The excavator contractor industry primarily works on excavation, sorting, and demolition to prepare sites for new construction.  For those who are an independent excavator contractor or have a company that deals with these kinds of business, the important thing is to protect all of your financial aspects and interest with appropriate insurance.

Getting proper insurance that will cover everything that could possibly go wrong is a fundamental thing considering risk management for any contractor.

As an excavation contractor, there are many things that need more attention, and when it comes to insurance, understanding how to navigate in that market can be quite challenging. Everyone knows that they need protection, but how to know which policies are best for your business? This article can shed some light on this complicated subject.

Make Sure to Get One


It is easy to write off insurance as an unnecessary expense that someone does not need to spend money on, and although there are some arguments that one can use for this case, that way of thinking can be troublesome, as no one knows what the future holds. It does not matter how many times you did not need that insurance in the past because when some accident happens, and you do not have it (or it is not covered), those additional expenses can actually affect your finances in so many ways. Insurance helps protect every business in the case of accidents, injuries, and all other disasters that may occur.

Furthermore, as a part of the construction industry, having business insurance is frequently a legal requirement. But that does not mean that you only need it only because of legal purposes, as in some states or/and countries, the law requires only basic insurance, and you will surely want to expand it to cover all areas.

Beyond that, many businesses will not work with an excavation contractor that is not adequately insured, so making sure that you have one will also help in gaining more work.

Keep these tips in mind before buying excavation insurance for your business:

3 Top Insurance Tips for Excavators

1. Ensure that It Includes Workers Compensation


The first important thing to know is that excavation insurance is not just one policy. That is because no single insurance policy gives coverage for commercial auto, bodily injury, and theft of the materials and tools, for example.  However, regardless of which policy you choose, ensure that you have Workers Compensation insurance. It is something that will both ensure that the workers are insured of any possible injuries as well as it will help you bring the best employees with vast experience and knowledge to your company, as they will know that the company cares about them and their health.

But, if those reasons are not enough, let’s look at the numbers and clarify just how dangerous the excavation industry, and learn more about all the things that can go wrong in this line of work. The U.S. Bureau of Labor Statistics reports that an average of 39 workers die as a result of trenching or excavation cave-ins each year.  And here is where Workers Compensation comes in handy. It does not just help cover wages for employees who are injured or fall ill while on the job but also helps cover death benefits for employees who suffer from fatal work accidents and covers medical expenses regarding their recovery process.

Furthermore, businesses are legally required to carry Workers Compensation insurance in most states across the country. Without it, companies will not be able to operate a business, and if one chooses to ignore that, the fines and penalties for that are very high.

2. Confirm that it Includes the Right Property Coverage


As an excavation contractor, it goes without saying that you can’t do your job without fitting machinery, tools, and equipment. These items are expensive and not something anyone would like to break, malfunction, or get stolen. That is why ensuring that they are properly covered will help provide you with financial protection in the case of damage or theft.

The main contractor at a job site will likely have Builder’s Risk insurance, which covers all property on the site. However, you should also take steps to make sure that you have actually insured your property, as it consists of several policies.

That is why it is important to make sure that the package includes a policy that covers the tools while they are on job sites, as well as while they are in transit to and from building sites. Those two often get mistaken, or someone forgets about adding it, so taking a closer look is much advised.

One option is an Inland Marine insurance policy, which protects property during any transportation. It is an excellent way to cover everything and not be worried about unnecessary things, which will also allow you to focus on the task at hand.

3. Bundle Insurance Coverage


The best way to save money on the premiums is to bundle insurance coverage altogether. All this is especially important for business owners, as they will need several policies to cover all facets of the business, and this way, they will get the best service at the best possible price.

But money is not the only thing, as by placing all coverage under a single policy, one will not only save money but also save time when it comes to renewing it. Thinking about future projects and investments is a crucial thing for any successful contractor, and the saying time is money has never been more true than today.

Many providers offer excavation insurance as a comprehensive portfolio of coverage with flexible options. What this means is that, for example, you can add on any additional policies if required, which is always a good thing in case of forgetting something, currently not having enough funds, or as the project progresses.



All mentioned above should help you decide on the best insurance coverage, and since there are so many excellent and licensed liability insurance providers, that choice should be even easier. For those who need more info on this topic or still cannot decide on the insurance model, visit this site and find the best solution for you.