Excavation Contractor General Liability Insurance

Excavation contractors face plenty of risks on the job. Every time you move earth with heavy machinery, there's potential liability lurking. Injuries and property damage are common possible risks. However, worrying about these can get in the way of being able to do your job well. That's where excavation contractor general liability insurance can help.

If you want to protect yourself and your business, it's a smart move to consider liability insurance. So, here's what you need to know.

What is general liability insurance for excavation contractors? It's insurance that protects you and your business from third-party property damage and bodily injury claims. Plus, liability insurance can also help you cover legal settlements and fees if you face a lawsuit. Not having insurance may leave you exposed to court fees. In other words, big bills could seriously disrupt your business cash flow. 

Having excavator contractor liability insurance can help your business, too. It shows potential customers you have liability insurance. And it lets them know you're reliable and you take your business, as well as safety, seriously. In addition, many states require some form of general liability insurance before starting a job.

What's Covered Under Excavation Contractor Liability Insurance?

With excavation contractor liability insurance, you're getting many different types of coverage in one. Here you can learn more about the key types of protection excavation contractor general liability insurance gives you.

Bodily Injury

Bodily injury liability insurance helps protect your business's financial interests by paying your legal fees and any associated medical bills if a third party is injured on a job site. So, imagine a bystander ends up hurt from an accident on site. They need to go to the hospital. If you end up at fault for this accident, you could get sued for damages and hospital fees. Those bills may add up. 

Property Damage

General liability insurance will help cover accidental property damage, including paying for the repairs as well as any related clean-up on the site. While on an on-site project, you or one of your operators end up damaging a pipe during the excavation process. Now, the property owner can sue you for property damage resulting from the broken pipe.

Products and Completed Operations

Excavation contractor general liability insurance helps provide coverage for court judgments and legal fees for work completed on previous jobs. Just because you've signed off on a project doesn't mean something can't end up going wrong later. No matter how careful you are on the job. If it turns out later injury or property damage is related to the work you did, you could get sued. 


Medical Payments 

With excavation contractor liability insurance, your insurance helps cover medical fees, including hospital days, physical therapy, prescriptions, and even lost wages if they can't work. Suppose, someone is hurt at your office or on the job site, they may need thousands of dollars worth of medical care. Unfortunately, you could end up being responsible for covering those fees. If you don't have general liability insurance, you may have to pay out-of-pocket, which could harm your business financially. 

Personal and Advertising Injury

Having liability coverage will help pay for your attorney bills and any legal fees from lawsuits brought against your business for slander, libel, or copyright infringement by third parties. It can also help cover if you end up harming another business' reputation, intentionally or not, through your advertising, you may be liable for damages. 

Damage To Premises Rented To You

If you rent space for your business from a landlord, general liability insurance will help cover damages to these rented spaces. So while there may be more risk on job sites, you'll want coverage for your office too. For example, imagine an employee accident hits a wall or garage door with a piece of equipment, damaging it. You could be liable for paying for the damage. Likewise, 

What's Not Covered Under Excavation Contractor General Liability Insurance

While excavation contractor liability insurance provides comprehensive coverage for most of the significant risks your business may face, it doesn't cover everything. It's important to be aware of what it may not cover, including:

  • Intentional injuries or property damage
  • Injuries to employees 
  • Tools and Equipment

Make sure you review your policy for details of what it covers.

Other Insurance For Excavation Contractors:

How Much Is Excavation Contractor Liability Insurance

There are many factors that go into determining the exact cost of excavation contractor general liability insurance. For example, the state where you operate your business, the size of your business, and the coverage limits you choose. Also, keep in mind if you want lower premiums, you may have higher deductibles.

However, you can expect that general liability coverage can run between $1200 and $1,500 per year for excavation contractors. 

Excavation Contractor General Liability Insurance FAQ

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

Why Do Excavation Contractors Need Insurance?

Every business faces potential risks while on the job. However, some are riskier than others. As an excavation contractor, working with heavy equipment on construction job sites means there is always the potential risk for bodily injury or property damage. Having general liability coverage helps ensure protection from having to pay damages from lawsuits or medical fees. Those bills can run up and cost your business.

What Are The Risks Facing Excavation Contractors?

Imagine you're on a worksite, for example, and your excavator's bucket accidentally hits the side of a garage on the property, damaging it. Without insurance, you might find your business is responsible for paying to repair the garage and any other damages. So, the same is true if there is an accident at work. Maybe it's not hard to imagine one of your employees or someone else ending up hurt on the job site. If that happens, excavation contractor liability insurance will help cover medical fees and even lost wages if the injured party can't go back to work right away.

Is General Liability Insurance Required For Excavation Contractors?

The answer may depend on where you live. While most states require some form of general liability insurance for businesses, not all do. However, even if your state does not require coverage, it's still possible your customers may want it. So, before you work with a client ask if they require you have some form of coverage in order to work together. For more information, check the details for your state.