Excavation Contractor Insurance in Massachusetts

What is Excavation Contractor Insurance?

Massachusetts businesses that demolish structures and grade sites are exposed to a range of risks by the nature of work they do. These risks include both property and liability perils, and some can be costly to recover from. Excavation contractor insurance helps these businesses protect themselves from many of the perils they face.

Excavation contractor insurance is a specialized form of commercial insurance that’s intended specifically for businesses that are in the excavation industry. Because these businesses face multiple risks, most of these policies come with several coverages that are bundled together.

What Businesses in Massachusetts Need an Excavation Contractor Policy?

Most businesses that are involved in the excavation of land and/or structures generally should have an excavation contractor policy, and usually only these businesses need this type of policy. Businesses that are involved in other kinds of construction work usually find that another insurance policy is more specifically tailored to their needs.

Businesses that do excavation and other construction work ought to consult an insurance agent who specializes in policies that offer insurance for excavation contractors. A knowledgeable agent can analyze a business’ particular risk exposure and then, determine whether an excavation contractor policy adequately mitigates the business risks.

In many cases where a business does both excavating and construction work, an excavation policy is needed because contractors policies often exclude demolishing activities from their protections. Coverages and exclusions do vary, however, which is why each business in this situation should speak with an agent.

What Coverages Do Policies That Offer Insurance for Excavation Contractors Come With?

There are many coverages that policies which offer insurance for excavation contractors might come with. Some of the main protections that these policies frequently have include:

Commercial General Liability Coverage, which may cover instances of third-party injury or property damage that occur in a basic accident

Commercial Auto Liability Coverage, which may cover auto accidents caused by employee drivers and damage to company-owned vehicles

Employment Practices Liability Coverage, which may cover lawsuits alleging improper employment actions were taken

Commercial Umbrella Coverage, which may cover lawsuits that exceed the limits of underlying policies

Inland Marine Coverage, which may cover equipment and tools as they’re transported to demolition sites

Businesses that have an office might also want extra expense coverage, which may cover the cost of renting alternative office space if a main office is rendered unusable by a disaster.

Do Excavation Contractors Need Workers Compensation Coverage?

Most excavation contractors in Massachusetts are required by state law to carry workers compensation coverage for their employees. This coverage normally protects against work injuries and illnesses, often paying for medical care and some lost wages when an employee is injured while on the job.

Additionally, many builders and general contractors require excavators that they work with to have this coverage in place. Not carrying workers compensation could make securing jobs difficult.

What is a Waiver of Subrogation?

Some general contractors may ask for a waiver of subrogation to be included on an excavator’s workers compensation policy. This normally states that the insurer won’t come after a negligent third party, such as a general contractor, to recover money that the insurer had to pay on claims. The waiver can often be added to a workers compensation policy, and an insurance agent can help with the process of including it in a policy.