Excavation contractors have an important job to do, but it also presents many risks. The more reason a business owner like you should get contractors insurance coverage.
Business insurance for excavation contractors provides protection against liability when doing invasive work, like digging underground to install a foundation.
Here's an overview of excavation insurance and how much it costs for contractors.
What is Business Insurance?
Business insurance is designed to help companies operate without being personally liable for anything that goes wrong on the job.
Professional liability insurance, for example, protects your company if you make a mistake in your work. It protects you against claims of negligence, personal injury, and other issues that may stem from work you did for a client.
Workers in a field like excavation are especially in need of insurance coverage. If you ever run into a situation where things have gone wrong, you can rely on your insurance company to handle the bill.
In the excavation industry, contractors insurance can put your mind at ease and show clients that you can be trusted. Investing in adequate insurance can open your company up to new projects. It will also keep you safe from many of the risks that come with working as an excavator.
Insurance Excavation Companies Need
All contractor businesses need insurance that reflects what they do in their daily activities. Excavation-related companies deal with many risks, including property damage, equipment errors, and more, as they dig into the soil and grade land.
The work that excavators do determines the coverage they need. Working with soil can be unpredictable because there may be unseen conditions under the ground or situations that could damage your machinery.
Workers also face liability risks because they could damage underground utilities, while equipment operator error is a major concern.
Due to the invasive nature of the work, it's also possible for people or property to be damaged during the course of their day-to-day job. The construction site can be a dangerous place and the right liability policy will make sure that you are not personally responsible for repairs or hospital bills.
General Liability for High-Risk Companies
General liability insurance is a must-have for any high-risk company. This policy will cover personal injury, property damage, and more. Liability coverage means that your insurance company will handle the costs of medical bills, repair work, and other costs.
Worker's compensation is another essential policy. If you have employees on your payroll, you need to make sure they will get compensated for medical care and lost wages if they are injured on the job.
Heavy equipment is an integral part of the excavation industry. Equipment insurance will protect you in the event that your machinery is damaged or lost. You may also look into auto insurance to protect your vehicles against vandalism and theft.
Like other members of the construction industry, excavators need a unique combination of several insurance policy plans. When you work with an experienced agent, you can discuss the unique needs of your company.
How Much Does Excavation Insurance Cost?
The overall cost depends on the policies you choose. Insurance companies determine the cost of these at an individual level, based on the amount of risk associated with providing coverage for a particular company.
The common factors include:
- Credit scores
- Previous claim history
- Amount of risk in the industry
- Company location
- Size of the company
- Revenue
- Use of subcontractors
Insurance providers use these markers to determine how risky it is to provide insurance for an excavation business. If a company has recent insurance claims in its history, it may need to pay a higher premium at first.
There are policy options for everyone, so don't wait to get answers about your insurance plan. Learn more about policy limits and the type of policy that could benefit you most!
Excavation Insurance Policy for High-Risk Companies
At Stampede Insurance, we help our clients explore and understand their insurance options. In high-risk industries like excavation, it can be hard to find reliable information or estimates. We demystify the process and help clients compare various plans and their costs.
We offer free quotes upon request. Contact us and provide a little information about your company, and we'll respond with a personalized quote!Our insurance agents can also answer your questions about contractors insurance policies. Contact us at 888-306-7887 at Stampede Insurance Services today!
