ContractorNerd’s proprietary quote platform connects excavation contractors with contractor-friendly insurers in minutes. Our tech-enabled team of specialized agents understands excavation risks—from class code 94007 operations to NCCI 6217 workers’ comp exposures—and delivers personalized quotes that match your specific operations. As trades-only specialists, we’ve completely remodeled the contractor insurance experience to be faster, simpler, and more effective.
Get competitive quotes today through our platform that analyzes hundreds of excavation contractor insurance quotes across the US, providing transparency on coverage needs, quote benchmarks, and savings opportunities. With potential savings of 33-39% through our contractor-friendly markets, our specialized agents help you navigate everything from $1M/$2M general liability limits to $3-8 per $100 payroll workers’ comp rates.
In this guide you’ll learn the following and more:
- Coverage Requirements by Business Stage – From sole proprietor essentials to comprehensive programs for established operations with 5+ employees
- General Liability Deep Dive – Class code 94007 specifics, coverage for excavating to 12 feet, and quotes ranging from 1.1% to 15.6% of revenue
- Workers’ Compensation Insights – NCCI code 6217 premium benchmarks, trenching hazards, and OSHA-compliant safety strategies
- Equipment & Auto Protection – Inland marine coverage for excavators and bulldozers, plus $1M CSL commercial auto requirements
- Umbrella Coverage – $1-5 million excess protection with premiums from $750-$2,500 per million
Whether you’re operating a single excavator or managing multiple crews with millions in equipment, this guide provides the insights you need to secure proper coverage at competitive rates. Start comparing quotes today through ContractorNerd’s proprietary platform and see why excavation contractors trust our tech-enabled approach to insurance.
What Insurance Do Excavation Contractors Need?
Starting Out: Sole Proprietor
As a solo excavation operator, you need fundamental coverage to protect against basic risks. Your insurance foundation should include:
- General Liability Insurance – Your first line of defense against third-party claims and property damage
- Tools and Equipment Insurance – Protects your valuable machinery and tools
- Commercial Auto Insurance – Covers dump trucks and equipment transportation
Growing: Small Business with Your First Employee
Once you hire your first employee, your insurance needs expand significantly. Workers’ compensation becomes mandatory and essential for protecting both your workers and your business. At this stage (typically 2-3 employees), you should add:
- Workers’ Compensation – Required by law and crucial for employee protection
- Excess / Umbrella Insurance – Provides extended liability protection for major projects
- Property Insurance – Important if you’re maintaining equipment yards or facilities
- Pollution Liability Insurance – Guards against environmental risks inherent in excavation work
Established: Business with Multiple Employees and Projects
Excavation businesses with five or more employees need comprehensive insurance programs to address complex exposures. Your mature operation requires:
- Employment Practices Liability Insurance – Guards against workplace-related claims
- Cyber Liability Insurance – Protects digital project management systems and data
- Professional Liability Insurance – Essential if offering design-build services
- Bond Coverage – Necessary for municipal and commercial work opportunities
As your excavation business grows, your insurance program should evolve to match your expanding risks and responsibilities. Regular reviews with your insurance professional ensure your coverage keeps pace with your success.
General Liability Insurance for Excavation Contractors
General liability insurance provides essential protection against third-party claims for bodily injury and property damage arising from your excavation operations. This coverage is the foundation of any excavation contractor’s insurance program, protecting your business from potentially devastating lawsuits and claims.
What General Liability Covers
General liability insurance for excavation contractors typically includes:
- Third-party bodily injury claims if someone is injured by your operations
- Property damage to others’ property caused by your work
- Completed operations coverage for claims arising after project completion
- Legal defense costs even if claims prove groundless
Most excavation contractors carry standard limits of $1 million per occurrence and $2 million aggregate, though larger projects may require higher limits.
Understanding Your Classification
Excavation contractors typically fall under class code 94007, which commonly includes:
- Excavating to 12 feet below grade
- Demolition of outbuildings
- Work on slopes up to 20 degrees
Important exclusions may apply to new residential site prep, installation of piping/tanks/lines, public roads work, and specialized operations like explosives or environmental remediation.
General Liability Quote Benchmarks
Based on national averages for excavation contractors, here’s what you might expect:
| Revenue Level | National Average | Favorable Rate | Potential Savings | Low % of Revenue | High % of Revenue |
| $50,000 | $3,210 | $1,980 | 38% | 1.1% | 3.5% |
| $150,000 | $6,230 | $4,190 | 33% | 2.1% | 5.2% |
| $500,000 | $17,020 | $10,320 | 39% | 5.1% | 15.6% |
These quotes represent national averages only. Actual quotes can vary significantly based on your state, specific operations, claims history, and other factors. Favorable rates can provide savings of 33-39% compared to standard market pricing.
Ready to see exactly how much you could save? Our detailed excavation contractor insurance cost breakdown reveals state-specific opportunities where contractors slash premiums by up to $57,400 annually—especially in markets like Illinois and Pennsylvania.
Key factors affecting your quotes include your claims history, years in business, safety programs, and the specific types of excavation work you perform.
Workers’ Compensation Insurance for Excavation Contractors
Workers’ compensation insurance is mandatory once you hire your first employee and critical for excavation contractors due to the high-risk nature of the work. Excavation contractors typically fall under NCCI class code 6217 (Excavation & Grading), which covers digging, grading, backfilling, site preparation, and utility trenching operations.
Premium Benchmarks
Workers’ comp premiums for excavation contractors typically range from $3.00 to $8.00 per $100 of payroll, reflecting the hazardous nature of excavation work. Contractors with strong safety programs and clean claims histories can secure quotes at the lower end of this range.
Key Workplace Hazards
The excavation industry faces unique risks that make workers’ comp essential:
- Trench collapse injuries
- Heavy equipment accidents
- Struck-by incidents with machinery
- Back injuries from equipment operation
- Falls into excavations
- Exposure to underground hazards
Implementing OSHA-compliant trenching protocols and maintaining comprehensive equipment operator training can significantly reduce both workplace injuries and insurance premiums. Proper documentation of all safety procedures is essential for securing competitive rates.
Additional Insurance for Excavation Contractors
Commercial Auto Insurance
Commercial auto insurance is essential for excavation contractors operating heavy equipment and dump trucks. Coverage must protect both on-road transportation and off-road operations. Standard limits of $1,000,000 combined single limit may not adequately protect larger operations. Annual premiums typically range from $2,000 to $5,000 per vehicle, varying by vehicle type, usage, and claims history.
Tools & Equipment Insurance (Inland Marine)
Inland marine coverage protects your valuable excavation machinery including excavators, bulldozers, graders, trenchers, compactors, and specialized attachments. Annual premiums typically range from $2,000 to $8,000 based on total equipment value, usage patterns, storage security, and operator experience.
Excess/Umbrella Coverage
Umbrella insurance provides crucial additional liability protection above your general liability, auto, and employer’s liability limits. For excavation contractors, this coverage is particularly important given the potential for catastrophic claims from trench collapses, utility strikes, or equipment accidents. Most contractors carry $1-5 million in umbrella coverage, with premiums typically ranging from $750 to $2,500 per million depending on your underlying coverage limits and risk profile.
Excavation Insurance, Remodeled
ContractorNerd makes it easy for small-to-mid-sized excavation contractors to tailor coverage, get multiple quotes, and buy insurance in minutes. Our proprietary quote platform connects you directly with contractor-friendly insurers who understand excavation risks, while our tech-enabled team of specialized agents ensures you get the right coverage at competitive rates.
Why excavation contractors choose ContractorNerd:
- Instant online quotes from multiple A-rated carriers through our proprietary platform
- Access to contractor-friendly insurers who specialize in excavation risks
- Tech-enabled agents with deep expertise in excavation-specific coverage requirements
- Fast certificate issuance with dedicated claims support when you need it most
Our platform was built specifically for contractors like you, combining cutting-edge technology with insurance expertise to deliver a faster, simpler, and more effective insurance experience.
Don’t let insurance complexity hold your business back. Get your excavation contractor insurance quotes today and discover how ContractorNerd’s proprietary platform can help protect your business with the right coverage at the right price.