Drill rig Storage
Drill rig Storage
(OP)
Guys,
I might have an opportunity in the near future to buy an old/used/small rig for geotechnical investigation works.
At this time I don't own any company, I just work for a regular company. So thinking ahead, I was planning to store the rig in one of the parking lots of the many storage units that are available in USA. I though about this as I don't own any shop nor big house.
The storage unit representative told me that in order to proceed with this, I need to show her the rig insurance.
Again, since I don't have any company yet, I don't have any rig or commercial insurance.
My plan is buy the rig and store it for about 6 or 7 months, until I get all the pieces together to start running a company. I understand that the cost of the rig is a good opportunity to invest.
Someone told me about a "general liability policy", which might be enough to cover for the insurance of the rig but I have no clue how this works.
I know this is not the first time this happens to someone who wants to run a business in the future, unfortunately all the pieces don't fall in order or sequence to start operating, so I guess whenever an opportunity arises, I guess you need to take advantage of that.
Does anyone has any advice about this?
Please let me know,
I might have an opportunity in the near future to buy an old/used/small rig for geotechnical investigation works.
At this time I don't own any company, I just work for a regular company. So thinking ahead, I was planning to store the rig in one of the parking lots of the many storage units that are available in USA. I though about this as I don't own any shop nor big house.
The storage unit representative told me that in order to proceed with this, I need to show her the rig insurance.
Again, since I don't have any company yet, I don't have any rig or commercial insurance.
My plan is buy the rig and store it for about 6 or 7 months, until I get all the pieces together to start running a company. I understand that the cost of the rig is a good opportunity to invest.
Someone told me about a "general liability policy", which might be enough to cover for the insurance of the rig but I have no clue how this works.
I know this is not the first time this happens to someone who wants to run a business in the future, unfortunately all the pieces don't fall in order or sequence to start operating, so I guess whenever an opportunity arises, I guess you need to take advantage of that.
Does anyone has any advice about this?
Please let me know,





RE: Drill rig Storage
Since you don't have a business yet, you may have to purchase this as an individual. Not sure of the implications of doing it that way.
Mike Lambert
RE: Drill rig Storage
RE: Drill rig Storage
Thanks, I will do more research about the General liability insurance coverage being purchase as an individual. Hopefully they will understand that the rig will not be in use for XX months instead of suggesting me to get a "commercial policy" and requiring me to formally set up a business.
oldesguy, thanks for the heads up. Yes, in the parking spot I went to visit, there is enough room to account for the additional drilling tools.
Thanks again,
RE: Drill rig Storage
RE: Drill rig Storage
RE: Drill rig Storage
RE: Drill rig Storage
Decide if you want to be a driller or a geotechnical engineer as it may not be as nice at it may first seem to do all the work yourself.
RE: Drill rig Storage
RE: Drill rig Storage
If you go this route, insurance is not a big issue. You can get commercial general liability (CGL) as an individual or company. Since the drill rig is not a vehicle, it is classified as equipment so no big deal.
RE: Drill rig Storage
Yes, to own a drill rig is a big responsibility, I am aware of that. I have seen few family business owing drill rigs and at the beginning is some sort off learning curve, then later, things work as expected.
I was told with the "liability insurance" (for my purposes) is enough. Remember I mentioned my plan is to store the rig at parking spot of a storage unit (maybe a RV parking spot), for few months, until I get everything organized to start officially / legally.
Another insurance company told me if I get a "full coverage" insurance it will be way more expensive (obviously) than the liability insurance. Since the equipment will not be in use for a while, "full coverage" might not me necessary.
RE: Drill rig Storage
RE: Drill rig Storage
RE: Drill rig Storage
RE: Drill rig Storage
I do however, like having at least 1 drill crew.
RE: Drill rig Storage
As pointed out above, drilling is seldom a profit-center; it can be a foot-in-the-door to get a contract, and that's good. As a GeoTech Engineer, you have more of an appreciation for the data and the samples than the average driller who only cares about making as much footage ( and therefore, money) as he can, but isn't all that careful about logging in every change in strata.
Drill rigs live a harsh life, and require much maintenance. They even seem to break down when not in use. They will always break down in the most inconvenient location--usually in whatever standing water is on the site.
Drill rigs need to be running to make money. Trying to schedule one for part time use is difficult--you still have to keep your drilling crew profitable, somehow. Now, if that is just you and a tech, and you have other ways to be billable, then it might be OK.
Know the limitations of your equipment and abilities. 10'-15' holes are very different from 150' deep holes. A rig that can spin HSA in clay to 150' is much bigger than one that is best limited to 15' I know the Owners of the companies I worked for always stretched whatever I told them was the capability of the machines we had. If I said " Its a good rig for 15' holes", they'd bid 60' holes. When we got a larger rig that could handle the 60' holes, they immediately bid 100+ holes.
Also remember safety--you are responsible for the safety of yourself and everyone else around the rig. I beat up myself pretty good, but never got anyone else hurt.
Not trying to discourage you at all. It seems like you have an idea of a way to do your job, and serve your Clients better--that is commendable. Just do it with your eyes as wide open as possible.
RE: Drill rig Storage