Insurance for excavation contractors
Owners of excavation, concrete and paving, and site preparation businesses know that not everything they see is always clear. Whether digging up sites and foundations for new buildings, breaking concrete, or demolishing existing structures, trenching and excavation work is dangerous work that poses many risks including cave-ins, explosions, injuries, slips, trips, and falls, as well as property damage caused by your operations. Insurance for excavation contractors is necessary to protect your business from liability risks, lawsuits, and unexpected mishaps.
What is excavation contractor insurance?
Excavation contractor insurance is a tailored policy package that provides coverage for a broad range of liability risks and protection for your equipment and assets. Having the right type of policy can help your small business withstand unforeseen circumstances and provide financial support when you need it.
What does it cover?
Getting a comprehensive excavation contractors’ insurance policy that’s customized to your needs may include several types of insurance, including:
- Commercial General Liability (CGL) Insurance: Excavation sites create several hazards for the general public and could damage adjacent properties. That’s why CGL insurance is vital. It provides coverage for third-party bodily injury or property damage lawsuits. If you are sued, CGL pays for your legal defence, the financial outcome of a lawsuit, and an injured person’s medical expenses or damages to a nearby property. It may also include a completed operations component, whereby if someone is injured or property damage is discovered resulting from your work after you’ve completed the project, you are covered.
- Commercial Property Insurance: If you own your business’s commercial property, commercial property insurance provides financial support to replace or repair the property if it is damaged by an insured peril like a flood, fire, or severe weather, as well as vandalism and theft. It also covers the building’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care, control, or custody.
Other types of coverages you may wish to include to produce a well-rounded policy may involve:
- Tools and Equipment Insurance: This policy provides coverage to replace, or repair lost, stolen, or damaged equipment and tools, accessories, or others’ property in your care.
- Pollution Liability Insurance: Excavation work will have an impact on the environment, exposing you to environmental liability claims based on the nature of what you do. Pollution liability insurance covers clean-up costs, third-party bodily injuries (such as illnesses arising from your work), or damage to an adjacent property caused by pollution or toxic substances from the excavation site.
- Commercial Auto Insurance: Excavation companies typically have specialized vehicles that are considered mobile equipment, such as backhoes, bulldozers, tractors, and excavators. That means they also rely on heavy vehicles and trailers to transport these machines to various job sites driving on public roads and highways. Commercial auto insurance is essential to protect these vehicles as well as protect you from any resulting third-party bodily injuries or property damage that happens if one of your employees gets into an accident and is deemed at fault for it.
- Equipment Breakdown Insurance: Equipment breakdown coverage is designed to protect a wide range of machinery from an unexpected malfunction caused by electrical or mechanical failure.
Who needs it?
Business insurance is vital for excavation contractors regardless of the type of excavations they perform, including:
- Basement excavation
- Bridge excavation
- Channel excavation
- Cut and fill excavation
- Drainage and structure excavation
- Earth excavation
- Footing excavation
- Muck excavation
- Road excavation
- Rock excavation
- Topsoil excavation
- Trench excavation
- Underground excavation
How much does it cost?
The cost of an excavation business insurance policy depends on several factors, including:
- Your business’s size and location
- How many employees you have
- The types of excavation services you provide
- The types of excavation vehicles and machinery you have
- Years of experience
- Your annual and projected revenues
- How many previous insurance claims you have filed
Different insurers offer varying premiums based on these and other risk-related factors. That’s why it’s worthwhile to have a licensed broker shop around on your behalf and find a policy that suits your needs at an affordable price.
Common claims scenarios
Frequently asked questions
Other contractor trades we can provide coverage for: