Well Collapse

Hi all, first reddit post.

Location: New Hampshire, USA

Had our house constructed under a year ago. We went through a local contractor who did a fine job, and had several subs that did decent work.

As you can guess from the title, our 540' well collapsed right up to the casing set at 160'. The well was done as the very last step in construction and the sub had a difficult time getting enough water, and said the well composition was soft the entire way down. No further explanation or warnings. Less than a year after installing, and under regular use (shower once a day, regular bathroom use for a couple of people etc., and many many filter changes to the water filtration system) -our well collapsed.

The same sub came out, deemed it a total loss, and has been working for over 3 weeks between trying to recover the old well, picking a new site for the well, drilling a new 560+ft well to have it collapse while putting in plugs, running 300' of pipe, decommissioning the old well, etc. The end result is a new well that does function with 1 sheath plug, and one that blew up in the process of placing it, but 10gpm of water usable to the home.

Throughout the process there has been little mention of cost other than exclaiming how expensive the replacement well is, and only that they would "take care of us" but alluding to some form of expense incurred- since it sounds like the new well will be more expensive than the first. We also had a suggestion from our contractor that he would come and help with excavation and burying line, to which the well company said they would handle it. Our contractor ended up having to come out and smooth out the burying anyway.

Cost of previous well: about 25,000 Final invoice for new/replacement: 12,500

Things of note and questions:

It's our feeling that the first well shouldn't have failed under normal stress. Without much well knowledge, if they could have used a sheath in the first place, even if it was an entirely soft well, why didn't they?

We probably overpaid for the original well(?)

Is there any legal protection or obligation for the company to replace entirely at their expense?

I also checked with insurance and they are claiming it would not qualify as an expense that would be covered.

Would this at least be something to consult our local lawyer about, or do we just suck it up and pay out?

TYIA