Connecticut Excavation Contractor Insurance

General Liability Insurance: Protecting Your Business from Third-Party Claims

General liability insurance is the foundation of any excavation contractor’s insurance policy.

It protects your business from third-party claims of bodily injury or property damage that occur as a result of your work. General liability insurance would cover the cost of repairs and any legal fees if the property owner sues your business.

Here are a few more scenarios where general liability insurance can save your business:

• Your crew accidentally hits a gas line while digging a trench, causing an explosion that damages the surrounding property
• A visitor to your job site trips over a pile of debris and breaks their arm. Your policy would cover their medical expenses and lost wages.
• Your excavator kicks up a rock that cracks a nearby home’s window. General liability insurance would pay to replace the window.
• A competitor claims your advertising slogan is too similar to theirs and threatens to sue. Your policy would cover your legal defense fees.

At The Allen Thomas Group, we’ll work with you to determine the right level of general liability coverage for your business based on factors like your annual revenue, number of employees, and the types of projects you take on.

We’ll also make sure you have adequate coverage for any additional insureds, like project owners or general contractors who require you to name them on your policy.

Workers’ Compensation Insurance: Contractors Need to Protect Your Most Valuable Asset

If you have employees, workers’ compensation insurance is a must-have. In fact, Connecticut law requires most businesses with one or more employees to carry workers’ comp insurance.

This coverage protects your business if an employee is injured or becomes ill while working on the job. It covers medical bills, expenses, financial losses (lost wages), and even death benefits if the worst should happen.

Excavation work is inherently dangerous, with risks like cave-ins, equipment accidents, and heat exhaustion. Here are a few real-life claims scenarios that show why workers’ comp coverage is so important:

• An employee is struck by a swinging excavator bucket and suffers a concussion and broken arm. Workers’ comp would cover their medical treatment, rehabilitation, and a portion of their lost wages while they recover.
• A crew member suffers heatstroke after a long day working in the hot sun. Workers’ comp would cover their emergency room visit and follow-up care.
• An employee is badly injured in a trench collapse and is unable to return to work. Workers’ comp would provide ongoing disability payments to help support them and their family.

When you work with The Allen Thomas Group, we’ll help you find a workers’ comp policy that provides the right level of coverage for your business while also managing costs.

We can also assist with implementing safety training programs and other risk management strategies to help reduce the likelihood of on the job injuries.

Pollution Liability Insurance: Protecting Your Business Against Environmental Risks

Excavation work can unearth all sorts of environmental hazards, from underground storage tanks to contaminated soil. If your work causes pollution or environmental damage, your business could be on the hook for costly cleanup and remediation expenses. That’s where pollution liability insurance comes in.

This type of coverage, also known as environmental liability insurance, protects your business if you’re held responsible for pollution-related damages or injuries. Here are a few examples of when pollution liability insurance can save the day:

• Your crew accidentally punctures an underground fuel storage tank, causing a leak that contaminates the surrounding soil and groundwater. Pollution liability insurance would cover the cost of cleanup and remediation.
• A nearby resident claims the dust and debris from your excavation work have caused their asthma to worsen, and they file a bodily injury claim against your business. Your policy would cover your legal defense fees and any settlements or judgments.
• You uncover hazardous waste on a job site and are required by law to report it and halt work until it can be properly disposed of. Pollution liability insurance may cover the cost of waste disposal and help compensate your business for the work stoppage.

The Allen Thomas Group has access to a wide range of pollution liability insurance products, including policies designed specifically for contractors. We’ll work with you to identify your potential environmental exposures and find a policy that provides the right level of coverage for your business.

Excess/Umbrella Liability Insurance: An Extra Layer of Protection for Excavation work

Accidents happen, and in the world of excavation, they can be catastrophic. If a claim exceeds the limits of your general liability policy, you could be stuck paying the difference out of pocket. That’s where excess/umbrella liability insurance comes in.

This type of coverage provides an extra layer of liability protection above and beyond your primary insurance policies. Here’s how it works:

Let’s say your general liability policy has a limit of $1 million per occurrence. If a property damage claim is filed against your business for $1.5 million, your general liability policy would pay the first $1 million, and your excess/umbrella policy would kick in to cover the remaining $500,000 (assuming you have a high enough limit).

Excess/umbrella insurance can also provide coverage for claims that may be excluded by your primary policies, such as libel, slander, and false advertising. At The Allen Thomas Group, we typically recommend excavation contractors carry excess/umbrella coverage with limits of at least $5 million to $10 million, depending on the size and scope of their operations.

Inland Marine Insurance: Protecting Your Tools and Heavy Equipment

Your excavation equipment is the backbone of your business. If something happens to your backhoes, bulldozers, or other machinery, it can bring your work to a screeching halt and cost you big bucks to repair or replace. That’s where inland marine insurance comes in.

This type of coverage, sometimes referenced as a form of contractor’s tools and equipment insurance, protects your tools and equipment from damage, theft, or loss while they’re in transit or at a job site.

Here are a few real-world scenarios where inland marine insurance can be a lifesaver:

• There is theft of heavy equipment from a job site overnight. Inland marine insurance would cover the cost to replace it.
• A hydraulic hose on your bulldozer bursts, causing significant damage to the engine. Your policy would cover the replacement or repair.
• Your skid steer is damaged in a rollover accident while being transported to a job site. Inland marine insurance would cover the cost to repair or replace it.

At The Allen Thomas Group, we can customize an inland marine policy to fit the specific needs of your excavation business. This form of heavy equipment insurance offers protection in transit and at the construction site.

We’ll work with you to make sure you have affordable coverage and your equipment is properly valued and insured, so you’re not left footing the bill if something goes wrong.