Construction is a complex, nuanced and big-budget business – and none of it happens without excavation and grading. While it’s the first step in the construction process, it’s also one of the most important; excavation and grading sets the stage and lays the foundation for a smooth and efficient project.
Efficiency is the secret sauce every construction project leader or manager is looking for, and many of the common delays or setbacks occur at the outset of a project. With proper planning, excavation and grading, construction begins on time and without significant headaches, paving the way for the rest of the project to proceed.
And like many aspects of the construction industry, excavation and grading are evolving and adopting new modern technologies that save time and ensure more precise results. As industries change, it’s vital for clients to know what insurance they need – and be prepared to answer their question as they seek different coverages.
Why it’s important to properly insure excavation and grading clients
Sometimes, you never know what’s underground until the dig begins. But thanks to new technologies like ground penetrating radar (GPR) and drones, excavators and graders have a better idea of what they’re working with before they get started.
Grading and excavation risk management is perhaps the most important aspect of their work, because risk and hazards are prevalent and can happen at any stage of the process. “Risk” doesn’t have to mean the potential for injury, either; risks can be delays to the project leading to financial losses, or professional mistakes that require working backward.
Underground utilities or other structures can damage equipment that’s expensive and takes a long time to repair. While preparation and the pre-construction work are critical for excavation and grading professionals, they still need insurance that’s fit for their specific needs.
What are the top questions about excavation and grading contractor coverage? We’ll share some of the most common, and how to deliver solutions for your clients.
Questions that brokers should answer for grading and excavation clients
What are the various grading and excavation business coverage types? Do clients need equipment insurance? Are grading contractor insurance needs consistent with other professionals in the construction industry?
Your clients might ask these questions, among others. Because construction is a heavily-regulated industry and many requirements for insurance vary by state, knowing your clients’ individual business – including their risk factors – is paramount before even recommending specific coverages.
We’ve compiled a list of grading and excavation insurance FAQs to serve as a guide when you communicate with clients (present or potential) about how they should be protected, and help them better understand the purpose of each type of coverage.
What types of insurance do grading and excavation businesses need?
Let’s dig in.
General liability
This will cover a variety of risks, particularly if your client is deemed responsible for damage to property that doesn’t belong to their business. Many jobsite or work-related risks or accidents are covered by general liability.
Professional liability or E&O (errors and omissions)
This coverage is often included in general liability and can help pay for legal costs if there’s a dispute or the client is accused of an error that results in monetary damage.
Commercial auto
If your client has company-owned vehicles, they need commercial auto coverage. This helps pay for things like collision repairs, medical bills or any accidents that occur while driving a company vehicle.
Workers’ compensation
This is required in most U.S. states and helps pay for an employee’s medical bills or lost wages if they’re injured on the job.
Contractors’ tools and equipment
Also known as inland marine coverage, this protects your clients if equipment owned or leased by them is damaged or stolen.
Commercial property
This protects your clients’ building and property in the event of vandalism, theft, fire, extreme weather or other natural disasters.
How can grading and excavation insurance protect against liability claims?
The right coverage – which an insurance partner like SitePro can help clients obtain – is tailored to their line of work and prepares them for liability claims. In the event of a lawsuit or other type of claim stemming from on-site work injuries or illness, grading and excavation insurance is designed to protect your clients.
What factors can impact the cost of grading and excavation contractors insurance?
Most insurance policies written for excavation and grading businesses take a number of factors into account:
- Your clients’ business revenue, and how many projects they work on
- The type, size and scale of projects they work on
- The physical location of their business and where they do work
- How many company-owned vehicle they have and what they’re used for
- How many total employees they have
How can grading and excavation businesses ensure they have the right coverage?
The best course of action is to partner with an experienced and focused insurance partner. SitePro has worked with excavation and grading contractors for more than 35 years to ensure they have customized coverage that takes all of the above factors into account.
Who (or what) does grading and excavation contractors insurance protect?
Insurance that is designed for your clients and not an out-of-the-box solution will cover all the bases. It protects the business and employees, and helps pay for costs associated with accidents that damage other property.
Additionally, many states do not permit construction work to begin until the appropriate insurance coverages have been obtained.
SitePro provides excavation contractors with customized, up-to-date coverage
Construction clients may be fully engaged and know every last detail about their insurance, or, they may not know anything at all. Some prefer to put their trust in the insurance broker, knowing their industry knowledge will result in the most complete coverage.
Working with SitePro puts brokers in the best position for success, both for their own business and for their clients. SitePro is a trusted insurance partner for excavation clients because of its long-standing track record and commitment to fully understanding each business before making a recommendation.
Why SitePro? Your clients get access to exceptional service through specialized coverage, risk control, and claims. From heavy equipment coverage to OSHA compliance and construction risk management, SitePro offers grading and excavation contractors full support and gives them freedom to focus on their business.
