- Specialized site preparation insurance coverage options specifically for the grading & excavation industry
- Risk control, claims management, and compliance & safety resources
- We provide proper valuation of your operations, property and equipment
The grading & excavation industries are inherently dangerous work sectors. As a result, site preparation contractors are faced with large risks and potential liability. Don’t let an accident, injury, property damage, or theft put you out of business. The right grading & excavation insurance policy can help you manage the legal and financial burdens if the unexpected happens.
A standard insurance policy issued to businesses to protect them against liability claims for bodily injury and property damage from out of premises, operations, products, and completed operations.
Example: Your excavation company is hired dig a trench near a road in order to create a run off area. While digging, your excavator damages the roadway which now needs to be repaired. A general liability policy would cover the cost of the repairs to the roadway.
Insurance that protects the insured against financial loss because of legal liability for automobile-related injuries to others or damage to their property by an automobile.
Example: While driving to a work site, one of your employees is involved in an accident while driving one of your work trucks. The employee was at fault as the drove through a red light and side swiped another vehicle. Your commercial auto policy will cover the cost of the accident.
An insurance policy for businesses that insures against damage to their buildings and contents due to a covered cause of loss, such as a fire. The policy may also cover loss of income or increase in expenses that result from property damage.
Example: A storage facility where you store your site preparation equipment is severely damaged in a fire. In addition to the building sustaining damage, some of your equipment inside has been damaged as well. In this scenario, your property coverage would cover both the building and the damaged equipment stored inside.
Insurance policy that covers the loss or damage to any transport by which the property is transferred, acquired, or held between the point of origin and the final destination.
Example: A generator and several laptop computers you were using and storing overnight are stolen from a job site your business is working on. Your inland marine policy would help to cover the loss of the equipment due to theft.
Umbrella Liability/Excess Liability
Umbrella liability insurance covers claims in excess of regular business and auto policy coverage with the main purpose of protecting assets from an unforeseen event, such as a tragic accident in which the business is liable.
Example: While excavating a work site, you hit a sewer main you failed to identify. As a result, the sewage has contaminated the surrounding job site area. The cost to repair the sewer main, as well as the clean up effort exceed the policy limits of your general liability policy. An umbrella policy will cover the costs that exceed your general liability limits.
A commercial crime insurance policy typically provides several different types of crime coverage including employee dishonesty coverage, forgery or alteration coverage, computer fraud coverage, funds transfer fraud coverage, kidnap, ransom, or extortion coverage.
Example: It is discovered that one of your employees in charge of managing payroll has been transferring funds from your business accounts to an outside account. Crime coverage would help to restore the loss of funds that have been sustained.
Contractors Pollution Liability
Contractor-based insurance policy, offered on a claims-made or occurrence basis, that provides third-party coverage for bodily injury, property damage, defense, cleanup, and related defense costs as a result of pollution conditions arising from contracting operations performed by or on behalf of the contractor.
Example: Your company is hired to clear and grade an undeveloped work site. During the site preparation, your employees improperly install a silt fence causing runoff issues into an adjacent properly after severe heavy rains. The resulting clean up costs would be covered by your contractors pollution liability policy.
Employment Practices Liability
Employment practices liability insurance protects employees against resulting litigation, including claims of sexual harassment, discrimination, and wrongful termination.
Example: One of your employees is terminated on the grounds of their poor work performance. The disgruntled employee files a lawsuit against your company claiming wrongful termination. In this scenario, an employment practices liability policy would cover the legal costs incurred during the resulting litigation.
Cyber liability covers exposures when communicating or conducting business online. Potential liabilities include the internet and email. Online communication tools could result in claims alleging breaches of privacy rights, infringement or misappropriation of intellectual property, employment discrimination, violations of obscenity laws, the spreading of computer viruses, and defamation.
Example: Your online network falls victim to a cyber attack, including all of your client contact records and payroll. Your business is now being extorted to pay money in order to release the data. A cyber liability policy would cover lost income due to business interruption, extortion, data loss, and more.
Workers’ compensation provides no-fault statutory benefits prescribed in state law by an employer to an employee (or the employee’s family) due to a job-related injury (including death) resulting from an accident or occupational disease.
Example: During an excavation project, the trench your employees are digging collapses and causes injury to one of your employees. A workers’ compensation policy will cover the cost incurred due to the employee’s injuries while on the job.
Grading & Excavation Frequently Asked Questions
The construction industry has some of the highest annual risk of any industry. Work related accidents, damages, and injuries are a common occurrence simply due to the dangerous nature of the work being performed. Professional grading & excavation contractors should always carry the proper insurance to protect themselves from these incidents. which ultimately can destroy even the largest operations if they don’t have the proper coverage.
At a minimum, general liability is the most essential insurance coverage grading & excavation contractors should carry for their daily operations. General liability protects your business in the event you or one of your employees causes property damage or bodily injury due to your work. Depending on the state you’re operating, your business may be required to carry Workers’ Comp coverage. If your site preparation business has a vehicle fleet, a commercial auto policy should be considered in the event of any vehicle accidents or damage to your fleet as a personal auto policy will generally not be able to provide the coverage necessary to protect your fleet. Commercial property insurance will help protect your business location (whether home-based or a physical office), as well as, your paving equipment, tools, etc. An inland marine policy will protect any of the grading or excavation equipment you are transporting to and from jobsites.
The amount of insurance you carry is largely driven by the type of work you do. If your business mostly does excavation and trench work, the higher risk nature of your work will require limits that are suitable to cover your business. Overall, both commercial and residential clients will be more comfortable knowing in the event of an accident, you have the coverage necessary to cover the cost of the claims incurred. It is best to have more insurance than you feel is needed because in the unfortunate event of a claim, you don’t risk the business you’ve spent years building.
The cost of grading & excavation insurance varies from company to company. There are a number of factors that influence the cost of your insurance premium, including the size of your business, the assets you choose to protect, and the area you work in. One of primary factor that contributes to your insurance costs is the type and scope of the work your business is performing. If your business generally performs more risky work or utilizes heavy equipment (excavators, bulldozers, dump trucks, etc.), it is likely your premium would be higher due to the increased exposure of your work.
As a sector of the construction industry, there are number of claims that grading & excavating contractor businesses encounter throughout their operations. Some of the more common claims insurance companies see throughout the construction industry include equipment or work related injuries to employees, work defects, and equipment theft. Additionally, auto related accidents are a common claim that grading & excavation contractors face.
Obtaining a construction certification for your grading & excavation operations can be extremely beneficial for your business. First, having a member of your team with the proper certification will help establish a strong culture of safety on the job site, which will help thwart potential claims from happening. Another benefit of having a certified staff member is an increased level in the quality of work your business produces. Additionally, an Asphalt Paving Technician certification will help your business obtain desirable job contracts that may not be available to contractors lacking the proper credentials. Certifications do not directly influence the cost of your insurance premium, but some insurance companies will consider this factor when underwriting your policy.
In the event of an incident (work, auto, property, etc), the first action to take is to document the incident in as much detail as possible. You or your employees should write down who was involved, the work being performed when the incident occurred, and any injuries or damage that occurred. Next, contact your insurance carrier to report the incident and provide them with as much detail as necessary. As a SitePro client, you’ll be able to utilize our expert claims center to help you manage your claims and ensure your business continues operating without interruption.
SitePro offers every client the premier service they need to keep their business operations running. Our approach is to provide you with the coverage and protection you want and expect from your grading & excavation insurance. Additionally, SitePro helps you to reduce claims by providing access to our world class risk management services, expert claims assistance, and more. With over 30+ years of industry experience, SitePro knows exactly what site preparation contractors need out of their insurance coverage.
Experience Modification Rate (EMR), also known as eMod or mod rate, is a critical component of an employer’s workers’ compensation insurance premiums. What influences an Experience Modification Rate? First, your grading of land or excavation company’s losses over the prior year are examined, which helps to determine any potential future losses. Using this information, the Experience Modification Rate is determined in order to appropriate price out your excavation insurance premium.
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Associated General Contractors Resource Library is filled with articles & white papers concerning the construction trade employment, federal labor standards classifications, and construction training modules.
Associated General Contractors provides educational & training resources with webinars, modules, and credentialing on jobsite safety management, construction project management, and foreman supervisory training.
The Jobsite posts regular articles concerning construction contractors & subcontractors. Topics covered include new construction technology, silica dust rules, risk management and reduction, and jobsite management in the wake of COVID-19.
Modern Constractor Solutions’ blog details issues directly concerning the construction industry. COVID-19 jobsite safety management, cold weather equipment maintenance, and debunking construction myths are just several topics construction contractors can access.
Articles specifically covering asphalt paving contractors. Regularly updated content reporting on road building technology, asphalt paving heavy equipment management , and road worker safety.
OSHA safety & health resources provide articles on respiratory protection, concrete construction sites, crane safety, fall protection, and electrical hazards.
The OSHA construction page has a library of resources concerning construction industry guidance, trenching & excavation regulations, highway work zones, and more.
Additional construction safety resources provided by OSHA. Construction business owners can utilize listings of OSHA Training Institute Educations Centers, e-library of construction occupationals safety & health topics, and on-site consultations.
OSHA’s eTool provides a library of hazards that are responsible for construction industry fatalities. Additional information includes an explanation of OSHA standards apply to various construction classifications.
OSHA construction hazards fact sheets, white paper, and guides related to ladder safety, resource transportation hazards, scaffolding, and construction work in confined spaces.
OSHA’s Worker Safety resources cover common construction employee hazards. Fall protection, trench & scaffold collapses, electrical shocks, and personal protective equipment failures are detailed with solutions provided for each.
AGC’s WebEd offers free live webinars for all who register, as well as, paid on-demand content for past webinars. WedEds focus on construction business management issues such as interpreting construction contracts, construction business marketing, and cybersecurity.
The AGC Education and Research Foundation seeks to support the future of the construction industry by providing available scholarships, awarding construction education achievement, and supporting construction residencies and internships.
Contractor Magazine’s business management articles are available for contracting business owners looking for information on construction best practices, how successfully win bid & win contracts, and more.
Small business resources available through OSHA. Available to construction business owners of various classifications including: grading & excavation, site improvement, road paving, and more.
The Department of Labor resources available to construction industries include workplace posters, construction regulations, contract aware notifications, and construction apprenticeships
US Department of Labor compliance guides are available for construction contractors who are handling or are looking to be involved with federal construction contracts.
OSHA compliance guidelines available for construction contractors. Guide topics cover a number of areas including construction cranes, jobsite inspection scheduling, and more.
The Department of Labor has several compliance assistance resources for construction managers in both English & Spanish. Issues discussed include the Fair Labor Standards Act, forklift operations, and construction worker exemptions.
OSHA’s construction industry compliance standards details all federal and state standards construction contractors must comply with on jobsites and during building operations.
The Department of Labor’s Office of Federal Contact Compliance Programs is a collection of resources for businesses involved with federal business contracts. Contractors can access articles related to construction best practices, construction contract notification requirements, and construction regulations.
OSHA cranes & derricks compliance with specific details on construction crane, derrick, and heavy equipment compliance standards construction contractors & subcontractors should be familiar with.
|99315 – Street or Road Construction or Reconstruction|
|95410 – Grading of Land|
|92215 – Driveway, Parking Area or Sidewalk-Paving or Repaving|
|92338 – Drywall or Wallboard Installation|
|94007 – Excavation|
|98483 – Plumbing-Residential or Domestic|
|98482 – Plumbing-Commercial and Industrial|
|99613 – Telephone, Telegraph, or Cable Television Line Construction|
|96702 – Irrigation or Drainage System Construction|
|92451 – Electrical Apparatus-Installation, Servicing or Repair|
|92478 – Electrical Work-within Buildings|
|99946 – Water Mains or Connections Construction|
|98993 – Sign Erection, Installation, or Repair|
|95647 – Heating or Combined Heating and Air Conditioning Systems or Equipment-Dealers or Distributors and Installation, Servicing or Repair-No Liquefied Petroleum Gas (LPG) Equipment Sales or Work|
|99321 – Street or Road Paving or Repaving, Surfacing or Resurfacing or Scraping|
|99310 – Snow and Ice Removal-Contractor|
|99507 – Swimming Pools-Installation, Servicing or Repair-Below Ground|
|98304 – Painting-Exterior-Buildings or Structures-Three Stories or Less in Height|
|98820 – Sewer Mains or Connections Construction|
|16291 – Construction operations contractor (not railroads)|
|91560 – Concrete Construction|
|91577 – Conduit Construction for Cables or Wires|
|98813 – Sewer Cleaning|
|97047 – Landscape Gardening|
|16292 – Construction operations owner (not railroads). Excluding operations onboard ships|
|91629 – Debris Removal-Construction Site|
|91111 – Air Conditioning Systems or Equipment-Dealers or Distributors and Installation, Servicing or Repair|
|91580 – Contractors-Executive Supervisors or Executive Superintendents|
|96816 – Janitorial Services|
|98805 – Septic Tank Systems – cleaning (7699)|
|91590 – Contractors Permanent Yards-Maintenance or Storage of Equipment or Material|
|94276 – Fence Erection Contractors|
|98710 – Sand or Gravel Digging|
|98884 – Sheet Metal Work-Outside|
|91746 – Door, Window, or Assembled Millwork-Installation-Metal|
|95310 – Gas Mains or Connections Construction|
|98806 – Septic Tank Systems-Installation, Servicing or Repair|
|98555 – Quarries|
|97050 – Lawn Care Services|
|98636 – Refrigeration Systems or Equipment-Dealers and Distributors and Installation, Servicing, or Repair-Commercial|
|99505 – Swimming Pool Servicing|
|91551 – Communication Equipment Installation-Industrial or Commercial|
|97222 – Machinery or Equipment-Industrial-Installation, Servicing, or Repair|
|99777 – Tree Pruning, Dusting, Spraying, Repairing, Trimming or Fumigating|
|99303 – Street Cleaning|
|91600 – Construction or Project Manager|
|96409 – Insulation Work-Organic or Plastic in Solid State|
Technology has transformed almost every part of daily life. It’s no shock that construction technology is making worksites safer and more efficient.
Among many hazards excavation & site preparation contractors face, cardiovascular disease is a growing risk for workers in various industries.
In this webinar, Avi Meyerstein of Husch Blackwell explains how online training measures up to OSHA compliance for construction management.
In this webinar, John Bertoli & Marissa Weidenborner explain how your small or medium sized business can navigate COVID-19 relief resources.
Here are the most frequent claims that we see related to construction contractors in the roadway striping, road improvement, and paving sectors:
|Loss Description Code||Business Classification|
|Collision or Sideswipe With Another Vehicle||Roadway striping contractor|
|Collision with Other Vehicle||Paving contractor|
|Motor Vehicle – other||Paving contractor|
|Theft or Larceny||Driveway paving contractor|
|Theft||Road improvement contractor|
Here are the most severe claims that we see related to construction contractors in the roadway striping, road improvement, and paving sectors:
|State||Coverage||Loss Description||Total Incurred|
|FL||Auto Physical Damage||Overturn/Rollover||$80,600|
|FL||Auto Liability||Collision or Sideswipe With Another Vehicle||$75,036|
|FL||Auto Liability||Collision or Sideswipe With Another Vehicle||$50,050|
|NJ||Auto Physical Damage||Theft or Larceny||$44,644|
Here are the top 10 construction industry professional accounts SitePro has recently bound throughout the roadway striping, road improvement, and paving sectors:
|State||Business Classification||Policy Type||Premium|
|NJ||Excavation Contractor||GL, Auto||$84,338|
|CA||Excavation Contractor||GL, Prop, Inland Marine, Excess||$47,060|
|CA||Paving Contractor||GL, Prop, Auto, Excess||$30,308|
|NY||Paving Contractor||GL, Prop, Auto||$40,900|
|TX||Excavation Contractor||GL, Auto, Inland Marine, Excess||$65,940|
|CA||Paving Contractor||GL, Prop, Auto, Excess||$144,108|
|NY||Pool Contractor||GL, Prop, Auto, Inland Marine||$81,199|
|NY||Excavation Contractor||GL, Prop, Excess||$64,973|
|CA||Septic Contractor||GL, Prop, Auto||$52,018|
|CA||Excavation Contractor||GL, Auto, Inland Marine, Excess||$74,295|