The Hidden Coverage Risk in Water Well Drilling: Down-the-Hole Losses

Here’s why this matters:

Down-the-hole equipment—hammers, bits, tooling, drill strings—represents high-value equipment for any drilling operation, and it’s also the most exposed to loss.

And the risk compounds fast:

The deeper you drill, the greater the pressure.

The greater the pressure, the higher the chance of:

• Tool failure
• Stuck pipe
• Lost-in-hole events

The deeper the hole, the harder (and more expensive) recovery becomes.

I’ve seen losses go from manageable to six figures simply because equipment was lost at depth with no recovery option.

The concern:

Many drillers assume their equipment is covered.

Many policies exclude down-the-hole losses or limit coverage in ways that only show up after the claim.

If you can’t clearly answer these questions, you may not be covered:

1. Is down-the-hole equipment specifically scheduled?
2. Is loss-in-hole included or excluded?
3. Are depth limitations applied?
4. Does coverage change once equipment is below ground?

This isn’t theoretical risk.

It’s a high-frequency, high-severity exposure in water well drilling.

If you’re drilling deeper than ever (and most are), your potential loss is growing with every foot.

Action item for drillers:

Don’t wait for a stuck tool to find out what your policy actually says. Confirm clearly and in writing whether you have down-the-hole coverage and how it responds at depth.

Insurance shouldn’t be a guessing game when expensive equipment is 400+ feet underground.

If you work in water well drilling, this is one coverage conversation you can’t afford to skip.