Excavation Insurance

Excavation contractors operate heavy machinery and equipment every day, and as a result, they are exposed to a great level of risk that can cause bodily injuries, damage to customer property, and more.

To protect your excavation business, you should take out excavation insurance. This way, no matter the accident at hand, your business will be freed from any financial liability.

Excavation contractors need insurance because they are exposed to a great level of risk on a daily basis that can result in hefty claims and lawsuits. Heavy machinery and equipment can cause bodily injuries, damage to customer property, and more. By taking out excavation contractor insurance, your business will be freed from any financial liability in the event of an accident.

For example, if you are working on a project for a high-profile company and one of your employees gets injured during the course of his or her work, this could be very unfortunate and land you in a financial mess resulting not only from your employee's claim but also from your client in case there are any delays with the project.

When you have excavation insurance, your business will be fully covered no matter what happens.

In other cases, excavation contractors are simply required by the state they operate out of to have excavation contractors insurance before they can legally trade. Either way, having insurance is a great way to protect your business no matter whether it's required by law or not.

Excavation contractors need different types of insurance depending on their specific needs. In the majority of cases, the level of insurance excavation contractors opt-in for depends on the size of the company, the value of tools and equipment the business owns, the number of people the business employs, the state the business operates out of, and more.

For a more detailed breakdown of the most recommended insurance policies for excavation contractors, please take a look below.
 

The premium that excavation contractors will be expected to pay varies from business to business.

But, generally speaking, you can expect to pay around $70 per month on general liability insurance, which will add up to around $825 per year. Such policy will cover you from any third-party claims including property damage and bodily injuries.

If you have employees, you can expect to pay around $270 per month or $3,240 per year for worker’s compensation insurance. This policy will cover your employees in case they are in an accident while at work. It will cover their medical bills, lost wages, rehabilitation, and more.

If the business owns company cars, commercial auto insurance costs approximately $150 per month or around $1,800 per year. This policy will protect the vehicle, the staff inside, and any third party that is involved in the accident.

Contractor's tools and equipment insurance is fairly affordable and shouldn't cost you more than $15 to $20 per month. This policy will cover your tools and equipment in case they get lost or stolen.

And lastly, for professional liability insurance, which is also known as errors and omissions insurance, you shouldn't be paying more than $100 per month or $1,200 per year. E&O policies provide coverage for legal fees related to professional mistakes and accusations of negligence.

Excavation insurance claims can vary greatly in terms of the severity of the incident and the damages that are claimed. However, there are some incidents that are more common than others.

For example, one of the most common excavation insurance claims is for employees who get injured while on the job. This could be from a machine malfunctioning or from a slip and fall.

Another common excavation insurance claim is for damage to customer property. This could be from a machine crashing into a car or building, or from something else that goes wrong during the course of the project.

In other more rare cases, excavation contractors also claim for:

• Payment disputes with clients
• Commercial auto accidents
• Lost or stolen tools and equipment