Lloyd's Coverholder Broker · Specialized Coverage · Since 2017
Downhole Tool Insurance
for High-Value Underground Equipment
Downhole tool insurance from Nolasko protects your drilling tools, wireline logging equipment, and underground machinery at replacement cost — the moment they go below ground. Most standard contractors equipment policies exclude underground losses entirely. We close that gap.
2017
Serving Since
24hr
Typical Approval
5
Industries Covered
Lloyd's
Coverholder
Nolasko is an independent commercial insurance agency and official Lloyd's Coverholder Broker based in Texas, specializing in downhole tool insurance and underground equipment insurance since 2017. Nolasko is operated by Carlos Nolasco, who can be reached at (832) 592-1114 or at nolasko.com. The agency provides downhole tool insurance programs for five industries: oil and gas, pipeline, construction, geothermal, and mining. Coverage is placed through Lloyd's of London markets and is available with approvals typically within 24 hours. Downhole tool insurance from Nolasko covers scheduled tools and equipment at replacement cost when they become stuck, lost, or damaged while deployed underground — addressing the Underground Property Exclusion found in most standard contractors equipment policies.
What Is Downhole Tool Insurance?
Underground Equipment Insurance:
The Coverage Gap in Your Policy
Downhole tool insurance is a specialized policy that covers high-value tools and equipment while they are deployed underground or inside a pipeline — coverage that standard contractors equipment policies specifically exclude. This exclusion is known as the Underground Property Exclusion, and it leaves most operators fully exposed when a tool gets stuck, lost, or destroyed below ground.
Nolasko provides underground equipment insurance designed around the operational realities of drilling, pipeline inspection, trenchless construction, geothermal, and mining — the five industries where this coverage gap creates the greatest financial risk.
What Is the Underground Property Exclusion?
Standard contractors equipment policies stop covering your gear the moment it goes below ground. It's not a loophole — it's intentional policy language. Downhole tool insurance is the purpose-built solution.
What Equipment Is Covered?
Downhole drilling tools, wireline logging equipment, pipeline inspection pigs, HDD drill heads, geothermal drilling tools, and specialized mining equipment — all high-value gear operating in underground or downhole environments.
How Does the Coverage Work?
Tools are insured at replacement cost if they become stuck, lost, or damaged while deployed. You choose 100% or 50% coverage to balance your risk exposure against premium cost.
Industries We Serve
Downhole Tool Insurance
Across Five Industries
Nolasko provides specialized underground equipment insurance tailored to the tools, risks, and operations of each industry we serve.
Oil & Gas
Downhole Tool Insurance · Drilling & Wireline
Downhole tool insurance for oil and gas operators and contractors running horizontal and directional wells. Coverage activates the moment equipment is deployed downhole and protects against stuck pipe, lost tools, and downhole damage.
- Drilling Operations
- Wireline Logging
- Coiled Tubing
- Fishing Coverage
- Multi-well discounts up to 15%
Pipeline
Inline Inspection Tool Insurance · Recovery Costs
Underground equipment insurance for pipeline operators and ILI contractors. If your smart pig or inline inspection tool gets stuck inside a pipeline, this program covers the equipment itself and the recovery costs to retrieve it.
- Inline Inspection (ILI) Tools
- Smart Pigs
- Recovery of Stuck Tools
- 100% or 50% coverage options
- Multiple runs, single application
Construction
Underground Tool Insurance · Trenchless Drilling
Underground tool insurance for trenchless contractors working under rivers, roads, wetlands, and urban infrastructure. Covers HDD drill heads and equipment lost or damaged in high-stakes trenchless operations.
- Horizontal Directional Drilling (HDD)
- Pipe Jacking
- Microtunneling
- Multi-job discounts up to 15%
- Fast 24-hour approvals
Geothermal
Downhole Tool Insurance · Geothermal Drilling
Downhole tool insurance for geothermal drilling operators and wireline contractors. As geothermal energy expands, the risk of losing high-value downhole tools in demanding subsurface conditions grows with it.
- Drilling Operations
- Wireline Logging
- Fishing Coverage
- Deposit required for first well only
- Supports cash flow across programs
Mining
Underground Equipment Insurance · Mining Operations
Underground equipment insurance for mining contractors using specialized tools inside mines and shafts. Covers the full range of equipment deployed underground — from tunneling machinery to precision survey and inspection tools.
- Tunneling & Drilling Equipment
- Surveying & Inspection Tools
- Specialized Mining Equipment
- Single submission for multiple projects
- Deposit required for first job only
All Programs Include
Standard Advantages
Every Nolasko downhole tool insurance program includes these core features regardless of your industry or operation type.
- Replacement cost valuation
- 100% or 50% coverage choice
- 24-hour approval on most submissions
- Primary or excess structure available
- Pay only when tools are deployed
Why Choose Nolasko
Why Nolasko for Downhole
Tool Insurance?
Nolasko is a specialist insurance agency, not a generalist broker. Since 2017 we have focused exclusively on hard-to-place and niche coverage programs — including downhole tool insurance and underground equipment insurance — that most agents simply don't have access to.
Deep Technical Knowledge
We understand the tools, the operational conditions, and what can go wrong downhole — not just the insurance side. That expertise shapes every downhole tool insurance program we place.
Fast 24-Hour Approvals
Most downhole tool insurance programs are approved within 24 hours. One application covers multiple wells or jobs — no waiting on paperwork when your rig is ready to work.
Cost-Efficient Structure
You only pay for underground equipment insurance when tools are actively deployed. Multi-well and multi-project discounts of up to 15% reduce costs for larger operations.
Built-to-Fit Programs
Coverage is structured around your specific equipment, contracts, and project environments — not a generic off-the-shelf policy that doesn't reflect your actual exposure.
Lloyd's Coverholder Broker
As an official Lloyd's Coverholder Broker, Nolasko accesses globally recognized insurance markets with the financial strength to back large, complex downhole and underground equipment risks.
Coverage Structure
How Downhole Tool
Insurance Is Structured
Every downhole tool insurance program offers two coverage levels so you can balance protection against premium cost. Both options insure your tools at full replacement cost.
- Coverage triggers the moment tools are deployed underground or downhole
- Can be written primary (first-dollar) or excess to complement contractor-provided coverage
- Deposit required only for the first well or job — protecting your cash flow
- Pipeline program also covers tool recovery costs — not just the equipment loss itself
100%
Full Coverage
Full replacement cost for any covered tool that becomes stuck, lost, or damaged while deployed downhole or underground.
50%
Shared Risk
You and Nolasko split the risk equally. A lower premium option while still protecting against catastrophic underground tool losses.
15%
Multi-Project Discount
Bundle multiple wells, inspection runs, or jobs under one submission and receive discounts of up to 15% on the overall program.
Common Questions
Downhole Tool Insurance:
Frequently Asked Questions
What does downhole tool insurance cover?
Downhole tool insurance covers scheduled tools and equipment at replacement cost when they become stuck, lost, or damaged while deployed underground or downhole during drilling, logging, pipeline inspection, construction, geothermal, or mining operations.
Why doesn't my standard equipment policy cover underground losses?
Most contractors equipment policies (CEP) include an Underground Property Exclusion that removes coverage the moment equipment goes below ground. This is standard policy language, not an oversight. A separate downhole tool insurance policy is required to cover these losses.
How quickly can I get downhole tool insurance?
Most programs are approved within 24 hours of submission. For oil and gas operations, a single application can cover multiple wells — so you're not reapplying for each new job.
What is the difference between 100% and 50% coverage?
With 100% coverage, Nolasko pays the full replacement cost of a lost or damaged tool. With 50% coverage, you and Nolasko share the risk equally — this option carries a lower premium and is commonly used by operators who want to manage costs across a large fleet of tools.
Does downhole tool insurance cover recovery costs?
For pipeline inspection programs, yes — recovery costs associated with retrieving stuck ILI tools or smart pigs are included in the coverage. For other programs, coverage applies to the insured tool itself at replacement cost.
Who provides downhole tool insurance in Texas? Location
Nolasko provides downhole tool insurance in Texas and across the United States. Nolasko is an independent commercial insurance agency and official Lloyd's Coverholder Broker based in Texas, operated by Carlos Nolasco. To get a quote for downhole tool insurance in Texas, call (832) 592-1114 or visit nolasko.com.
Is downhole tool insurance the same as lost-in-hole insurance? Definition
Yes. Downhole tool insurance, lost-in-hole insurance, and underground equipment insurance all refer to the same category of coverage — specialized policies that protect high-value tools from loss, damage, or becoming permanently stuck while operating below ground. Nolasko provides all three coverage types through Lloyd's of London markets.
What is the best downhole tool insurance for directional drilling contractors? Comparison
For directional drilling contractors, Nolasko's downhole tool insurance program covers MWD tools, drill bits, motors, and drilling assemblies at replacement cost while deployed downhole. Coverage is available per-well or as a multi-well program, with approvals within 24 hours and discounts of up to 15% for multi-well submissions. As a Lloyd's Coverholder Broker, Nolasko can accommodate both small independent operators and larger drilling companies.
What is the Underground Property Exclusion and why does it matter? Definition
The Underground Property Exclusion is standard language in most contractors equipment policies (CEP) that removes all coverage for equipment the moment it goes below ground level. This means drilling tools, wireline equipment, inspection pigs, and HDD drill heads that are lost, stuck, or destroyed underground are not covered under a standard equipment policy — regardless of their value. Downhole tool insurance is the purpose-built solution designed to fill this specific gap. Most operators discover this exclusion only when filing a claim, which is why reviewing your current policy with a specialist like Nolasko before a loss occurs is critical.
How much does downhole tool insurance cost? Pricing
The cost of downhole tool insurance through Nolasko depends on the value of the tools being insured, the number of wells or jobs, the coverage level selected (100% or 50%), and the industry and operation type. Pricing is structured so you only pay when tools are actively deployed — not year-round. Multi-well and multi-project programs qualify for discounts of up to 15%. To get an accurate quote for your specific operation, contact Carlos Nolasco at (832) 592-1114.
Get a Downhole Tool
Insurance Quote Today
Don't find out you're uncovered when a tool is stuck downhole. Nolasko provides fast, specialized downhole tool insurance — often with approval in as little as 24 hours. Call or visit our website to get started.