no shortage of insurance options and our insurance agents are here to help you determine which program is best.
We will work with you to find the right policy for your situation and make sure that you are getting the best possible price.
Contact us today to learn more about our services and how we can help you save money on your insurance.
