Excavation Liability Insurance - Coverage and Cost 2020

General Liability Insurance for Excavation and Grading Contractor

Excavation Liability Insurance provides coverage and protection for the most common excavation and grading risk. Excavation Liability Insurance is otherwise known as Excavation Contractor Insurance. If you have an excavation business, you must have an adequate insurance policy to protect you and your employees. Moreover, your job as an excavation contractor can be physically demanding and dangerous.  


The risks you face as you work with heavy equipment cause you substantial financial loss if an accident occurs. Also, excavation works such as trenching and hitting underground utilities could put you at risk. The good news is that there is specifically designed General Liability Insurance for excavation contractors.

Excavation Liability Insurance

Additional Things to Factors Affecting Excavation Liability Insurance Costs

There are factors that affect the cost of your insurance. For Excavation Insurance, costs vary depending on the business’s location, size, payroll, sales, and years of experience. 


The type of your business as well as the level of risks you have affect your general liability costs. Apparently, excavation businesses are high risk of client injuries and property damages. Businesses with high risk activities normally pay more for general liability coverage than those with low risk activities.


In addition, if you need to hire subcontractors, you may want to ask them to mention you as additional insured in their policy. If you do so, your insurance company can consider them as insured subcontractors. This will cause your insurance premium to decrease.

Additional Things to Consider

Consider having a Certificate of Insurance for your company. This document is usually the first document that clients ask before letting contractors do their job. It is essential because it gives clients assurance that your business is insured.


One more thing to consider is that lent and borrowed machinery’s scope changes vastly between policies and insurers. In case you’re lending your equipment, it is important that you affirm with your insurance company that third party liability is included in your heavy equipment insurance coverage. In case you regularly lend heavy equipment to other contractors, buying a support bundle will secure your machinery. 


Suppose you’re borrowing machinery from another excavation company. In that case, it is similarly imperative to affirm that the contractor who claims the machine has third party liability coverage with their heavy equipment insurance policy.

Excavation Liability Insurance

Additional Insurance Coverage

Repairs, replacements, and medical fees can be quite expensive. For this reason, general contractors highly suggest that their subcontractors should have their insurance. Here are additional types of insurance that excavators need.

Workers’ Compensation Insurance

Every state almost requires the Workers’ Compensation Insurance, also known as Worker’s Comp. This type of insurance compensates for the lost wages of injured employees as well as their medical fees. 


For example, if one of your workers falls into a hole and injures his arm, Workers’ Comp Insurance helps you save money on your worker’s medical fees. It also compensates for the salary he loses while on recovery. Moreover, it helps pay for training the worker might need if he is unable to go back to work. 


If the worker decides to sue you, Workers’ Compensation Insurance will assist in your legal defense. Either your employee is a general contractor, carpenter, electrician, or so, Workers’ Compensation gets them covered.

Commercial Auto Insurance

It’s a smart decision to buy Commercial Auto Insurance if your excavation business uses vehicles like trucks or pick-ups. Commercial Auto protects if you or your employee injures another person while on the road for business operation. 


It also covers damages to other vehicles for which you are at fault. Aside from that, commercial auto provides financial assistance for medical expenses of third party injuries. It also includes replacements for items lost due to theft.

Umbrella Insurance Coverage

Your regular insurance policies may not be enough to cover damages or serious injuries while on the job site. Umbrella Insurance provides more protection over your business assets as you buy extra liability insurance coverage. It extends its coverage to additional insured groups or individuals.  

Business Insurance

Business Insurance helps protect you or your business when you face lawsuits. If you’re a business owner, obtaining Business Owners’ Policy can protect you from bodily injury or property damage claims. Apart from that, it assists with professional errors. 

As a business owner, you’re the one responsible to settle the fees for the covered losses. Without Business Insurance, you’ll need to cover the payments of the damages out of pocket.

Commercial Property Insurance

Commercial Property Insurance protects your business properties. It covers damages in any machine or equipment stored inside your physical location. 


Excavation equipment can be expensive. Thus, it is just wise to ensure that your equipment has the right coverage. Commercial Property helps you save a big chunk of money from your business assets.

Inland Marine Coverage

Inland Marine Coverage protects your properties while on the job site or in transit. Inland Marine is essential for contractors who work off-site. This coverage can save your finances from spending on replacements or repairs of your heavy or vital equipment. 

Most of the time, it is a requirement for excavation business owners to include coverage for their employees’ injuries. Most excavation owners hire subcontractors to avoid this requirement. This is because subcontractors who have their own insurance include workers’ comp in their policies. Thus, the agreement between excavation owners and subcontractors must be checked to find out if workers’ comp coverage is needed.

Get the right coverage for Excavation Liability Insurance

The primary job of contractors is excavation, grading, and demolition. But no matter what type of job a contractor does, it is always best to be extra careful. Purchasing coverage for your excavation is a smart decision, given that every comprehensive range of jobs come with significant risks. Here is a list of the most common coverage for excavation contractors.

Property Damage Coverage

Property Damage Coverage pays for repairs or legal fees when an excavator damages the clients’ or neighbors’ property. For example, an excavator hit a water pipe underground or a neighboring fence by accident. This type of insurance ensures the replacement and lawsuits if the neighbors decide to file a case against you.

Medical Payments Coverage

Medical Payments Coverage provides funds for the medical fees of injuries caused by excavation or grading. It also helps pay for lawsuit expenses if the person injured files a case against you. For example, an excavator unintentionally injures a bystander passing by the construction site. If the bystander decides to sue you, you could end up paying not only for medical fees but also legal costs.

Products and Completed Operations Coverage

It protects your business or your business property when your finished work causes damages because of inadequate handiwork. For example, a handyman installed a new pipe for a company’s piping system. After one week, the pipe leaked, and it harmed the whole piping system. Products and completed operations can protect the handyman from claims because of inadequate handiwork.

Overall, buying your Excavation Liability Insurance is a smart decision to help protect your business. Having an insurance company as your partner in your business would help you save money from immense financial losses. 


With heavy equipment or materials you work with each day, Excavation Liability Insurance can make your job lighter. Having you and your employees protected gives peace to your excavation business. 


If you’re ready, you can speak to an insurance agent if you want to know how much coverage you need. Contact one of our insurance experts to get the best quote for you. For immediate assistance, call 0123-456-789.