Blasting And Drilling Contractors Insurance Policy Information
Blasting And Drilling Contractors Insurance. Whether you demolish buildings, build new infrastructure, or you provide any other services that involves blasting explosives, you have a lot of responsibilities on your shoulders.
Blasting contractors use a variety of explosives to break up rock for excavation and tunneling prior to construction or well drilling. Before blasting, the contractor assesses any adjacent structures for condition and control of the jobsite to protect persons and property.
Holes are bored into the rock and filled with explosive materials. While dynamite was previously the explosive of choice, ammonium nitrate/fuel oil (AFNO) is now used for most blasting projects. Once detonated, the rock collapses and the rubble is removed.
The process may need to be repeated, as not all unwanted rock may be broken up on the first explosion. Blasting contractors must be licensed, and typically, each individual project requires local or state approval as well.
Some blasting contractors handle implosion projects in which the explosive charges are placed so the structure collapses into itself for easier cleanup and removal.
Your line of work involves working with dangerous tools, heavy machinery, and falling objects; in other words, blasting explosives contractors are exposed to serious dangers.
If something goes wrong, you, your employees, and anyone who is in the general vicinity could at risk of serious injuries. In addition injuries, just like any other business owner, as a blasting explosives contractor, there are several other liabilities that you could face.
While always go the extra mile to ensure that you are using the highest quality tools and equipment and that you and your crew are taking all of the necessary precautions, you never know when something could go wrong.
In the event that a mistake does happen, you could be looking at some pretty steep expenses. To protect yourself, your employees, your clients, and anyone else that may be impacted by errors that are related to your business, investing in the right type of commercial insurance is an absolute must.
But what kind of blasting and drilling contractors coverages are needed? For more information, keep on reading.
Blasting and drilling contractors insurance protects your contracting business from lawsuits with rates as low as $117/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked blasting and explosives contractor insurance questions:
- What Is Blasting And Drilling Contractor Insurance?
- How Much Does Blasting And Drilling Contractor Insurance Cost?
- Why Do Blasting And Drilling Contractors Need Insurance?
- What Type Of Insurance Do Blasting And Drilling Contractors Need?
- What Does Blasting And Drilling Contractor Insurance Cover & Pay For?
What Is Blasting And Drilling Contractor Insurance?
Blasting and Drilling Contractor insurance is a type of insurance coverage designed specifically for contractors who engage in blasting and drilling operations. This insurance protects contractors against financial losses that may result from accidents, injury, property damage, or other liabilities associated with their work. Coverage may include general liability, workers' compensation, automobile liability, and other types of insurance specific to the blasting and drilling industry.
How Much Does Blasting And Drilling Contractor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for blasting and drilling contractors ranges from $117 to $149 per month based on location, size, revenue, claims history and more.
Why Do Blasting And Drilling Contractors Need Insurance?
As a blasting explosives contractor, you are liable for many of the same risks that business owners in all industries are responsible for; however, you are also liable for a number of risks that are unique to your particular industry.
An error could be made when you're demolishing a building and a third-party in the area could be injured. A piece of equipment could malfunction and an employee could suffer a work-related injury. A piece of heavy machinery that you use for your business could be damaged or stolen.
These are just a few examples of the types of incidents that could happen, and as the owner and operator of your business, you'll be held liable for any of the related costs; medical care, property damages, and even lawsuits, for example. In other words, you could be looking at some pretty significant expenses.
The risks that are associated with operating your blasting and explosives business can be exorbitant and there's a chance that you could be looking at serious financial losses, which is why investing in the right type of commercial insurance is so important.
If something unexpected goes wrong, instead of having to pay the related expenses out of your own pocket, you insurance company will cover the costs for you. In other words, blasting and drilling contractors insurance can help you avoid a devastating financial situation.
What Type Of Insurance Do Blasting And Drilling Contractors Need?
The specific type of coverage that you'll need depends on several factors, including where your business is located, the specific services you provide, whether or not you employee a staff, and the size of your business.
However, with that said, there are certain types of blasting and drilling contractors insurance coverage that all contractors working with explosives should carry, including:
- Commercial Property - This insurance covers the physical structure of your commercial property, as well as the contents within it from damages or losses that are caused by acts of nature, theft of vandalism. For example, if a fire were to break out in your facility, commercial property insurance would cover the cost of any repairs that may need to be made or items that need to be replaced.
- Commercial General Liability - This type of blasting and drilling contractors insurance coverage protects you from third-party claims regarding personal and physical injuries, as well as property damages. It will cover your legal defense fees, as well as any compensation that a court may find you liable for.
- Workers Compensation - This type of insurance will cover the costs that are related to any work-related injuries or illnesses that your employees may suffer; for instance, if one of your employees sustains an on-the-job injury, workers' comp will cover their medical care and will reimburse them from wages that may be lost if they are unable to work while recovering from said injury.
The above are just a few of the different types of blasting and drilling contractors insurance coverage that are needed with contractors using explosives.
For more information and to find out how to properly protect your business, speak with an experienced commercial insurance agent.
Blasting And Drilling Contractors' Risks & Exposures
Premises liability exposures are severe, both at the contractor's premises where explosives are stored and at any site using blasting material. Lack of proper storage on premises or improperly set explosives at the job site may result in severe bodily injury, loss of life, and major structural damage, either directly or by shock waves.
The noise from detonation may result in serious hearing impairment. The job site must be carefully evaluated before any procedure takes place, including a condition survey of neighboring structures. Occupants of buildings within the blasting area must be evacuated prior to detonation. Blasting operations may attract crowds of onlookers.
Extraordinary measures must be taken to prevent the entry of unauthorized persons to the insured's premises or job site, as explosives are highly attractive to thieves and terrorists. To control access to the job site, the contractor may employ spotters or guards, install gates and barbed wire, post signs, or contact occupants of adjacent properties directly.
Equipment and piles of rubble at job sites present attractive nuisance hazards. All equipment must be disabled when not in operation to prevent untrained individuals from using it. Fencing must be in place with appropriate warning signs to prevent trespassing. Security guards should be provided as necessary.
Personal injury exposures include assault and battery and invasion of privacy. Background checks should be conducted for any employee who will have regular contact with customers.
Completed operations exposures may be limited in barren unoccupied areas. If there are neighboring buildings or residences, claims may be brought for latent or cumulative structural damage that may not appear until long after the explosives have been detonated.
Environmental impairment liability exposures are high from the storage, use, and disposal of explosives and resulting debris from demolition projects. The release of dust or methane gases may impair air quality.
Spillage or leakage of pollutants can result in high cleanup costs and fines. The contractor must comply with all federal, state, and municipal requirements. Proper written procedures and documentation of both the transportation and disposal process is important.
Workers compensation exposure is severe due to the handling and use of explosives. An unplanned detonation can result in severe injury or death to multiple workers from fire, explosion, crushing, or suffocation. Injury or death can occur from falls from ladders or scaffolds, being struck by falling objects, or an attempted robbery.
Common hazards include slips and falls, foreign objects in the eye, hearing impairment from noise, cuts and puncture wounds from drilling, bites from insects or vermin, exposure to pollutants and weather conditions, concussions from blasting operations, and back injuries from lifting or working from awkward positions, or auto accidents during transport to and from job sites.
As operations are often conducted in remote areas, it may be difficult to transport an injured worker to a medical facility to receive prompt treatment. Dust from explosions can result in respiratory problems.
The absence of good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, safety belts, steel-toed shoes, as well as hearing and eye protection, and strict enforcement of safety practices may indicate a morale hazard.
Property exposures at the contractor's office may be very high. The exposure is reduced if the contractor stores only the fuses, detonating devices, and other equipment such as fencing and other items needed for job site control. If explosives are stored on premises, a severe loss may occur from explosion and fire unless there are superior controls on inventory and access to the explosives' storage areas.
Storage must be in accordance with all state and federal regulations. Local fire departments must be notified and a plan of control and evacuation should be in place. Explosives are target items for thieves and terrorists. Appropriate security measures must be in place including alarms, lighting, and physical barriers to prevent unauthorized access.
Inland marine exposures include accounts receivable if the contractor bills customers for services, computers, contractors' equipment, goods in transit, and valuable papers and records for blasting, customers' and vendors' information. Backup copies of all data should be stored off premises.
A variety of drilling equipment is necessary to set the explosives. The insured may own materials used to set up fences and blockades. If the contractor is responsible for removal of the debris, heavy equipment may be needed, such as front-end loaders. Any type of equipment may be damaged or destroyed by rock. land, or mudslides during blasting operations.
When job sites are in rural areas or on uneven ground, collision or overturn can occur. Equipment, machinery, tools or supplies left at job sites may be susceptible to theft and vandalism. Equipment should be secured and rendered inoperable when not in use.
Detonating devices, as well as explosives, may be a target for thieves or terrorists. Contractors may lease, rent or borrow equipment, or may lease out, rent or loan their owned equipment to others, which poses additional risk as the operator may be unfamiliar with operation of the borrowed item.
Crime exposure is from employee dishonesty. Background checks, including clearance from the ATF or Homeland Security, should be conducted prior to hiring any employee. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. A procedure must be in place to monitor who has access to the explosives and to record all activities. All items should be physically inventoried on a regular basis to prevent theft.
Business auto exposures are high. While workers, equipment, and supplies are regularly transported to and from job sites, the transport of explosives demands extreme care by drivers due to the potential for fire, explosion, collision, overturn, and theft. Drivers should have Haz Mat licenses and be fully aware of dangers involved with transporting explosives in populated areas.
The absence of detailed training and procedures in the event of overturn or spill may indicate a serious morale hazard. All drivers must have appropriate licenses and acceptable MVRs. Random drug and alcohol testing should be conducted. Vehicles must be maintained and the records kept in a central location.
What Does Blasting And Drilling Contractor Insurance Cover & Pay For?
Blasting and drilling contractors may face a range of lawsuits due to the nature of their work, which involves the use of explosives, heavy machinery, and other hazardous equipment. Some common reasons why these contractors may be sued include:
Property Damage - Blasting and drilling contractors may cause unintended damage to the surrounding property or structures during their work. For example, if a contractor accidentally damages a neighboring building while conducting blasting operations, they may face a lawsuit from the property owner.
Insurance protection: A contractor's liability insurance policy can help cover the costs of property damage claims. The policy may cover the cost of repairs or replacement of damaged property, as well as legal fees and court costs associated with the lawsuit.
Personal Injury - Blasting and drilling work can be dangerous, and accidents may occur that result in injuries to workers or bystanders. For example, a worker may be injured by an explosion, or a pedestrian may be hit by falling debris.
Insurance protection: A contractor's liability insurance policy may also provide coverage for bodily injury claims. This may include payment for medical expenses, lost wages, and pain and suffering. In addition, the policy may cover the cost of defending against the lawsuit.
Environmental Damage - Blasting and drilling work can have a significant impact on the environment. Contractors may be sued for violating environmental laws or causing pollution, such as groundwater contamination or air pollution.
Insurance protection: A contractor's environmental liability insurance policy can help cover the costs of environmental damage claims. The policy may cover the cost of cleanup and restoration efforts, as well as legal fees and court costs associated with the lawsuit.
Contract Disputes - Blasting and drilling contractors may also face lawsuits related to contract disputes. For example, a client may claim that the contractor failed to meet the terms of the contract, resulting in financial losses.
Insurance protection: A contractor's professional liability insurance policy can provide coverage for contract dispute lawsuits. The policy may cover the cost of damages awarded to the client, as well as legal fees and court costs associated with the lawsuit.
In summary, insurance can play a critical role in protecting blasting and drilling contractors from the financial impact of lawsuits. Depending on the specific coverage, insurance can help pay for property damage, bodily injury, environmental damage, and contract dispute claims. It's essential for contractors to have the appropriate insurance policies in place to mitigate their risks and protect their business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1629 Heavy Construction, Not Elsewhere Classified
- NAICS CODE: 238910 Site Preparation Contractors
- Suggested Workers Compensation Code(s): 4777 Explosives Distributors & Drivers, 6217 Excavation & Drivers
Description for 1629: Heavy Construction, Not Elsewhere Classified
Division C: Construction | Major Group 16: Heavy Construction Other Than Building Construction Contractors | Industry Group 162: Heavy Construction, Except Highway And Street
1629 Heavy Construction, Not Elsewhere Classified: General and special trade contractors primarily engaged in the construction of heavy projects, not elsewhere classified.
- Athletic field construction-general contractors
- Blasting, except building demolition-contractors
- Breakwater construction-general contractors
- Bridle path construction-general contractors
- Brush clearing or cutting-contractors
- Caisson drilling-contractors
- Canal construction-general contractors
- Central station construction-general contractors
- Channel construction-general contractors
- Channel cutoff construction-general contractors
- Chemical complex or facilities construction-general contractors
- Clearing of land-general contractors
- Cofferdam construction-general contractors
- Coke oven construction-general contractors
- Cutting right-of-way-general contractors
- Dam construction-general contractors
- Dike construction-general contractors
- Discharging station construction, mine-general contractors
- Dock construction-general contractors
- Drainage project construction-general contractors
- Dredging-general contractors
- Earth moving, not connected with building construction-general
- Flood control project construction-general contractors
- Furnace construction for industrial plants-general contractors
- Golf course construction-general contractors
- Harbor construction-general contractors
- Hydroelectric plant construction-general contractors
- Industrial incinerator construction-general contractors
- Industrial plant appurtenance construction-general contractors
- Irrigation projects construction-general contractors
- Jetty construction-general contractors
- Kiln construction-general contractors
- Land clearing-contractors
- Land drainage-contractors
- Land leveling (irrigation)-contractors
- Land reclamation-contractors
- Levee construction-general contractors
- Light and power plant construction-general contractors
- Loading station construction, mine-general contractors
- Lock and waterway construction-general contractors
- Marine construction-general contractors
- Mine loading and discharging station construction-general contractors
- Mining appurtenance construction-general contractors
- Missile facilities construction-general contractors
- Nuclear reactor containment structure construction-general contractors
- Oil refinery construction-general contractors
- Oven construction for industrial plants-general contractors
- Oven construction, bakers'-general contractors
- Petrochemical plant construction-general contractors
- Petroleum refinery construction-general contractors
- Pier construction-general contractors
- Pile driving-contractors
- Pond construction-general contractors
- Power plant construction-general contractors
- Railroad construction-general contractors
- Railway roadbed construction-general contractors
- Reclamation projects construction-general contractors
- Reservoir construction-general contractors
- Revetment construction-general contractors
- Rock removal, underwater-contractors
- Sewage treatment plant construction-general contractors
- Ski tow erection-general contractors
- Soil compacting service-contractors
- Submarine rock removal-general contractors
- Subway construction-general contractors
- Tennis court construction, outdoor-general contractors
- Timber removal, underwater-contractors
- Tipple construction-general contractors
- Trail building-general contractors
- Trailer camp construction-general contractors
- Washeries construction, mining-general contractors
- Waste disposal plant construction-general contractors
- Water power project construction-general contractors
- Water treatment plant construction-general contractors
- Waterway construction-general contractors
- Wharf construction-general contractors
Blasting And Drilling Contractors Insurance - The Bottom Line
To discover the specific types of blasting and drilling contractors insurance policies you'll need, and how much coverage you have along with associated costs - speak with an experienced broker that is experienced in commercial insurance.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Blasting & Drilling Contractors
- Bridge Contractors
- Building Contractors
- Cable Layers
- Demolition Contractors
- Dock & Pier Contractors
- Dredging Contractors
- Foundation Layers
- General Contractors
- Road Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
The construction industry is a high-risk industry that requires business insurance to protect against potential losses. There are several reasons why the construction industry needs business insurance:
Liability risks: Construction projects often involve working on other people's property, which can lead to potential liability risks if any damages or accidents occur. Liability insurance helps to protect against these risks by providing coverage for any legal fees or damages that may arise.
Property damage: Construction projects can also be at risk for property damage, whether it's the company's own equipment or tools, or the property being worked on. Commercial property insurance including inland marine helps to cover the cost of repairs or replacement of any damaged property.
Worker injuries: Construction is a physically demanding industry, and accidents and injuries are a common occurrence. Wrokers comp helps to cover the cost of medical treatment and lost wages for injured workers.
Financial losses: Construction projects can be disrupted by a variety of factors, such as weather, delays, or changes in scope. Business insurance helps to protect against financial losses that may occur as a result of these disruptions.
Overall, insurance is an essential component of the construction industry as it helps to protect against a range of potential risks and losses. Without it, companies in the construction industry would be vulnerable to financial ruin and may not be able to continue operating.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).