Essential Guide to Excavation Insurance
The year 2020 bought with it many challenges in the excavation industry. You had to box smart with your business to keep the cash flow ticking and adopt appropriate COVID safety measures.
But it is not all doom and gloom. The US Bureau of Statistics states that the job market for excavation contractors will grow by some 10% in the next two years.
Undoubtedly you want to be part of this growth. One way of securing your position in the market is by obtaining the correct insurance for your business. Your insurance doesn’t have to be expensive if you get the right advice from the start.
Why is excavation contractor insurance necessary?
As an excavation business owner, you are well aware of the hazards of your work. It will come as no surprise that your sector carries many risks.
Possible industry associated risks
1. Worker safety
When trenches collapse or cave in, it poses a risk to your workers. According to the Occupational Safety and Health Administration (OSHA), trench collapses are responsible for the deaths of 2 workers every month.
2. Vehicles and equipment
Construction vehicles frequently have off-road usage, which exposes them to risk. Fire, theft, and explosions pose a risk to your heavy equipment, such as cranes and loaders.
3. Client safety
Accidents that occur at your place of business or on your job site may cause third party physical injury. The injured person may sue your company to take care of the resulting medical bills.
4 Types of insurance that offer your business the best coverage?
1. Workers Compensation insurance
If your employee suffers a work-related injury, you will be held responsible for medical bills. This may place a heavy financial burden on your small business if you are not insured.
The benefits of having Workers Compensation insurance includes coverage that begins from the emergency room. Follow-up treatment and rehabilitation costs are also covered. Also, for the duration of the time that your employee is out of work, there will be partial coverage of lost wages.
2. Business Owners Policy
For a small business looking to keep costs down, a Business Owners Policy (BOP) is a good option. It combines General Liability with Commercial Property insurance.
Any business that rents or owns an office needs Commercial Property insurance. This covers not only the building but also the assets within. In the event of an unexpected disaster, the coverage will take care of your property and equipment replacement or repair.
General Liability insurance is necessary for a business that interacts with the public. It provides coverage for third party claims of bodily injury, property damage, libel, and slander.
3. Commercial Auto insurance
Specifically designed for your business-owned vehicles. The insurance offers coverage for third party vehicle damage. It pays out for medical expenses, damage related expenses, and legal costs. It also offers protection against theft and vandalism.
4. Inland Marine insurance
Critical insurance coverage for your excavation business. Especially as your work involves the transportation of excavating equipment. The insurance covers damage to your excavation equipment or loss while in transit or on the job site.
Don’t let lack of insurance affect your bottom line
You may think the benefits of investing in insurance are not immediately discernible. Some business owners even view insurance as something to put on the back burner for later. That is until an unexpected event occurs. The financial implications could seriously impact your bottom line or even bankrupt your business.
Don’t leave your insurance up to chance. Do your research and obtain insurance quotes to compare. If you already hold insurance policies, make sure you are not under insured. Speak to an industry expert about your insurance requirements.
Investing in the correct insurance coverage is what will ultimately save the day and your business.