Grading & Excavation Contractor Business Insurance
the industry specialist – SitePro®
Types of Grading & Excavation Work We Cover
- Excavation
- Site Preparation
- Land Improvement
- Grading of Land
Excavation Expertise
With more than 30 years of industry experience, we understand the challenges facing road construction businesses and the security you need to succeed in this industry. The experts at SitePro offer competitive pricing for everyone from small paving contractors to large multi-state operations – keeping your business protected no matter what the size.
Specialized Coverages
In a high-risk industry like construction, it is essential to have specialized insurance for your unique risk situations. SitePro goes beyond the standard products to offer specialized coverage and risk control that our competitors simply can’t – or won’t. Plus, NIP Specialty Brokerage wholesale operation enables us to target non-standard commercial risks for a true one-stop shop for niche businesses.
Local Experience & Service
SitePro insures road construction businesses around the country and we know different regions have different needs. No matter where your business is located, we have the experience and expertise to get you exactly the coverage your business requires to stay safe and thrive.
Why Work with NIP Group?
30 Years
A+ (Superior)
Industry Expertise
Specialized Coverages
Competitive Rates
Superior Customer Service
Coverage Examples
General Liability
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.
Show 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.
Automobile Liability
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.
Show 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.
Property Insurance
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.
Show 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.
Inland Marine
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.
Show 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
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.
Show 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.
Crime
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.
Show 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.
Show 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.
Show 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
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.
Show 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
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.
Show 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.
Frequently Asked Questions
Why does my business need grading & excavation insurance?
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.
What lines of grading & excavation insurance coverage do I need for my work?
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.
How much insurance should a grading & excavation contractor business have?
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.
What is the cost of grading & excavation insurance?
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.
What are the most common accidents and claims grading & excavation insurance companies see?
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.
What is the importance of becoming a certified grading or excavation contractor? Does this have any effect on my site preparation insurance?
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.
What should I do if there is incident or claim related to my site preparation, excavation, or grading work?
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.
What makes SitePro’s coverage stand out from other site preparation insurance companies?
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.
What is an Experience Modification Rate & how does it influence my excavation insurance?
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.