Dredging Contractors Insurance Policy Information
Dredging Contractors Insurance. Dredging contractors remove accumulated sand, silt, mud, sediment, and other materials from the bottom of a waterway. Dredging must be done on a routine basis to maintain the water's depth or increase a channel's width or depth to allow larger vessels to navigate it and access its docks and piers.
Dredging can also be done to remove contaminants from sediments deposited by industrial discharges or urban sewer overflows that can impact fish and wildlife. Disposal of sludge removed by dredging is regulated by the U.S. Army Corp of Engineers and the Environmental Protection Agency (EPA).
Underwater sediment can be removed either by suctioning it out in pipes or scooping it out in buckets.
In addition, dredging can play a vital role in maintaining the health of underwater wildlife populations.
Since this type of excavation is primarily performed underwater, dredging contractors will rely on valuable and specialized equipment such as water injection dredgers and suction dredgers. While there is no doubt that dredging provides an important economic as well as environmental purpose, dredging contractors face a number of risks.
How should they protect their financial future? Because having the right dredging contractors insurance is a key part of risk management, it is essential for firms in this industry to carefully evaluate their needs. To learn more, read on.
Why is insurance important for dredging contractors? What type of coverage do you need? Below, you'll find the answers to these questions and more so that you can make sure that you, your employees, the people that you serve - and your business as a whole - are properly protected.
Dredging contractors insurance protects your contracting business from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked dredging contractors insurance questions:
- What Is Dredging Contractors Insurance?
- How Much Does Dredging Contractors Insurance Cost?
- Why Do Dredging Contractors Need Insurance?
- What Type Of Insurance Do Dredging Contractors Need?
- What Does Dredging Contractors Insurance Cover & Pay For?
What Is Dredging Contractors Insurance?
Dredging Contractors Insurance is a type of insurance that is specifically designed to protect the interests of dredging contractors and their businesses.
This insurance provides coverage for a wide range of risks associated with dredging activities, including property damage, liability, and pollution. The policy covers contractors against financial losses from damages to equipment, damage to the environment, injury to workers, and claims from third parties for any losses incurred as a result of their dredging activities.
It is a crucial insurance policy for dredging contractors as it helps them minimize their financial losses and ensure the safety of their employees and equipment.
How Much Does Dredging Contractors Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small dredging contracting businesses ranges from $87 to $129 per month based on location, scope and size of project, revenue, claims history and more.
Why Do Dredging Contractors Need Insurance?
While dredging contractors are always prepared for a broad variety of different dredging operations, these businesses are exposed to an equally wide spectrum of hazards. Dredging contractors will face some of the same risks as any other commercial venture, as well as some unique to the maritime sector.
Your office space could be struck by an act of nature, such as a wildfire or earthquake, ravaging your building and important physical assets inside it. Dredgers might suddenly need to be repaired or replaced, causing costs on two fronts - not only will new equipment or fixes carry significant expenses, you'll also face business interruptions. In any company, (cyber) theft and vandalism pose threats.
In addition, a worker could become injured on the job. Even if you follow health and safety regulations to the letter, it is possible that your dredging operations could cause damage to the infrastructure for which you will be sued.
As you can imagine, some perils carry expenses of such a magnitude that they have the potential to sink your business. By carrying dredging contractors insurance, a business not only meets its legal obligations, it also ensures that the business has a significantly better chance of recovering even if it comes face to face with disastrous, unplanned, and unexpected circumstances.
What Type Of Insurance Do Dredging Contractors Need?
To optimally protect a dredging business, it is vital to carry several types of insurance. The precise types of coverage that best suit your needs depend on factors like the size and scope of your operation, the locations where you carry out work, the nature of the equipment you use, and your number of employees.
Because every dredging contractor will have unique circumstances, talking to a skilled commercial insurance broker is an inescapable part of obtaining the right insurance. With that in mind, the following are key examples of the kinds of dredging contractors insurance coverage that are usually required:
- Commercial Property - This important type of coverage will protect your commercial office space and its contents. If perils such as acts of nature, theft, and vandalism cause damage or loss, a significant portion of the costs will be taken care of.
- Commercial General Liability - Designed to help you cover your legal costs - ranging from attorney fees to settlement payouts - if a third party sues you alleging that you contributed to bodily injury or property damage, this form of dredging contractors insurance is key for any commercial venture. It would apply to scenarios such as someone slipping on a wet floor in your office, or your company accidentally damaging a vehicle during a dredging operation.
- Environmental Liability - Dredging contractors will also need to carry environmental liability coverage, in case of accusations that their business was responsible for causing damage to the environment.
- Workers Compensation - While health and safety regulations greatly improve the safety of workers during dredging operations, both drowning and injuries remain possible. Carrying workers comp makes sure that an employee's medical bills and any lost wages are covered, while it also covers death benefits in worst-case scenarios.
Investing in these key types of insurance will get your dredging business a lot closer to financial safety even if something were to go wrong. Be aware, however, that you may have additional dredging contractors insurance needs, in the form of equipment breakdown insurance, crime insurance, or commercial auto insurance, for example.
Discuss your individual circumstances with a commercial insurance broker to get more detailed insights.
Dredging Contractors' Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access.
Outdoor storage of materials and equipment may create vandalism and attractive nuisance hazards. Off-site exposures are extensive. Digging and other operations pose numerous hazards, especially if the contractor exercises inadequate control of the area. The public or employees of other contractors can be injured due to trips and falls over debris or equipment, be struck by falling objects, or drown.
Dredging can result in damage to underground lines or pipes, damaging property of the utility company, and disrupting operations of neighboring properties. Contractors should verify the location of other utility lines prior to dredging. Improper signage or barricading could result in a vehicle or watercraft collision and loss of life.
Dredging sites create an attractive nuisance hazard, especially if work is close to residential areas. All equipment must be disabled when not in operation to prevent untrained individuals from using it.
Dredging in an area with existing structures requires extra vigilance to prevent foundation and structural damage to nearby buildings.
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.
Environmental impairment exposure can be high if the contractor is removing contaminated materials due to the potential for air, land, and water pollution. Spillage and leakage of pollutants can result in high cleanup costs and fines. Spills must be controlled. Dredging can disturb aquatic life if toxic chemicals are released from bottom sediments.
Operations can result in claims or noise pollution by neighboring properties. Disposal procedures must adhere to all EPA and other regulatory standards. Proper written procedures and documentation of both the transportation and disposal process are important.
Ocean marine hull and protection and indemnity exposures are from equipment fastened to a barge for dredging operations. The size of the vessel, the equipment used, and the distance the craft travels from shore impact the potential severity of loss. Hull coverage is needed for the vessel and its equipment as they are ineligible for coverage under standard watercraft policies. These may be damaged by fire, sea or weather conditions, sinking, stranding, or collision with stationary objects or other watercraft. Regular maintenance of the vessel and all equipment must be documented.
Protection and indemnity exposures include bodily injury and property damage caused by the vessel. The captain and crew must be trained in navigating the construction area and must have the needed tools to prevent contact with other fixed objects such as piers, bridges and docks and other vessels.
Injury to the crew and captain may be considered an ocean marine exposure instead of a workers compensation exposure because of the Jones Act. In addition, workers not members of the crew who are injured while dredging on a waterway may try to claim the higher benefits provided under the U.S. Longshore and Harborworkers Act.
Safety equipment, including personal flotation devices (PFDs), should be appropriate for the job.
Workers compensation exposures are severe due to the potential for back injuries, crushing, suffocation, or drowning at any phase of the operations. Sudden changes in wind or weather can make work less safe. Serious injuries may arise from work with hand tools, large, heavy machinery, or from the carelessness of fellow employees.
Common hazards include slips and falls, foreign objects in the eye, hearing impairment from noise, cuts or puncture wounds, bites from insects or vermin, temperature extremes, being hit by falling objects, striking objects or utilities, or exposure to pollutants.
The absence of good maintenance, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard. U.S. Longshore and Harbor Workers coverage may be required.
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.
Property exposures at the contractor's own premises are generally limited to those of an office and storage of equipment and vehicles. Fire hazards may arise from refueling and repair operations due to the storage and use of flammable gasoline and other fuel sources.
Inland marine exposures include accounts receivable if the contractor bills customer for services, computers, contractors' equipment, and valuable papers and records for customers', regulators', and suppliers' information. Backup copies of all data should be stored off premises.
Dredging equipment is heavy and difficult to transport without adequate loading, tie-down and unloading procedures. During dredging operations, the equipment may operate from land or from some type of watercraft. Equipment may be damaged by exceeding its load capacity, striking underground objects or utilities, falling into the water, rock, land or mud slides, or bursting into fire from overload.
Equipment may be subject to changes in the weather, water hazards, drop and fall from heights, being struck by vehicles or watercraft, or colliding with land structures. Equipment left at jobsites is vulnerable to theft and vandalism. Equipment should be secured and rendered inoperable when not in use.
Crime exposures are primarily due to employee dishonesty. Background checks 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. Physical inventories should be conducted on a regular basis to prevent employee theft of equipment.
Commercial auto exposures can be high due to the transport of oversize machinery and equipment. Secure tying down is vital to prevent damage to other vehicles. Roads near waterfronts may be narrow and the ground uneven, increasing the risk of collision and upset. The driver must be trained in handling a top-heavy vehicle as considerable skill and knowledge are required for safe driving.
Serious property damage or injury to passing pedestrians or motorists or to employees of other contractors can arise during loading and unloading of equipment and materials, including dump trucks used for hauling materials dredged from the waterway. If there is a collision, the resulting overturn may spill the load onto a public road and prevent access until cleanup is completed.
Long drives with oversized equipment may lead to driver fatigue. For long-term projects away from home base, personal use of company vehicles poses a concern. Similarly, employees may use their own vehicles on company business for long periods, especially to transport crews to the jobsite.
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 Dredging Contractors Insurance Cover & Pay For?
Dredging contractors can be sued for various reasons, such as:
Environmental damage: If a dredging contractor causes environmental damage, such as oil spills or damage to protected habitats, they may be sued for the cost of remediation and restoration. Dredging contractors can purchase pollution liability insurance to protect themselves from claims related to environmental damage. This insurance can cover the cost of cleanup and restoration, as well as legal fees associated with defending against the claim.
Property damage: If a dredging contractor causes damage to property, such as boats, docks, or infrastructure, they may be sued for the cost of repairs. Dredging contractors can purchase property damage insurance to cover the cost of repairs or replacement for any property damage they cause. This insurance can cover the cost of repairs, as well as legal fees associated with defending against the claim.
Personal injury: If a dredging contractor's actions lead to personal injury to individuals, they may be sued for medical expenses, lost wages, and pain and suffering. Dredging contractors can purchase liability insurance to cover the cost of personal injury claims. This insurance can cover medical expenses, lost wages, and pain and suffering, as well as legal fees associated with defending against the claim.
Breach of contract: If a dredging contractor fails to meet the terms of a contract, such as completing the job on time or to the specified standards, they may be sued for breach of contract. Dredging contractors can purchase errors and omissions insurance, which can cover the cost of legal fees associated with defending against claims of breach of contract. This insurance can also cover any damages awarded to the plaintiff in the event that the contractor is found to be in breach of contract.
In each of these scenarios, insurance can help protect dredging contractors from the financial impact of a lawsuit, allowing them to continue operating their business without facing significant financial losses.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1629 Heavy Construction, Not Elsewhere Classified
- NAICS CODE: 237990 Other Heavy and Civil Engineering Construction
- Suggested Workers Compensation Code(s): 7333 Dredging - All Types - Coverage Under Admiralty Law - Program I, 7335 Dredging - All Types - Coverage Under Admiralty Law - Program II - State Act Benefits
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
Dredging Contractors Insurance - The Bottom Line
To discover more about the exact types of dredging contractors insurance policies you'll need and how much coverage will cost, chat with a reputable agent that is experienced in business insurance.
Additional Resources For Marine, Boat And Watercraft Insurance
Learn about marine, boat and watercraft insurance - a specialized form insurance that provides coverage for hull losses, cargo losses as well as liability for passenger injuries, environmental damage, and third-party damage caused by watercraft accidents.
- Insurance Nautical Terms Glossary
- Boat Dealers
- Boat Repair & Dry Docks
- Dock & Pier Contractors
- Dredging Contractors
- Ocean Marine
- Ship Chandlers
- Boat & Watercraft Insurance
- Specialty Marine
The boat and watercraft industry, like any other industry, needs marine insurance to protect against a range of potential risks and liabilities. These risks can include accidents or injuries on the water, damage to boats or watercraft, and financial losses due to unforeseen circumstances.
One major risk in the boat and watercraft industry is the potential for accidents or injuries on the water. Whether it's a collision with another vessel, a capsizing, or a passenger falling overboard, accidents can happen at any time. Marine insurance can help cover the costs of medical expenses, legal fees, and damages resulting from such accidents, protecting the business from financial ruin.
Another risk is damage to boats or watercraft. Whether it's due to storms, accidents, or wear and tear, damage to these vehicles can be costly to repair or replace. Marine insurance can help cover these costs, ensuring that the business can continue operating without incurring significant financial losses.
In addition to these risks, the boat and watercraft industry is also subject to a range of financial risks, such as lost income due to unforeseen circumstances or damage to business property. Marine insurance can help protect against these risks, ensuring that the business is able to weather any storms and continue operating in the face of unexpected challenges.
Overall, marine insurance is an essential part of running a successful boat and watercraft business. It helps protect against a range of risks and liabilities, ensuring that the business is able to weather any storms and continue operating smoothly.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Bailees Customers, Computers, Contractors' Equipment, Mobile Equipment, Valuable Papers and Records, Ocean Marine – Hull, Ocean Marine – Protection and Indemnity, General Liability, Employee Benefits Liability, Environmental Impairment, Umbrella, Hired and Non-Owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Burglary, Computer Fraud, Forgery, Robbery, Goods in Transit, Signs, Ocean Marine - Hull, Cyber Liability, Employment-related Practices, Liquor Liability, Ocean Marine - Protection and Indemnity, Business Automobile Liability and Physical Damage, Longshore and Harborworkers Compensation Act and Stop Gap Liability.