There is a lot of attention on keeping the environment free from contaminants, and those whose operations present a tremendous risk of groundwater contamination are under increased scrutiny. As a form of pollution, groundwater contamination is a risky business in regards to noncompliance penalties, civil litigation and damage to the environment. Groundwater business insurance is a must-have for any business working within the water industry because of the increased risks.

Who Needs Groundwater Insurance?

The groundwater industry operates in numerous locations and environments and depending on your involvement, you need special coverage. It isn’t just the individual making contact with the groundwater that is exposed to liabilities. Third parties involved in an activity may be included in a liability claim. Good candidates for this insurance include:

  • Water well drilling companies/operators
  • Manufacturers and suppliers of drilling equipment
  • Groundwater remediations providers and companies
  • Hydrologists, lab technicians, other professionals and consultants
  • Pump installers
  • Well operators or owners

Who Can Make Claims of Liability?

If contamination occurs, liability claims could come from several sources. Private parties may take action through civil litigation in either state or federal court. The EPA and other federal or state agencies may use criminal prosecution, civil lawsuits or administrative action to impose liability.

General business insurance coverage doesn’t usually include groundwater pollution liabilities. A specific policy tailored to specific risks of the water industry is more effective.