WorldWide Drilling Resource

Safety and Protection - The People Part of Your Business! by Lorrie Partridge, AAI Blackadar Insurance Agency There are two types of water well drilling companies; ones that have experienced losses, and those which haven’t experienced losses, YET! Trouble will come to every business, large or small, in the form of an unexpected loss to their human assets or their material assets. The human asset losses are some of the worse to deal with, emotionally hard to get past, and difficult to recover from - such as the loss of life of a company’s leader, valuable business partner, or the company’s number one drill operator. These types of losses can shake a solid, long-term company to its core. Oftentimes, purchasing a financial resource type of insurance coverage, such as life insurance, is the easiest thing to do but quickly overlooked by many business owners. Purchasing life insurance on a company’s key or critical to operations people creates a difference. It allows the company to gain financial support and permits the key component of time to come into play and allows the firm to heal from the upheaval of this type of loss, from all aspects including family, coworkers, and clients. It usually stops a fire sale from happening or decisions made in haste or fear. The financial burden is lifted and there is time to review, restructure, and redirect the company after a significant life loss. Life insurance is an important aspect of safety; financial safety, which is just as valuable and important as a company having workers’ compensation insurance. Speaking of workers’ compensation, many business owners of well drilling companies will exempt or exclude themselves from workers’ compensation. Many times for one reason, the expense of being classified in workers’ compensation code 6204, Drilling. Yes, it’s expensive, and for good reason - the coverages! Where else can you purchase indemnity coverage for your loss of income, medical coverage for your injury, life insurance, and employers’ liability to protect you from a claim of negligence, all rolled into one policy? Nowhere! While I agree when a drilling company is in its infancy stage, it may not be able to afford the coverage expense on the owner. However, as soon as the company is profitable, it should invest in covering the owner with workers’ compensation insurance. I could not leave this article without mentioning the important aspect of insuring your health, and the health of your employees, as well. Again, I understand it may not be an expense a young business is able to handle, but it is a key coverage to consider as your company grows. It will also help you attract and keep good employees! WTR WWDR photo. 51 WorldWide Drilling Resource ® FEBRUARY 2019