Excavation Contractor Insurance Policy Information
Excavation Contractor Insurance. An excavation contractor is one who is responsible for preparing land for construction. Excavating contractors specialize in digging into the ground for building foundations or trenches for utility lines. The digs may be deep or shallow. Some provide related services such as grading of land, land clearing, or hauling and disposal of earth and debris.
As a result, excavating work comes with many risks. With the level of risk involved in this kind of work, it's important you have the right and enough coverage to protect your company.
Keeping your business protected is one of the most important things you can do especially in the field of excavation. If you are an independent excavation contractor, you must ensure that your business has the right insurance to keep you and employees protected. That's is why a smart move is to ensure they are properly protected with an-adequate excavation contractor insurance policy.
Excavation contractor insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked excavation contractors insurance questions:
How Much Does Excavation Contractor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small excavation contractors ranges from $67 to $99 per month based on location, size, payroll, sales and experience.
What Type Of Insurance Do Excavators Need?
Some excavation jobs can be risky, and many accidents can and do happen on excavation sites. Most times these accidents can be costly which is why you must ensure that your business has the proper excavation contractor insurance policies:
- Commercial general liability insurance: With this kind of liability insurance you are covered for property damage or third-party injuries caused by your employees. Making sure you have the right amount of insurance coverage before beginning a job is important. If you are hired to do excavation work you may be required to add the general contractor as an additional insured on your CGL for the duration of the project.
- Umbrella insurance coverage: Property damage or serious injuries while on the job can be expensive. As a result, the regular insurance policy may not have the limit to keep you fully protected. This type of coverage gives you more protection over your business finances by allowing you to buy extra liability insurance coverage.
- Commercial auto liability coverage: Excavation work may require you to move equipment to and from the job site. Heavy equipment such as 18-wheelers, backhoes and dump trucks are just some the type of equipment you may be transporting. A commercial auto insurance policy gives you a higher limit than the regular auto insurance policy. It's a good idea to have this type of coverage so that you can stay protected to protect against the damage of you excavating equipment.
Workers Compensation For Excavation Contracting
In most states workers compensation is a must for any non-owner employees. Most hiring general contractors require that you have workers compensation insurance. Showing proof that you have this type of insurance may be necessary to get the job.
Excavation Contracting Property Coverage
It's a good idea to keep the equipment you will be using for your excavation jobs protected. Protecting them from damage and theft is important. Most of the time when a top contractor is working on a project they will have purchased builders risk insurance policy.
With this type of policy, all property on the job site and other assets owned by your business are protected.
Inland marine insurance is also good to keep your tools, business property and machinery protected. A wide range of coverage types is offered with this these types of insurance. Speaking with an independent insurance agent will allow you to decided on the insurance type that is right for you.
Being protected while on the job is one of the most important things when doing excavation work. To ensure your workers are safe and that the tools and machinery being used are safe ones must make sure that they have the right insurance. Getting the right insurance can be hard because you want to get the right coverage for your business.
Excavating Contractor's Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access.
At the job site, 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, equipment, or uneven ground. Once a hole is excavated, there must be shoring or other supports to prevent collapse if people are to work in the hole.
Digging can result in cutting utility cable, damaging utility property and disrupting services to neighboring residences or businesses. A significant morale hazard may be indicated by the absence of detailed procedures to determine utility locations and to research prior uses of the land. Construction 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. Fencing must be in place with appropriate warning signs to prevent trespassing. Excavating in an area of existing structures requires extra vigilance to prevent foundation and structural damage to nearby buildings.
Environmental impairment exposure is moderate due to the potential for air, land, and water pollution from the use and storage of fuels along with the possibility of erosion from construction operations. Spills must be controlled and equipment monitored at all times. Operations can result in claims of noise or dust pollution by neighboring properties and claims for cumulative structural damage to neighboring foundations from heavy traffic.
Workers compensation exposures can be high. Lifting and back injuries, hernias, sprains and strains can occur from setting up equipment for excavation. Collapse of retaining walls, mudslides or landslides, sinkholes, or overturn of equipment may result in severe injury or death from crushing or suffocation. Digging and grading of land may result in injury from underground electrical cable or gas lines.
Common hazards include slips and falls, foreign objects in the eye, hearing impairment from noise, cuts or puncture wounds, bites from insects or vermin, and exposure to pollutants. 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.
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.
Property exposures at the excavator's own location are generally limited to those of an office and storage of equipment and vehicles. Fire hazards arise from refueling and repair operations due to the storage and use of flammable gasoline and other fuel sources.
Crime exposure is from employee dishonesty. Background checks should be conducted prior to hiring any employee. All ordering, billing and disbursements must be handled as separate job duties and regularly audited. Physical inventories should be conducted on a regular basis to prevent employee theft of equipment.
Inland marine exposures include accounts receivable if the contractor bills customers for services, computers, contractors' equipment, and valuable papers and records for customers' and regulatory information. Excavation equipment can be heavy and difficult to transport without adequate loading, tie-down and unloading procedures. If the equipment's load capacity is exceeded during excavation, the equipment may be damaged. Excavation may be conducted on uneven surfaces in rural area.
Equipment may strike underground objects or utilities, fall into holes or pits, slip or fall into mud, water or sinkholes, be damaged in rock, land or mud slides, or burst into fire from overload. Equipment may be subject to changes in the weather, water hazards, drop and fall from heights, or being struck by other vehicles. Equipment left at jobsites may be subject to theft and vandalism. Equipment should be secured and rendered inoperable when not in use.
Commercial auto exposures are high due to the transport of oversize machinery and equipment and loads of excavated dirt and gravel. Roads in rural areas may be narrow and the ground uneven, increasing the risk of collision and upset. The driver of the truck must be trained in handling a top-heavy vehicle as considerable skill and knowledge is required for safe driving. If there is a collision, the resulting overturn may spill the load spill onto a public road and preventing access until clean up is completed. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and the records kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1794 Excavation Work
- NAICS CODE: 238910 Site Preparation Contractors
- Suggested ISO General Liability Code(s): 94007
- Suggested Workers Compensation Code(s): 6217
1794: Excavation Work
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 179: Miscellaneous Special Trade Contractors
1794 Excavation Work: Special trade contractors primarily engaged in excavation work and digging foundations, including digging and loading. Contractors in this industry may also perform incidental concrete work. Contractors primarily engaged in concrete work are classified in Industry 1771; and those primarily engaged in trenching or in earth moving and land clearing not related to building construction are classified in Major Group 16.
- Excavation work-contractors
- Foundation digging (excavation)-contractors
- Grading: except for highways, streets, and airport runways-contractors
Excavaction Contractor Insurance - The Bottom Line
To find out exactly what type of excavation contractor insurance you need and how much coverage you should have, speak to a commercial insurance broker to go over all your options.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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.
- Building Contractors
- Demolition Contractors
- Foundation Layers
- Steel Erection Contractors
- Surety Bonds
Construction contractors have substantial needs for many types of insurance coverage. Most would point to the importance of coverage for completed operations, premises liability coverage during construction operations at jobsites and professional or design errors and omissions insurance.
Such coverages can be provided only when the interests of the contractor and of the property owner are understood; particularly the contractual obligations assumed by the contractor. Next in significance is the workers compensation exposure followed by business automobile. Inland marine coverage for expensive mobile equipment, supplies, other tools of the trade and builders' risk can be vital.
Liability coverage is needed by a construction contractor in order to obtain most jobs. In addition, if a contractor wants to stay in business, it must be obtained to protect it from lawsuits due to its premises operations, off-site locations and products/completed operations exposures. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to meets its obligations for particular jobs.
Many construction contractors do not have the usual location-specific buildings and business personal property exposures. Their business property is more mobile and, therefore, better covered with inland marine coverage forms. However, for those larger construction contractors that own buildings and/or maintain business inventory there are many coverage forms and choices available to them.
Construction contractors use their vehicles to get to and from their workplaces and jobsites. They also use vehicles to transport equipment and inventory to those locations. It is important to cover the liability of these vehicles for injury or damage they may cause, as well as to provide coverage for damage to the vehicles themselves.
Employers are required to provide coverage for injuries sustained by their employees while on the job. Construction contractors must comply with these requirements but some try to avoid them by hiring subcontractors. These subcontractors may actually operate and qualify as employees. The relationship between a contractor and its subcontractors must be carefully evaluated in order to determine if workers compensation coverage is still needed.
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).