Excavation contractors specialize in digging, including openings in the ground for building foundations, and trenches for utility operations.
The digs may be deep or shallow, and some may provided related services such as grading of land, land clearing, or hauling and disposal of earth and debris.
It’s your job to remove, reshape and prepare the earth to meet the exact specifications of your clients. With that responsibility, however, comes significant risk.
For example, hidden underground utility lines could be severed, trenches could collapse, and your heavy machinery could be dangerous if used incorrectly.
You probably think about the risks your business faces every day, but have you ever given much consideration to your insurance risk?
The financial risk your business faces if you don’t have the right insurance coverage in place? Or the risk that the insurance coverage you do have is inadequate?
Like any other business, excavators need a variety of insurance coverages to ensure their operation is protected. Additionally, rules and coverages can vary from state to state, so understanding Ohio Excavation Insurance is essential.
Commercial General Liability Insurance
If you run an excavation business, then a Commercial General Liability (CGL) insurance policy is a must, as it would protect your business when lawsuits or financial losses occur.
A typical CGL policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations.
For example, you’re the excavation contractor performing site preparation for a new building and despite your best efforts, you accidentally cut a fiber line. It was several days before the line could be repaired.
Unfortunately, several businesses were essentially shut down because they couldn’t access the internet.
Not only are you required to pay for the repair to the fiber line, but the businesses that were shut down are pursuing you for their loss of revenue.
And without a CGL policy, your excavation business would be paying for any damages out of pocket.
As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims.
Commercial Auto Insurance
Commercial Auto Insurance is another important policy that all Ohio excavation businesses must consider because you’re relying on vehicles to get you from one client to another. Doesn’t matter if you have one truck or a fleet of 100, you still need Commercial Auto Insurance.
The trucks or trailers that you’re using to haul your equipment should be insured. A Commercial Auto Policy can be used to insure vehicles for:
- Liability – this would protect the business owner in the event of an at-fault accident where the owner, or any employees, caused injuries to others while driving a company vehicle
- Physical damage to the vehicles owned by the business if they’re involved in an accident, stolen or vandalized
- Or both Liability and Physical Damage
For example, one of your employees could be driving a company truck hauling an excavator when he is involved in a severe collision with another driver.
Your employee is at fault, there is extensive damage to both vehicles, and there will be medical expenses for both drivers.
Your Commercial Auto policy could cover the property damage, the medical expenses and any potential legal costs involved.
Contractor’s Equipment Insurance
In addition to the vehicles that you’re using to haul equipment, you’ll also need to insure the equipment.
The standard Commercial Property Insurance policy provides coverage for your equipment, but it’s only covered while it’s on your premises.
For an excavation business that routinely has most of its equipment away from its office premises, this creates a problem.
In order to protect these types of items that are regularly off your premises, you need an Inland Marine policy (also known as a Contractor’s Equipment policy or floater).
If we take the car accident example above, your excavator is totaled as a result of the accident. Since the loss occurred away from your premises, you wouldn’t have coverage under your Commercial Property policy.
However, if insured on an Inland Marine policy, you would have coverage for your excavator.
Conclusion
Finding the best insurance policy for your Excavation business in Ohio, and figuring out the types of coverage needed to protect your business, can be confusing, time consuming and difficult.
However, the right insurance protection is still critical to the success of your business. Without it, you’re one claim away from being out of business.
And remember, not all policies are created equal.
You probably wouldn’t go to your eye doctor instead of your dentist if you were having a toothache, right? Just because they’re both doctors doesn’t mean they have the same skillset.
Just the same, you need an Insurance Advisor that understands your industry, your risks of loss, and how best to protect you and your business.
We can help.
We know the industry, we understand your needs, and we work with multiple insurance companies so we can deliver the insurance solution that’s perfect for your business, and your budget.
When you have confidence in your business insurance, you have greater peace of mind knowing that you can keep working to generate revenue, even when disaster strikes.
To get started on your customized solution, contact one of our Licensed Advisors, or Request a Proposal and we’ll get to work right away.