Why do excavation and grading businesses need insurance?
Whether you specialize in residential excavation or commercial grading, earth moving is a risky profession. A skid steer accident could result in costly medical bills, or theft of heavy equipment from a construction site could necessitate a loan. Excavation contractor's insurance can help cover financial losses from a Bobcat operator's injury, stolen equipment, and lawsuits.
Find the right coverage
Insureon helps excavation and grading contractors find insurance quotes that match their unique risks.
Get free expert advice and peace of mind knowing you have the right heavy equipment insurance for tractors, loaders, and other specialized risks.
What types of insurance do excavation and grading contractors need?
These insurance policies cover the most common risks of grading and excavation work.
General liability insurance
A general liability policy covers third-party liability claims, such as property damage caused by a backhoe. Bundle it with commercial property insurance in a business owner’s policy (BOP).
- Slip-and-fall accidents
- Damaged customer property
- Product liability insurance
Business owner's policy
A BOP bundles general liability coverage and commercial property insurance at a discount. It's often the most cost-effective type of insurance for excavation contractors.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
Most states require workers’ comp for excavation and grading businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Commercial auto insurance
This insurance covers bodily injuries and property damage caused by excavation and grading company vehicles. Each state has its own requirements for auto liability coverage.
- Property damage caused by excavation vehicles
- Medical payments from an auto accident
- Vehicle vandalism and theft
Inland marine insurance
Inland marine insurance helps pay for an excavation and grading contractor’s equipment and tools if they are damaged, lost, or stolen. It's also called tools and equipment insurance.
- Hand tools and power tools
- Excavation equipment that travels to jobsites
- Personal protective equipment (PPE)
Professional liability insurance
Professional liability insurance covers legal costs when an excavation and grading company is sued for a mistake or oversight. It's also called errors and omissions insurance (E&O).
- Accusations of negligence
- Failure to finish a project on time
- Undelivered services
How much does insurance cost for excavation businesses and contractors?
An excavation contractor who works independently will pay less for insurance than a larger company.
Average excavation insurance costs include:
- General liability: $120 per month
- Tools and equipment: $101 per month
- Workers' comp: $190 per month
Factors that affect premiums include:
- Construction and contracting services offered
- Business property and equipment
- Business income
- Types of insurance purchased
- Policy limits and deductibles
How do I get excavation and grading contractor business insurance?
It's easy to get excavation and grading business insurance if you have your company information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance (COI) with Insureon in three easy steps:
- Complete our free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed agents work with top-rated U.S. insurers to find affordable coverage that fits your excavation and grading business, whether you're a contractor, subcontractor, or employer.
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