Excavation insurance

What Type of Excavation Insurance Do I Need?

What Type of Insurance Do I Need as an Excavation Contractor?

So you’re curious about business insurance. Now what?

That’s where we come in. Let us give you a lesson in excavation insurance 101, without all of the confusing legal jargon. Here are the two types of policies to consider and what they can cover.

General Liability Insurance

Any time you’re working on a jobsite or operating heavy machinery, you open yourself up to risk. You know that, though, which is why you’re serious about staying safe. Unfortunately, even a small slip could leave you with a hefty bill.

Imagine you’re digging on a customer’s property when you accidentally hit a sewer line. You break the line, which causes sewage to leak all over the front yard. That’s not fun for anyone involved. As if the whole scenario wasn’t enough of a headache, your customer could sue you for damages.

The average customer injury or damage claim is $30,000. That means that one wrong move with your excavator, and you could end up in debt.

So what’s a business owner to do — lay awake at night and think about what they stand to lose? No, you don’t need to stress about what may or may not happen.

Instead, you can protect your business with general liability insurance. This type of policy typically covers costs associated with third-party accidents, damages to property, and bodily injury to a third party. “Third party” refers to your customers and vendors.

When you have GL insurance, an accident like the broken sewer line could be covered up to your policy limit. You also may consider adding “Contractor’s Tools and Equipment” coverage, which could help you pay for stolen or damaged equipment.

Each state sets its own laws about business insurance coverage, but you can be proactive and protect yourself even without a legal requirement.

To recap, here’s what general liability insurance usually can cover:

• Bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Now check out what general liability insurance usually doesn’t cover:

• Damage to your own property
• Professional services
• Workers compensation or injury to your employees
• Damage to your work
• Motor vehicles while in business use
• Expected or intentional injury or damage
• And more

Workers Compensation Insurance

Do you have employees? If yes, even if you have one or two part-time helpers, you’ll likely need workers compensation insurance. Similar to general liability excavation insurance, your state sets the laws about workers comp.

You can check to see your state’s laws here. Or simply complete the free quote process to determine what coverage you may want to consider.

A jobsite can be dangerous. In fact, approximately 25 people are killed each year in trench-related accidents, according to the Bureau of Labor statistics data. To protect you, your employees, and their families, you can get a workers comp policy that can cover the costs associated with an employee’s injury or illness while they’re working for you.

The average work injury cost is around $41,000, which you’d be responsible for without workers comp coverage.

In general, workers compensation insurance can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Why Is Insurance for Excavation Contractors Important?

Reflect on all the hours you’ve spent learning everything you know, conversations held to keep projects running smoothly, and responsibilities that fall to you as a business owner. If you don’t take steps to protect your business against what could happen, you stand to pay the price in the future.

Did you know that up to 43% of small business owners polled reported being threatened with or involved in a civil lawsuit? That means you could be one of the lucky businesses that never face legal action as the result of an accident.

That’s not a bet we suggest you make, though, especially considering the costs you could encounter. The average expenses that small business owners without insurance can be exposed to include:

• $30,000 for property damage or accident claims
• $50,000 for reputational harm claims (e.g., in cases of slander or libel)
• $20,000 for a customer slip-and-fall case

Take a moment to imagine if you found yourself in a position where you needed to pay thousands of dollars to a customer. Could you pay in cash? Are you willing to take out a loan? Having excavation insurance could help offset those costs up to your policy limits.

We understand that you may be reluctant to add an extra expense each month. After all, you need to spend your time and money wisely. Luckily, you don’t have to pay for more insurance than you need. Each insurance quote is tailored to you, so you can avoid overpaying for a policy above your needs.

In addition to protecting your business from accidents, excavation insurance also can help your business grow. Some landlords require a certificate of insurance (COI) as part of their lease agreement, so getting covered may help you secure a shop office.

Being able to prove coverage also may build trust between you and vendors, customers, and potential employees.

At Simply Business, we make it easy to find the right insurance plan at the right price. Just answer a few questions about your business, and you can compare free quotes from the nation’s top insurers.