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As an excavation contractor, it is best to buy Contractors Liability Insurance. This is to protect your business from a variety of risks. These include the following. The possibility of damaging your or someone else’s property in the process of excavation work, which is one of the biggest potential liabilities for any excavation business.


What is Contractors Liability Insurance?


Contractors Liability Insurance, or general liability insurance, helps provide your business with coverage in the case of:


  • Bodily Injury

    : In the case of injury to a third party or a client, Contractors Liability Insurance helps provide you with insurance cover. An example of this would be if a client were in a trench when a cave-in occurred and are injured due to the same.


This insurance also pays for the medical expenses in the case of injury to a client or a third party. It starts paying for these expenses immediately following the injury. It does not require a lawsuit. This is an especially important element that makes it best to buy Contractors Liability Insurance if you have an excavation business.


Medical damages can be very expensive and cause significant strain to any business’s financial resources. For example, research has found that fatal injuries can cost a business an average of $991,027 in hospital costs.


  • Property Damage

    : One of the reasons that it is best to buy Contractors Liability Insurance for your excavation business is because it helps protect your business in the case of property damage. This is when your business causes damage to a third party property. For example, by damaging utility lines during the course of excavation.


This is a significant risk for excavation businesses. The Pipeline and Hazardous Materials Safety Administration (PHMSA) found that excavation caused more than $350 million in damage to pipelines between 1993 and 2012. Another report found more than $500,000 worth of damage caused to underground facilities in the course of excavation in 2018.


  • Damage to Rental Premises:  If you are renting a location for your business, this insurance will help provide coverage in the case of damage to the premises. For example, you may be renting a garage in which to store your heavy machinery. During parking one of your vehicles, you or one of your employees accidentally drive it into the wall.  Contractors Liability Insurance will cover your business in the case of liability claims from the garage owner.


  • Advertising Mistakes and Reputational Harm

    If you accidentally infringe on another business’s copyrighted materials, Contractors Liability Insurance helps protect you from legal liability. It also provides coverage in the case of claims related to reputational harm, like libel or slander. If you unfavorably compare another business to your own in an advertisement, you may find yourself facing a lawsuit that claims reputational harm.


What is the best way to buy Contractors Liability Insurance?


This is the best way to buy Contractors Liability Insurance for an excavation business. Contact an independent agent to help you through the insurance process. You can also contact Contractors Liability Insurance company for more information and guidance. Call 886-225-1950 for a 1 minute quote!

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