Considering excavation business insurance? You may be able to save yourself from potential financial problems. There are many types of insurance policies available, including general liability, property, and workers compensation. To learn more about them, read on. Here are some important things to consider when looking for an insurance policy:
Worker’s compensation insurance
If you operate an excavation business, you will want to consider worker’s compensation insurance. Although you won’t have employees, some states require this insurance for non-owner employees. Many general contractors require it before they hire you, so having a certificate of insurance on hand will be helpful. You may also want to protect your equipment and other assets. Top contractors also choose to purchase builders risk insurance to cover everything on a job site and any assets owned by the business.
A professional liability insurance policy is another essential aspect of any excavation business. This insurance helps you defend against allegations of mistakes and covers the resulting expenses. Lastly, most states require you to have commercial auto insurance on any vehicles used in the business. This type of insurance is necessary for a construction business because it covers medical bills and property damage. Keep in mind that personal auto insurance will not cover damage to construction equipment. If the equipment you’re using is damaged, commercial auto insurance will help you cover that cost.
Commercial general liability insurance
If you own a small excavation company, you should consider purchasing Commercial General Liability insurance to cover your business. This insurance is especially beneficial for those who operate heavy equipment. The policy will cover the cost of repairs and legal fees in case of a lawsuit. The premium for this type of policy depends on several factors, including the size of the company, the amount of business it does each year, and how many employees it has. In addition to liability, you should purchase equipment floater insurance for your business, which pays for repairs or replacement of equipment that is damaged or destroyed while in operation.
Excavation is a dangerous business, and many accidents are the result of operator error. If you are unsure whether or not you need insurance, contact a local insurance agent to find out. If you don’t have coverage, the cost could end up being greater than the cost of the policy. Small Business Liability is a trusted insurance company and can help you get the right insurance policy. When you need commercial general liability insurance for your excavation business, contact a local insurance agent today to get a free quote.
Inland marine insurance
An inland marine insurance policy for your excavation business will cover your property stored off-site and on movable vehicles. It can cover any damage or theft that occurs while your property is in transit. It may also cover any specialized property that you own or lease, such as art, live animals, or vending machines. This type of insurance is especially important for those who travel frequently and transport large amounts of property on a regular basis.
Inland marine insurance covers your equipment from theft or damage while it is in transit to and from your job sites. As an earth moving contractor, inland marine coverage is a necessity to protect the equipment that you use for your work. Additionally, some property owners may require you to obtain a 3% bond to guarantee that you will perform the work as agreed. This type of insurance is not covered by commercial auto insurance, which may limit your coverage.
Pollution liability insurance
If you operate an excavation business, pollution liability insurance for contractors is a vital part of your insurance plan. While pollution liability coverage is not a standard policy, it is often a good idea for contractors to get it. This insurance covers the costs of cleanup for contamination caused by construction or other defects. Pollution liability insurance for contractors is a good option because it helps to bridge the gap between your general liability insurance and environmental liability insurance.
A standard CGL policy will not cover your pollution or environmental safety claims. While some property insurance policies provide pollution coverage, they only cover claims made by first parties. In the case of an oil spill, a CGL policy may cover the expenses of cleaning up the spill, but not any subsequent claims. In addition, the CGL policy will not cover the expenses of an oil tank. To avoid such liabilities, you should consider pollution liability insurance for contractors.