Excavation Business Insurance
Contractors and businesses who work in excavation must have protection against possible lawsuits, temporary shutdowns, theft, and more.
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Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
The excavation contractor industry works primarily in excavation, grading, and demolition to prepare sites for new building construction. Jobs that fall under this umbrella include blasting, building demolition, foundation digging, concrete breaking and cutting for demolition, foundation drilling, dirt moving, and land clearing. If you're an independent excavation contractor or own a business in this industry, you need to protect your business’s financial interests with the right excavator insurance.
A local independent insurance agent can help you find all the excavation contractors insurance you need for yourself or your business. They'll make sure you get matched to the ideal amount of coverage. But first, here's more about excavation insurance and why it's necessary.
What Is Excavation Contractor Insurance?
Excavation contractor insurance is a special type of business insurance customized to meet the needs of workers and companies in this industry. Insurance for excavation businesses considers the unique exposures faced by the construction field, including possible lawsuits, theft of company equipment, and more. Without the right coverage, your excavation business could face hefty financial losses from which it's unable to recover.
Why Excavation Contractors Must Have Liability Insurance
Disasters caused by accidents at excavation job sites can be quite costly, so it's critical that your business is covered by the right types of liability insurance. Some of the key forms of liability insurance excavation businesses need include:
- Commercial general liability insurance: This covers your business against most instances of property damage or third-party injuries that can result in lawsuits.
- Employment practices liability insurance: This protects your business if a current or former employee sues it for a perceived illegal business practice, such as wrongful termination or discrimination.
- Commercial umbrella insurance: This increases the coverage limits of existing liability policies your business has to better protect it in case of a hefty lawsuit.
Without the right types of liability coverage, your excavation business insurance policy is not complete. Just one lawsuit could potentially bankrupt your business if it doesn't have adequate protection. An independent insurance agent can help you get covered by the right types and amounts of liability coverage.
Other Types of Insurance Needed by Excavation Contractors and Businesses
When working at an excavation job site, you have lots of machinery, tools, and other business property you need to insure against damage and theft. Fortunately, if you're doing excavation work in preparation for a new building construction, the top contractor will have most likely purchased a builders risk insurance policy. This policy covers business property on the job site for the duration of the contract.
Other types of coverage needed by excavation contractors include:
- Commercial auto insurance: Excavators typically have a large fleet of heavy machinery vehicles, such as dump trucks, backhoes, and 18-wheelers, to transport machinery to and from the job site. These business vehicles need protection against accidents, lawsuits, theft, and more.
- Workers' compensation insurance: This covers incidents of employee illnesses and injuries that happen due to job tasks or the work environment. Due to the hazardous nature of excavation contractor work, this coverage is critical and is often required by law.
- Inland marine insurance: This covers company tools, machinery, equipment, and other property while it's in transit between job sites. It protects company property against theft, damage, and destruction by listed perils such as fire or vandalism.
- Commercial property insurance: This covers company equipment, inventory, etc., against theft, destruction, or damage. Perils such as fire and lightning are covered.
- Business interruption insurance: This covers a business against temporary shutdowns caused by covered perils such as a fire or break-in. Coverage provides a continued stream of revenue and pays for certain other expenses, such as employee salaries and rent, during the shutdown.
Your independent insurance agent can help you build the right policy for your excavation business.
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Demolition Contractors May Need Extra Insurance
If your excavation contracting firm includes demolition as one of its services, safety factors play a big role in the required insurance coverage. Demolition creates numerous exposures for your business due to the increased risk of injuries and property damage to the public.
In many cases, injuries and property damage caused by demolition jobs may be specifically excluded by insurers under commercial general liability insurance. However, some insurance carriers may be willing to include demolition coverage provided the insured agrees to meet certain terms and conditions related to safety protocols.
If you need demolition insurance, your independent insurance agent can help you find insurance companies that are willing to provide it. Keep in mind, however, that job site and worker safety is critical, and failure to meet the safety protocols and conditions mandated by the insurance company can cause you to forfeit your coverage in the event of a tragic accident.
How Much Does Excavation Contractor Insurance Cost?
The average excavation insurance cost can be difficult to predict. That's because excavation insurance coverage costs can vary based on several different factors, including the exact operations and exposures unique to your business.
In general, the larger a company and the greater its risk level, the more expensive a policy is likely to be. However, an independent insurance agent can help provide you with more exact figures for small business excavation insurance costs and pull quotes from several different carriers for you.
An Independent Insurance Agent Can Help You Find the Right Excavation Contractor Insurance
Building a comprehensive excavation contractor insurance policy can be a complex process. Not only do you need to get all the right types of coverage, but you also need sufficient coverage limits to adequately protect your business from potentially large financial losses.
Independent insurance agents who are experienced with excavation and demolition contractor insurance can explain your coverage options and recommend suitable policies to cover various exposures. They'll shop and compare policies from numerous carriers for you to get you matched to the right policy for your excavation business.