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Excavation Insurance 101: Protecting Your Business from the Ground Up

  • Writer: Phil Bowles
    Phil Bowles
  • Feb 25
  • 1 min read

Updated: Jul 30

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Excavation work is essential in construction but comes with significant risks. From equipment damage to accidental utility strikes, robust insurance coverage is critical to protecting your business. 


What is Excavation Insurance? 

Excavation insurance covers the unique exposures of earthmoving and excavation projects. Key components include: 

  • General Liability: Covers third-party injuries or property damage. 

  • Workers' Compensation: Protects employees injured on the job. 

  • Equipment Coverage: Insures machinery like excavators against damage or theft. 

  • Pollution Liability: Covers environmental damage claims. 


Why It is Essential 

Excavation involves unstable terrain, heavy machinery, and potential hazards, such as cave-ins or underground utility strikes. Excavation insurance: 

  • Covers costly lawsuits, repairs, and downtime. 

  • Meets legal and contractual requirements. 


Key Exposures Covered 

  • Third-Party Liability: Damaging a nearby structure or causing injury. 

  • Equipment Loss: Theft or accidents involving machinery. 

  • Environmental Hazards: Soil contamination or spills. 

  • Employee Injuries: Coverage for medical expenses and lost wages. 


Real-Life Claim Examples 

  • A $200,000 utility strike claim is covered by liability insurance. 

  • Equipment theft is protected with inland marine insurance. 

  • Workers' compensation covers a trench collapse injury. 


Excavation insurance isn’t just a precaution—it’s a necessity for protecting your business from the financial and legal risks inherent in the industry. By investing in comprehensive coverage, you can safeguard your equipment, employees, and reputation, ensuring your business continues to thrive no matter what challenges arise. 

 

Phil Bowles, a Risk Management Advisor at Knight Insurance Group, specializes in providing tailored insurance solutions for contractors, equipment dealers, manufacturers, and other businesses within the construction industry.



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