Excavator insurance

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Excavator insurance doesn’t just refer to the machines in question. It can refer to the job site, workers, and time to complete the job, which requires excavation. Compared to other contract jobs, excavations are much more high-risk regarding injuries and damages.

Good insurance for an excavation project, equipment, and workers will be one of the most essential components of the undertaking. All risks considered, finding and putting together the best and most affordable insurance policy can seem like a lot.

The good news is that Insurance Navy comes to the rescue with a more accessible excavator and other contractor insurance with a prioritization of lower rates.

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Excavation contractors need proper insurance coverage

Compared to other contracting jobs, excavation tasks and excavators have a much higher risk rate than them. It’s been reported that excavator workers and operators are more than twice as likely to be injured or cause damage during a job.

At the same time, they run several additional liability risks and damages while working at any given site. The witches brew of damages that can occur during an excavation contract job that foremen and managers must be aware of when it comes to insurance are:

Injuries that workers suffer on the job which is the foremost concern of contract and construction companies as it’s not the safest occupation
Errors and damage caused by excavators, such as damaging equipment or work in process and accidentally hitting an underground utility like a power or water line
Illnesses that workers may suffer as a result of exposure to harmful chemicals or pollution while at the worksite
Injuries that can occur to third parties visiting or passing through the site if they are not trespassing
Unseen subsurface hazards that can damage equipment or severely impede the job’s completion, schedule, and resources
A water runoff being worked on could grate and cause similar problems and damages.
Damage and injuries that can be caused by contractor or company vehicles being used for the excavation project
Vandalism and theft of equipment from the work site
Legal damages can arise if the excavation or contracting company is sued for a mistake or error during the project.

These are just a few examples of what excavator insurance covers.

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Important Insurance Coverage for Excavators

So, that’s a lot of risks and damages to account for. In such a specific context as excavation contracts and jobs, many different insurance coverages will be necessary for the policy. However, the essential insurance that an excavation contractor can have is the most common type of commercial insurance. Liability insurance is the most critical aspect of this coverage, as you are about to read and find out.

Workers compensation insurance

The most crucial insurance coverages are those required by law. Businesses aren’t required to carry much, but workers' compensation will always be mandatory. Workers and operators at excavation sites tend to be the most at risk. There’s nowhere to go but down when working on something like a foundation, grating, trenching, and Levees. All fall risks are at least tripled for workers, but that’s the very least of the dangers.

Working in vehicles and equipment as significant as excavators and diggers requires the utmost care and often some degree of training because of everything that can go wrong. Injuries and even disfigurements are reported on construction grounds annually. Illness can also arise from pollution or toxic chemicals in the area or if a gas line is unintentionally struck.

As usual, lost wages, disability, and death benefits are included in excavator workers' compensation. Any legal fees are also covered if an employee pursues a lawsuit. Employees' lost wages if recovery after a work-sustained injury is required are also included in workers' compensation.

General liability insurance

Liability coverage is essential for contractors' insurance policies because they are liable for anything that can happen to anyone because of their service.

For excavators, they will need several types of liability insurance coverage. Of course, there is a general liability that accounts for damages, injuries, and lawsuits from third parties. It also especially helps when a contracting company unintentionally causes property damage while working.

General liability insurance is essential for excavators. The whole reason for digging in the first place is to complete a hired job.

If a mistake or error is made, the contracting company is liable for the ensuing damages; they may also get sued. Professional liability, or errors and omissions, insurance covers financial loss and legal fees in these cases. This can also be if the job needs to be done within the projected time and there are negligence accusations.

Equipment and tools insurance coverage

Machines like excavators and diggers may look like vehicles. However, insurance companies define them as equipment despite their limited driveability. Anything with an attached shovel, crane, or drill is labeled as such. This is good because excavation machines can be insured alongside building tools and supplies, equipment, and tools insurance specially designed for contractors. After all, a job is as good as the tools that get it done.

Any damage and theft of some tools and equipment from the work site are covered. If something as significant as an excavator were to break down or get damaged, repairs and even replacements can severely break a budget and set a project back. Similarly, a contracting company can only lose money daily with an essential machine or equipment.

That’s why a BOP (business owner’s policy) is another excellent way to cover equipment while including liability coverage and business interruption insurance –which insures the contracting company of any lost income due to being unable to work for some time.

Inland marine insurance

This is another type of insurance that contractors in all construction areas should include in their policies. Since equipment like excavators can’t be driven to work sites, they are usually transported by flatbeds. Inland marine insurance is a must-have for any damage or accident while it and everything else used for the excavation job are in transit. This can be the case whether or not the contracting company moves its equipment.

Special inland marine insurance will protect any structures and materials produced due to an excavation job. This, however, can be a big what-if depending on the project in question since excavation jobs are fewer buildings than they are, making room for buildings to take place. Always check the job scope to be sure whether or not such insurance would be needed.

Additional Insurance for excavators

Insurance is rarely a one-size-fits-all deal, and additional coverage may be required for excavating jobs. Whether or not your specific excavating job needs the following types of insurance is entirely personal.

Commercial auto insurance

Suppose contracting companies specializing in excavating have their vehicle or fleet for transporting equipment and materials to the work site. In that case, getting the proper auto and commercial car insurance will fall on them. Since they are used for business, the state will require car insurance that recognizes them as such.

Aside from basic liability coverage, you can choose additional coverage like collision and comprehensive insurance. Again, machines like excavators will not require auto insurance since they are not driven on the road and are not considered vehicles.

Commercial property insurance

There is little need for property insurance at an excavation site since there isn’t usually a structure or actual property to insure yet. However, in some cases, an excavation on public land may need property insurance from the contracting company.

Some excavation contractors may already have property insurance on their policies if they elected for a BOP. Still, this insurance always helps to consider whether the company has a stake in the land or project.

How much does Excavator insurance cost?

It’s been reported that general liability for excavators can cost anywhere from $1,100 to $3,100 annually, depending on the coverage limits. Excavator insurance costs a little more than average because of the overall risk.

Unfortunately, excavator insurance isn’t like car insurance in the regard that the safest operators and drivers pay the least. At the same time, this may be the tip of the iceberg regarding insurance expenses since this is the cost of just one coverage.

A BOP is an excellent way for excavating companies to save on their insurance as they bundle liability, property, and business interruption for a more affordable premium. Workers' compensation may also cost more than average, given employees' daily responsibilities.