Who this page is for
This page is for Virginia excavation, grading, site-work and earth-moving contractors. Ford Agency works with smaller owner operators, established excavation companies and operations that require a more specialized market review.
Typical excavation operations
- Grading, clearing and site preparation
- Trenching, drainage and utility work
- Foundation or roadway excavation
- Septic-system and underground piping work when disclosed
- Demolition, blasting or deep excavation only when fully disclosed
Important differences within this trade
Two excavation contractors can present very different exposures. Helpful distinctions include:
- Maximum excavation or trench depth
- Shoring, sloping and trench-safety practices
- Underground utility locating and work near pipelines
- Work near occupied structures, roads or public rights-of-way
- Heavy-equipment ownership, hauling practices and operating radius
- Demolition, blasting, environmental and subcontracted work
Excavation accounts often need a detailed narrative. Depth, utility work, equipment, hauling, soil conditions, pollution controls and work near occupied structures can affect market fit.
Coverage conversations to have
General liability and underground property damage
General liability may respond to certain third-party bodily-injury or property-damage claims, subject to the policy. Damage to underground utilities, nearby structures, roads or other property can create significant losses. Coverage depends on policy language, endorsements, exclusions and the circumstances of the claim.
Completed operations
A problem may become apparent after grading, trenching, backfilling or drainage work has been completed. General liability should not be treated as a warranty for faulty workmanship, and completed operations coverage depends on the issued policy and applicable exclusions.
Heavy equipment, tools and rented equipment
Excavators, skid steers, loaders, compactors, trenchers and other mobile equipment may need contractors-equipment coverage. Review owned, leased, rented and borrowed equipment, including applicable limits, deductibles, valuation, attachments and transportation.
Commercial auto, trailers and hauling
Dump trucks, service vehicles, pickups and trailers generally call for a commercial-auto discussion. The review should distinguish hauling your own equipment or materials from hauling property for others. Vehicle weight, radius, drivers, trailers and the type of material transported can all matter.
Employees and workers’ compensation
Employee duties, payroll by class, trench work, machinery operation, lifting and driving affect the workers’ compensation review. Virginia requirements depend on the facts, and subcontractor employees can affect the statutory count. Use the official Virginia Workers’ Compensation Commission guidance for current rules.
Pollution liability
Excavation can disturb contaminated soil, underground storage tanks, fuel, chemicals, sediment or polluted water. Fuel spills, runoff and accidental disturbance of existing contamination may not be fully addressed by an ordinary general liability policy. Contractors pollution liability can be an important part of the discussion.
Commercial umbrella
Excavation losses can be severe, and certain customers or contracts may require limits above the primary policies. An umbrella may add limits over scheduled underlying coverage, but it does not automatically cover every exclusion.
Subcontractors, certificates and written requirements
Keep written agreements and evidence of insurance from subcontractors. When a customer asks for additional insured, waiver of subrogation, primary-and-noncontributory wording or special limits, send the written requirement. A certificate is generally evidence of insurance and does not ordinarily amend a policy.
What to send Ford Agency
- A detailed description and percentage of each operation
- Maximum excavation and trench depth
- Details about utility work, locating procedures and shoring practices
- Annual sales, payroll and employee count
- Subcontracted cost, trades used and risk-transfer practices
- Vehicle, driver, trailer and hauling information
- Owned, leased, rented and borrowed equipment schedules
- Demolition, blasting, septic, environmental or roadway work details
- Current policies, recent loss runs and requested effective date
- Contracts, bid specifications or certificate requirements when available