Excavation Contractors' Insurance Massachusetts

Which Coverages Do Excavation Contractors Need?

Since excavation contractors face a myriad of risks, it is best to have insurance that combines multiple coverages. Typically, this is what contractors’ insurance covers:

• Commercial general liability – covers your business when you are sued for causing injuries to other people or damage to their property while working. It also covers you for lawsuits when someone gets injured after you have already completed the job, e.g., someone falls into a ditch you have dug. Learn more about general liability insurance.
• Commercial property insurance – If your business owns any property, for instance, an office or a warehouse, you will need property insurance to ensure you are covered in the event of a fire, vandalism, theft, and other perils listed in your policy.
• Mobile equipment insurance – Covers your equipment such as loaders, excavators, and bulldozers in the event of theft, fire, a collision, and other events. This only applies to mobile equipment when it is not on your business premises but, for example, on a client's site.
• Workers’ compensation insurance – If an employee is injured, becomes ill, or dies on the job, you are responsible for covering their medical expenses, sick pay, and death benefit.
• Commercial auto liability coverage – Provides coverage for all kinds of vehicles used for business purposes, including excavators, dump trucks, backhoes, 18-wheelers, and transport vehicles. Vehicles can cause a lot of costly damage in the event of a collision and are also expensive themselves, so it is useful to have insurance for them.
• Inland marine coverage – When transporting machinery to the site, it will not be covered by commercial auto insurance nor any other policy. To keep your equipment protected while transporting it, you need inland marine insurance.
• Employment practices liability coverage –If a current or former employee sues your company for discrimination, harassment, wrongful termination, or some other misconduct, you will face expensive legal fees and costs. This coverage helps with paying legal expenses and settlement costs.
• Umbrella insurance – When dealing with heavy machinery and construction sites, the cost of an accident and following lawsuits can be expensive. It may even go beyond the limits of your standard coverage. If this is the case, your main insurance will not cover the difference and you will need to pay it yourself. Alternatively, you can also take out umbrella coverage to extend your existing insurance limits.