Excavation Contractors Insurance

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Excavation contractors Risks

As an excavation contractor, you face liability risks each time you begin a job of moving the earth on a construction site. These include risks associated with proper soil compaction, unforeseen sub-surface conditions, and grading for water runoff. You also face exposure to direct damage to your heavy equipment, such as a trench collapse causing equipment to fall into the trench. There are also major risks associated with equipment operator error, hitting underground utilities that can be disastrous.

Further, people or property can be caught in or under heavy materials and equipment causing major damage. Excavators need to grade job sites, dig trenches, run underground piping and cabling and assist in the installation of foundations. This requires the operation of heavy equipment that allows you to move dirt safely and efficiently. Having Heavy Equipment Operators Insurance is necessary for these situations to protect your business from potential claims

 Type of Excavation work we Insure

We can provide Excavation Contractor Insurance for excavators who perform the following work plus many more:

• Excavation work
• Foundation digging
• Grading of land
• Trenching
• Dyke and Levee construction
• Soil erosion projects

Why do you need Excavation Contractors insurance?

Excavators are a vital part of many construction sites. Excavation at a job site can lead to many circumstances that can expose you to a considerable risk of loss. The only way to safeguard against huge financial losses in the event of an accident is through effective excavator insurance.

What Insurance Does An Excavation Contractor Need?

General Liability Insurance For Excavation Contractor

This covers many of the possible situations you face as an Excavation Contractor. It covers property damage and injuries you may cause to third parties while you are doing earthmoving work. Since most of your work is going to come from general contractors they require that you carry at least a certain amount of liability coverage.

 Before they let you on the job site they will require you to name them as an additional insured on your policy for the duration of the job. With the many unknown risks faced when excavating a site it would be foolish to operate without the proper General Liability Insurance for Heavy Equipment Operators.

Commercial Property

This type of coverage protects the property that your excavating, grading or earth moving business has if you operate out of a physical location. If you have a physical location you should have this coverage. It covers losses to the physical structure and any equipment or machinery stored there.

Commercial  Auto

Your personal auto insurance policy will cover any vehicles that are used in your business. This even include your personal vehicle if you are using it for business. If you use trucks, vans, or any other vehicles for your Excavation contracting business, you will need to purchase commercial auto insurance. 

Worker’s Compensation

If you have any employees you will also need to carry workers’ compensation insurance. This is the law in almost every State. This type of policy covers and work-related injuries or illnesses that your employees may sustain.

• Will pay for any related medical expenses.
• It will also cover the wages he lost during recovery.
• It can also help to pay for any training he might need for a new job if he is unable to return to work as a result of her work-related injuries.
•  It can assist with legal defense fees, should the employee take legal action.
•  It will also prevent you be fined large amounts for failure to have Worker’s Compensation.

Inland Marine Coverage

Inland marine insurance is coverage that covers your equipment while at the job site or in transit. For example, an Excavator Contractors Insurance inland marine policy will cover theft of skid steers and other equipment from a job site. Because Excavating Contractors and Earth Moving Contractors work off-site, inland marine coverage is essential. Excavating and Earth Moving businesses usually purchase inland marine insurance to cover their expensive and vital equipment.

Surety Bonds

At FarmerBrown.Com we can handle all your bond needs quickly and hassle-free. There are 2 main situations that Excavation  Contractors will need bonds:

• License and Permit Bonds

  Many Cities will require you to obtain a bond before a permit or license will be issued. This is especially true when you are excavating or digging in a public way;

• Payment and Performance Bonds

  General Contractors or Property owners may require that you obtain these bonds before you start a large project. These bonds guarantee that you perform the work as contracted If your credit is above 700 these are relatively easy to get for jobs under $400,000. The cost is 3% of the contract price.

How Much Does General Liability Insurance For Excavation Contractors Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small Excavation Contractors Ranges from $83 to $127 per month based on where the business is located, size, payroll, sales, how many years experience and any prior losses. These numbers are just a ballpark quote. 

How do you Get Insurance Policy?

Our primary goal at FarmerBrown.com is to provide you with the most cost-effective and comprehensive excavation insurance policy possible. We are well aware of the complex challenges faced by contractors seeking to obtain excavator’s insurance to cover their business. Our mission at FarmerBrown.com is to provide you a unique, targeted solution for your contracting business.

We offer a comprehensive range of insurance policies that are specific to the excavation industry. We offer your business a choice from the high costs, poor coverage, and substandard service that is associated with many insurers. Our team consists of industry experts capable of guaranteeing you the most prompt, efficient, and comprehensive service your Excavation Contracting business deserves.

Heavy Equipment Insurance

Excavation contractors are routinely required to operate heavy equipment that might be prone to malfunction or be damaged on a construction site.

Operational risks include, but are not limited to:

• Equipment crashes/malfunctions.
• Fire.
• Rain damage.
• Lightning damage.
• Theft.
• Engine failure.
• And many more.

Damage that might result from unexpected operational accidents can cause a significant financial loss to your business; make sure you have the proper coverage. For this reason, Farmer Brown offers additional policies for excavators to insure the usage of and risks involved with heavy equipment. At a minimum, heavy equipment insurance covers the repair and replacement costs for damaged or stolen excavators, cranes, forklifts, bulldozers, and backhoe loaders among other types of machinery.

The machinery required for excavation work is, by nature, prone to damage from malfunction, weather-related events, and user error. Additionally, theft of heavy equipment can occur as the machinery is often left on worksites unsupervised. The cost of repairing this type of machinery is quite expensive, and the replacement costs even more so. By purchasing a heavy equipment insurance policy with sufficient coverage, you are assured years of usage from your machinery and many savings in the event of damages or theft.

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