Every small business excavation contractor is vulnerable to a lawsuit. It comes with the territory of working in a high-risk industry. In addition, the US is litigious by nature. In the construction industry, it isn’t a case of whether you will be sued, it is a case of when.
The services provided by your business could fall under foundation digging, blasting, building demolition, dirt-moving, foundation drilling, or land clearing. Any of these make you vulnerable to property damage claims. Even with the best systems in place, accidents happen and property can be broken or destroyed.
An expensive business
Excavations are expensive, and lawsuits can run into millions. It is vital then that you obtain the proper insurance coverage to protect your business. The excavation contractor’s industry is one of the largest, with over 24,000 businesses that employ 386,000 people in the US today. Each year, this industry generates some $ 56 billion in revenue.
Liability insurance is there to protect you and your business from unanticipated circumstances. For instance, if your business causes bodily harm or property damage to a third party, you are covered from financial loss that could put you out of business.
3 Insurance policies every contractor needs
As an excavation contractor, it will pay you, in the long run, to look at these 3 essential insurance packages designed for your industry.
1. Commercial General Liability insurance
Commercial General Liability (CGL) insurance provides financial protection if your company accidentally harms a third-party or damages property. A good example is when a client trips on a shrill piece that your employee accidentally left behind, resulting in injury. The client could very well sue your business for medical costs.
2. Workers’ Compensation
Workers’ Compensation covers your employees’ lost wages and medical expenses in the event of work-related illnesses and injuries. If you don’t have this insurance in place, you run the risk of paying out of pocket when faced with a lawsuit. In many US states obtaining Worker’s Compensation is mandatory.
3. Commercial Auto Liability
As an excavation contractor, your business’s backbone is the use of heavy machinery vehicles such as backhoes, dump trucks, and 18-wheelers. These vehicles must have proper coverage.
A Commercial Auto Liability policy covers each vehicle. While the premiums may be higher than average, it’s worth the price in the event of an accident.
Choose the right insurance company
These are just a few crucial insurance policies that you might want to purchase. But what should you be looking at when choosing your insurance company? Here it pays to do your research and find out policy pricing, the financial strength of an insurance company, and their customer service reputation. It is highly suggested to read through this article written by experts to help your business insurance needs.
Your business requirements as an excavation contractor will largely dictate the type of insurance package you require. Before signing on the dotted line, understand fully what coverage your insurance provides. It will serve you well in the long run.
