What is Excavation Contractors Insurance?
The work that excavation and demolition businesses do exposes them to a variety of potential risks. These include both liability- and property-related perils, and some of the risks can be quite expensive to recover from. Massachusetts businesses in this industry can protect themselves from many of the risks that they’re exposed to by purchasing excavation contractors insurance.
Excavation contractors insurance is a specific type of commercial insurance that’s designed for businesses in the excavation and demolition industry. Policies typically come with a range of coverages that encompass both general and particular risks that these businesses face, and the policies bundle the coverages together into a single package. When compared to purchasing each coverage separately, the bundled package policy is usually both more convenient and substantially less expensive.
What Businesses Should Protect Themselves With Excavation Insurance?
The vast majority of Massachusetts businesses that specialize in excavation and demolition will find that excavation insurance is well-suited to them. Businesses generally should have insurance to protect against potential risks, and this tends to be the most appropriate type of insurance for these specialized businesses.
Businesses that complete excavation and demolition work alongside other construction endeavors should speak with an insurance agent who’s familiar with excavation insurance as well as other construction-related insurance policies. After reviewing a business's specific activities, a knowledgeable agent will be able to recommend either this, another type of commercial insurance policy or both.
Often, businesses that are involved in excavation and construction need both an excavation insurance policy and a contractors insurance policy. Excavation policies typically don’t cover all construction work, and contractors policies commonly exclude excavation and demolition.
What Coverages Are Available Through Excavation Insurance Policies?
The different coverages that are found within an excavation policy can vary, but they normally include protections like the following:
- Commercial General Liability Coverage, which might cover basic accidents and defamation lawsuits
- Commercial Auto Liability Coverage, which might cover accidents involving company-owned vehicles
- Inland Marine Coverage, which might cover damage to machinery while it’s in transit
- Employment Practices Liability Coverage, which might cover allegations of employment discrimination
- Commercial Umbrella Coverage, which might cover large claims that exceed underlying coverages’ limits
Many other coverages may also be available as standard protections or optional ones. One such other coverage to consider is extra expense coverage, which usually helps pay for an alternative facility if a business’ primary location is rendered unusable due to a covered incident.
Should Excavation Contractors Have Workers Compensation?
Massachusetts law requires most businesses that have employees to carry workers compensation coverage, and excavation contractors generally fall into the category of businesses that need this insurance. Workers compensation is a protection that helps mitigate the risk of workplace injuries and illnesses, usually helping pay a portion of lost wages and medical expenses when an employee is hurt on the job.
In addition to any legal requirements to carry workers compensation, businesses that hire excavation and demolition companies often frequently require this insurance. Without the insurance, access to jobs (and especially large jobs) may be severely limited.
Whether workers compensation insurance is purchased within an excavation policy or separately from one depends on the policy. Sometimes it’s included, but the coverage is also widely available via stand-alone policies if it’s not part of an excavation policy.