Strategies for Managing Drilling Risks

Water industry projects sometimes do not go as planned. Groundwater drilling insurance coverage can protect companies from certain types of losses once the worst occurs. Prior to an incident, however, industry members can take steps to mitigate risk.

Include Cost-Controlling Contract Language

Before beginning a drilling project, contracts and statements of work should detail who will be responsible for specific costs. Work order language can set liability ceilings for risks such as pollution-related exposure, property damage, down-the-hole equipment losses, and mold or mildew remediation.

After assessing the scope of the project, consider recommending a conservative approach to remediation in addition to riskier, less expensive solutions. Clients choosing higher risk options may also contractually accept financial responsibility for more of the risk should issues occur.

Prepare for Contingencies

Bring the team together to plan for how issues will be handled before commencing the project. Make sure everyone knows how to identify early warning signs. When possible, conduct simulations or walkthroughs to identify hazards. Understanding potential sources for contamination or other problems can help engineers and technicians minimize any damage that occurs.

Start Management Risk Before You Need Insurance Coverage

Groundwater drillers, equipment providers, developers, consultants, remediation companies, and others involved in water-related projects often use groundwater drilling insurance coverage to help control potential exposure. While insurance is an important component, a comprehensive risk management strategy starts before the project begins.