Excavation & Grading Contractor Insurance
General liability, heavy equipment coverage, workers’ comp and commercial auto for excavation, grading and site work contractors across the West. Same-day certificates of insurance. Call (949) 868-7350.
What Insurance Does an Excavation Contractor Need?
Excavation contractors need general liability that covers underground utility strikes and collapse, equipment coverage for the machines that make your living, workers’ comp, and commercial auto for dump trucks and the trailers that move your equipment. GCs and public agencies typically ask for $1M per occurrence / $2M aggregate, and larger site work contracts often add an umbrella.
The biggest risk in excavation insurance is the policy that looks fine until a claim. Many general liability policies exclude or limit explosion, collapse and underground damage, known as XCU, which is exactly what excavation work causes. The Hard Hat Insurance team, the construction division of Bearstar Insurance Services, places excavation and grading contractors with carriers that write site work and confirms XCU coverage before you sign, whether you dig foundations and utility trenches, grade lots, or clear land.
Commercial General Liability
Excavation General Liability
General liability pays when your work damages property or injures someone who isn’t your employee. For excavators, the most common claims are striking buried gas, water or fiber lines, damage to neighboring foundations or slopes from digging and vibration, and mud or debris left on public roads.
XCU (explosion, collapse, underground) coverage confirmed, not excluded.
Additional insured, waiver of subrogation and primary/non-contributory wording when your GC or agency requires it.
Surety Bonds
License, Permit & Right-of-Way Bonds
Oregon, Washington, California, Nevada and Arizona require a contractor bond to license, and cities often require permit or right-of-way bonds before you dig in a public street. We can often issue bonds the same day.
Bad credit programs available.
License, permit, right-of-way and contract bonds.
Excavation and grading are rated in high workers’ comp classes, and trench work carries some of the most serious injury risks in construction. Equipment operators, laborers and office staff should each be reported under the right code, which is the biggest lever on your premium. In Washington, workers’ comp is only available through L&I; elsewhere we compare state funds with private carriers.
Pay-as-you-go options available (helps cash flow).
Waivers of subrogation for commercial and public contracts.
Workers' Compensation
What We Cover
Commercial Auto
Dump Trucks & Haulers
Commercial auto covers your dump trucks, pickups, and the trailers and lowboys that move your equipment, plus the drivers you hire. Contracts on public jobs often require higher limits.
Contractor’s Equipment
Contractor’s Equipment (Inland Marine)
Covers your excavators, loaders, dozers, skid steers and attachments against theft, fire, vandalism and overturn, on the job site or in transit. We can also cover equipment you rent or lease, which rental companies usually require.
Scheduled or blanket coverage for owned equipment.
Rented and leased equipment coverage.
Contractors Pollution Liability: Covers fuel spills and disturbing contaminated soil, which most GL policies exclude.
Builders Risk: For projects you build or manage.
Excess Liability (Umbrella): When the standard $1M limit isn’t enough for a large site work contract.
And More
Excavation Insurance by State
Oregon: You need a CCB license, and your bond and liability minimums depend on your endorsement. See Oregon excavation contractor insurance.
Washington: Excavation contractors register with L&I and keep a bond and liability insurance on file. Workers’ comp comes only from L&I. See Washington excavation contractor insurance.
California: Excavation and grading require a CSLB C-12 (Earthwork and Paving) or A (General Engineering) license, plus a $25,000 license bond.
Nevada: The NSCB licenses this work as A-7 (Excavating and Grading) or A-12 (Excavating, Grading, Trenching, and Surfacing).
Arizona: The ROC classification is A-5 (commercial), R-2 (residential) or CR-2 (dual) Excavating, Grading and Oil Surfacing.
Texas: No statewide excavation license, but cities and counties require permits, and right-of-way work often requires a bond.
Colorado: No statewide excavation license. Cities and counties handle licensing and permits.
In every state, you must call 811 before you dig.
Main line: (949) 868-7350
Jesus Galvan, licensed insurance broker in OR, WA, CA, NV, AZ, TX and CO. Se habla español.
Need a COI Today?
GCs and public agencies usually ask excavation subs for $1M/$2M GL with XCU coverage, additional insured, waiver of subrogation, primary/non-contributory wording, auto liability and proof of workers’ comp. Send us the contract requirements and we’ll confirm your policy meets them before you sign.
5 Excavation Exclusions That Can Leave You Uninsured
1. XCU exclusion
Excludes explosion, collapse and underground damage. For an excavator, that can remove most of the claims you’re likely to have.
2. Underground utility limitation
Caps or excludes damage to buried lines, sometimes unless you can show the locate was called in. Keep your 811 ticket numbers.
3. Earth movement / subsidence exclusion
Excludes damage from settling, sliding or shifting soil, which can follow grading and backfill work.
4. Pollution exclusion
Most GL policies exclude fuel spills and contaminated soil. A separate contractors pollution policy fills the gap.
5. Subcontractor and action-over exclusions
Some policies require every sub to carry their own insurance naming you as additional insured, or exclude claims where an injured worker sues the GC who passes it to you. We review these provisions before you sign and tell you plainly what’s covered.
Excavation Contractor Insurance FAQ
What insurance do excavation contractors need?
General liability with XCU coverage, contractor’s equipment coverage, workers’ comp, and commercial auto. Pollution liability and an umbrella are common for larger or public jobs.
Does general liability cover hitting an underground utility line?
It can, if the policy doesn’t exclude or limit underground damage (the “U” in XCU). Calling 811 and documenting the locate also matters, both legally and for the claim.
How do I insure my excavator and other equipment?
With a contractor’s equipment (inland marine) policy. It covers theft, fire, vandalism and overturn, on site or in transit. General liability does not cover your own equipment.
Do I need pollution liability?
If you handle fuel on site or dig where soil may be contaminated, yes. Most GL policies exclude pollution, and many public and commercial contracts require a pollution policy.
Can I get insurance if I’ve had claims or I’m a new business?
Usually, yes. We work with specialty carriers that write new excavation companies and contractors with prior claims, though pricing and terms vary.
What is the general liability class code for excavation?
Most carriers rate excavation general liability under ISO class code 94007 (Excavation). Grading, trenching and land clearing may be classed separately, so how you describe your operations matters. Your workers’ comp code is separate: 6217 in most states that use NCCI codes, while California and Washington use their own systems. A wrong GL class can mean a surprise bill at audit or a denied claim, so we match the class to the work you actually do.
Contact
Call
info@hardhatinsurance.net
Hard Hat Insurance is a specialized marketing division of Bearstar Insurance Services.
Insurance services provided by Bearstar Insurance Services.
Jesus Galvan is a licensed insurance broker in CA, NV, TX, AZ, OR, CO, and WA.
License numbers available upon request. Coverage availability varies by state.
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